The global pharma contract manufacturing market will hit $130b by 2026. This is according to the Pharmaceutical Contract Development and Manufacturing Organisation Global Market Report 2022 which also indicates that rising demands for therapeutics, especially in emerging markets is expected to expand the market which was valued at approximately $100 billion in 2020.
The research also hints that factors promoting the 4.6 percent compound annual growth rate (CAGR) of the market include the increasing commercialization of generics and emerging technologies and small biotechs with limited or no production capabilities driving development in the biopharmaceutical sector. Other factors include increasing geriatric patient population, growing consumption of medicines, rising healthcare expenditure, improving healthcare infrastructure in emerging markets and mounting pressure to reduce healthcare costs.
The active pharmaceutical ingredients (API/bult drugs segment accounts for $81.5 billion which is growing at a CAGR of 4.4 percent between 2021 and the forecast period of 2026. More so, it is expected that growth in the advanced drug delivery formulations segment will reach 3.8 percent. All of this is within the $130 billion valuation.
China, the world`s second largest economy is expected to reach a projected market size of $21.1 Billion by 2026, achieving a 5.6 percent CAGR while Japan, Canada and Germany are also expected to grow significantly, witnessing 3.6 percent, 4.1 percent and 4.2 percent CAGRs, respectively, over the forecast period. Some of the factors driving growth in the Asia-Pacific region include lower labour costs, presence of significant talent pool and growing domestic markets.
With a large number of pharmaceutical and biopharmaceutical giants coupled with several leading companies all over the world, the US and Europe lead the global market. Being the largest segment in the world, the US market is valued at $31.6 billion in 2021.
The report also states that the packaging segment of the market will be worth $15.6 billion by 2026, as contract manufacturing organisations increasingly adopt newer and efficient ways to package products, increasing demand for new machinery. There are ongoing efforts to automate packaging of personalised cell and gene therapies.
The US, Canada, Japan, China and Europe, being major markets, accounted for $8 billion worth of the market in 2020 and are expected to reach $11.3. Billion by the end of the forecast period. Among the fastest growing countries in this cluster of regional markets, is China which is led by countries like Australia, India and South Korea. The worth of the Asia-Pacific market is expected to hit $3.4 billion by 2026.
Key market players include Abbvie Inc, Almac Group, Baxter International, Inc., Boehringer Ingelheim GmbH, Catalent Pharma Solutions Inc., Cobra Biologics Holding AB, CordenPharma International, Evonik Industries AG, Lonza Group Ltd., NextPharma Technologies Holding Ltd., Recipharm AB, Siegfried AG, Thermo Fisher Scientific Inc and Vetter Pharma International GmbH.
