The global pharmaceutical contract manufacturing market is witnessing strong momentum. Valued at USD 193.52 billion in 2024, the market reached USD 209.90 billion in 2025 and is projected to grow at a robust CAGR of 8.2% between 2025 and 2030 — ultimately reaching USD 311.95 billion by 2030.
This steady expansion is driven by the increasing demand for GLP-1 manufacturing outsourcing, rising ADC outsourcing for commercialized biologics, and patent expiries of blockbuster drugs leading to a surge in biosimilar production. However, pricing pressure in the US and Europe and the high cost of regulatory compliance (Annex-1, PFAS restrictions) are anticipated to slightly restrain growth.
Market Overview: Emerging Opportunities and Regional Insights
Asia Pacific: The Fastest-Growing Region
The Asia Pacific region is expected to witness significant growth throughout the forecast period. Factors such as a large patient population, rising demand for innovative therapies, and the emergence of small and mid-sized pharma companies are propelling regional expansion.
Moreover, the growing R&D pipeline, advancements by CDMOs, and the high cost of in-house drug development are pushing companies toward outsourcing solutions. Increasing investments in viral vector, mRNA, and cell & gene therapy manufacturing are also creating lucrative opportunities.
North America: The Market Leader
Globally, North America remains the largest market for pharmaceutical contract manufacturing services, owing to its strong pharmaceutical base, advanced manufacturing infrastructure, and robust R&D investments. The US, in particular, is witnessing growing demand for biologics and generics, sustaining its leadership position.
Key Market Dynamics
1. Driver: GLP-1 Capacity Expansion
The rising demand for GLP-1 drugs such as Ozempic, Wegovy, Rybelsus, Zepbound, and Mounjaro, whose combined revenues touched USD 90 billion in 2024, has created a capacity crunch.
To address this, CDMOs are rapidly expanding peptide manufacturing facilities. For example:
- Corden Pharma announced a USD 1 billion investment in peptide production and a USD 500 million greenfield facility near Basel, Switzerland.
- Curia and OneSource expanded vial filling and fill-finish capabilities in 2024–2025.
The patent expiry of semaglutide (2025–2032) will further drive outsourcing demand and volume growth.
2. Restraint: Complex Regulatory Compliance
Strict global regulations such as Annex 1 (sterile fill-finish), DSCSA (product tracking), and EU PFAS restrictions increase the operational burden on CDMOs. Compliance failures can lead to financial losses and reputational damage, making this a major market restraint.
3. Opportunity: Growth in Emerging Markets
Emerging CDMO hubs like China, India, South Korea, Taiwan, and Singapore are offering cost-effective, skilled manufacturing ecosystems.
Companies such as WuXi Biologics, Samsung Biologics, Asymchem, Jubilant Pharmanova, and Divi’s Laboratories are leading the regional charge. Meanwhile, global players like Thermo Fisher, Lonza, and Boehringer Ingelheim are expanding their regional presence through partnerships and facility upgrades.
4. Challenge: Global Trade Instability and Insourcing
Trade policy changes — such as the US Biosecure Act (2024) and renewed domestic manufacturing initiatives (2025) — have impacted outsourcing from US companies to Asia.
Major pharma firms like Eli Lilly and Pfizer are increasingly investing in US-based manufacturing, which may reduce long-term outsourcing demand. Political uncertainty and trade restrictions continue to pose risks to global CDMO operations.
Market Ecosystem
The pharmaceutical contract manufacturing ecosystem includes:
- End users: Large, mid-sized, and generic pharmaceutical companies
- Service providers: CDMOs, CROs, and specialized technology partners
- Regulatory bodies: Ensuring compliance, quality, and safety standards
- Collaborative networks: Facilitating R&D partnerships and technology exchange
Together, these stakeholders drive innovation and efficiency across the global drug manufacturing value chain.
Segmental Analysis
By Service: Pharmaceutical Manufacturing Services Lead the Market
In 2024, pharmaceutical manufacturing services dominated the global market, driven by the rising demand for biologics and biosimilars. Increasing consumption of complex therapeutics and technological advancements in manufacturing have further fueled segment growth.
Leading CDMOs are focusing on capacity expansions, facility upgrades, and strategic collaborations to meet evolving production and regulatory demands.
By End User: Big Pharmaceutical Companies to Exhibit Highest Growth
Big pharma companies are expected to record the highest CAGR through 2030, fueled by growing biologics pipelines, rising R&D investments, and strategic partnerships with CDMOs. Their focus on cell and gene therapies and targeted treatments necessitates advanced manufacturing capabilities, making outsourcing an efficient and scalable strategy.
Regional Insights
- North America: Largest market; strong R&D ecosystem and advanced infrastructure
- Europe: Second-largest market; growing focus on biosimilar manufacturing
- Asia Pacific: Fastest-growing region; low-cost production and skilled workforce
- Latin America, Middle East & Africa: Emerging potential through localization and investment
Recent Developments
- June 2025: WuXi Biologics announced a new 60,000L microbial manufacturing site in Chengdu, China.
- July 2025: Thermo Fisher acquired Sanofi’s sterile manufacturing site in Ridgefield, New Jersey.
- October 2024: Thermo Fisher launched Accelerator Drug Development, an end-to-end drug development suite.
- March 2024: Lonza acquired Roche’s large-scale biologics manufacturing site in Vacaville, California.
Leading Market Players
- Thermo Fisher Scientific Inc. (US)
- Lonza Group (Switzerland)
- WuXi AppTec & WuXi Biologics (China)
- AbbVie, Inc. (US)
- Catalent Inc. (US)
- Samsung Biologics (South Korea)
- Evonik Industries AG (Germany)
- FUJIFILM Holdings Corporation (Japan)
- Siegfried Holding AG (Switzerland)
- Boehringer Ingelheim (Germany)
- Merck KGaA (Germany)
- Almac Group (UK)
- Charles River Laboratories (US)
- Asymchem Inc. (China)
- Vetter Pharma (Germany)
- Alcami Corporation (US)
Conclusion
The pharmaceutical contract manufacturing market is entering a transformative phase, driven by biologics expansion, GLP-1 demand, and technological innovation. While regulatory complexity and trade instability pose challenges, regional diversification and strategic collaborations are expected to sustain long-term growth.
As the industry evolves, CDMOs that invest in capacity expansion, digitalization, and global compliance will remain at the forefront of this USD 300+ billion opportunity.
