Science/STEM Finance

Global Pharmaceutical Contract Development and Manufacturing Market to Grow $42 Billion in 5 Years

By Jemima McEvoy Wednesday, January 13, 2021

The global pharmaceutical contract development and manufacturing market are expected to see substantial growth in the next five years despite some roadblocks. The market is currently worth a lot of money: $100 billion. By 2025, a new report predicts that it will be worth 42.2% more at $142.2 billion. Here’s everything you need to know about the market, the businesses booming within it, and why it’s projected to see a relatively lucrative few years.

Market Profile

The global pharmaceutical contract development and manufacturing market have emerged as useful in the shifting landscape of pharmaceutical production. Most companies do not have the infrastructure required to produce pharmaceuticals. Therefore, working with a contract manufacturer can be a cost-saving measure and can help quickly launch the product into the global market.

An increasing number of businesses are outsourcing their development and manufacturing to contract companies performing these actions. Leading players in this growing market include Catalent, Patheon, Baxter, AbbVie, Lonza, Pfizer, and Evonik Degussa.

The market has been consolidated over the past few years due to a slew of mergers and acquisitions.

Reasons for Growth

This is not a new industry, so what explains all the momentum? According to a report on projections for the market through 2025 recently published to Research and Markets, the global pharmaceutical contract development and manufacturing market is going to grow an average of 7.3% each year over the next five years.

There are a number of reasons why this growth has been projected. One is identified in the report as increased demand due to the development of biotech: “Most of the companies are continuously involved in the development of complex drug compounds to address a specific disease.” There has been an increase in demand for generic drugs globally, pushing up this market’s value and creating more business opportunities.

Furthermore, the market has gained momentum from a boost in investment in pharmaceutical research and development.

Threats to Growth

Though the future looks relatively hopeful, the report does highlight some factors that could potentially inhibit growth. The analysis warns that many of the contract developers have inadequate capacity utilization of their manufacturing facilities. The report also identifies stringent and complex government regulatory requirements as an inhibitor to quick growth. 

“Dynamic changes witnessed in this sector, coupled with severe pressure over the profit margins, are anticipated to restrain growth,” reads the report.

Final Takeaways

Despite the production threats, the market is still projected to experience a sizable shift in value in the near future. The predicted future success of this market is useful to keep in mind if you are looking to start your own business or are simply interested in investment opportunities.

About the Author


Headshot for author Jemima McEvoy

Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.

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