Pharmaceutical Contract Manufacturing and Contract Market Report 2025 (Global Edition)

Global Pharmaceutical Contract Manufacturing and Contract Market Report 2025 Market Size Split by Service Type (Contract Manufacturing Organization (CMO), Contract Research Organization (CRO)), by Mol...

Pharmaceutical Contract Manufacturing and Contract Market Report Description

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Impact of Tariff Trumph on Pharmaceuticals Industry

The reintroduction of tariffs under President Trump’s “Liberation Day Tariffs” in April 2025 has created significant disruption in global pharmaceutical trade. These tariffs, ranging from 10% to 46%, specifically target pharmaceutical products, APIs (active pharmaceutical ingredients), medical packaging, and machinery from key manufacturers in China and India. This has led to increased production costs, supply chain delays, and regulatory challenges for U.S.-based pharmaceutical companies.

The tariffs have particularly impacted generic drug manufacturers, who rely heavily on APIs from China and India. Biopharmaceuticals and vaccines are also feeling the pressure, with tariffs on critical materials like bioproduction media and cold-chain packaging raising costs by up to 25%. Similarly, contract manufacturing organizations (CMOs) are grappling with the need to identify new suppliers and adjust production plans to mitigate rising costs.

Foreign governments, including the European Union, have retaliated with tariffs on U.S. pharmaceutical exports, further complicating global trade. Clinical trials are also impacted, as tariffs on drugs and diagnostic kits delay trial timelines.

Market research is increasingly crucial for navigating these challenges. By providing real-time data on API pricing, supplier reliability, and tariff impact, pharmaceutical firms can make informed decisions on sourcing, compliance, and investment strategies. This data-driven approach helps mitigate risks, optimize supply chains, and identify alternative manufacturing hubs to offset tariff-related disruptions.

Overall, market research is essential for pharmaceutical companies to adapt to the new tariff landscape, enabling them to maintain competitive advantage and navigate global trade dynamics effectively.

Competitive Landscape of the Pharmaceutical Contract Manufacturing & Contract Market

The pharmaceutical contract manufacturing and contract market is majorly competitive, with companies vying for market share. They offer a major range of services, including drug development, manufacturing, packaging, and distribution, catering to the diverse needs of pharmaceutical companies worldwide.

• In December 2022, Red Hill Biopharma's medication, Talicia, used to treat H. pylori infection, would continue to be manufactured commercially by Recipharmthrough 2026. Red Hilland Recipharm has worked closely since 2015 to develop and manufacture Talicia (delayed-release capsules, omeprazole magnesium, amoxicillin, and rifabutin, 10 mg/250 mg/12.5 mg).

(Source:https://www.redhillbio.com/news/news-details/2023/RedHill-Biopharma-Announces-Talicia-Approved-in-the-United-Arab-Emirates-and-First-Commercial-Order-Outside-the-U.S/default.aspx

Top Companies Market Share in Pharmaceutical Contract Manufacturing and Contract Industry: (In no particular order of Rank)

• Thermo Fisher Scientific Inc. (U.S.)
• Catalent Inc. (U.S.)
• Lonza Group Ltd (Switzerland)
• Recipharm AB (Sweden)
• Vetter Pharma International GmbH (Germany)
• Piramal Enterprises Limited (India)
• Almac Group (U.K.)
• Cambrex Corporation (U.S.)
• Samsung Biologics Co.
• Ltd (South Korea)
• Siegfried Holding AG (Switzerland)
• FUJIFILM Diosynth Biotechnologies (Japan)
• Aenova Group (Germany)
• C.H. Boehringer Sohn AG & Co. KG (Germany)
• Fareva SA (Luxembourg)
• Fabbrica Italiana Sintetici S.p.A. (Italy)
• WuXi Biologics (Cayman) Inc. (China)
• Aurobindo Pharma Ltd. (India)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

North America dominated the market in 2024. It accounted for around 40% of the global revenue

According to Cognitive Market Research, North America dominated the market in 2024. It accounted for around 40% of the global revenue due to the region's advanced infrastructure, workforce, and regulatory framework, making it an attractive destination for outsourcing manufacturing activities. The market in North America is characterized by a diverse range of contract manufacturing services, including formulation development, API manufacturing, packaging, and labeling. Additionally, the region has a large number of pharmaceutical companies looking to streamline operations, reduce costs, and focus on core competencies, driving the demand for contract manufacturing services. Overall, North America remains a prominent hub for pharmaceutical contract manufacturing and is expected to continue witnessing growth in the coming years.

Europe is the fastest-growing region due to its increasing demand for outsourcing services, stringent regulatory requirements, and a focus on cost-effective manufacturing solutions. Additionally, countries are emerging as attractive destinations for contract manufacturing due to their lower labor costs and favorable regulatory environments. Overall, Europe remains a key region for pharmaceutical contract manufacturing and is expected to continue witnessing growth in the coming years.

The current report Scope analyzes Pharmaceutical Contract Manufacturing and Contract Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Pharmaceutical Contract Manufacturing and Contract Market Analysis

According to Cognitive Market Research, the global Pharmaceutical Contract Manufacturing & Contract market size was estimated at USD 178512.2 Million, out of which North America held the major market of more than 40% of the global revenue with market size of USD 71404.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031 due to the increasing demand for specialized drugs, cost-saving initiatives by pharmaceutical companies, the need for flexible manufacturing capacities, and regulatory pressures. Additionally, the trend towards outsourcing non-core activities to focus on core competencies further boosts the contract manufacturing market. Advancements in technology, such as digitalization, also play a significant role in driving growth in this sector.

Europe Pharmaceutical Contract Manufacturing and Contract Market Analysis

According to Cognitive Market Research, the global Pharmaceutical Contract Manufacturing & Contract market size was estimated at USD 178512.2 Million, out of which Europe held the major market of more than 30% of the global revenue with market size of USD 53553.66 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031 due to increasing demand for cost-effective drug manufacturing solutions, the growing trend towards outsourcing of manufacturing activities by pharmaceutical companies to focus on core competencies, stringent regulatory requirements leading to a need for specialized expertise, and the desire for scalability in production capacity to accommodate fluctuations in demand and product pipelines. Additionally, advancements in technology and the increase in specialized contract manufacturing organizations contribute to market growth.

Asia Pacific Pharmaceutical Contract Manufacturing and Contract Market Analysis

According to Cognitive Market Research, the global Pharmaceutical Contract Manufacturing & Contract market size was estimated at USD 178512.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with market size of USD 41057.81 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.2% from 2024 to 2031 due to increasing demand for pharmaceutical products, the growing trend of outsourcing manufacturing processes to reduce costs and focus on core activities, advancements in technology and manufacturing capabilities, regulatory reforms promoting contract manufacturing, and the presence of a skilled workforce. Additionally, the region's strategic location and expanding healthcare infrastructure also contribute to its attractiveness for contract manufacturing activities.

South America Pharmaceutical Contract Manufacturing and Contract Market Analysis

According to Cognitive Market Research, the global Pharmaceutical Contract Manufacturing & Contract market size was estimated at USD 178512.2 Million, out of which Latin America market has more than 5% of the global revenue with a market size of USD 8925.61 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.6% from 2024 to 2031 due to cost-effectiveness, regulatory advantages, access to skilled labor, and proximity to key markets. Additionally, the increasing demand for generic drugs, the growing prevalence of chronic diseases, and rising investments in healthcare infrastructure contribute to the growth of contract manufacturing in the region. These factors drive pharmaceutical companies to outsource manufacturing processes to third-party contractors in Latin America.

Middle East Pharmaceutical Contract Manufacturing and Contract Market Analysis

According to Cognitive Market Research, the global Pharmaceutical Contract Manufacturing & Contract market size was estimated at USD 178512.2 Million, out of which Middle East and Africa held the major market of around 2% of the global revenue with market size of USD 3570.24 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031 due to increasing demand for cost-effective drug production, growing emphasis on quality and compliance with regulatory standards, and the desire for flexibility and scalability in manufacturing processes. Additionally, outsourcing allows pharmaceutical companies to focus on core competencies such as research and marketing while reducing operational costs and risks. These drivers collectively fuel the growth of contract manufacturing and outsourcing in the region.

Pharmaceutical Contract Manufacturing and Contract Market Analysis

Service Type Segment Analysis

According to Cognitive Market Research, contract manufacturing organizations held the major market share over the forecast period. These organizations provide manufacturing services, including formulation development, scale-up, and production of pharmaceutical products.

Contract research organizations are the fastest-growing category over the forecast period. These offer research and development services, including preclinical and clinical trials, regulatory support, and drug discovery. CROs help pharmaceutical companies expedite the development process and navigate regulatory hurdles.

• Contract Manufacturing Organization (CMO)
• Contract Research Organization (CRO)

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Pharmaceutical Contract Manufacturing and Contract Industry. Request a Free Sample PDF!

Molecule Type Segment Analysis

According to Cognitive Market Research, small molecules held the major market share over the forecast period. They are usually defined by their relatively low molecular weight and simple structure, making them suitable for traditional chemical synthesis methods. These include common drugs like aspirin and ibuprofen.

Large molecules are the fastest-growing category over the forecast period. They are also known as biologics, are typically proteins or nucleic acids, and are often produced through biotechnological processes involving living organisms.

• Small Molecules
• Large Molecules

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Pharmaceutical Contract Manufacturing and Contract End User Segment Analysis

According to Cognitive Market Research, big companies hold a prominent market share. They typically have larger-scale operations and may require extensive manufacturing capabilities to meet their demand for pharmaceutical products. They often engage in long-term contracts with contract manufacturing organizations (CMOs) for production.

Small & mid-sized companies are the fastest-growing category over the forecast period. They may need more infrastructure or resources to manufacture pharmaceuticals in-house, so they rely heavily on outsourcing to CMOs for their manufacturing needs. These companies often seek flexible and cost-effective solutions from CMOs to support their product development and commercialization efforts.

• Big Pharmaceutical Companies
• Small & Mid Sized Pharmaceutical Companies
• Generic Pharmaceutical Companies
• Other End Users (Academic Institutes and Small CDMOs and CROs)

Author's Detail

Manjiri Kanhere

Senior Research Associate at Cognitive Market Research

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Manjiri Kanhere is an experienced market researcher focused on the Pharma & Healthcare industry. With over 3+ years of experience, She has worked with major pharmaceutical companies and healthcare providers, helping them to understand market trends, identify new business opportunities, and develop effective sales & marketing strategies. Her expertise lies in the ability to analyze complex data sets and deliver insights that drive business decisions. At Cognitive Market Research, she handles the market research related to Pharma and healthcare industry.

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