Biopharmaceutical Contract Manufacturing Market

Biopharmaceutical Contract Manufacturing Market Overview for 2024 to 2034

The biopharmaceutical contract manufacturing market is expected to grow at a CAGR of 8.8% during the projected period. The market value is expected to increase from USD 10.7 billion in 2024 to USD 25.1 billion by 2034.

Biopharmaceutical Contract Manufacturing Market Size, Analysis, and Insights

• Biopharmaceutical companies are increasingly outsourcing their manufacturing processes to contract manufacturing organizations (CMOs) due to cost reduction initiatives and focus on core competencies.
• The increasing demand for biopharmaceutical contract manufacturing is due to the complexity of biologic drugs that are difficult to manufacture and require specialized knowledge and expertise.
• Many small and mid-sized biopharmaceutical companies lack the resources and expertise to manufacture biologics in-house, so they turn to contract manufacturing organizations (CMOs) to help them.
• The market is expanding due to the rising demand for efficient and effective manufacturing processes are needed. These factors, along with technological advancements and the regulatory environment, have contributed to the increasing demand for biopharmaceutical contract manufacturing.
• The trend driving the growth of biopharmaceutical contract manufacturing is the increasing use of cell and gene therapies. These therapies involve using living cells, which require specialized manufacturing processes.
• Contract manufacturing organizations (CMOs) can provide the expertise and facilities needed to manufacture these complex therapies, which can be challenging for companies to do in-house.

Attributes	Details
Market Size, 2024	USD 10.7 billion
Market Size, 2034	USD 25.1 billion
Value CAGR (2024 to 2034)	8.8%

Key Opportunities in the Biopharmaceutical Contract Manufacturing Market

• The demand for biopharmaceuticals, which are typically more complex and difficult to manufacture than traditional chemical drugs is increasing. As a result, many pharmaceutical companies are turning to contract manufacturers to help them produce these drugs at scale, which is expected to create lucrative opportunities in the market.
• Pharmaceutical companies are looking to outsource their manufacturing operations to reduce costs, increase efficiency, and focus on their core competencies.
• This trend is particularly strong in the biopharmaceutical sector, where a high degree of specialization and expertise is required to produce these complex drugs.
• The increasing use of biologics in a wide range of therapeutic areas, the growing demand for personalized medicine, and the emergence of new manufacturing technologies that enable more efficient and cost-effective production of biopharmaceuticals are driving market growth.
• Pharmaceutical companies can benefit from cost savings and efficiency gains that come with outsourcing, allowing them to focus on their core competencies and drive innovation in the biopharmaceutical sector.

Challenges for Biopharmaceutical Contract Manufacturers

• The increasing complexity of biologics, the need for specialized facilities and equipment, and regulatory compliance act as restraints in the market.
• Supply chain disruptions, high manufacturing costs, and the lack of skilled personnel restrict the market’s progress. Additionally, as demand for biologics continues to grow, manufacturers must balance the need for increased production, maintaining high-quality standards.
• The risk of intellectual property theft is another challenge encountered by manufacturers. As contract manufacturers often work with multiple clients, there is a risk that confidential information could be shared or stolen. This can lead to legal disputes and damage to the reputation of the contract manufacturer.
• The industry constantly evolves, with new technologies and processes emerging regularly. Contract manufacturers must stay current with the latest developments to remain competitive.

Category-wise Insights

The Mammalian-based Segment Dominates the Market by Platform Type

Attributes	Details
Top Platform Type	Mammalian-based
Market Share in 2024	73.0%

• Mammalian cells are the most commonly used host cells for biologics production due to their ability to fold and modify complex proteins properly.
• Mammalian-based manufacturing processes offer high yields, reproducibility, and scalability, which is crucial in meeting the high demand for biologics.
• Regulatory agencies such as the FDA have strict guidelines for the manufacturing of biologics, and mammalian-based systems have a well-established track record of meeting these guidelines.
• Advances in biotechnology and genetic engineering have led to the development of novel cell lines that can produce even more complex biologics, further solidifying the dominance of the mammalian-based segment in the biopharmaceutical contract manufacturing market.

The Monoclonal Antibodies Segment Dominates the Market by Product Type

Attributes	Details
Top Product Type	Monoclonal Antibodies
Market Share in 2024	51.0%

• The monoclonal antibodies segment represents a significant share of 51.0% of the market in 2024.
• The monoclonal antibodies segment dominates the biopharmaceutical contract manufacturing market due to its widespread use in treating various diseases such as cancer, autoimmune disorders, and infections.
• Monoclonal antibodies are highly specific and can target specific cells and proteins, making them very effective in treating diseases.
• The process of manufacturing monoclonal antibodies is well-established, making it easier for biopharmaceutical companies to outsource the production to contract manufacturing organizations. This has led to increased demand for contract manufacturing services in this segment.
• The increasing prevalence of chronic diseases and the growing demand for personalized medicine are also expected to drive the growth of the monoclonal antibodies segment in the market.

Country-wise insights

Countries	CAGR through 2034
United States	9.0%
China	12.0%
India	11.0%
Japan	8.4%
Germany	10.5%

Biopharmaceutical Contract Manufacturing Market in the United States

• The biopharmaceutical contract manufacturing market in the United States is expected to grow at a CAGR of 9.0% over the coming years. As pharmaceutical companies increasingly look to outsource manufacturing to specialized providers, the market is expanding.
• Biopharmaceuticals are becoming more complex and specialized, requiring advanced manufacturing capabilities that many companies may not have in-house. Outsourcing to contract manufacturers allows these companies to leverage expertise and technology they may not have access to otherwise in the United States.
• There is a growing trend toward outsourcing manufacturing to reduce costs and increase efficiency in the United States. Contract manufacturers can provide economies of scale that lead to lower costs for pharmaceutical companies.

Biopharmaceutical Contract Manufacturing Market in China

China's biopharmaceutical contract manufacturing market is experiencing a surge in demand due to several factors.

• China has a large and aging population, leading to increased demand for healthcare products.
• The Chinese government has been investing heavily in the biopharmaceutical industry, which has resulted in the sector's growth. Additionally, China's labor and production costs are relatively low compared to other countries, making it an attractive destination for biopharmaceutical companies looking to outsource their manufacturing processes.
• China's regulatory environment has become more favorable to biopharmaceutical companies in recent years, which has helped to boost the industry's growth.

Biopharmaceutical Contract Manufacturing Market in India

• India has a large pool of skilled and educated professionals, including scientists, engineers, and technicians, who are able to provide high-quality services to biopharmaceutical companies.
• India's labor and production costs are relatively low compared to other countries, making it an attractive destination for outsourcing.
• The Indian government has implemented several policies and initiatives to promote the growth of the biopharmaceutical sector, including tax incentives, streamlined regulatory processes, and investments in infrastructure and research and development.
• India has a large market for biopharmaceutical products, driven by increasing healthcare awareness, rising disposable incomes, and a growing aging population.

Biopharmaceutical Contract Manufacturing Market in Japan

• The country has a rapidly aging population that requires more advanced and innovative healthcare solutions.
• There has been a significant increase in government funding for the biopharmaceutical industry, which has helped to spur growth in the market. Additionally, Japan is home to several major pharmaceutical companies, which have been investing heavily in research and development of new drugs.
• All these factors have combined to create a highly favorable environment for biopharmaceutical contract manufacturing in Japan.
• Japan's advanced technological capabilities, highly skilled workforce, and strict regulatory environment have made it an attractive destination for companies looking to outsource their biopharmaceutical manufacturing needs.

Biopharmaceutical Contract Manufacturing Market in Germany

• Germany has a highly skilled workforce and a strong infrastructure in the biopharmaceutical sector. This means that there are plenty of talented professionals and facilities available to support the development and manufacture of biopharmaceuticals.
• Germany has a well-established regulatory framework that ensures high standards of quality and safety in the biopharmaceutical industry. This gives companies and investors’ confidence in the reliability and consistency of the manufacturing process, which is crucial for the success of any biopharmaceutical product.
• Germany has a large and growing market for biopharmaceuticals, both domestically and internationally. As the demand for these products continues to rise, there is a need for efficient and cost-effective manufacturing solutions, driving the market.

Competitive Landscape

The biopharmaceutical contract manufacturing market is becoming increasingly competitive due to the growing demand for biologics and biosimilars.

Companies have a strong reputation for providing high-quality contract manufacturing services to the biopharmaceutical industry. However, there are also several smaller players in the market that are gaining traction and competing with these larger companies by offering specialized services and innovative technologies.

Recent Developments

• In 2021, Lonza Group Ag announced its largest sale of Lonza Speciality Ingredients to Bain Capital Private Equity for USD 4.4 billion.
• In 2021, bzena Limited, a partner research organization for the integrated discovery of cGMP and a manufacturer of biopharmaceuticals solutions, worked with BiVictriX Therapeutics plc, a biotechnology business, to manufacture BiVictriX's antibody-drug conjugates (ADC).
• In 2021, Novasep Company formed an exclusive cooperation with PharmaZell. The cooperation aims to develop, manufacture, and expand complicated small compounds and ADCs on a worldwide scale.

Key Market Players

• Catalent Inc.
• Lonza Group Ag
• Patheon N.V. (Thermo Fisher Scientific Inc.)
• Abzena Plc.
• Sandoz International GmbH (Novartis AG)
• Fujifilm Diosynth Biotechnologies (FUJIFILM Holdings)
• Baxter Pharmaceutical Solutions LLC (Baxter Inc.)
• AbbVie Contract Manufacturing (AbbVie Inc.)
• Samsung Biologics Co. Ltd.
• ProBioGen AG
• Pfizer Centre Source Ltd (Pfizer Inc.)
• Novasep
• Biomeva GmbH
• Kbi Biopharma Inc
• Rentschler Biotechnologie GmbH
• Ajinomoto Althea Inc. (Ajinomoto Co., Inc.)

Key Market Segments

By Platform Type:

• Mammalian Based
• Microbial Based

By Product Type:

• Monoclonal Antibodies
• Recombinant Protein
• Vaccine
• Insulin
• Growth factor
• Interferons
• Others

By Application Type:

• Clinical
• Commercial

By Therapeutic Area Type:

• Autoimmune Diseases
• Oncology
• Metabolic Diseases
• Ophthalmology
• Cardiovascular Diseases
• Infectious Diseases
• Neurology
• Respiratory Disorders
• Others

By Region:

• North America
• Latin America
• East Asia
• South Asia
• Europe
• Oceania
• MEA

Frequently Asked Questions

What is the Growth Potential of the Biopharmaceutical Contract Manufacturing Market?

The biopharmaceutical contract manufacturing market is expected to expand at an 8.8% CAGR from 2024 to 2034.

Which Platform Type Contributes More to the Biopharmaceutical Contract Manufacturing Market?

The mammalian-based segment is estimated to hold 73.0% of the market share in 2024.

What is the United States Market Outlook?

The United States market is expected to grow at a 9.0% CAGR through 2034.

What is China’s Market Outlook over the Forecast Period?

China is expected to register a CAGR of 12.0% over the forecast period.

How Big is the Market in 2024?

The market is expected to be valued at USD 10.7 billion in 2024.

What is the Projected Value of the Market by 2034?

The market is set to reach a valuation of around USD 25.1 billion by the end of 2034.