The global CMO/CDMO market is estimated to be valued at USD 22.5 billion in 2023. The market is projected to reach USD 39.4 billion by 2033, exhibiting a CAGR of 5.7% from 2023 to 2033.
With an increasing number of companies within the pharmaceutical sector considering outsourcing services, the demand for services from contract manufacturing and contract development manufacturing organizations will rise.
Future Market Insights (FMI) sees incredible potential for the expansion of the CMO/CDMO market in the near future. The rising demand for generic medicines and biologics will pave the way for the growth of the market.
An increasing number of consumers are shifting towards locally sourced and natural products rather than big brands. Achieving this will require state-of-the-art technology besides other resources. A number of pharmaceutical companies are seeking services of contract manufacturing/contract development and manufacturing organization (CMO/CDMO).
The study points toward skin products being the most sought-after. East Asia acquired about 20% of the market share, globally. The report also tracks current trends in the manufacturing of cosmetic products, and the adoption rate of personal care products across regions.
| Attribute | Details |
|---|---|
| CMO/CDMO Market Value (2022) | USD 21.2 billion |
| CMO/CDMO Market Value (2023) | USD 22.5 billion |
| CMO/CDMO Market Expected Value (2033) | USD 39.4 billion |
| CMO/CDMO Market Projected CAGR (2023 to 2033) | 5.7% |
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The Growing Popularity of Private Label Brands has Created Numerous Opportunities
The increasing shift towards private label brands has created vast opportunities for the CMO/CDMOs. Nowadays, shift in consumer preferences have increased the demand for private label brands and are expected to present opportunities for CMOs in the near future. The shift is majorly attributable to price, accessibility, assortment, and reviews & ratings.
Social medicine and e-commerce play a vital role in the rising demand for private label brands. According to a study, private label brands exhibited considerable growth as they increased their visibility online. The major advantages of private label brands are their price point and retail availability, consumers can have the products at a cheaper rate with high accessibility due to wide availability through various vendors.
As of now, Europe remains a mature market as well as the largest one for private label brands followed by North America, where penetration is still relatively low. Similarly, in Latin America and Asia-Pacific, the demand is small in terms of value share due to the limitation of production capacity and consumer brand loyalty.
CMOs have lucrative opportunities in regions including Latin America, Asia-Pacific, and the Middle East where there is a rising issue of production capacity. All these factors are expected to create opportunities for the expansion of the CMO/CDMOs market size over the forecast period. This analysis projects a CAGR of over 6% for the market growth from 2023 to 2033.
Key players in the market are focusing on strategic collaborations to strengthen their position in terms of the services they provide. These activities also expand their geographical foothold and help them tap emerging markets.
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New age contract producers strive for greater flexibility and responsiveness to spur the market growth
Consumers of all ages are showing a deeper interest in the contents and ingredients used in the grooming and personal care products they use. This is especially the case among millennial consumers, who are leading the path by exhibiting the demand for extremely safe and high-quality products.
Many companies are therefore focusing to meet the demand for hyper-personalized products such as paraben-free cosmetics, creating a need for high-quality and safe content. The Environmental Working Group created a database in 2004 called the Skin Deep Database which tests and rates over 70,000 personal care products. The database was the first third-party resource to investigate the toxicity of products.
The growing trends from the customers are not only to seek the details of the content within the product but also innovative and distinctive packaging, which includes new shapes, sizes, and colors. New age contract manufacturers are aiming at flexibility and improved responsiveness to keep pace with changing requirements of consumers.
Natural products continue to be popular among consumers, resulting in rapid market growth
In recent times, there is a huge demand for natural/herbal beauty products from consumers, hence herbal ingredients are increasingly used in various cosmetics and personal care products. The herbal cosmetics and personal care industry is growing at a rate of ~25-30% every year.
Companies are focusing on replacing synthetic chemicals with natural ingredients, primarily because of growing consumer demand and also to move towards a viable source of raw material. While natural products remain highly popular among consumers, many are choosing locally sourced and produced personalized products. This is creating a significant amount of pressure on manufacturers and making them focus on large-scale production of herbal cosmetics to fulfill consumer needs.
To cater to this ongoing demand organizations are shifting their manufacturing processes to third party CMOs, which in turn help to accelerate the growth of the CMOs in the cosmetics and personal care sector. CMOs allow companies to focus on their core competencies and rapid production while saving production costs. These companies have a recognized vendor directory, a storage list, huge manufacturing facilities, and distribution channels. For these features, the demand for third party manufacturing including herbal cosmetics is increasing day by day.
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People of all ages are becoming more interested in the contents and ingredients used in grooming and personal grooming driving the market growth
The male grooming industry including skincare and other beauty products is expected to grow rapidly in the next 5-10 years. Men's skincare is a fast-growing segment that includes exclusive men’s brands such as Bulldog, and Kiehl’s. These companies offer products addressing men’s skin care needs. Their extensive range often includes moisturizing, anti-aging, and oil-control products.
New entrants are moving up the segment, for example, Redken Brews which is a complete men’s grooming company that includes hair, skincare, and other essential grooming products range. The surging demand for such products creates a burden on the production line and thus creates new opportunities for CMOs to enter this segment.
Distribution of Raw Materials to Spur the Market Expansion
China is a major supplier of the raw materials required for beauty and personal care product manufacturing. Moreover, the labor cost in China is extremely low compared to developed countries such as the United Kingdom and the United States.
There are a lot of contract manufacturing companies in China and the number of CMOs and CDMOs is increasing. China’s CMO industry is a preferred choice by top brands of cosmetic manufacturers. China's CMO/CDMO market was valued at around USD 2.0 billion in 2020 and is expected to grow rapidly across 2021. The market in China is expected to grow at a CAGR of 5% over the upcoming decades.
Emergence of Cosmetic Industry to Boost the United States Market
The cosmetic and personal care industry in the United States is growing remarkably. People in the United States pay extreme attention to aesthetics and the body. Due to this, the adoption of personal grooming and cosmetic products is increasing.
Favorable regulatory policies in the USA towards cosmetic manufacturing are a major driving force for the CMO/CDMO market growth. The United States market held a market share of 14.1% in 2022.
Presence of Key Manufacturers to Accelerate the Market Growth
Italy is known as the Valley of Cosmetics and is a major hub for cosmetic manufacturing. Massive investments and facility expansion, mergers and acquisitions, and increasing capital growth have made Italy a lucrative market.
It holds a share of around 20% within the Europe market. Contract manufacturers such as Sinerga S.P.A, Gi Picco's, and Intercos S.P.A are located in Italy. The presence of some of the leading players has been working in favor of the expansion of the market in Europe.
India to Take Over the Asia Pacific Market
The CMO/CDMO market in the Asia Pacific was valued at around USD 2.0 billion in 2020. India has emerged as a lucrative market within South Asia due to the presence of a large number of CMO and CDMOs in the country.
This number is constantly growing as many new entrants are investing in the market for personal care manufacturing. In India, manufacturing costs are cheaper because of cheap labor and other infrastructure costs. The materials used for manufacturing are also produced in India and thus making it a preferred location for contract manufacturing. The market in India is projected to rise at a CAGR of 5% over the upcoming decades.
Growing Public Consciousness of the dangers of Synthetic Products
The rising demand for face care creams, sunscreen lotions, face serums, and body lotions is expected to have a progressive impact on the market through the forecast period. Furthermore, the growing popularity of online purchases is expected to boost the market rapidly.
The rising awareness regarding the advantages of using personal care products has resulted in high demand for these products. Besides this, the increasing demand for natural and organic skincare solutions has proven vital for the growth of the market.
Skincare is thus a major sector in the personal care and cosmetics industry. Growing awareness regarding the adverse effects of synthetic products has created huge opportunities for both the development and manufacturing of natural or organic products. The skin product segment accounted for a share of 39.55% in 2022.
Filling & Packaging obtained approximately 37% of the total CMO/CDMO business
As per FMI, the filling and packaging segment held 37% of the global CMO/CDMO market share in 2022. Filling and packaging are an important part of the entire contract manufacturing process. This step is crucial and adds to the cost of the manufacturing process as efficient packaging is crucial to protect products against the potential risk of damage.
The materials used for storing products have to be non-reactive and should not spoil your product. Filling & Packaging acquired around 37% of the total CMO/CDMO business in 2019. There are several packaging options available and the prominent ones and highly demanded include closed jars, Bottles, tubes, roll-ons, and others. The adoption of bottles for filling cosmetic / beauty products is more than others in the category. The contract manufacturing segment accounted for a share of 69.28% in 2022.
The CMO/CDMO market has a consolidated vendor landscape. There is a need for continued research and development, which remains a key strategy among market players. Besides this, strategic collaborations are among the common strategies adopted to gain a competitive edge.
In February 2020, Catalent entered into an agreement with Zumutor Biologics Inc. to produce Zumutor’s ZM008 to offer treatment for solid tumors.
Some of the companies operating in the market are:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Analysis | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Regions Covered |
North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Covered |
United States, Canada, Germany, United Kingdom, France, Italy, Spain, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Segments Covered |
Service, Product, Form, Region |
| Key Companies Profiled |
Swiss American CDMO; Pierre Fabre Group; Zymo Cosmetics; Fareva, Biofarma Srl C.F; Chemineau, C.O.C.; Farmaceutici Srl; Paragon Nordic Cosmetic Solutions; Kolma; Lonza; Cho Chuang Industrial Co., Ltd.; Vive Cosmetics; Ori BioNature Sdn Bhd; Zoic Cosmetics; Samriddhi Life Sciences Natrocare |
| Customization & Pricing | Available upon Request |
The CMO/CDMO market size is valued at USD 22.5 billion in 2023.
The CMO/CDMO market is projected to thrive at a 5.7% CAGR through 2033.
The CMO/CDMO market is anticipated to surpass USD 39.4 billion by 2033.
The skin products segment leads, with 39.55% of the market share acquired in 2022.
China’s CMO/CDMO market is projected to rise at a 5% CAGR by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service 5.1. Contract Development 5.1.1. Formulation development 5.1.2. Pilot studies 5.2. Contract Manufacturing 5.2.1. Bulk preparation & scale up 5.2.2. Safety Testing 5.2.3. Close jars 5.2.4. Bottles 5.2.5. Tubes 5.2.6. Roll-ons 5.3. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product 6.1. Hair Products 6.2. Skin Products 6.3. Lip Products 6.4. Eye Products 6.5. Body hygiene 6.6. Oral hygiene 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form 7.1. Solid form & powder 7.2. Lotions 7.3. Creams 7.4. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Swiss American CDMO 16.2. Pierre Fabre Group 16.3. Zymo Cosmetics 16.4. Fareva, Biofarma Srl C.F 16.5. Chemineau, C.O.C. 16.6. Farmaceutici Srl 16.7. Paragon Nordic 16.8. Cosmetic Solutions 16.9. Kolmar, Lonza 16.10. Cho Chuang Industrial Co., Ltd. 16.11. Vive Cosmetics 16.12. Ori BioNature Sdn Bhd 16.13. Zoic Cosmetics 16.14. Samriddhi Life Sciences 16.15. Natrocare 17. Assumptions & Acronyms Used 18. Research Methodology
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CMO/CDMO Market
