Pharmaceutical companies are increasingly relying on contract manufacturing, research, and packaging services. By using contract manufacturers, these pharmaceutical firms strive to minimize costs and reduce product development time while improving their own productivity and efficiency.
In its Global Pharmaceutical Contract Manufacturing report, global market research and consultant Mordor Intelligence indicates that the market was worth $58 billion in 2014 and is projected to reach $84 billion in 2020—representing a 6.4% CAGR (compound annual growth rate).
The report is segmented by dose formulation type (solid-dose formulation, liquid dose formulation, injectable dose formulation), by geographical region (North America, Europe, Latin America, APAC, Middle East and Africa), and by drivers, restraints, vendor profiles, global market size, forecasts and analysis between 2015 and 2020.
Companies in the industry are undergoing restructuring to focus more on R&D, while stringent regulations on the pharmaceutical industry are compelling companies to outsource drug manufacturing and focus on their core business process, notes Modor’s report.
Active Pharmaceutical Ingredient (API) holds the highest market share while final dosage form is estimated to be the top-growing segment during the forecasted period.
Looking at the market in geographic terms, the report estimates that India is fastest-growing contract manufacturing market, due to its cost-competitive position and quality manufacturing capabilities.
Mordor also noted that pharmaceutical companies are using fewer vendors to take advantage of volume while reducing logistics costs.
