The pharmaceutical contract manufacturing industry plays a pivotal role in the production of medications and healthcare products worldwide. Understanding the latest statistics and trends in this industry is crucial for pharmaceutical companies, regulators, and other stakeholders to make informed decisions and drive innovation. In this blog post, we will delve into key statistics that shed light on the current landscape of the pharmaceutical contract manufacturing industry.
The Latest Pharmaceutical Contract Manufacturing Industry Statistics Explained
The global pharmaceutical contract manufacturing market size was valued at USD 100 billion in 2019.
The statistic indicates that the global pharmaceutical contract manufacturing market was worth USD 100 billion in the year 2019. This figure represents the total monetary value of pharmaceutical manufacturing services provided by third-party contract manufacturers to pharmaceutical companies worldwide during that year. The size of the market at USD 100 billion highlights the significant scale and importance of outsourcing manufacturing services within the pharmaceutical industry. This statistic suggests that pharmaceutical companies have been increasingly relying on contract manufacturers to produce a wide range of pharmaceutical products, reflecting the trend towards specialization, cost efficiency, and flexibility in the pharmaceutical manufacturing sector.
The pharmaceutical contract manufacturing industry is projected to reach USD 126.63 billion by 2024.
The statistic indicates that the pharmaceutical contract manufacturing industry is expected to grow significantly, with a projected market value of USD 126.63 billion by the year 2024. This suggests a substantial increase in the demand for contract manufacturing services within the pharmaceutical sector, which includes services such as drug development, manufacturing, and packaging provided by third-party companies. The growth in this industry is likely driven by factors such as the increasing complexity of drug formulations, the need for specialized manufacturing capabilities, and the desire of pharmaceutical companies to streamline operations and reduce costs. Overall, this statistic highlights the expanding opportunities and economic significance of the pharmaceutical contract manufacturing sector in the coming years.
This industry is projected to exhibit a compound annual growth rate (CAGR) of 7.2% between 2020-2027.
This statistic indicates that the industry in question is expected to experience consistent and robust growth over the period between 2020 and 2027, with a compound annual growth rate (CAGR) of 7.2%. The CAGR represents the annual growth rate at which the industry is anticipated to expand over the entire period, taking into account compounding effects. A CAGR of 7.2% suggests that the industry’s revenue, market size, or other relevant metrics are projected to increase by an average of 7.2% each year during the specified timeframe. This forecast can be valuable for investors, businesses, and policymakers looking to understand the industry’s potential growth trajectory and make informed decisions based on these projections.
North America held the largest market share in the pharmaceutical contract manufacturing industry in 2018.
This statistic indicates that in 2018, North America had the highest proportion of market share among all regions in the pharmaceutical contract manufacturing industry. This implies that a significant portion of pharmaceutical contract manufacturing activities, such as drug production and packaging, were conducted in North America compared to other regions like Europe, Asia, or Latin America. Factors contributing to North America’s dominance could include highly developed infrastructure, advanced technology, skilled workforce, robust regulatory framework, and a well-established healthcare system. Understanding regional market shares is crucial for industry stakeholders to make informed decisions, identify growth opportunities, and allocate resources effectively within the pharmaceutical contract manufacturing industry.
Outsourced manufacturing in the pharmaceutical industry has risen from 56% to 74% over the past ten years.
The statistic indicates that the proportion of pharmaceutical manufacturing that is outsourced has increased significantly over the past decade, rising from 56% to 74%. This suggests a growing trend within the pharmaceutical industry towards externalizing manufacturing processes to specialized contract manufacturing organizations. The shift towards outsourcing may be driven by various factors such as cost reduction, access to advanced technologies, flexibility in production capacity, and the focus on core competencies. This trend reflects a strategic decision by pharmaceutical companies to optimize their operations and improve efficiency by leveraging the expertise and capabilities of external partners in manufacturing.
Approximately 40% of drugs sold worldwide are believed to be made by third-party manufacturers.
The statistic suggests that a significant proportion of the drugs sold globally are produced by third-party manufacturers instead of the original pharmaceutical companies. This trend indicates a growing reliance on outsourcing drug manufacturing by pharmaceutical companies to optimize efficiency and cut costs. Third-party manufacturers often specialize in certain types of drugs or production processes, allowing them to offer competitive pricing and high-quality products. However, this also raises concerns about quality control, supply chain management, and regulatory oversight. As a result, both the pharmaceutical industry and regulatory agencies need to closely monitor and ensure the quality and safety of drugs manufactured by third parties to protect public health.
The Active Pharmaceutical Ingredients (API) contract manufacturing market is projected to grow at a CAGR of 6.7% from 2021 to 2027.
This statistic indicates that the Active Pharmaceutical Ingredients (API) contract manufacturing market is expected to experience a compound annual growth rate (CAGR) of 6.7% from the year 2021 to 2027. The CAGR provides a measure of the annual growth rate over a specified period of time, representing a smoothed rate of return that can help identify trends in market expansion. In this case, the projected growth suggests a steady and consistent increase in the demand for API contract manufacturing services within the pharmaceutical industry over the next six years, signaling potential opportunities for companies operating in this sector to capitalize on this growth trend.
The outsourcing penetration rate in the pharmaceutical industry was about 65% in 2020.
The statistic ‘The outsourcing penetration rate in the pharmaceutical industry was about 65% in 2020’ indicates the extent to which pharmaceutical companies are using outsourcing services from third-party vendors for various aspects of their operations. A penetration rate of 65% suggests that a significant majority of pharmaceutical companies in the industry are leveraging external expertise and resources for activities such as clinical trials, manufacturing, research and development, regulatory compliance, and more. This high outsourcing rate may indicate a strategic move by pharmaceutical companies to focus on their core competencies while relying on specialized vendors for other functions, potentially enabling cost savings, efficiency improvements, and access to specialized capabilities.
By 2027, the global biopharma outsourcing market is projected to top USD 92.37 billion.
The statistic indicates that the global biopharma outsourcing market is expected to exceed USD 92.37 billion by the year 2027. This forecast suggests a substantial growth trend in the outsourcing of biopharmaceutical services and activities. The projected value represents the estimated total spending on outsourcing services such as contract research, manufacturing, and development within the biopharma industry. This growth is likely driven by factors such as increasing demand for innovative therapies, cost efficiency, and specialized expertise offered by outsourcing partners. Overall, the statistic underscores the expanding role and importance of outsourcing in the biopharma sector, highlighting a significant market opportunity for companies operating in this space.
Biological APIs are expected to grow at a faster rate compared to small molecules in the contract manufacturing market.
This statistic suggests that there is a projected higher rate of growth in the production and outsourcing of biological active pharmaceutical ingredients (APIs) compared to traditional small molecule APIs within the contract manufacturing market. Biological APIs, which are typically derived from living organisms such as cells or tissues, are becoming increasingly important in the pharmaceutical industry due to their complex structures and potential for innovative therapeutic treatments. The faster growth rate of biological APIs indicates a shift towards more personalized and targeted medicines, as well as advancements in biotechnology that are driving demand for specialized manufacturing capabilities. This trend highlights the evolving landscape of pharmaceutical manufacturing and underscores the growing importance of biologics in meeting the healthcare needs of patients.
Big pharma companies make up roughly 50% of the contract manufacturing market.
The statistic that big pharmaceutical companies account for approximately 50% of the contract manufacturing market suggests that a significant portion of pharmaceutical manufacturing is outsourced to external companies by these industry giants. This trend may indicate a strategy adopted by big pharma companies to leverage the expertise and resources of contract manufacturers to streamline their operations, reduce costs, and increase efficiency. By partnering with external manufacturers, pharmaceutical companies can focus on core competencies such as research and development, while leaving the manufacturing process to specialized firms. This statistic illuminates the significant role that contract manufacturing plays in the pharmaceutical industry, highlighting the dynamic and interconnected nature of the market.
The global demand for cold chain logistics in the pharmaceutical industry is projected to reach roughly $18.51 billion in 2026.
The statistic indicates the projected global demand for cold chain logistics services specifically within the pharmaceutical industry, with an estimated value of approximately $18.51 billion by the year 2026. Cold chain logistics refers to the transportation and storage of temperature-sensitive products, such as vaccines and medications, under controlled conditions to ensure their integrity and efficacy. This forecast suggests that the pharmaceutical sector’s reliance on cold chain logistics services is expected to increase significantly over the coming years, likely driven by factors such as the growing demand for biopharmaceutical products, stricter regulatory requirements, and the need for efficient distribution of vaccines and other temperature-sensitive medical supplies. The substantial investment in cold chain infrastructure and services reflects the industry’s commitment to maintaining product quality and safety throughout the supply chain.
Contract manufacturing of sterile products reached $40 billion globally in 2018.
The statistic “Contract manufacturing of sterile products reached $40 billion globally in 2018” refers to the total value of sterile products that were manufactured on a contract basis in that year. This figure captures the significant market size and value of the contract manufacturing industry for sterile products on a global scale. Contract manufacturing involves outsourcing the production of sterile products to specialized companies, which can provide cost-effective solutions for pharmaceutical and biotechnology companies looking to bring their products to market. The $40 billion value highlights the substantial demand for contract manufacturing services in the healthcare industry, reflecting the importance of leveraging external expertise and resources in the production of sterile pharmaceuticals and medical devices.
The size of the biologic contract manufacturing market was valued at $14.6 billion in 2020.
The statistic “The size of the biologic contract manufacturing market was valued at $14.6 billion in 2020” refers to the total monetary value of biologic contract manufacturing services provided during the year 2020. This figure reflects the amount of revenue generated by companies that specialize in manufacturing biologic products on behalf of other biotechnology or pharmaceutical companies. The valuation of $14.6 billion indicates the scale and economic significance of the biologic contract manufacturing industry in meeting the demand for biologic drugs and therapies. It serves as an important indicator of the market size and growth potential within the biopharmaceutical sector, highlighting the increasing reliance on contract manufacturing services to bring innovative biologic treatments to market.
Pharmaceutical companies spent over $20 billion on R&D outsourcing in 2022.
The statistic that pharmaceutical companies spent over $20 billion on research and development (R&D) outsourcing in 2022 highlights the substantial investment made by the industry towards external collaborations and partnerships to drive innovation and bring new drugs to market. Outsourcing R&D activities allows pharmaceutical companies to access specialized expertise, technologies, and resources, thereby accelerating the drug development process and potentially reducing costs. This significant expenditure underscores the industry’s commitment to advancing healthcare through collaboration with external partners in order to address critical medical needs and bring new treatments to patients in a timely manner.
Approximately 70% of biopharmaceutical companies outsource at least part of their production.
The statistic that approximately 70% of biopharmaceutical companies outsource at least part of their production indicates a prevalent trend within the industry where a majority of companies choose to delegate some of their manufacturing processes to external contractors or partners. This strategic decision may be driven by various factors such as cost efficiency, access to specialized expertise or technology, reducing time to market, or focusing internal resources on core competencies. By outsourcing certain aspects of production, biopharmaceutical companies can potentially streamline operations, increase flexibility, and improve overall competitiveness in a dynamic and complex market landscape.
The global pharmaceutical CMO market is expected to reach $146.41 billion by 2028.
The statistic states that the global pharmaceutical Contract Manufacturing Organization (CMO) market is projected to grow and reach a value of $146.41 billion by the year 2028. This indicates a significant expansion in the outsourcing of pharmaceutical manufacturing services by pharmaceutical companies to CMOs. The growth in the pharmaceutical CMO market can be attributed to factors such as a rise in the complexity of drug development processes, increasing demand for specialized expertise and technologies, cost-efficiency, and the need for flexibility in manufacturing capacity. This projection suggests that pharmaceutical companies are increasingly relying on CMOs to help bring innovative drugs to market and manage production processes efficiently.
Conclusion
After examining the statistics and trends within the pharmaceutical contract manufacturing industry, it is evident that this sector is experiencing significant growth and opportunities for expansion. With increasing demand for contract manufacturing services, companies in this industry are poised for success. By staying informed about the latest market insights and adapting to regulatory changes, pharmaceutical contract manufacturers can continue to thrive in this competitive landscape.
References
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