The global pharmaceutical contract manufacturing market is anticipated to be worth USD 90 billion in 2023 and is expected to reach USD 140 billion by 2030. It is estimated to grow at a compounded annual growth rate of 6.5% during the forecast period (2022-2030). 

Given that establishing or acquiring manufacturing capabilities is a time and resource-intensive process, pharmaceutical companies face significant challenges in independently conducting development and manufacturing operations.

The aforementioned constraints, coupled with the growing demand for safer and more effective drugs driven by the COVID-19 pandemic, have led companies to outsource substantial portions of their business segments to contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs).

The current landscape of pharmaceutical contract service providers is highly diverse, encompassing start-ups, mid-sized firms, and established players. The recognized expertise of CMOs and CDMOs is believed to facilitate a reduction in time-to-market, substantial cost benefits, and access to expanded production capacities and innovative technologies.

Notably, there has been considerable merger and acquisition activity in the pharmaceutical contract manufacturing market in recent years, as companies strive to become comprehensive service providers catering to the varied needs of pharmaceutical developers, from early-stage development to commercial production.

Considering the continuous innovation in production technologies, the evolving pipeline of small molecule products, and the escalating demand for such drug candidates, we anticipate positive market growth in the pharmaceutical contract manufacturing sector during the forecast period.