Biopharmaceuticals Contract Manufacturing Market Size (2024 - 2029)

Biopharmaceutical Contract Manufacturing Market Analysis

The Biopharmaceuticals Contract Manufacturing Market size is estimated at USD 41.71 billion in 2024, and is expected to reach USD 79.19 billion by 2029, growing at a CAGR of 13.68% during the forecast period (2024-2029).

The COVID-19 pandemic had a significant impact on the biopharmaceuticals contract manufacturing market. Contracts related to the COVID-19 pandemic immensely benefited the contract development and manufacturing organization (CDMO) industry. According to an article in Contract Pharma, dated February 2022, the COVID-19 pandemic took two years of tremendous work from the world's biopharmaceutical CMO. The industry's resilience is demonstrated by the astonishing speed with which it overcame the obstacles. The article also stated that revenues at biopharmaceutical CDMOs increased for recombinant proteins, vaccines, monoclonal antibodies, and mainstream biologics by an average of 29%. In fact, some have reported a growth of up to 40%-80% in revenue between 2020 and 2021. In addition, according to an article published in June 2021 in BioProcess International, the increases in CMO capacity spurred by the pandemic are anticipated to benefit the entire industry, especially for the production of cell and gene therapies. The COVID-19 pandemic boosted an already upward-trending biopharmaceutical CMO category. The long-term baseline growth pattern is expected to continue.

Furthermore, several biopharmaceutical CMOs offer services from drug production to drug manufacturing for other organizations in the case of proteins/peptides, antibodies, vaccines, and other biological substances. For instance, in March 2022, Bharat Biotech partnered with the Spanish biopharmaceutical firm, Biofabri, to develop, manufacture, and market a new tuberculosis vaccine. The new TB vaccine, 'MTBVAC,' is being manufactured and developed by Biofabri in close collaboration with the University of Zaragoza, the International AIDS Vaccine Initiative (IAVI), and the Tuberculosis Vaccine Initiative (TBVI). In September 2021, Baxter BioPharma Solutions, a CMO specializing in parenteral (injectable) pharmaceuticals, agreed to provide sterile manufacturing services for NVX-CoV2373, Novavax's COVID-19 recombinant nanoparticle vaccine candidate with Matrix-M adjuvant. The agreement is expected to advance commercial-scale manufacturing essential for the vaccine's production and distribution in the UK and European markets. Such activities by the market players are expected to boost the growth of the vaccine contract manufacturing market during the study period.

Moreover, strategic initiatives by the market players, such as contract manufacturing partnerships, are expected to boost the growth of the market studied. For instance, in April 2022, ChimeronBio announced that it had signed a manufacturing agreement with FUJIFILM DiosynthBiotechnologies (FDB) to advance its oncology portfolio to include clinics. ChimeronBio opted for FUJIFILM DiosynthBiotechnologies as its partner for transferring and scaling its drug substance manufacturing process.

However, stringent regulatory requirements and increasing logistics costs are factors hindering the growth of the market studied.

Biopharmaceutical Contract Manufacturing Industry Segmentation

As per the scope of the report, a contract manufacturing organization (CMO) is a company that serves other companies in the biopharmaceutical industry on a contract basis to provide comprehensive services from drug development to drug manufacturing. The biopharmaceuticals contract manufacturing market is segmented by product type and geography. By product type, the market is segmented into peptides/proteins, antibodies, vaccines, biosimilars, and other product types. By geography, the report examines the biopharmaceuticals contract manufacturing market in North America, Europe, Asia-Pacific, Middle East and Africa, and South America. The report offers the market size and forecasts in terms of value in USD million for the above segments.