Latin America Pharmaceutical Contract Manufacturing Organization Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.05 Billion |
| Market Size (2029) | USD 3.47 Billion |
| CAGR (2024 - 2029) | 2.65 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Latin America Pharmaceutical Contract Manufacturing Organization Market Analysis
The Latin America Pharmaceutical Contract Manufacturing Organization Market size is estimated at USD 3.05 billion in 2024, and is expected to reach USD 3.47 billion by 2029, growing at a CAGR of 2.65% during the forecast period (2024-2029).
The low cost of drug registration and the ongoing economic development of Latin American countries are two factors driving the growth of pharmaceuticals in the region. Rising investments in research and development and technological advancements in the pharmaceutical industry boost the contract manufacturing market in Latin America.
- With the increase in the aging population, the prevalence of chronic conditions has also increased, which has boosted pharmaceutical market growth and caused pharmaceutical companies to outsource manufacturing to contract manufacturers in Latin America.
- Pharmaceutical companies outsource production for rapid turnaround time, lowered expenses, and revenue growth. The rising inclination of drug manufacturers to focus on core competencies to grow the company's revenue boosts the market's growth. Also, outsourcing manufacturing can accelerate the drug development process for companies, giving them a competitive advantage in the market.
- According to the Wisconsin Economic Development Corporation, a government agency, Mexico is the second-largest pharmaceutical market in Latin America and is one of the world's top 15 pharma markets. The Mexican market prefers branded over generic products, making it an ideal market for licensing innovative medicines. The Mexican market is attracting more international pharma firms and contract manufacturers due to their government initiatives that have improved the country's competitive edge in research and development (R&D), which is likely to increase the availability and affordability of biosimilar medicines in the country.
- Additionally, investment in innovative research and development (R&D) equipment, the increasing cost of medical insurance and healthcare along with maintaining drug registration policies and low costs of labor, scientists, raw materials, and preclinical and clinical trials involved in the development of new drug products, many international pharma companies have been drawn to outsourcing their research and development activities to contract manufacturers, thus boosting the market's growth.
- However, the current situation discourages investment and presents challenges for PE firms. CMOs that have invested in upgrading their facilities in the past few years are stuck with more expensive debt because variable interest rates have increased for loans. Also, the increasing cost of capital will force companies to limit plans to modernize their plants. This might hinder the market's growth between 2024 and 2029.
Latin America Pharmaceutical Contract Manufacturing Organization Market Trends
The Liquid Dose Formulation Segment is Expected to Witness Growth
- Liquid formulations have been used in pharmaceuticals because of their high dosing flexibility, their ability to be swallowed easily, and their ability to act quickly. Most liquid formulations fall into two broad categories: monophasic and biphasic. Within these broad categories are many different dosage forms, such as oral suspension, syrup, solutions, and elixirs. The increasing demand for liquid drug formulations in Latin American countries boosts the market's growth.
- The rise in government initiatives in the healthcare field, biologics innovation, and an increase in cancer and age-related disorders are crucial and critical reasons propelling the expansion of the active pharmaceutical ingredient manufacturing market.
- Additionally, the Brazilian pharmaceutical and healthcare sector will experience strong demand in the medium and long term as the country's demographics are changing rapidly (the proportion of the population aged 50 and over is projected to rise to 24% by 2030). According to the International Trade Association, Brazil is the largest healthcare market in Latin America, and the industry is price-driven with the benefits of new technologies to boost the market's growth.
- Moreover, developing pediatric-specific dosage forms is incredibly challenging due to the many differences between pediatric and adult populations. If the oral dosage form is unsuitable for pediatric patients, the buccal dose form is a good alternative. Children may or may not have the same ability to swallow as adults; however, solid dosage forms are generally difficult for children under the age of 5. It is important to note that children may refuse medication regardless of the size of the tablet if the flavor of the drug is unpleasant. Such factors are expected to fuel the growth of liquid formulations in the region.
- Further, owing to the continued usage of liquid dosage formulation in the nasal and ophthalmic sectors, the liquid dosage formulation segment is expected to record stable growth. This growth is backed up by increasing R&D in nasal delivery systems for certain types of diseases and disorders, such as body pain, osteoporosis, and sexual diseases, which is expected to fuel the demand for contract packaging in the pharmaceutical industry.
- Out-of-pocket healthcare expenditure in Latin America has declined due to increased government investments in health. The growth on healthcare spending in Argentina, Brazil and Mexico boosts the market growth in the region.
Mexico is Expected to Have a Signification Share in the Market
- The Mexican pharmaceutical market is attracting the attention of global pharma companies due to its low production costs and close proximity to the United States.
- According to the OECD, the country's healthcare expenditure accounted for 5.5% of the GDP in 2023. The health insurance coverage for vulnerable populations expanded over time, accounting for 89.3% among the OECD countries. This has triggered pharmaceutical companies to look into the Mexican market. However, due to weak support from the government and lower per capita health spending among the Mexican population, there is a significant scope for outsourcing pharmaceutical manufacturing.
- Continuous growth in the sales of generic drugs is driving the revenues of the local pharmaceutical contract manufacturers. In addition, significant growth in the Mexican generics market is garnering investments from foreign manufacturers seeking access to other Latin American markets through Mexico-based production activities. According to the International Trade Association, Mexico invests in research for biological applications and life sciences, which is a significant growth opportunity for the market.
- According to the International Trade Administration, pharmaceutical sales in Mexico were estimated to reach USD 10.83 Billion in 2023. The Mexican government provides affordable, safe, and efficient treatments to the population. Almost 400 laboratories manufacture pharmaceuticals in Mexico, thus boosting market growth.
Latin America Pharmaceutical Contract Manufacturing Organization Industry Overview
The Latin American pharmaceutical contract manufacturing organization market is fragmented. Vendors are expanding across regions and forming strategic and collaborative initiatives with companies to increase their market share and profitability. Some of the recent developments in the market are,
- February 2024 - Novo Holdings, a Denmark-based company, announced it would buy the US-based contract drug manufacturing company Catalent. Catalent operates in Latin American countries, including Argentina and Brazil. The acquisition is likely to increase Novo Holdings' manufacturing capability and geographic presence globally.
- December 2023 - Acino Pharmaceutical AG, a contract manufacturer in Europe, announced the acquisition of M8 Pharmaceuticals, a biopharmaceutical company in Mexico, to expand the company's pharmaceutical operations in Latin America.
Latin America Pharmaceutical Contract Manufacturing Organization Market Leaders
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Catalent Inc.
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Boehringer Ingelheim Group
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Pfizer CentreSource (Pfizer Inc)
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Thermo Fisher Scientific Inc. (Patheon Inc.)
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Acino International AG
*Disclaimer: Major Players sorted in no particular order
Latin America Pharmaceutical Contract Manufacturing Organization Market News
- March 2024 - Acino, a Zurich-based contract manufacturer, signed an exclusive license agreement with SERB Pharmaceuticals in Latin America. Under the agreement, Acino will market, register, and commercialize SERB's oncology product, Voraxaze, in Latin America. This partnership is likely to provide Latin American population with an access for innovative medicines.
- February 2024 - mAbxience, a Spanish developer and manufacturer of biopharmaceutical products, entered into an agreement with Biosidus, an Argentina-based company specializing in CDMO (contract development and manufacturing organization) and producing pharmaceuticals. This partnership is likely to help Biosidus expand its product portfolio and enhance innovation in pharmaceutical manufacturing.
Latin America Pharmaceutical Contract Manufacturing Organization Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.4 Market Drivers
4.4.1 Increasing Prevalence of Chronic Diseases
4.4.2 Low Manufacturing Costs
4.5 Market Restraints
4.5.1 Stringent Regulatory Requirements
4.5.2 Capacity Utilization Issues Affecting the Profitability of CMOs
5. MARKET SEGMENTATION
5.1 Service Type
5.1.1 Active Pharmaceutical Ingredient (API) Manufacturing
5.1.1.1 Small Molecule
5.1.1.2 Large Molecule
5.1.1.3 High Potency API (HPAPI)
5.1.2 Finished Dosage Formulation (FDF) Development and Manufacturing
5.1.2.1 Solid Dose Formulation
5.1.2.1.1 Tablets
5.1.2.1.2 Others ( Capsules, Powder, etc.)
5.1.2.2 Liquid Dose Formulation
5.1.2.3 Injectable Dose Formulation
5.1.3 Secondary Packaging
5.2 Country
5.2.1 Brazil
5.2.2 Mexico
5.2.3 Argentina
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Catalent Inc.
6.1.2 Acino International AG
6.1.3 Thermo Fisher Scientific Inc. (Patheon Inc.)
6.1.4 Boehringer Ingelheim Group
6.1.5 Pfizer CentreSource (Pfizer Inc.)
6.1.6 Lonza Group AG
6.1.7 Famar SA
6.1.8 Baxter Biopharma Solutions (Baxter International Inc.)
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
Latin America Pharmaceutical Contract Manufacturing Organization Industry Segmentation
The study tracks and analyzes the demand for outsourcing CMO activities within the pharmaceutical industry based on current trends and market dynamics. The market numbers are derived by tracking the revenue generated by the market players who are providing CMO services. This report analyzes the factors based on the prevalent base scenarios, key themes, and end-user vertical-related demand cycles.
The Latin American pharmaceutical contract manufacturing organization Market is Segmented by service type (active pharmaceutical ingredient (API) manufacturing (small molecules, large molecules, and high potency API (HPAPI)), finished dosage formulation (FDF) development and manufacturing (solid dose formulation (tablets and others), liquid dose formulation, and injectable dose formulation), and secondary packaging), and country (Brazil, Mexico, Argentina, and Rest of Latin America). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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| Secondary Packaging |
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| Brazil | |
| Mexico | |
| Argentina |
Latin America Pharmaceutical Contract Manufacturing Organization Market Research Faqs
How big is the Latin America Pharmaceutical Contract Manufacturing Organization Market?
The Latin America Pharmaceutical Contract Manufacturing Organization Market size is expected to reach USD 3.05 billion in 2024 and grow at a CAGR of 2.65% to reach USD 3.47 billion by 2029.
What is the current Latin America Pharmaceutical Contract Manufacturing Organization Market size?
In 2024, the Latin America Pharmaceutical Contract Manufacturing Organization Market size is expected to reach USD 3.05 billion.
Who are the key players in Latin America Pharmaceutical Contract Manufacturing Organization Market?
Catalent Inc., Boehringer Ingelheim Group, Pfizer CentreSource (Pfizer Inc), Thermo Fisher Scientific Inc. (Patheon Inc.) and Acino International AG are the major companies operating in the Latin America Pharmaceutical Contract Manufacturing Organization Market.
What years does this Latin America Pharmaceutical Contract Manufacturing Organization Market cover, and what was the market size in 2023?
In 2023, the Latin America Pharmaceutical Contract Manufacturing Organization Market size was estimated at USD 2.97 billion. The report covers the Latin America Pharmaceutical Contract Manufacturing Organization Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Pharmaceutical Contract Manufacturing Organization Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Pharmaceutical Contract Manufacturing Organization Industry Report
Statistics for the 2024 Latin America Pharmaceutical Contract Manufacturing Organization market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Latin America Pharmaceutical Contract Manufacturing Organization analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Latin America Pharmaceutical Contract Manufacturing Organization Market Report Snapshots
- Latin America Pharmaceutical Contract Manufacturing Organization Market Size
- Latin America Pharmaceutical Contract Manufacturing Organization Market Share
- Latin America Pharmaceutical Contract Manufacturing Organization Market Trends
- Latin America Pharmaceutical Contract Manufacturing Organization Companies
