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United States Contract Manufacturing Services Market Size (2024 - 2029)

The United States Contract Manufacturing Services Market is experiencing significant growth, driven by the increasing reliance on contract manufacturers due to challenges in outsourcing to Asian countries. This market expansion is fueled by the pharmaceutical industry's focus on drug discovery and manufacturing outsourcing, as well as the food processing sector's growth, supported by major food manufacturers and innovations. The localization of contract manufacturing is gaining traction, particularly in the personal care and beverage industries, as it reduces lead times and operational costs. Despite setbacks from the COVID-19 pandemic, the market continues to evolve, reflecting a shift in preferences toward local contractors.

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Market Size of United States Contract Manufacturing Services Industry

United States Contract Manufacturing Services Market (2024 - 2029)
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 25.10 %
Market Concentration Medium

Major Players

United States Contract Manufacturing Services Market Key Players

*Disclaimer: Major Players sorted in no particular order

US Contract Manufacturing Services Market Analysis

The United States Contract Manufacturing Services Market is expected to register a CAGR of 25.10% during the forecast period.

The Evolution of service offerings has enabled organizations to rely on contract manufacturers for their production needs to increase. Challenges faced due to outsourcing manufacturing to Asian countries have played a key role in prompting organizations to rely on contract manufacturers. These are driving factors for the growth of the United States Contract Manufacturing Services Market.

  • The market is driven by a growing emphasis on pharmaceutical drug discovery and manufacturing outsourcing. The country is increasing the use of scientific exploration of disease mechanisms leading to the discovery and development of agents. Pre-clinical testing is an important stage in pharmaceutical research. Several tests are performed to determine whether a drug is ready for clinical trials at this stage.
  • The food processing and manufacturing sector has witnessed significant growth due to the wide presence of major food manufacturers and important innovations in food & beverage in the country.
  • Increasing awareness of the benefits of contract manufacturing localization, such as a reduction in lead time, which is the most important factor for fast-moving personal care products, is expected to boost the market growth.
  • There has been a shift in manufacturing firms' preferences toward local contractors, as beverage contract bottling and filling offers several benefits. For starters, it lowers the manufacturers' operational and labor costs as the primary driver of market growth.
  • Due to a nationwide lockdown, the COVID-19 pandemic delivered a major blow to the nation's Contract Manufacturing Services distribution system. For instance, in March 2020, many US beverage makers, like Coca-Cola, temporarily suspended production across the country's manufacturing facilities.

US Contract Manufacturing Services Industry Segmentation

Contract manufacturing is the outsourcing of previously performed by the manufacturer's production activities to a third party.

United States Contract Manufacturing Services Market is Segmented by (Pharmaceutical, Food processing & manufacturing, Beverage, and Personal Care).

By pharmaceutical
Current Market Scenario and growth influencers
Market Breakdown - by Service Type (Forecasts & Key Developments)
Active Pharmaceutical Ingredient (API) Manufacturing
Small molecule
Large Molecule
High Potency API (HPAPI)
Finished Dosage Formulation (FDF) Development and Manufacturing
Solid Dose Formulation
Liquid Dose Formulation
Injectable Dose Formulation
Secondary Packaging
By Food processing & manufacturing
Market Breakdown - by Service Type
Current Market Scenario and growth influencers
Food Manufacturing Services
Convenience Foods
Bakery Products
Confectionary Products
Dairy Products
Research & Development
Food Packaging Services
By Beverage
Current Market Scenario and growth influencers
Market Breakdown - by Type (Forecasts & Key Developments)
Beer
Carbonated Drinks & Fruit-based Beverages
Bottled Water
Others (Sport Drinks)
By Personal Care
Current Market Scenario and growth influencers
Market Breakdown - by Type
Skin Care
Hair Care
Make up & Color Cosmetics
Others
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United States Contract Manufacturing Services Market Size Summary

The United States Contract Manufacturing Services Market is experiencing significant growth, driven by the increasing reliance on contract manufacturers for production needs. This trend is largely due to challenges associated with outsourcing manufacturing to Asian countries, prompting organizations to seek local solutions. The market is further bolstered by a growing emphasis on pharmaceutical drug discovery and manufacturing outsourcing, with advancements in scientific exploration and pre-clinical testing playing a crucial role. The food processing and manufacturing sector also contributes to market expansion, supported by major food manufacturers and innovations in the food and beverage industry. The localization of contract manufacturing is gaining traction, particularly in the fast-moving personal care products sector, where reduced lead times are essential. The COVID-19 pandemic initially disrupted the market, but it has since rebounded, with increased demand for bottled water driving growth in the contract bottling and filling segment.

The market landscape is characterized by moderate competition, with diverse firms engaging in strategic partnerships, mergers, and acquisitions to navigate current challenges. Key players such as Catalent Inc, Lonza Group, Amerilab Technologies, Brooklyn Bottling, and KIK Custom Products are actively investing in capacity expansion and technological advancements to enhance their offerings. Regulatory changes, particularly in the beverage sector, are prompting companies to outsource bottling and filling activities to comply with stringent standards. The United States government's investment in manufacturing sectors in emerging economies is attracting major market contributors, further fueling growth. As businesses continue to expand their operations and secure long-term contracts, the market is poised for continued development, with a focus on maximizing efficiency and reducing operational costs.

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United States Contract Manufacturing Services Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Stakeholder Analysis

    4. 1.4 Impact of COVID-19 on the Industry

  2. 2. Market Segmentation

    1. 2.1 By pharmaceutical

      1. 2.1.1 Current Market Scenario and growth influencers

      2. 2.1.2 Market Breakdown - by Service Type (Forecasts & Key Developments)

      3. 2.1.3 Active Pharmaceutical Ingredient (API) Manufacturing

        1. 2.1.3.1 Small molecule

        2. 2.1.3.2 Large Molecule

        3. 2.1.3.3 High Potency API (HPAPI)

      4. 2.1.4 Finished Dosage Formulation (FDF) Development and Manufacturing

        1. 2.1.4.1 Solid Dose Formulation

        2. 2.1.4.2 Liquid Dose Formulation

        3. 2.1.4.3 Injectable Dose Formulation

      5. 2.1.5 Secondary Packaging

    2. 2.2 By Food processing & manufacturing

      1. 2.2.1 Market Breakdown - by Service Type

      2. 2.2.2 Current Market Scenario and growth influencers

      3. 2.2.3 Food Manufacturing Services

        1. 2.2.3.1 Convenience Foods

        2. 2.2.3.2 Bakery Products

        3. 2.2.3.3 Confectionary Products

        4. 2.2.3.4 Dairy Products

        5. 2.2.3.5 Research & Development

        6. 2.2.3.6 Food Packaging Services

    3. 2.3 By Beverage

      1. 2.3.1 Current Market Scenario and growth influencers

      2. 2.3.2 Market Breakdown - by Type (Forecasts & Key Developments)

        1. 2.3.2.1 Beer

        2. 2.3.2.2 Carbonated Drinks & Fruit-based Beverages

        3. 2.3.2.3 Bottled Water

        4. 2.3.2.4 Others (Sport Drinks)

    4. 2.4 By Personal Care

      1. 2.4.1 Current Market Scenario and growth influencers

      2. 2.4.2 Market Breakdown - by Type

        1. 2.4.2.1 Skin Care

        2. 2.4.2.2 Hair Care

        3. 2.4.2.3 Make up & Color Cosmetics

        4. 2.4.2.4 Others

United States Contract Manufacturing Services Market Size FAQs

The United States Contract Manufacturing Services Market is projected to register a CAGR of 25.10% during the forecast period (2024-2029)

Catalent, Lonza Group, Amerilab Technologies, Brooklyn Bottling and KIK Custom Products are the major companies operating in the United States Contract Manufacturing Services Market.

United States Contract Manufacturing Services Market Report Snapshots

US Contract Manufacturing Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)