Report

The Pharmaceutical Manufacturing market is expected to register a CAGR of more than 11% over the forecast period.

The COVID-19 pandemic was an unprecedented health concern, significantly impacting the pharmaceutical manufacturing market. The pandemic augmented the demand for medications, including vaccines and other drug types. Thus, pharmaceutical companies accelerated the manufacturing of drugs. For instance, as per the Association of the British Pharmaceutical Industry (ABPI) dats accelerated the manufacturing of drugs. For instance, as per the Association of the British Pharmaceutical Industry (ABPI) data published in October 2021, global COVID-19 vaccine production reached 9.3 billion doses as of October 2021, and the vaccine production effort reached 12.5 billion doses by the end of 2021. It was expected to double again to 24 billion doses by June 2022. In addition, according to a July 2021 article by the Access to Medicine Foundation, some companies doubled their manufacturing capacity since the pandemic began. Thus, the COVID-19 pandemic had an overall positive impact on the pharmaceutical manufacturing market. However, the market reached its pre-pandemic nature in manufacturing pharmaceuticals as the COVID-19 pandemic ended. The market will witness significant growth during the forecast period due to the rising focus of pharmaceutical companies on developing novel therapies for various diseases.

The market's growth can be attributed to factors such as increasing research and development expenditure by pharmaceutical companies, advancements in pharmaceutical manufacturing technologies, and the growing burden of chronic diseases and the geriatric population. It is also due to the rise in the use of outsourcing by pharmaceutical companies for drug development.

The growing burden of chronic diseases and the rising older population are driving the demand for pharmaceutical manufacturing. This trend can be attributed to chronic diseases such as patients with cancer and diabetes requiring early treatment owing to the serious consequences of these diseases. For instance, as per the September 2022 update from the World Health Organization (WHO), non-communicable diseases (NCDs), also known as chronic diseases, are responsible for about 41 million deaths worldwide, i.e., 71% of all deaths globally. As per the same source, cardiovascular diseases are the major NCDs, followed by cancer, respiratory diseases, and diabetes. Almost 77% of all NCD deaths are in low-and middle-income countries.

In addition, as per a December 2021 update by the International Diabetes Federation (IDF), approximately 537 million adults (20-79 years) were living with diabetes. The total number of people living with diabetes is projected to rise to 643 million by 2030 and 783 million by 2045. Thus, such statistics indicate a growing need for pharmaceutical companies to expand their manufacturing capacities to meet the rising demand for diseases like diabetes. Hence, the growing burden of chronic disorders is expected to accelerate pharmaceutical manufacturing worldwide.

Additionally, the growing focus of pharmaceutical companies on expansion and rising investment is expected to contribute to market growth. For instance, in April 2022, Ferring Pharmaceuticals opened its integrated R&D and manufacturing facility in Hyderabad and was established with a total investment of EUR 30 million (USD 31.78 million). The R&D capability includes formulation development, packaging development, and analytical development. The manufacturing facility is mainly designed for the oral solid dosage form. Hence, with the abovementioned factors, such as the rising chronic disease burden and the expanding pharmaceutical sector, the market studied is believed to grow significantly over the forecast period.

However, the pricing pressure of biopharmaceutical and pharmaceutical companies and stringent regulations impede the market's growth.

Pharmaceutical Manufacturing Market Trends

Biologics and Biosimilar Segment is Expected to Hold a Major Share in the Pharmaceutical Manufacturing Market

The biologics and biosimilar segment is expected to hold a significant market share during the forecast period. A biological drug (biologics) is a product produced from living organisms or containing components of living organisms. Biologic drugs include various products from humans, animals, or microorganisms using biotechnology.

The major factors fueling the segment's growth are the increasing number of strategic initiatives by the market players and the demand for biologics. For instance, regarding Amgen's manufacturing expansion, in March 2021, the company reported plans to build a new multi-product drug substance manufacturing facility in Holly Springs, N.C., in the Raleigh-Durham metro area of Wake County. Amgen is investing in a technologically advanced drug substance plant in North Carolina to support the increasing demand for its medicines, including biologics.

Also, the onset of the pandemic boosted the demand for biologics, thereby driving the demand for pharmaceutical manufacturing. For instance, in May 2021, Moderna, a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines, and Samsung Biologics, a leading global CDMO providing a fully integrated end-to-end contract development and manufacturing service, announced a Manufacturing Services and Supply Agreement. In this agreement, Samsung Biologics will provide large-scale, commercial fill-finish manufacturing for mRNA-1273, Moderna's COVID-19 vaccine.

Furthermore, with the increasing significance of biologics, key companies operating in the business are making strategic movements, which is beneficial for the growth of this segment. For instance, in February 2023, Asahi Kasei Medical's United States-based subsidiary Bionova Scientific, a full-service biologics CDMO, announced the expansion of its process development and GMP biologics manufacturing capacity.

Thus, the market is expected to grow significantly over the forecast period due to the abovementioned developments.

North America is Expected to Hold a Significant Share in the Market and Expected to do Same in the Forecast Period

The North American region is expected to hold a significant market share due to the presence of key pharmaceutical manufacturers and the growing spending on the pharmaceutical industry. The United States is believed to hold a major market share within North America. The major factors fueling the market growth in the country are the increasing research and development expenditure, the growing burden of chronic diseases, the expanding pharmaceutical industry, and the strong presence of market players.

For instance, as per a January 2022 update by the National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP), 6 in 10 adults in the United States contain a chronic disease, and 4 in 10 adults include two or more chronic diseases. These conditions are posing around USD 3.8 trillion in healthcare costs on the country's healthcare system every year, as generic drugs are much cheaper than other prescribed drugs. Hence, healthcare expenditure can be significantly reduced by the wide adoption of generic drugs in the country, which is expected to accelerate pharmaceutical manufacturing.

In March 2021, the US government helped forge a historic manufacturing collaboration between two of the largest United States healthcare and pharmaceutical companies, Merck and Johnson & Johnson (J&J), to expand the production of J&J's COVID-19 vaccine.

Moreover, in July 2021, the United States Pharmacopeia (USP), an independent, scientific nonprofit organization, reported the acquisition of Pharmatech Associates, Inc. With the addition of Pharmatech Associates' expertise, USP further advanced its 200-year mission to ensure access to quality medicines. It is done by extending services that assist manufacturers in meeting global quality standards across the drug and product lifecycle.

Thus, the market is expected to grow significantly over the forecast period due to the abovementioned developments.

Pharmaceutical Manufacturing Industry Overview

The pharmaceutical manufacturing market is competitive with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, mergers, and acquisitions. Some of the key players in the market are Eli Lilly and Company, F. Hoffmann-La Roche AG, Pfizer Inc., AstraZeneca, and Sanofi SA.

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