The biopharmaceutical CMO and CRO market comprises companies that provide contract manufacturing and research services to pharmaceutical and biotechnology companies. These services include cell line development, process development, analytical development and testing, formulation, fill-finish, and bioanalysis. Biopharmaceutical CMOs manufacture products like vaccines, monoclonal antibodies, recombinant proteins, blood factors, and other complex therapies. CROs, on the other hand, help test drug candidates through various phases of clinical trials.
The global biopharmaceutical CMO and CRO market is estimated to be valued at US$ 41.71 Mn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.
The global biopharmaceutical CMO and CRO market is driven by the increasing R&D investment in biologics. Biologics, also known as biotherapeutics, are large and complex medicinal products that are manufactured in living systems like microorganisms or mammalian cell cultures. Biologics have revolutionized the treatment of various diseases like cancer, diabetes, autoimmune disorders, and others. Pharmaceutical companies are investing heavily in developing biologics due to their high efficacy and selectivity. However, biologics require specialized manufacturing facilities and expertise, which compels drug makers to outsource their production to expert CMOs. Besides this, clinical trials for biologics also necessitate specialized testing labs and skills, encouraging sponsors to partner with CROs. These factors are fueling the growth of the biopharmaceutical CMO and CRO market.
Between 2014 to 2020, global R&D spending on biologics grew at a CAGR of over 8%. In 2020 alone, spending on biologics R&D amounted to nearly US$ 150 billion globally. This heavy investment is leading major pharmaceutical companies to focus on biologics as the next big area of growth. Most companies lack the required infrastructure and skills for manufacturing and testing complex biologics internally. This phenomenon is prompting them to outsource production and clinical trial activities to specialized CMOs and CROs. According to a recent report, the current outsourcing level of biopharmaceutical manufacturing is around 70% and is expected to increase further during the forecast period.
The global Biopharmaceutical CMO and CRO market is segmented into Development, Manufacturing and Packaging. The development segment currently dominates the market and accounts for over 35% share owing to increasing R&D activities outsourced to CROs for developing novel drugs. Biologics development is complex and outsourcing enables biopharma companies to focus on their core areas.
Political: Government regulations around drug development and manufacturing are stringent. Frequent policy changes affect operations.
Economic: Growth in biologics industry drives demand. However, high operation costs challenge profitability.
Social: Rise in diseases boosts demand for biologics. Aging population further expands market.
Technological: Advancements in bioprocessing and analytics aid development and scale-up of complex molecules. Automation improves efficiency.
The global Biopharmaceutical CMO And CRO Market Size is estimated to be valued at US$ 41.71 Mn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2031.
Regional analysis comprises: North America dominates currently owing to presence of majority key players and high R&D spending. Asia Pacific is expected to grow at fastest pace due to increasing investments.
Key players operating in the Biopharmaceutical CMO and CRO market are Albemarle Corporation, Greenchemicals S.r.l., ICL, Jordan Bromine Company, Kingboard Holdings Limited, LANXESS, Novel Chem, Shandong Brother Sci. & Tech. Co., Ltd., Shandong Futong Chemical Co., Ltd. and Tianjin Changlu Hangu Saltern Co., Ltd.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it