The global formulation development outsourcing market size is expected to reach USD 61.4 billion by 2030 and is expected to expand at a CAGR of 7.1% from 2023 to 2030. The high burden of chronic and infectious diseases, the growing focus on improving the bioavailability of poorly soluble drugs, and the complications associated with drug development are contributing to the demand for formulation development services globally. Furthermore, the COVID-19 outbreak has influenced the need for clinical trials to find an effective treatment against the contagious virus. This has resulted in significant investments in research and development (R&D) to develop therapeutics, which are expected to drive the market.
According to Pharma R&D Annual Review 2022, biopharmaceutical and anticancer drugs are the major drugs in the development stage in the year 2022, this is expected to improve the demand for formulation development of these drugs post-pandemic. Globally, the pharmaceutical companies are making significant contributions to R&D activities. For instance, Merck’s R&D cost was USD 2,516.8 million in 2020 as compared to USD 2,494.8 million in 2019. Similarly, Biogen’s R&D expenses accounted for USD 3,990.9 million in 2020. The company’s R&D expenditure increased by 75% as compared to 2019. The significant increase in R&D expenditure is likely to have a positive impact on the market.
A significant number of drugs fail to reach late-stage clinical trials owing to complications associated with formulation development. Moreover, strict regulations regarding the development of drugs are further contributing to the demand for outsourcing formulation development. Such factors are expected to improve the demand. The COVID-19 incidence has been significantly reduced owing to the growing vaccination drive globally. As a result, the CRO and CDMO are once again concentrating on the development of drugs for oncology and other disorders. For instance, in April 2022, Labcorp collaborated with Xcell Biosciences to support the company in developing cell and gene therapies for treating cancer, Parkinson’s disease, and other rare diseases. Such initiatives by the CDMOs are likely to promote the demand for the formulation development outsourcing of drugs used in the treatment of cancer and other rare diseases.
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According to Pharma R&D Annual Review 2022, biopharmaceutical and anticancer drugs are the major drugs in the development stage in the year 2022, this is expected to improve the demand for formulation development of these drugs post-pandemic. Globally, the pharmaceutical companies are making significant contributions to R&D activities. For instance, Merck’s R&D cost was USD 2,516.8 million in 2020 as compared to USD 2,494.8 million in 2019. Similarly, Biogen’s R&D expenses accounted for USD 3,990.9 million in 2020. The company’s R&D expenditure increased by 75% as compared to 2019. The significant increase in R&D expenditure is likely to have a positive impact on the market.
A significant number of drugs fail to reach late-stage clinical trials owing to complications associated with formulation development. Moreover, strict regulations regarding the development of drugs are further contributing to the demand for outsourcing formulation development. Such factors are expected to improve the demand. The COVID-19 incidence has been significantly reduced owing to the growing vaccination drive globally. As a result, the CRO and CDMO are once again concentrating on the development of drugs for oncology and other disorders. For instance, in April 2022, Labcorp collaborated with Xcell Biosciences to support the company in developing cell and gene therapies for treating cancer, Parkinson’s disease, and other rare diseases. Such initiatives by the CDMOs are likely to promote the demand for the formulation development outsourcing of drugs used in the treatment of cancer and other rare diseases.
Formulation Development Outsourcing Market Report Highlights
- Based on services, the pre-formulation segment is expected to witness a CAGR of 6.7% in the forecast period owing to the growing demand for new drugs due to the high disease burden worldwide.
- Based on formulation, the injectable products segment is expected to rise with the fastest CAGR of 7.7% in the forecast period owing to the high bioavailability of parental formulations.
- Based on therapeutic area, the oncology segment is likely to witness the fastest CAGR of 8.3% in the forecast owing high burden of cancer worldwide, thus contributing demand for formulation development of new drugs.
- Asia Pacific held the largest revenue share in 2022 due to the presence of a significant number of CROs providing cost effective formulation development services.
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Table of Contents
Chapter 1 Research Methodology & Scope1.1 Market Segmentation and Scope
1.2 Market Definitions
1.2.1 Service
1.2.2 Formulation
1.2.3 Therapeutic Area
1.3 Research Methodology
1.4 Information Procurement
1.4.1 Information analysis
1.4.2 Market formulation & data visualization
1.4.3 Data validation & publishing
1.5 Research Scope and Assumptions
1.5.1 Commodity Flow Analysis
1.5.2 Top down market estimation
1.5.3 Country based segment share calculation
1.5.4 Multivariate analysis
1.5.5 Formulation Development Outsourcing market: CAGR Calculation
1.6 List of Secondary Sources
1.7 Objectives
1.7.1 Objective - 1:
1.7.2 Objective - 2:
1.7.3 Objective - 3:
1.7.4 Objective - 4:
Chapter 2 Executive Summary
2.1 Market Snapshot
2.2 Segment Snapshot
2.3 Competitive Landscape Snapshot
Chapter 3 Formulation Development Outsourcing Market: Variables, Trends, & Scope
3.1 Market Lineage Outlook
3.1.1 Parent Market Outlook
3.1.2 Ancillary Market Outlook
3.2 Market Dynamics
3.2.1 Market Driver Impact Analysis
3.2.2 Market Restraint Impact Analysis
3.3 Industry Analysis
3.3.1 Porter’s Five Forces Analysis
3.3.2 Pestel Analysis
3.4 Covid-19 Impact On Formulation Development Outsourcing Market
3.4.1 Activities By Market Players
3.4.2 Long-Term Changes In The Market
Chapter 4 Formulation Development Outsourcing Market: Service Estimates & Trend Analysis
4.1 Formulation Development Outsourcing Market by Services: Key Takeaways
4.2 Service Movement Analysis & Market Share, 2022 & 2030
4.3 Formulation Development Outsourcing Market Estimates & Forecast, By Service (USD Million)
4.3.1 Preformulation
4.3.2 Formulation Development
Chapter 5 Formulation Development Outsourcing Market: Formulation Estimates & Trend Analysis
5.1 Formulation Development Outsourcing Market by Formulation: Key Takeaways
5.2 Formulation Movement Analysis & Market Share, 2022 & 2030
5.3 Formulation Development Outsourcing Market Estimates & Forecast, By Formulation (USD Million)
5.3.1 Oral
5.3.2 Injectable
5.3.3 Topical
5.3.4 Others
Chapter 6 Formulation Development Outsourcing Market: Therapeutic Area Estimates & Trend Analysis
6.1 Formulation Development Outsourcing Market by Therapeutic Area: Key Takeaways
6.2 Therapeutic Area Movement Analysis & Market Share, 2022 & 2030
6.3 Formulation Development Outsourcing Market Estimates & Forecast, By Therapeutic Area (USD Million)
6.3.1 Oncology
6.3.2 Infectious Disease
6.3.3 Neurology
6.3.4 Hematology
6.3.5 Respiratory
6.3.6 Cardiovascular
6.3.7 Dermatology
6.3.8 Others
Chapter 7 Formulation Development Outsourcing Market: Regional Analysis
7.1 Formulation Development Outsourcing Market: Regional Outlook
7.2 Formulation Development Outsourcing Market by Region: Key Takeaways
7.3 Formulation Development Outsourcing Market by Region: Key Takeaway
7.4 North America
7.4.1 North America Formulation Development Outsourcing Market Estimates And Forecasts, 2018 - 2030 (USD Million)
7.4.2 U.S.
7.4.3 Canada
7.5 Europe
7.5.1 Europe Formulation Development Outsourcing Market Estimates And Forecasts, 2018 - 2030 (USD Million)
7.5.2 Uk
7.5.3 Germany
7.5.4 France
7.5.5 Italy
7.5.6 Spain
7.5.7 Russia
7.5.8 Turkey
7.5.9 Netherlands
7.5.10 Switzerland
7.5.11 Sweden
7.5.11 Norway
7.6 Asia Pacific
7.6.1 Asia Pacific Formulation Development Outsourcing Market Estimates And Forecasts, 2018 - 2030 (USD Million)
7.6.2 China
7.6.3 India
7.6.4 Japan
7.6.5 Australia
7.6.6 South Korea
7.6.7 Indonesia
7.6.8 Malaysia
7.6.9 Singapore
7.6.10 Thailand
7.6.11 Taiwan
7.7 Latin America
7.7.1 Latin America Formulation Development Outsourcing Market Estimates And Forecasts, 2018 - 2030 (USD Million)
7.7.2 Brazil
7.7.3 Mexico
7.7.4 Argentina
7.7.5 Colombia
7.7.6 Chile
7.8 Middle East & Africa
7.8.1 Middle East & Africa Formulation Development Outsourcing Market Estimates And Forecasts, 2018 - 2030 (USD Million)
7.8.2 South Africa
7.8.3 Saudi Arabia
7.8.4 UAE
7.8.5 Egypt
7.8.6 Israel
Chapter 8 Competitive Landscape
8.1 Company Overview
8.2 Financial Performance
8.3 Services Benchmarking
8.4 Strategy Mapping
8.5 Company Heat Map Analysis
8.6 Company Market Share Analysis
Chapter 9 Key Takeaways
List of Tables
Table 1 Service segment definition
Table 2 Formulation segment definition
Table 3 Therapeutic area segment definition
Table 4 List of secondary sources
Table 5 Global formulation development outsourcing market revenue estimates and forecast, by service, 2018 - 2030 (USD Million)
Table 6 Global formulation development outsourcing market revenue estimates and forecast, by formulation, 2018 - 2030 (USD Million)
Table 7 Global formulation development outsourcing market revenue estimates and forecast, by therapeutic area, 2018 - 2030 (USD Million)
Table 8 Company profiles: Company overview
Table 9 Company profiles: Financial performance
Table 10 Company profiles: Services benchmarking
Table 11 Key companies initiating service launches/upgrades.
Table 12 Key companies initiating mergers/acquisitions/joint ventures.
Table 13 Key companies initiating facility/capacity expansion.
Table 14 Key companies initiating partnerships & collaborations
Table 15 Key companies initiating regional expansion.
Table 16 Key companies initiating other strategies.
List of Figures
Fig. 1 Formulation Development Outsourcing Market segmentation
Fig. 2 Market research process
Fig. 3 Information procurement
Fig. 4 Data Analysis Models
Fig. 5 Market Formulation And Validation
Fig. 6 Data Validating & Publishing
Fig. 7 Commodity flow analysis
Fig. 8 Market snapshot
Fig. 9 Segment snapshot
Fig. 10 Segment snapshot
Fig. 11 Competitive landscape snapshot
Fig. 12 Healthcare Contract Research Organization Market Value, 2022 (USD Million)
Fig. 13 Pharmaceutical Contract Research Organization Market Value, 2022 (USD Million)
Fig. 14 Formulation development outsourcing market dynamics
Fig. 15 Distribution of in-house and outsourcing services expenditure in the global pharmaceutical market
Fig. 16 Porter’s five forces analysis
Fig. 17 PEST Analysis
Fig. 18 Formulation development outsourcing market, by service: Key takeaways
Fig. 19 Formulation development outsourcing market, by service: market share, 2022 & 2030
Fig. 20 Preformulation market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 21 Formulation development market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 22 Formulation development outsourcing market, by Formulation: Key takeaways
Fig. 23 Formulation development outsourcing market, by formulation: market share, 2022 & 2030
Fig. 24 Oral market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 25 Injectable market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 26 Topical market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 27 Others market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 28 Formulation development outsourcing market, by therapeutic area: Key takeaways
Fig. 29 Formulation development outsourcing market, by therapeutic area: market share, 2022 & 2030
Fig. 30 Oncology market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 31 Infectious disease market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 32 Neurology market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 33 Hematology market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 34 Respiratory market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 35 Cardiovascular market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 36 Dermatology market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 37 Others market estimates & forecasts, 2018 - 2030 (USD Million)
Fig. 38 Formulation development outsourcing market revenue, by region, 2022 & 2030, (USD million)
Fig. 39 Regional marketplace: Key takeaways (North America & Europe)
Fig. 40 Regional marketplace: Key takeaways (Asia Pacific, Latin America, and MEA)
Fig. 41 Europe formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 42 Total Number of Clinical Trials in Turkey, 2018 to 2030
Fig. 43 Key country dynamics
Fig. 44 China formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 45 Key country dynamics
Fig. 46 India formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 47 Key country dynamics
Fig. 48 Japan formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 49 Key country dynamics
Fig. 50 Australia formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 51 Key country dynamics
Fig. 52 South Korea formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 53 Key country dynamics
Fig. 54 Indonesia formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 55 Key country dynamics
Fig. 56 Malaysia formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 57 Key country dynamics
Fig. 58 Singapore formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 59 Key country dynamics
Fig. 60 Thailand formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 61 Key country dynamics
Fig. 62 Taiwan formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 63 Middle East & Africa formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 64 Key country dynamics
Fig. 65 South Africa formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 66 Key country dynamics
Fig. 67 Saudi Arabia formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 68 Key country dynamics
Fig. 69 UAE formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 70 Key country dynamics
Fig. 71 Egypt formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 72 Key country dynamics
Fig. 73 Israel formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 74 Key country dynamics
Fig. 75 Kuwait formulation development outsourcing market estimates and forecasts, 2018 - 2030 (USD Million)
Fig. 76 Key strategic initiatives by market players
Fig. 77 Company Market Share Analysis
Companies Mentioned
- SGS S.A.
- Intertek Group plc
- Recipharm
- Lonza
- Charles River Laboratories International, Inc.
- Eurofins Scientific SE
- Element
- Labcorp
- Thermo Fisher Scientific, Inc. (Patheon)
- Catalent Inc.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 143 |
| Published | March 2023 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 35.1 Billion |
| Forecasted Market Value ( USD | $ 61.4 Billion |
| Compound Annual Growth Rate | 7.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
