The U.S. Formulation Development Outsourcing Market was valued at USD 8.87 billion in 2024, and is projected to reach USD 14.1 billion by 2030, rising at a CAGR of 8.30%. This growth is driven by increasing demand for innovative pharmaceutical and biotech products, rising R&D costs, and a need for specialized expertise. Outsourcing formulation development is an attractive option for companies looking to streamline their R&D processes, reduce costs, and access a wider range of resources.
The surge in R&D by pharmaceutical and biotechnology firms is a major driver propelling the demand for outsourced formulation development services. Over the past two decades, R&D spending and new drug launches have increased, leading to cost reduction and accelerated processes through outsourcing. This rising demand has prompted contract service providers to expand their capacities, fostering the growth of the U.S. formulation development outsourcing industry. Consequently, these factors substantially contribute to market expansion.
Drug formulation relies heavily on trial-and-error methods to predict optimal formulations, which can be costly, time-consuming, and labor-intensive. To address the need for reducing expenses on new Active Pharmaceutical Ingredients (APIs) and overall healthcare costs in the pharmaceuticals market, it is crucial to estimate preferred formulations. This helps the industry identify efficient drug development approaches. Consequently, the pharmaceutical and biotechnology sector extensively outsources these services to contract manufacturers to streamline costs and processes.
Advancements in technology drive innovations encourage companies to invest in discovering new compounds and developing blockbuster drugs. This leads to an increase in generic manufacturers and a growing pharmaceutical market, driven by unmet needs for various disorders and rising R&D activities for orphan therapies.
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The surge in R&D by pharmaceutical and biotechnology firms is a major driver propelling the demand for outsourced formulation development services. Over the past two decades, R&D spending and new drug launches have increased, leading to cost reduction and accelerated processes through outsourcing. This rising demand has prompted contract service providers to expand their capacities, fostering the growth of the U.S. formulation development outsourcing industry. Consequently, these factors substantially contribute to market expansion.
Drug formulation relies heavily on trial-and-error methods to predict optimal formulations, which can be costly, time-consuming, and labor-intensive. To address the need for reducing expenses on new Active Pharmaceutical Ingredients (APIs) and overall healthcare costs in the pharmaceuticals market, it is crucial to estimate preferred formulations. This helps the industry identify efficient drug development approaches. Consequently, the pharmaceutical and biotechnology sector extensively outsources these services to contract manufacturers to streamline costs and processes.
Advancements in technology drive innovations encourage companies to invest in discovering new compounds and developing blockbuster drugs. This leads to an increase in generic manufacturers and a growing pharmaceutical market, driven by unmet needs for various disorders and rising R&D activities for orphan therapies.
U.S. Formulation Development Outsourcing Report Segmentation
This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, the analyst has segmented the U.S. formulation development outsourcing market report based on service, formulation, therapeutic area, and end use:Service Outlook (Revenue, USD Million; 2018-2030)
- Pre-formulation
- Formulation Development
Formulation Outlook (Revenue, USD Million; 2018-2030)
- Oral
- Injectable
- Topical
- Others
Therapeutic Area Outlook (Revenue, USD Million; 2018-2030)
- Oncology
- Infectious Disease
- Neurology
- Hematology
- Respiratory
- Cardiovascular
- Dermatology
- Others
End Use Outlook (Revenue, USD Million; 2018-2030)
- Pharmaceutical and Biopharmaceutical Companies
- Government and Academic Institutes
- Others
This report addresses:
- Market intelligence to enable effective decision-making
- Market estimates and forecasts from 2018 to 2030
- Growth opportunities and trend analyses
- Segment and regional revenue forecasts for market assessment
- Competition strategy and market share analysis
- Product innovation listings for you to stay ahead of the curve
Why Should You Buy This Report?
- Comprehensive Market Analysis: Gain detailed insights into the market across major regions and segments.
- Competitive Landscape: Explore the market presence of key players.
- Future Trends: Discover the pivotal trends and drivers shaping the future of the market.
- Actionable Recommendations: Utilize insights to uncover new revenue streams and guide strategic business decisions.
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Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. U.S. Formulation Development Outsourcing Market Variables, Trends, & Scope
Chapter 4. U.S. Formulation Development Outsourcing Market: Service Business Analysis
Chapter 5. U.S. Formulation Development Outsourcing Market: Formulation Business Analysis
Chapter 6. U.S. Therapeutic Area Development Outsourcing Market: Therapeutic Area Business Analysis
Chapter 7. U.S. Formulation Development Outsourcing Market: End Use Business Analysis
Chapter 8. Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
The major companies featured in this U.S. Formulation Development Outsourcing market report include:- SGS Société Générale de Surveillance SA
- Intertek Group plc
- Recipharm AB
- Lonza
- Charles River Laboratories
- Eurofins Scientific
- Element
- Labcorp
- Thermo Fisher Scientific Inc.
- Catalent, Inc
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 80 |
| Published | May 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 8.87 Billion |
| Forecasted Market Value ( USD | $ 14.1 Billion |
| Compound Annual Growth Rate | 8.3% |
| Regions Covered | United States |
| No. of Companies Mentioned | 11 |
