Consumer Health Contract Manufacturing Market Report 2025

The consumer health contract manufacturing market size has grown rapidly in recent years. It will grow from $138.97 billion in 2024 to $155.62 billion in 2025 at a compound annual growth rate (CAGR) of 12%. The growth during the historical period can be attributed to increasing demand for over-the-counter (OTC) medications, heightened consumer awareness of wellness and preventive care, greater outsourcing by pharmaceutical companies, expansion of retail pharmacy chains and e-commerce platforms, and rising investments in regional manufacturing facilities.

The consumer health contract manufacturing market size is expected to see rapid growth in the next few years. It will grow to 242.36 billion in 2029 at a compound annual growth rate (CAGR) of 11.7%. The growth anticipated in the forecast period can be attributed to rising demand for personalized consumer health products, an increasing number of health-conscious consumers, growing complexity in regulatory requirements, expansion of direct-to-consumer (DTC) health brands, and greater digitization of supply chains and manufacturing operations. Key trends during this period include the adoption of continuous manufacturing technologies, utilization of AI and predictive analytics, integration of blockchain within supply chains, advancement of smart packaging solutions, and increased investment in environmentally friendly manufacturing processes.

The growing demand for consumer health products is anticipated to drive the expansion of the consumer health contract manufacturing market. Consumer health products include over-the-counter medications, nutritional supplements, and personal care items that individuals use to maintain their health and well-being without needing a prescription. This demand is increasing as more people emphasize self-care and prefer over-the-counter options to manage their health independently, reducing the need for frequent doctor visits. Consumer health contract manufacturing supports companies by outsourcing production to specialized manufacturers, enabling brands to concentrate on marketing and innovation while ensuring high-quality product output. For example, in September 2024, data from Barclays Bank UK PLC, a UK-based retail banking provider, showed that consumer spending in the health and beauty sector increased by 7.3% year-on-year in August 2024, highlighting the sector’s robust growth. Hence, the rising demand for consumer health products is fueling growth in the consumer health contract manufacturing market.

Leading companies in the consumer health contract manufacturing market are focusing on introducing innovative solutions such as contract development and manufacturing platforms to optimize production processes, improve scalability, and speed up product launch timelines. A contract development and manufacturing platform integrates product development activities, including formulation and testing, with large-scale manufacturing capabilities within a single system. For instance, in October 2023, Lallemand Inc., a Canada-based microorganism development company, launched Expert Biome CDMO, a full-service contract development and manufacturing platform designed to support the development and production of advanced probiotic and live biotherapeutic strains. This platform provides end-to-end services encompassing microbial strain research and development, bioprocess scaling, drug manufacturing, formulation, and regulatory assistance. Expert Biome operates according to strict quality standards, such as cGMP Pharma, addressing key challenges in the health supplements and live biotherapeutics markets.

In December 2024, Novo Holdings A/S, an investment company based in Denmark, acquired Catalent Inc. for $16.5 billion. This acquisition aims to enhance Catalent’s standing as a leading global service provider in the pharmaceutical and biotechnology sectors, fostering continued growth, innovation, and improved support for clients and patients worldwide. Novo Holdings’ mission to invest for the benefit of people and the planet is also furthered through this move. Catalent Inc. is a US-based contract development and manufacturing organization (CDMO) specializing in drug substance production and finished dosage forms.

Major players in the consumer health contract manufacturing market are Thermo Fisher Scientific Inc., Lonza Group Ltd., Siegrified AG, Vetter Pharma, Sirio Pharma Co. Ltd., Piramal Consumer Products, Aenova Group, Recipharm AB, Vit-Best Nutrition Inc., Laurus Labs, UFP Technologies, Scapa Healthcare, Robinson Pharma Inc., Trividia Health Inc., Tishcon Corporation, Famar SA, SCN BestCo, Akums Drugs And Pharmaceuticals, Bactolac Pharmaceutical Inc., ION Labs Inc., Rubicon Research Private Limited, and Captek Softgel International.

North America was the largest region in the consumer health contract manufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in consumer health contract manufacturing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the consumer health contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The consumer health contract manufacturing market consists of sales of products including herbal and botanical products, functional foods and beverages, probiotic formulations, topical health treatments, and vitamin-infused gummies. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the pharmaceutical companies contend with tariffs on APIs, glass vials, and lab equipment inputs with few alternative sources. Generic drug makers, operating on razor-thin margins, are especially vulnerable, with some reducing production of low-profit medicines. Biotech firms face delays in clinical trials due to tariff-related shortages of specialized reagents. In response, the industry is expanding API production in India and Europe, increasing inventory stockpiles, and pushing for trade exemptions for essential medicines.

The consumer health contract manufacturing market research report is one of a series of new reports that provides consumer health contract manufacturing market statistics, including consumer health contract manufacturing industry global market size, regional shares, competitors with a consumer health contract manufacturing market share, detailed consumer health contract manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the consumer health contract manufacturing industry. This consumer health contract manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Consumer health contract manufacturing involves outsourcing the production of health-related consumer products, such as over-the-counter (OTC) medications, dietary supplements, and personal care items to specialized third-party manufacturers. This strategy allows brand owners to focus on core activities like marketing, distribution, and product innovation while leveraging the advanced capabilities, regulatory knowledge, and cost efficiencies provided by contract manufacturing partners.

The key product categories in consumer health contract manufacturing include over-the-counter (OTC) drugs, nutritional supplements, personal care products, medical devices, and others. OTC drugs are medications available without a prescription, used to treat common ailments like pain, allergies, or cold symptoms. Services offered in this sector encompass active pharmaceutical ingredient (API) manufacturing, finished dose production, medical device manufacturing, packaging, labeling, and more. These services support a diverse range of end users, including pharmaceutical and biopharmaceutical firms, nutraceutical companies, cosmeceutical manufacturers, medical device companies, and others.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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