Pharmaceutical Contract Development and Manufacturing Organization (CDMO) for Formulations Market Report 2026

The pharmaceutical contract development and manufacturing organization (cdmo) for formulations market size has grown rapidly in recent years. It will grow from $54.73 billion in 2025 to $60.7 billion in 2026 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to limited availability of specialized peptide api manufacturers, reliance on in-house peptide production, growing peptide therapeutics pipelines, increasing regulatory compliance requirements, adoption of basic chemical synthesis methods.

The pharmaceutical contract development and manufacturing organization (cdmo) for formulations market size is expected to see rapid growth in the next few years. It will grow to $90.76 billion in 2030 at a compound annual growth rate (CAGR) of 10.6%. The growth in the forecast period can be attributed to advancements in custom peptide synthesis technologies, expansion of commercial-scale gmp manufacturing, increasing outsourcing to cros and smes, development of lifecycle management and process optimization strategies, rising demand for clinical and preclinical peptide api manufacturing. Major trends in the forecast period include rising outsourcing of peptide api manufacturing to contract manufacturers, growth in gmp-grade production for clinical and commercial supply, increasing demand for custom peptide synthesis and purification services, expansion of peptide therapeutics pipelines across pharmaceutical companies, focus on process optimization and lifecycle management for peptide apis.

The growing drug development and manufacturing activities are expected to drive the growth of the pharmaceutical contract development and manufacturing organization (CDMO) for formulations market in the coming years. Drug development and manufacturing activities refer to the increasing efforts by pharmaceutical and biopharmaceutical companies to research, develop, and produce new drugs. These activities are rising primarily due to the growing global demand for innovative and effective therapeutics, which encourages companies to expand their development pipelines and accelerate manufacturing timelines. Pharmaceutical CDMOs support drug development by optimizing dosage forms, performing stability testing, ensuring regulatory compliance, and managing scale-up and production, enabling faster and cost-efficient product launches. For instance, in June 2023, the European Federation of Pharmaceutical Industries and Associations (EFPIA) reported that total pharmaceutical production in Europe reached $422.8 billion (€390,000 million) in 2023, up from $393.85 billion (€363,300 million) in 2022. Therefore, expanding drug development and manufacturing activities are propelling the growth of the pharmaceutical CDMO for formulations market.

Key companies in this market are focusing on advanced solutions such as biologic formulation platforms to improve drug stability and reduce time-to-market for complex biologic therapies. Biologic formulation platforms are specialized systems designed to create stable, efficient formulations of biologic drugs by optimizing factors such as pH, excipients, and delivery methods to enhance stability, bioavailability, and safety. For instance, in June 2025, WuXi Biologics, a China-based CDMO, launched WuXiHigh 2.0, a next-generation high-concentration formulation platform. This platform enables biologic formulations with protein concentrations up to 230 mg/mL, exceeding the current FDA-approved maximum of 200 mg/mL, while reducing viscosity by up to 90% through proprietary excipients and high-throughput instrumentation. It addresses challenges such as viscosity and aggregation and improves injection efficiency, patient compliance, and manufacturing outcomes across clinical and commercial stages.

In February 2025, Jabil Inc., a US-based provider of engineering, manufacturing, and supply chain solutions, acquired Pharmaceutics International Inc. (Pii) for an undisclosed amount. The acquisition aims to strengthen Jabil’s pharmaceutical manufacturing and development capabilities by leveraging Pii’s expertise in aseptic filling, lyophilization, and oral solid dose production. Pharmaceutics International Inc. (Pii) is a US-based CDMO that provides formulation development services for injectable and oral drug products, enhancing end-to-end support across clinical and commercial manufacturing.

Major companies operating in the pharmaceutical contract development and manufacturing organization (cdmo) for formulations market are Thermo Fisher Scientific Inc., Lonza Group, Catalent Inc., WuXi Biologics, Samsung Biologics, Recipharm AB, Siegfried Holding AG, Evonik Industries AG, Almac Group, Aenova Group, Piramal Pharma Limited, Cambrex, Jubilant Pharmova Limited, CordenPharma, Altasciences, Hovione, Aurigene Pharmaceutical Services Ltd., DPT Laboratories Ltd., CARBOGEN AMCIS, Biopharma Group, LGM Pharma, Aarti Pharmalabs Limited.

Asia-Pacific was the largest region in the pharmaceutical contract development and manufacturing organization (CDMO) for formulations market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the pharmaceutical contract development and manufacturing organization (cdmo) for formulations market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pharmaceutical contract development and manufacturing organization (cdmo) for formulations market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs have impacted the peptide therapeutics contract API manufacturing market by increasing costs for imported reagents, raw materials, and specialized synthesis equipment. Preclinical, clinical, and commercial-scale manufacturing segments are most affected, particularly in North America, Europe, and Asia-Pacific regions such as China and India, which are key suppliers. While tariffs have raised operational costs and slowed supply chains, they have also encouraged local manufacturing, investment in domestic capabilities, and innovation in cost-efficient peptide API production.

The pharmaceutical contract development and manufacturing organization (cdmo) for formulations market research report is one of a series of new reports that provides pharmaceutical contract development and manufacturing organization (cdmo) for formulations market statistics, including pharmaceutical contract development and manufacturing organization (cdmo) for formulations industry global market size, regional shares, competitors with a pharmaceutical contract development and manufacturing organization (cdmo) for formulations market share, detailed pharmaceutical contract development and manufacturing organization (cdmo) for formulations market segments, market trends and opportunities, and any further data you may need to thrive in the pharmaceutical contract development and manufacturing organization (cdmo) for formulations industry. This pharmaceutical contract development and manufacturing organization (cdmo) for formulations 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.

A pharmaceutical contract development and manufacturing organization (CDMO) for formulations is a company that provides outsourced services for the development and production of drug formulations for pharmaceutical companies. These services include formulation development, analytical testing, clinical trial material production, and large-scale commercial manufacturing.

The main types of dosage forms handled by pharmaceutical CDMOs for formulations include oral solids, oral liquids, injectables, topicals, inhalation products, transdermal patches, and others. Oral solid dosage forms are medications designed for oral administration, formulated to deliver the active drug through the digestive system. These dosage forms are applied across various therapeutic areas, including oncology, cardiology, central nervous system disorders, gastroenterology, infectious diseases, and endocrinology, and are used by multiple end users, including pharmaceutical and biopharmaceutical companies, among others.

The pharmaceutical contract development and manufacturing organization (CDMO) for formulations market consists of revenues earned by entities by providing services such as analytical and stability testing, formulation development, process development and scale-up, regulatory support and documentation, and commercial-scale manufacturing and packaging. The market value includes the value of related goods sold by the service provider or included within the service offering. The pharmaceutical contract development and manufacturing organization (CDMO) for formulations market also includes sales of suppositories, ophthalmic preparations, buccal and sublingual tablets, liposomal formulations, and microneedle patches. 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).

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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