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Pharmaceutical Contract Manufacturing - Global Market Trajectory & Analytics

  • ID: 347965
  • Report
  • April 2021
  • Region: Global
  • 528 Pages
  • Global Industry Analysts, Inc
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Move Over Offshoring, Here Comes Nearshoring Rising on the Wave of COVID-19 Disruptions. Pharmaceutical Contract Manufacturing Revenues Slump by -1.4%

The global market for Pharmaceutical Contract Manufacturing is expected to slump by -1.4% in the year 2020 and thereafter recover and grow on the back of newly emerging dynamics to reach US$136.5 billion by the year 2027, trailing a post COVID-19 CAGR 4.6% over the analysis period 2020 through 2027. With the pandemic exposing the weakness of health systems worldwide, governments are stepping up the emphasis and policy led support for strengthening their healthcare infrastructure. Governments worldwide have voiced plans to strengthen healthcare system. Already governments have announced budgetary support to strengthen the health system's response to COVID-19. From stepping up research activities, constructing new hospitals, adding more capacity in the form of additional beds, procuring critical care life support devices such as ventilators to training, hiring healthcare staff, several measures are being implemented. The disruption and chaos unleashed by the pandemic has led pharmaceutical companies to rethink their supply chains and outsourcing strategies. The pandemic's impact on pharma supply chains was largely evident in the broken and stranded logistics as countries world over closed their borders, although late to prevent the further spread of the infection. Complete disruption and halting of the transportation and logistics sector temporarily impacted pharmaceutical drug production in countries heavily dependent on imports for active pharmaceutical ingredients (APIs).

The pandemic has exposed the risk of over dependence on a single country for raw materials. China supplies a lion's share of pharma raw materials demanded worldwide. For several antibiotics and drugs that treat high blood pressure, China is the sole source of API in the country. Over the last decade, the number of facilities in China supplying active pharmaceutical ingredients (APIs) to the U.S. alone has doubled since 2010 highlighting the blunder made by the U.S. government in prioritizing the Chinese manufacturing industry over its own. In addition, decisions take by governments to ban exports of certain high value and critically important ingredients in a proactive move to mitigate drug and medical device supply shortages in domestic markets. In the world's most populous country India, for instance, fears over the pandemic spread and anticipated increase in demand for drugs the led the Indian government to ban the exports of over 26 pharma ingredients. These protectionist trade policies aimed at securing domestic pharmaceutical supplies has severely undermined global equitable drug availability and access. Supply chain management over the long-term is in for some of the biggest changes not witnessed in over a century. Countries world over are encouraging pharma companies to secure themselves against volatility in supplies from Asia and from China in particular.

While an immediate shift in pharmaceutical chemical supply lines is not a pragmatic possibility, the change is expected to gradually sink in. Spearheading the new self-sufficient sentiment in the global drug manufacturing space is India, country which is ambitiously focused on turning a crisis into an opportunity by rethinking and rejuvenating its pharmaceutical supply chain management practices and ideologies. Going forward over the long-term decisions to outsource manufacturing activities will be governed by more than just cost efficiency benefit. As companies emerge wiser from the lessons taught by the pandemic outsourcing drug manufacturing will mean greater focus will be shed on maintaining good reactive capacity close to where it is needed. Also, companies will now begin to outsource manufacturing to multiple countries and regions to ensure resilience in case of disasters similar to the current healthcare crisis or natural disasters. Until now, pharma companies have leveraged outsourcing as a great way to take advantage of cheap labor and raw materials available in countries like China. As the world tries to disengage dependence on China, nearshoring as a sub-set of offshoring is gaining whole new significance and reenergized focus. The closer manufacturing partners are to the home country, greater will be level of control over quality and lesser will be vulnerability to disruptions. Communication becomes easier, time-to-market is significantly reduced, chances of errors and product recalls become smaller, and control, flexibility and agility are increased x times. Vulnerability to transport disruptions also becomes significantly lower. Also nearshoring to contract manufacturers in the same time zone means lesser regulatory bottlenecks. In addition to protecting against unforeseen disaster scenarios and disruptions, nearshoring also reduces quality defects, random interruptions in manufacturing processes, order processing difficulties, untimely delivery of products and mismatch between market demand and supplier responsiveness. Nearshoring is increasingly perceived to be a part of the bigger reshoring trend set into motion by the COVID-19 pandemic. In addition, to mitigate the effects of supply chain disruptions, pharmaceutical companies are increasingly recalibrated their strategies by greater insourcing and nearshoring of core products, and outsourcing non-core products and developing offshore insourcing capabilities through 'captives'. The B2G is poised to balloon into a major trend as public-private partnerships come to the spotlight as countries initiate policy changes to bring back domestic production.

Select Competitors (Total 192 Featured):
  • Abbvie Inc
  • Aenova Group
  • Ajinomoto Althea, Inc.
  • Alcami Corporation
  • Almac Group
  • Baxter International, Inc.
  • Boehringer Ingelheim GmbH
  • Catalent Pharma Solutions, Inc.
  • Cobra Biologics Holding AB
  • CordenPharma International
  • Dishman Group
  • Evonik Industries AG
  • Famar Health Care Services
  • Fareva Group
  • Jubilant Life Sciences Limited
  • Kemwell Biopharma Pvt. Ltd.
  • Lonza Group Ltd.
  • LTS Lohmann Therapie-Systeme AG
  • NextPharma Technologies Holding Ltd.
  • Nipro Pharma Corporation
  • Recipharm AB
  • Siegfried AG
  • Thermo Fisher Scientific Inc
  • Vetter Pharma International GmbH
Note: Product cover images may vary from those shown
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I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • Impact of Covid-19 and a Looming Global Recession
  • Pharmaceutical Contract Manufacturing - A Prelude
  • COVID-19 Breaks All Things Normal, Pushes Pharmaceutical Industry Into an Era of Change
  • COVID-19 Exposes US Pharmaceutical Makers to Risk of Supply Shortages
  • US Federal Government & FDA Take Unprecedented, Bold Steps to Deal with Shortage of Pharmaceuticals
  • What Does this Spell for Pharmaceutical Outsourcing & Contract Manufacturing?
  • Market Outlook
  • The US and Europe Constitute the Largest Markets for PCM
  • Asia-Pacific to Drive the PCM Market Growth
  • Competition
  • M&A Activity High in the Contract Manufacturing Space
2. FOCUS ON SELECT PLAYERS
  • Recent Market Activity
3. MARKET TRENDS & DRIVERS
  • Strong Rise in Pharmaceutical Sales to Drive Demand for Pharmaceutical Contract Manufacturing
  • Exhibit 1: Global Prescription Drug Sales (In US$ Billion) for the Years 2017, 2019, 2021, 2023 & 2025
  • Emergence of Outsourcing Trend Bodes Well for CDMOs
  • Pharmaceutical Contract Manufacturers Adopt Advanced Manufacturing Technologies
  • Embracing Emerging Technologies
  • Exploring & Exploiting New Technologies for Rich Dividends
  • Rapid Growth of Generic Drugs Drives Demand for Pharma Contract Manufacturing
  • Exhibit 2: Leading Drugs Facing Patent Expiry in the US in 2020
  • Exhibit 3: Global Generic Drugs Market Size (in $ Billion) for the Years 2016, 2019, 2020 & 2025
  • Increasing Significance of Biologic Drugs Fuels Innovations Supports Demand for Pharmaceutical Contract Manufacturing Market
  • Exhibit 4: Global Biologic Drugs Market Size (in US$ Billion) for the Years 2019, 2022 & 2025
  • Aging Population & Increasing Burden of Chronic Diseases Spurs Pharma Product Sales, Driving Market Growth
  • Exhibit 5: Global Aging Population Statistics for the 65+ Age Group in Million by Geographic Region for the Years 2019, 2025, 2035 and 2050
  • Exhibit 6: Global Cancer Incidence: Number of New Cancer Cases in Million for the Years 2018, 2020, 2025, 2030, 2035 and 2040
  • Exhibit 7: World Diabetes and Population Statistics (2019, 2030 & 2045)
  • Persistent Increase in Pharmaceutical R&D Bodes Well for PCM
  • Pharmaceutical R&D Spending Worldwide (USD Billion): 2015-2025
  • Increasing Sales of OTC Drugs Presents an Opportunity for Pharma Contract Manufacturing Market
  • Exhibit 8: Global OTC Drugs Market Breakdown by Product (in %): 2020E
  • Increasing Outsourcing of Clinical Trials to Emerging Markets
  • New Technology Promises to Improve Sterile Manufacturing Process
  • Serialization Drives New Design Developments in Pharma Sector
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • CANADA
  • JAPAN
  • CHINA
  • EUROPE
  • FRANCE
  • GERMANY
  • ITALY
  • UNITED KINGDOM
  • REST OF EUROPE
  • ASIA-PACIFIC
  • INDIA
  • REST OF ASIA-PACIFIC
  • REST OF WORLD
IV. COMPETITION
  • Total Companies Profiled: 192
Note: Product cover images may vary from those shown
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