May 21, 2024

Biopharmaceutical CMO And CRO Market Is Propelled By Growing Contract Research And Manufacturing Services

The global biopharmaceutical contract manufacturing and contract research market involves the production of biotherapeutics and therapeutic proteins. Biotherapeutics such as monoclonal antibodies, vaccines, and Gene therapies have numerous applications in indications such as cancer, metabolic disorders, and infectious diseases. With biologics gaining more approvals and dominating the drug pipeline, there has been a rise in contract services. The need to reduce costs and improve efficiency is prompting biopharma companies, especially startups and small-medium enterprises, to rely on competent CDMOs and CROs to handle non-core activities.

The global Biopharmaceutical CMO and CRO Market is estimated to be valued at US$ 41.71 Mn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The trend of outsourcing non-core functions has picked up significantly over the last few years as biopharma companies want to focus on drug discovery and commercialization. Contract manufacturing and research organizations offer specialized expertise and flexible resourcing model to developing biologics. They assist with the entire development cycle from pre-clinical testing to fill/finish and assure quality standards. This has enabled drug developers to launch products faster while reducing costs. The growing reliance on competent CMOs and CROs is expected to drive significant growth of the biopharmaceutical contract manufacturing and contract research market in the coming years.

SWOT Analysis
Strength: Biopharmaceutical CMOs provide specialized services that pharmaceutical companies may not have in-house capabilities for, allowing companies to focus on drug development while outsourcing manufacturing.
Weakness: Companies rely heavily on CMOs/CROs and losing a major partner can disrupt operations. Regulatory requirements and quality oversight add compliance complexities and costs.
Opportunity: Growing demand for biologics and cell and gene therapies is driving need for specialized manufacturing services. Emerging markets and regions represent areas for potential expansion.
Threats: Intense competition to win contracts. Changes in industry regulations/standards could require costly process upgrades or delay projects.

Key Takeaways
The global biopharmaceutical CMO and CRO market demand is expected to witness high growth over the forecast period of 2024 to 2031. The global Biopharmaceutical CMO and CRO Market is estimated to be valued at US$ 41.71 Mn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024-2031.

Regional analysis comprises North America currently dominates due to presence of major pharmaceutical companies and favorable regulatory environment conductive for clinical trials. The Asia Pacific region is expected to grow at the fastest pace due to rising investment in pharmaceutical research and growing biosimilar market.

Key players operating in the biopharmaceutical CMO and CRO market are Albemarle Corporation, Greenchemicals S.r.l., ICL, Jordan Bromine Company, Kingboard Holdings Limited, LANXESS, Novel Chem, Shandong Brother Sci. & Tech. Co., Ltd., Shandong Futong Chemical Co., Ltd. and Tianjin Changlu Hangu Saltern Co., Ltd. Contracting biomanufacturing capacity and capabilities to these established players helps pharmaceutical companies access specialized expertise, technologies, and facilities to produce their biologics and ensure supply.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it