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Global Contract Manufacturing Organization (CMO) Formulation Industry Report: Country Overview; Recent Events; Value Chain Analysis; Production Process; Price Analysis; Indicator Analysis; Market Dynamics: Drivers & Constraints, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Key Factors Influencing the Quotation; Key Supplier Analysis, 2022-2027

CMO Formulation Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices


The global CMO Formulation market reached a value of about USD 116.46 billion in 2021. The industry is projected to grow at a CAGR of around 6.20% in the forecast period of 2022-2027 to reach a value of USD 167.09 billion by 2027.

The CMO formulation industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The business has a highly divided market and includes many service providers who have production facilities across several dosage types.  The lead players in the market aim at utilising the manufacturing capability and proficiency of the domestically based companies to increase their share in the market. The key demand indicator in the industry report is the highest category spender by region — North America.

Industry Definition and Segmentation

Contract Manufacturing Organisation (CMO) Formulation delivers significant services including pharmaceutical contract development and manufacturing products and related essential services to the growing pharmaceutical business. CMOs carry out their services by following all the rules and regulations, engaging highly skilled employees, containing state of art manufacturing facilities, and competitive service portfolio. The global CMO Formulation industry report comprises segments based on its type (active pharmaceutical ingredient (API) manufacturing, finished dosage formulation (FDF) development and manufacturing, and secondary packaging), research phase (preclinical, phase I, phase II, phase III, phase IV), and regions (North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa).

North America Region is Driving the Growth of the Industry

The higher frequency and diagnosis of diseases due to lifestyle changes, high level of investments in research and development, several companies involved in the expansion of biologic molecules, and the existence of a large number of CMOs have led to the growth of the North America CMO Formulation industry. Europe comes in the second-largest market owing to the increasing incidence of numerous types of cancer and metabolic diseases that needs an advanced level of therapies, and the presence of many CMOs in the region. On the other hand, the CMO market in the Asia Pacific region is growing at a higher speed due to the significantly lower production costs than North America and Europe and beneficial policies.  Furthermore, the worldwide demand for successful therapies has been at its highest point as there has been a rise in the existence of chronic diseases. Also, with the increase in the investments in developing intricate biologic molecules has created a vast need for extremely competent service providers who can provide products that meet the required governing standards. The CMOs present in the market is continuously upgrading their capabilities to serve the industry’s need. This is encouraging pharmaceutical companies to outsource more and more manufacturing and packaging activities. In addition, the development of production capacities by Contract Research Organisations (CROs) from evolving nations is anticipated to strengthen the pharmaceutical CMO income by 2026.

Even though there is growth in the demand for the pharmaceutical subcontracting of the products, however, strict guidelines cause limitations to get new business opportunities. The services provided by CMOs need to be approved by the related regularity groups and expect them to follow the same criteria throughout the contract period. Such severity of guidelines does not allow the competitors to provide services to various regions and geographic locations.

Best Procurement Practices

The global CMO Formulation industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by CMO Formulation services utilising regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

CMOs offer services to the pharmaceutical companies to manufacture their drugs and other medical products on a contractual basis to focus on the research and development, promoting, and branding of their goods. Increasing competition in the pharmaceutical industry has led to the greatest need of releasing new products at the earliest possible time to secure a ground-breaking stand in the market. This has further resulted in the growing demand for CMO services in the international pharmaceutical market.

The Increasing number of CMOs with Developed Production Capability to Further Drive the Market

Numerous CMO players are entering the market with superior manufacturing solutions owing to the rising need for outsourcing by pharmaceutical companies. The new and innovative production services promised by the CMOs are helping the pharmaceutical companies to believe in their technical efficiency and are outsourcing their production activities to these service providers. Even the small and emerging pharmaceutical companies are now expected to employ one or more CMOs operating in the sector. Hence, the growth in the number of CMOs entering the market will generate rewarding opportunities to promote outsourcing activities of the pharmaceutical companies in the new future.

The major zones in the industry are North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa with North America leading the market.

Key Industry Players Mentioned in the CMO Formulation Industry Report

  • Catalent Inc.
  • Lonza Group AG
  • Almac Group
  • Recipharm AB
  • Jubilant Life Science Ltd.

Market Landscape

The largest segment in the CMO Formulation industry divided by type is API manufacturing and packaging. The rising demand for biologic molecules promotes the high share of the API segment in the market. The increasing occurrence of cancer and the growth in the demand for innovative therapies are projected to drive the growth of the API manufacturing segment globally. Nevertheless, because of the expanding outsourcing of injectable formulations seen in recent years, the finished formulation production segment is likely to expand at the highest CAGR.

Key Initiatives by Companies

  • In July 2021, there was an announcement made by Catalent, Inc., that they will begin a multi-phase augmentation plan for their Italian production facility. This project would be worth USD 100 million and would help the company to grow its biologics manufacturing capacity in Europe.
  • In April 2021, Lonza announced the expansion of its solid form product line in their U.S. site. This would help the company’s capacity to meet the high demand within a given turnaround time.

1.    Executive Summary
2.    CMO Formulation Market Snapshot

    2.1.    CMO Formulation Market Outlook
    2.2.    Regional Overview
        2.2.1.    North America
        2.2.2.    Europe
        2.2.3.    Asia Pacific 
        2.2.4.    Latin America
        2.2.5.    Middle East and Africa
3.    Impact of Recent Events
4.    CMO Formulation Value Chain Analysis
5.    CMO Formulation Production Process
6.    Major Risk Factors in Sourcing
7.    CMO Formulation Cost Structure
8.    CMO Formulation Price Analysis
9.    Key Demand Indicator Analysis
10.    Key Price Indicator Analysis
11.    CMO Formulation Market Dynamics

    11.1.    Drivers & Constraints 
    11.2.    Industry Events 
    11.3.    Innovations & Trends
    11.4.    SWOT Analysis
    11.5.    Porter’s Five Forces
        11.5.1.    Buyer Power
        11.5.2.    Supplier Power
        11.5.3.    Threat of New entrants
        11.5.4.    Threat of Substitutes
        11.5.5.    Industry Rivalry
12.    Industry Best Practices
    12.1.    Sourcing Strategy
    12.2.    Procurement Model
    12.3.    Contract Structure
    12.4.    Negotiation Levers
    12.5.    Pricing Model
    12.6.    Key Factors Influencing the Quotation 
13.    Key Supplier Analysis
    13.1.    Pfizer Inc.
    13.2.    Catalent, Inc.
    13.3.    Recipharm AB
    13.4.    Thermo Fisher Scientific Inc.

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Key Questions Answered in the Report

In 2021, the global attained a value of around USD 116.46 billion.

In the forecast period of 2022-2027, the market is projected to grow at a CAGR of 6.20%.

The major market drivers are increasing demand for biologic products for the treatment of chronic diseases and the rising number of CMOs worldwide.

The major regions in the industry are North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Few of the leading players in the industry are Catalent Inc., Lonza Group AG, Almac Group, Recipharm AB, Jubilant Life Science Ltd., among others.

Analyst Review

The global CMO Formulation market reached a value of about USD 116.46 billion in 2021 and is projected to grow at a CAGR of around 6.20% in the forecast period of 2022-2027. Contract Manufacturing Organisation (CMO) Formulation delivers significant services including pharmaceutical contract development and manufacturing products and related essential services to the growing pharmaceutical business. The higher frequency and diagnosis of diseases due to lifestyle changes, high level of investments in research and development, several companies involved in the expansion of biologic molecules, and the existence of many CMOs have led to the growth of North America CMO Formulation industry. The global CMO Formulation industry report comprises segments based on its type, research phase, and regions. A few of the important players in the industry are Catalent Inc., Lonza Group AG, Almac Group, Recipharm AB, Jubilant Life Science Ltd., among others.

Procurement Resources’ detailed research approach explores deep into the industry, encompassing the macro and micro aspects of the industry. Its team of experts uses a combination of cutting-edge analytical tools and their expertise thus, delivering its customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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