Contract Manufacturing Organizations (CMO) Market to Record CAGR of 8% Over 2024-2032; Growing Investments by CMOs to Expand Their Drug Production Capacity to Propel Market Expansion

The Contract Manufacturing Organizations (CMO) market size was valued at USD 145.32 billion in 2023 and is predicted to reach USD 156.29 billion in 2024. The market is anticipated to touch USD 289.68 billion by 2032, recording a CAGR of 8% over 2024-2032.

Fortune Business Insights™ presents this information in its latest report titled “Contract Manufacturing Organizations (CMO) Market Size, Share & Industry Analysis, By Service (API Manufacturing, Finished Product {Solid Dosage Forms, Injectables, and Others}, and Packaging), and Regional Forecast, 2024-2032”.

A Contract Manufacturing Organization (CMO) is a specialized firm that offers a wide range of production services to companies serving the pharmaceutical and biotechnology industries. CMOs help companies outsource their production activities if they do not have the required production capacity or resources to do the same in-house. They provide services, such as stability studies, development of various formulations, and commercial production. CMOs ensure that their production methods comply with the guidelines given by regulatory authorities, such as the U.S. FDA. The increasing demand for reducing the production costs without compromising on the product’s quality will accelerate the market’s growth.

The COVID-19 pandemic strengthened the market’s potential as the number of people being diagnosed with the deadly virus was increasing every day. This scenario fueled the demand for effective medicines to tackle the virus, prompting many pharmaceutical companies to outsource their production activities to Contract Manufacturing Organizations (CMO).

Lonza Partnered With Vaxcyte to Begin Global Production of Pneumonal Conjugate Vaccines

Lonza collaborated with Vaxcyte in October 2023 to help commence the global commercial production of VAX-24 and VAX-31. These products are pneumonal conjugate vaccines that will be used by both adults and children.

Growing Investments by CMOs to Expand Their Drug Production Capacity to Propel Market Expansion

There is a high demand for advanced medicines to tackle the increasing burden of chronic diseases, which has encouraged CMOs to increase their annual drug production capacity. Since many pharmaceutical manufacturers are increasing their focus on core research & development activities, they are trying to outsource their medicine production processes to CMOs. This is due to the CMOs’ ability to introduce advanced technologies to the production processes and provide specialized expertise.

However, setting up a new production facility or even expanding an existing one involves a lot of costs, which can hamper the Contract Manufacturing Organizations (CMO) market growth.

Lonza, Thermo Fisher Scientific, and Catalent Inc. Held Major Market Shares Due to Execution of Various Business Growth Strategies

The market is highly fragmented, with many leading companies, such as Thermo Fisher Scientific, Catalent Inc., and Lonza dominating the market. These manufacturers are dominating the Contract Manufacturing Organizations (CMO) market as they are engaging in partnerships and collaborations with various pharmaceutical companies to help them manufacture their therapeutic products.

Notable Industry Development:

• April 2024: Lonza announced its collaboration with Acumen Pharmaceuticals, Inc. to commence the production of Sabirnetug (ACU193). This is the first monoclonal antibody that will be used to treat patients suffering from Alzheimer’s disease.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/contract-manufacturing-organization-cmo-market-102658

List of the Companies Profiled in the Report:

• Boehringer Ingelheim International GmbH (Germany)


• Almac Group (Ireland)


• Recipharm AB (Sweden)


• Dr. Reddy’s Laboratories Ltd. (India)


• FAMAR Health Care Services (Greece)


• Lonza (Switzerland)


• Vetter Pharma-Fertigung GmbH & Co. KG (Germany)


• Jubilant Pharmova Limited (India)


• Catalent, Inc. (U.S.)

Further Report Findings:

• North America dominated the global Contract Manufacturing Organizations (CMO) market share as the region is witnessing a strong rise in the demand for affordable yet effective medicine production solutions. This factor has prompted CMOs to increase their presence across the region as they can produce many high-end drugs at a lower production cost, without compromising on their effectiveness.


• Asia Pacific captured the second-biggest share of the global market in 2023 due to continuous efforts by governments to improve the region’s healthcare infrastructure. Moreover, Asia Pacific is witnessing a notable rise in the number of pharmaceutical companies setting up their base in India and China. These factors are predicted to offer some lucrative opportunities for CMOs to establish their own facilities, thereby accelerating the market’s progress in the region.


• Based on service, the API manufacturing segment dominated the market share in 2023. The segment’s dominance is due to the increasing pharmaceutical exports of APIs globally. This factor will bolster the production demand, thereby boosting the need for CMOs.

Table of Segmentation