Contract manufacturing services industry set to grow at CAGR of 10.6% between 2017-2027

pharmafile | June 19, 2019 | News story | Research and Development |  EU, Europe, biopharma, contract manufacturing services, manufacturing, pharma 

The biopharmaceutical contract manufacturing market is expected to grow at a compound annual growth rate (CAGR) of 10.6% between 2017 and 2027, according to a report from Future Market Insights (FMI).

While Europe will continue to be the main source market for biopharmaceutical contract manufacturing services, the North American market is expected to expand at a CAGR close to 10% as profit margins remain higher in Europe than in the United States.

However the contract manufacturing services market will likely see its biggest growth in Asia as demand for the large sterile spaces required for biopharmaceutical contract manufacturing increases in countries such as China.

Growth in the market for contract manufacturing services is expected to be driven by growth in the biosimilars market as biosimilar drugmakers seek out cost effective biopharmaceutical contract manufacturing services. Blockbuster biosimilars could boost growth in the contract manufacturing services market significantly.

In total, companies have spent $50 billion on new plants and equipment in the past five years, the report says. The investment comes as biopharma companies seek out ways to reduce operating costs by outsourcing manufacturing.

Louis Goss