US to lead global contract manufacturing market by 2020
pharmafile | August 11, 2015 | News story | Manufacturing and Production |Â Â APIs, United States, manufacturing, productionÂ
The global pharmaceutical contract manufacturing market was worth $58 billion in 2014 and is projected to reach $84 billion in 2020, according to a new report.
The market will continue growing at a compound annual rate of 6.4% in the next five years, with North America accounting for more than 36% of the global market, followed by Europe.
This is according to a newly-released report from market research firm Mordor Intelligence, which concludes that the growth comes from the fact that pharmaceutical companies are focusing more on drug R&D than manufacturing the formulated drug. Instead pharma companies are outsourcing their manufacturing processes in order to stay competitive in a highly regulated market.
The report also found India to be the fastest growing contract manufacturing market, due to its cost-competitive and quality manufacturing capabilities. Pharma companies are going for fewer vendors to take volume advantage and at the same time reduce logistics costs.
The report asserts that pharma companies are increasingly relying on contract manufacturing, research, and packaging services to fulfil their basic needs and specialised competencies, the report continues, with companies striving to minimise costs and reduce product development time while remaining productive and efficient
The major segmentation in the report includes the market estimates by dose formulation type of pharmaceutical contract manufacturing, such as solid dose formulation, liquid dose formulation and injectable dose formulation.
Of the dose formulation types in the global market, active pharmaceutical ingredients (APIs) hold the highest market share, while final dosage form is predicted to be the fastest-growing segment over the next five years.
The report identified a list of key market players and their strategies, including Merck, Pfizer, Famar, Recipharm and Novartis.
Joel Levy
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