Pharmaceutical Contract Manufacturing Market Analysis
Spend growth of this market has the potential to touch a value of over USD 30 billion with spend momentum that will accelerate at a CAGR of more than 6% between 2019-2024. This increasing spend on pharmaceutical contract manufacturing services will be primarily attributed to the robust growth of the API market due to the increasing prevalence of chronic diseases such as cancer, diabetes, dementia, and arthritis. The rise in the prevalence of these diseases is driving the need for new technological advancements for the production of innovative APIs.
Top Spending Regions in the Pharmaceutical Contract Manufacturing Market
Factors like outsourcing of services and high expenditure on healthcare are some of the critical spend growth drivers in the global pharmaceutical contract manufacturing market.
North America
Market share in this region will be owed to the adoption of well-developed novel technologies by service providers and high healthcare expenditure in the region. Historically, this region has outsourced its manufacturing to LCCs in APAC, such as India, China, and Singapore.
APAC
In the global pharmaceutical contract manufacturing market, APAC is expected to experience the highest growth owing to the several manufacturing facilities built by governments, with plant utilization capacities of nearly 75%. For instance, the government of China has built manufacturing facilities and provided loans at very low interest rates to manufacturers.
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What are the Key Price Trends in this Market?
- Prevalence of stringent regulations is resulting in heavy compliance costs incurred by manufacturers. This is expected to hike the OPEX of pharmaceutical contract manufacturing service providers.
- However, initiatives taken in different countries to increase the affordability of medical treatment will slim the scopes of drug makers to charge higher prices to compensate for their increasing operational costs.
- Manufacturers incur significant costs for warehousing of drugs in the form of infrastructure maintenance, appropriate storage installations such as shelving and pallets, and quality control and stock management to ensure constant availability and flow of the products. This is also expected to exert an inflationary impact on the prices of procurement in the global pharmaceutical contract manufacturing market.
Download the free sample of this report to know what the key pharmaceutical contract manufacturing procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Pharmaceutical Contract Manufacturing Market Report
- Global and regional spend potential for the pharmaceutical contract manufacturing market for the period of 2019-2024
- Supplier relationship management practices in the pharmaceutical contract manufacturing market
- Supplier margins and selection criteria in the pharmaceutical contract manufacturing market
- Top pharmaceutical contract manufacturing service providers and their cost structures
- Top pharmaceutical contract manufacturing service providers in the US and their cost structures
- Pharmaceutical contract manufacturing market spend analysis in the US
- Pharmaceutical contract manufacturing price trends, and forecasts
- Cost drivers influencing the pharmaceutical contract manufacturing prices
Insights into Pharmaceutical Contract Manufacturing Supply Market
- The presence of WHO-GMP approved production facilities and the highest number of US FDA approved plants outside the US will increase APAC market’s supply influence during the forecast period.
- Buyers are advised to engage the project-based pricing model while finalizing a contract with pharmaceutical contract manufacturing service providers. This pricing model will motivate service providers to provide effective and efficient services, as the performance is associated with value-additions based on customized requirement.
- Global service providers typically exhibit high investents in the development of innovative medicines and therapies. R&D activities usually focus on human pharmaceuticals and animal health, where a major emphasis is on the development of anti parasites, vaccines, and pharmaceuticals. This enables global players to develop innovative medicines and charge a premium price for such medicines in the market, which increases their profit margins.
Insights into Some of the Leading Pharmaceutical contract Manufacturing Service Providers
This pharmaceutical contract manufacturing market procurement intelligence report has enlisted the top service providers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top pharmaceutical contract manufacturing service providers. The top service providers highlighted in this report include:
- Pfizer Inc.
- Boehringer Ingelheim International GmbH
- Lonza Group Ltd.
- Baxter International Inc.
- Catalent Inc.
- Fresenius SE & Co. KGaA
Criteria to select suppliers in this dynamic pharmaceutical contract manufacturing market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
