U.S. Pharmaceutical Contract Manufacturing Market: High Clinical Trial and Drug Discovery Activities to Foster Growth

The global pharmaceutical contract manufacturing market, valued at US$193.52 billion in 2024, rose to US$209.90 billion in 2025 and is projected to achieve a remarkable US$311.95 billion by 2030, advancing at a compound annual growth rate (CAGR) of 8.2% during the forecast period (2025–2030).

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This sustained expansion is attributed to the rising demand for outsourcing services related to GLP-1 drug manufacturing, the increasing adoption of antibody-drug conjugate (ADC) outsourcing for commercialized products, and the development and patent expiry of blockbuster biologics, which are paving the way for biosimilar production. However, market growth faces headwinds due to pricing pressures in the US and Europe, particularly on innovator drugs, generics, and biosimilars, alongside the high compliance costs associated with evolving regulations such as Annex 1 and PFAS restrictions.

Opportunity: Expanding Footprint in Emerging CDMO Hubs

Emerging economies across the Asia Pacific region, including China, India, South Korea, Taiwan, and Singapore, are evolving into key contract development and manufacturing organization (CDMO) hubs, offering skilled labor, cost advantages, and robust infrastructure for bioprocess outsourcing.

The growing outsourcing of drug discovery activities—driven by heightened demand for vaccines, reduced antibiotic availability, and escalating R&D costs—continues to boost CDMO engagement. Advanced manufacturing technologies and competitive production costs are further encouraging global players to invest in the region.

Leading companies such as WuXi Biologics, Samsung Biologics, Asymchem, Jubilant Pharmanova, Piramal Pharma Solutions, and Divi’s Laboratories have emerged as strategic players from Asia Pacific, while global giants like Thermo Fisher Scientific, Lonza, and Boehringer Ingelheim continue to strengthen their regional presence.

Challenges: Trade Instability and Rising Insourcing Trends

The pharmaceutical CDMO market remains heavily influenced by global trade dynamics and policy stability between key markets. The US Biosecure Act (2024) and renewed trade tariffs under the Trump administration (2025) have reshaped the outsourcing landscape, particularly impacting collaborations with Chinese CDMOs.

Simultaneously, major US pharmaceutical firms such as Eli Lilly and Pfizer have announced significant domestic manufacturing investments, signaling a partial shift toward insourcing. This trend, coupled with trade uncertainties, introduces potential risks for CDMOs in terms of business continuity, regulatory compliance, and reputational exposure.

Market Segmentation Insights

By Service: Pharmaceutical Manufacturing Dominates

Among key service segments—drug development, pharmaceutical manufacturing, biologics manufacturing, packaging & labeling, and fill-finish services—the pharmaceutical manufacturing services segment held the dominant share in 2024.

This leadership is underpinned by the global surge in biologics and biosimilars demand, growing complex therapeutic portfolios, and continuous technological advancements in manufacturing. Major CDMOs are expanding capacity, upgrading facilities, and forming strategic collaborations to align with stringent regulatory standards and rising client demand.

By End User: Big Pharma Leads Growth

Big pharmaceutical companies are projected to register the highest CAGR during 2025–2030, driven by their increasing reliance on specialized CDMOs for complex drug production, including cell and gene therapies. Their financial strength, coupled with the need for advanced manufacturing technologies and speed-to-market, positions them as the fastest-growing end-user segment in the global CDMO landscape.

Regional Outlook: North America Maintains Leadership

In 2024, North America accounted for the largest market share, followed by Europe and Asia Pacific. The region’s leadership is reinforced by a strong concentration of established pharmaceutical companies, advanced manufacturing infrastructure, and robust R&D investments.

Growing demand for generic drugs and increased outsourcing to meet production requirements further underscore the region’s pivotal role in shaping global CDMO trends.

Key Players in the Global Pharmaceutical Contract Manufacturing Market

Thermo Fisher Scientific Inc. (US)

Lonza Group (Switzerland)

WuXi AppTec (China)

WuXi Biologics (China)

AbbVie Inc. (US)

Catalent Inc. (US)

Samsung Biologics (South Korea)

Evonik Industries AG (Germany)

FUJIFILM Holding Corporation (Japan)

Siegfried Holding AG (Switzerland)

Boehringer Ingelheim International (Germany)

Merck KGaA (Germany)