Active Pharmaceutical Ingredients CDMO Market is expected to register the fastest growth rate of 6.7% over the forecast period

Posted on 2022-08-19 by researchinsights in Industrial // 0 Comments

Active Pharmaceutical Ingredients CDMO Industry Overview

The global active pharmaceutical ingredients CDMO market size was estimated at USD 81.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2021 to 2028. The growth can be attributed to factors such as increased drug R&D, the rising incidence of chronic diseases, the expanding importance of generics, and the increasing consumption of biopharmaceuticals.

Pharma companies have been increasing the amount of discovery, development, and manufacturing work they outsource over the last couple of decades. However, the urge to outsource is not uniform in the biopharma industry. Small biotechnology companies frequently rely on a Contract Development and Manufacturing Organization (CDMO) to produce their development products as they go through the pipeline.

Gather more insights about the market drivers, restrains and growth of the Global Active Pharmaceutical Ingredients CDMO Market

COVID-19 has had a significant impact on the supply chain of the Active Pharmaceutical Ingredient (API), causing some level of disruption in terms of raw material supply and availability, shipping delays, and costs. As per the survey conducted by the Institute for Supply Management in February 2020, about 75.0% of responding companies experienced supply chain disruption as a result of COVID-19, and more than 44.0% did not have a plan to handle supply chain disturbance from China.

CDMOs are proving to be extremely beneficial to the pharmaceutical and biotech industries since they provide prospective capabilities and cost savings over in-house manufacturing. There is a substantial link between corporate size and outsourcing in general. Small and medium-sized businesses (SMEs) have fewer stakeholders and organizational hurdles in the decision-making process, allowing for a more fluid decision-making process.

Besides, more than 3,200 companies are currently engaged in active pharmaceutical ingredient manufacturing activities. As only one-third of these companies are linked with a corporate group that also has finished dose production capabilities, there is a lack of integration even though these are complementary businesses.

Browse through Grand View Research’s Medical Devices Industry Research Reports

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Active Pharmaceutical Ingredients CDMO Market Segmentation

Grand View Research has segmented the global active pharmaceutical ingredients CDMO market based on product, synthesis, drugs, application, workflow, and region:

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