The global pharmaceutical CDMO for formulations market size is predicted to cross around USD 96.57 billion by 2034, increasing from USD 45.43 billion in 2024, with a CAGR of 7.90%.

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Pharmaceutical CDMO for Formulations Market Key Takeaways

• Asia Pacific led the global pharmaceutical CDMO formulations market with a 42% share in 2024.

• Europe is emerging as a growth hotspot, with an expected CAGR of 8.40%.

• Oral solids remained the most used dosage form, dominating with a 40% market share.

• Injectable formulations are gaining traction and are set to grow at a CAGR of 8.31%.

• Oncology continued to dominate as the largest therapeutic area, contributing 23% of revenue.

• Infectious disease treatment formulations are witnessing healthy growth, expanding at 8.02% CAGR.

• Pharmaceutical companies formed the largest customer base, holding 55% of the end-user share.

• Biopharmaceutical firms are rapidly expanding their CDMO engagements, projected to grow at 8.17% CAGR.

Transforming the Future: The Role of AI in the Pharmaceutical CDMO for Formulations Market

Precision Meets Innovation
Artificial Intelligence is revolutionizing how CDMOs approach drug formulation and manufacturing. By leveraging machine learning models and predictive algorithms, AI enables precise formulation design, faster compound screening, and real-time optimization of active pharmaceutical ingredients (APIs). This minimizes trial-and-error, reduces development costs, and accelerates time-to-market — giving pharma companies a competitive edge.

Smart Manufacturing. Smarter Decisions.
From automated quality checks to predictive maintenance, AI-powered systems ensure seamless, high-quality manufacturing with minimal disruptions. AI enhances batch consistency, detects deviations instantly, and streamlines documentation for regulatory compliance. It also empowers CDMOs with advanced forecasting tools, helping them manage supply chains, anticipate demand shifts, and deliver custom solutions at scale.

Pharmaceutical CDMO for Formulations Market Growth Factors 

1. Rising Demand for Outsourced Drug Development
Pharmaceutical and biotech companies are increasingly outsourcing formulation and manufacturing processes to CDMOs to reduce costs, accelerate timelines, and focus on core competencies like R&D and marketing. This trend is especially strong among small to mid-sized firms with limited internal infrastructure.

2. Surge in Complex and Personalized Therapies
As the industry shifts toward more complex formulations—including biologics, injectables, and personalized medicines—CDMOs with advanced formulation expertise and adaptable technologies are in high demand. Their ability to manage sophisticated development processes makes them vital partners.

3. Expanding Biopharmaceutical Sector
The biopharma boom has significantly boosted the need for CDMOs with capabilities in sterile manufacturing, high-potency drugs, and large molecule formulations. Biopharma companies rely heavily on specialized CDMOs to manage strict regulatory demands and scale-up requirements.

4. Globalization and Market Expansion
Pharmaceutical companies are expanding into emerging markets, increasing the need for regionally compliant formulations. CDMOs with global manufacturing and regulatory capabilities are well-positioned to support localized product development and distribution.

5. Technological Advancements and AI Integration
The adoption of cutting-edge technologies such as AI, machine learning, and digital twins enhances formulation optimization, predictive analytics, and operational efficiency. These innovations help CDMOs offer faster, more accurate, and cost-effective solutions.

6. Stringent Regulatory Standards and Quality Requirements
Meeting the rising regulatory standards for drug quality, safety, and efficacy is challenging. CDMOs that invest in robust quality systems, GMP compliance, and regulatory support become preferred partners for pharmaceutical companies.

Market Scope

Market Dynamics

Growth Catalysts
Driving this expansion are factors such as the escalating burden of chronic illnesses, the complexity of new drug molecules, and the surge in global drug development activities. Demand for flexible and scalable manufacturing solutions is also boosting market adoption.

Strategic Opportunities
There is a growing opportunity in niche segments like orphan drugs and biosimilars. CDMOs capable of providing end-to-end solutions—from development to commercial-scale production—are becoming preferred partners in the evolving pharmaceutical landscape.

Industry Barriers
However, competition among service providers, rising capital investment needs, and compliance with global regulatory norms pose challenges. Delays in technology adoption and dependence on client pipelines can also impact CDMO performance.

Regional Trends
Asia Pacific continues to dominate due to low production costs and expanding healthcare infrastructure. Europe’s growth is fueled by its strong pharmaceutical ecosystem, while North America remains a hub for innovation and contract partnerships.

Pharmaceutical CDMO for Formulations Market Companies

• Lonza
• Thermo Fisher Scientific, Inc.
• Recipharm AB
• Laboratory Corporation of America Holdings (LabCorp)
• Catalent, Inc.
• WuXi AppTec, Inc.
• Piramal Pharma Solutions
• Siegfried Holding AG
• CordenPharma International
• Cambrex Corporation
• Bushu Pharmaceuticals Ltd.
• Nipro Corporation
• EuroAPI
• Hovione
• Curia

Latest Announcements by Industry Leaders

• In November 2024, John Rim, Samsung Biologics chief executive, stated that the company feels honored to improve its partnership with European pharmaceutical companies to jointly deliver high-quality biopharmaceutical treatment to patients. The strategic global partnerships invest in its technologies and manufacturing capabilities. We aim to provide the highest quality services at every stage and deepen our trusted partnerships.

Recent Developments

• In October 2023, Cambrex Corporation, centered in High Point, North Carolina (U.S.), finished its expansion project worth USD 38 million. The facility improvement delivered cutting-edge analytical laboratories as well as chemical development laboratories, new clinical production suites, and three work centers with 2,000 L reactors for small-scale commercial manufacturing.

Segments Covered in the Report

By Dosage Form

• Oral Solids
• Oral Liquids
• Injectables
• Topicals
• Inhalation Products
• Transdermal And Patches
• Others

By Therapeutic Area

• Oncology
• Cardiology
• Central Nervous System
• Gastroenterology
• Infectious Diseases
• Endocrinology (Diabetes, Hormonal Therapy)

By End User

• Pharmaceutical Companies
• Biopharmaceutical Companies
• Others

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa

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