Formulation Development Outsourcing Market Size Projected to Generate $51,901.3 Mn by 2031Download Sample Reports Overview
The Global Formulation Development Outsourcing Market Size is predicted to be valued at $51,901.3 million by 2031, surging from $22,452.5 million in 2021, at a noteworthy CAGR of 9.0%.
Impact Analysis of COVID-19 on the Formulation Development Outsourcing Market
Although the Covid-19 pandemic caused logistics and demand disruption across the world, formulation exports have grown at a robust pace during Apr-Dec 2021 at about 18% y-o-y. A spike in demand for pharma products, induced by the pandemic, and hoarding of supplies by some nations in the wake of production disruptions, boosted the exports. Even generic drug purchases have increased due to Covid-19, as individuals prefer affordable medications. Due to the stopping of various clinical trials, the ongoing COVID-19 pandemic has hampered several medication research procedures. On the plus side, pharmaceutical companies should anticipate strong incentives to spend on developing medications and vaccines to combat infectious illnesses. Oncology, heart disease, and a variety of other unusual disorders continue to pose public health issues. As a result, clinical research must continue. As a result, outsourcing is projected to grow in the future years. With an urgent requirement for an efficient vaccine/drug, firms are increasingly turning to formulation development outsourcing to boost clinical trials, which may drive market growth in the coming years.
Global Formulation Development Outsourcing Market Analysis
Due to the increasing demand for generic medicines and biologics, the capital-constrained nature of the business, and the complex manufacturing requirements, many pharmaceutical companies have identified the potential profitability in entering into a contract with a CMO (contract manufacturing outsourcing) for formulation development. Pharmaceutical corporations are moderately outsourcing R&D tasks to academia and private contract research organizations (CROs) to reduce drug development schedules and costs. According to an article published in 2018 titled "The Era of Pharma and Biotech Outsourcing," an estimated 75.0-80.0% of R&D investment in the biopharmaceutical sector can be outsourced, offering the potential for CROs. This factor is boosting the market growth.
However, important issue restricting market growth is structural changes in the pharmaceutical business. Over the previous decade, several developments have occurred in the global pharmaceutical sector. Such developments have put pressure on big research and development (R&D)-based pharmaceutical transnational companies (TNCs) to adjust their business practices. Other pressures have also been applied to major R&D-based TNCs, such as regulatory and antitrust difficulties.
The formulation development outsourcing market is predicted to grow steadily in the future years, owing to the market's increasing need for the creation of innovative treatments. As major pharmaceutical and biopharmaceutical companies have increased their focus on the development of numerous therapeutics aimed at providing effective treatment for a wide range of chronic diseases, the demand for formulation development services is expected to rise in the future, as outsourcing is a viable option for these companies. With blockbuster pharmaceuticals nearing patent expiration, corporations are likely to strive for the creation of novel treatments, which is expected to gain traction for the outsourcing of formulation development.
Global Formulation Development Outsourcing Market, Segmentation
The global formulation development outsourcing market is segmented based on services type, route of formulation, end-user, and region.
The services type segment is further classified into pre-formulation and formulation development. Among these, the formulation development segment is anticipated to have a dominant market share by 2031. Developing formulations is a key component of producing medicines because it guarantees that the drug's active ingredient is delivered to the right area of the body at the right concentration and rate.
Route of Formulation:
The route of formulation segment is further classified into oral, injectable and others. Among these, the oral segment accounted for a dominant market share in 2021. Considering benefits like ease of oral drug administration, patient preference, cost effectiveness, and simplicity of producing oral dosage forms on a wide scale, oral medication is the most popular method of drug administration. Since the patient incurs no additional costs, it is economical. When taking a solid medication, such as tablets and capsules, the patient just requires one or two cups of water, which is typically readily available. If the medication is in liquid form, only a measuring device—which typically comes with the medication—is required.
The end-user segment is further classified into pharmaceutical industries, research, and academic institutes. Among these, the pharmaceutical industries segment accounted for a dominant market share in 2021. Pharmaceuticals have helped many individuals increase their life expectancy and quality of life. Medicines can cure, reduce symptoms, postpone disease development, and prevent problems.
The formulation development outsourcing market in the Asia-Pacific region is projected to show the fastest growth. One of the main factors contributing to the market share is the existence of a sizable number of CROs providing affordable formulation developing services. The market for formulation development outsourcing in China is expanding, which can be attributed to the rising prevalence of chronic diseases, the increasing number of pharmaceutical and biopharmaceutical companies outsourcing their services, and the government's increased involvement in strengthening the country's biotech industry. The expanding illness burn is forcing pharmaceutical firms to discover innovative medications, which will improve the region's overall market growth.
Key Players in the Global Formulation Development Outsourcing Market
Some of the leading formulation development outsourcing market players are
- Charles River Laboratories
- Syngene International Limited
- Catalent Inc
- Piramal Pharma Ltd.
- Intertek Group plc
- Thermo Fisher Scientific
- Eurofins Scientific
- Laboratory Corporation of America Holdings.
- Dr. Reddy’s Laboratories Ltd.
In February 2022, to support the drug production of its customers, sterile filling contract maker Berkshire Sterile Manufacturing (BSM) expanded formulation, lyophilization, and method development capabilities. This partnership will offer multimodal shipping services to boost the commercialization of formulation development outsourcing.