Generic Pharmaceuticals Contract Manufacturing Market Size Report, 2023-2032
The global Generic Pharmaceuticals Contract Manufacturing market size was exhibited at USD 66.92 billion in 2022 and is projected to hit around USD 118.71 billion by 2032, growing at a CAGR of 5.9% during the forecast period 2023 to 2032.
Key Pointers:
Generic Pharmaceuticals Contract Manufacturing Market Report Scope
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Report Coverage |
Details |
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Market Size in 2023 |
USD 70.87 Billion |
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Market Size by 2032 |
USD 118.71 Billion |
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Growth Rate from 2023 to 2032 |
CAGR of 5.9% |
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Base year |
2022 |
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Forecast period |
2023 to 2032 |
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Segments covered |
Drug type, product, route of administration, application, region |
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Regional scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
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Key companies profiled |
Jubilant Generics Ltd.; Recipharm AB; Siegfried Holding AG; Aurobindo Pharma; Cambrex Corp.; Alcami Corp., Inc.; Catalent, Inc; Acme Generics Pvt. Ltd.; Syngene International Limited; Pfizer CentreOne; Curia Global, Inc.; Metric Contract Services |
An increasing number of government initiatives to promote generic products and the patent expiry of major drugs are some of the primary industry growth drivers. The COVID-19 pandemic moderately impacted the industry. During the initial months of the pandemic, the supply chain was disrupted due to stay-at-home orders by the government to control the spread of the virus. However, post-pandemic, manufacturing of generic drugs resumed for the prevention and treatment of the coronavirus.
For instance, in January 2022, 27 generic pharmaceutical manufacturers signed agreements with the Medicines Patent Pool to produce a generic version of the COVID-19 drug molnupiravir, to supply it in 105 low- and middle-income countries. Such agreements are expected to improve the demand for contract manufacturing and thus support market growth. The expiry of patent exclusivity of innovator drugs provides opportunities for generic manufacturers to introduce products at a reduced price. For instance, drugs, such as Feraheme, used in the treatment of anemia loss had exclusivity and a generic version of these drugs was launched in 2021. Such patent expiry of innovator drugs is going to create opportunities for generic drug manufacturing and thus support the industry growth across the forecast.
To address the growing demand for healthcare, regulatory authorities, such as the FDA, are improving access to generic drugs. For instance, the U.S. FDA, in 2020, signed a five-year grant with the University of Maryland and the University of Michigan to establish the Center for Research on Complex Generics. Such initiatives are expected to improve the development of generics and thus are expected to improve the demand for manufacturing in the coming years. The growing demand for cost-effective drugs has improved generic drug sales worldwide. According to the report by Evaluate Pharma, prescription generic drug sales accounted for USD 74.0 billion in 2020, and are expected to reach USD 99.0 billion by 2026. The rising sales of generic drugs are expected to improve the demand for generic drug contract manufacturing; thereby, boosting the industry growth post-pandemic.
Drug Type Insights
On the basis of drug types, the global industry has been further categorized into branded generics and non-branded generics. The branded generics segment dominated the global industry in 2022 and accounted for the largest share of more than 62.59% of the overall revenue. The segment is anticipated to expand further at the fastest growth rate maintaining its dominant industry position throughout the forecast period. Branded generics are known for their superior quality and doctors usually use branded generics over unbranded, based on past experiences.
The unbranded generics segment is also expected to register a significant growth rate during the forecast period. Unbranded generics are generally cheaper than branded ones. Research published by the NCBI states that branded generics are over 13 times more expensive than unbranded generics, which is one of the key factors supporting the demand for unbranded generics. Unbranded generic drugs are equally safe and effective as branded generics. This is expected to boost their demand over the forecast period.
Product Insights
The API product segment dominated the industry in 2022 and accounted for the highest share of more than 56.40% of the overall revenue. Based on products, the industry has been divided into API and drug products. Growing demand for new geriatric drugs and patent expiry of exclusive small-molecule drugs are two of the key reasons boosting segment growth. Increased interest of public organizations in improving the production of API is further supporting segment growth. For instance, in March 2020, the Indian government set up a multiyear plan, in which, it invested USD 1.3 billion to boost the production of API in the country.
Such initiatives are expected to improve generic API contract manufacturing activities and hence contribute to segment growth. The drug product segment is expected to grow at a steady CAGR over the forecast period. Small molecule drug substances have become more complex, with manufacturing methods becoming more specialized. This supports the demand for a CMO for manufacturing drug products. The adoption of the expansion agreements by the CMO for drug product manufacturing is expected to further support segment growth in the coming years. For instance, in January 2022, Piramal Pharma Solutions added a development/commercial-scale roller compaction technology in its facility in Pennsylvania to expand its capabilities in manufacturing solid dosage forms.
Route Of Administration Insights
On the basis of routes of administration, the global industry has been further categorized into oral, topical, parenteral, and others. The oral route of administration segment dominated the industry in 2022 and accounted for the highest share of more than 60.19% of the overall revenue. The oral route is a self-administering route of administration and does not require a trained physician for drug administration, which is one of the major reasons for the high acceptance of oral formulations. Oral formulations are also considered more flexible in design and are majorly used in treating some common diseases, such as migraine, fever, infectious diseases, and diabetes.
These factors are supporting the demand for the oral route of administration. On the other hand, the parenteral segment is expected to register the fastest growth rate during the forecast period. The high bioavailability of injectable formulations leading to the immediate onset of action is the prime factor for its fastest growth. Apart from this, injectable formulations are preferred if the drugs are poorly absorbed. Moreover, the parenteral formulation is also primarily preferred in cases of medical emergencies, which is further driving the segment growth.
Application Insights
The oncology segment accounted for the highest share of more than 21.59% in 2022. Based on application, the industry is segmented into oncology, immunology, antidiabetic, neurology, anticoagulants, cardiovascular, respiratory, pain, HIV antivirals, and others. Cancer is one of the major causes of death worldwide. According to the World Cancer Research Fund International, over 18.1 million cases of cancer were reported in 2020. The American Cancer Society states that National Cancer Costs are expected to increase in the coming years. It states that spending on cancer care accounted for USD 200.7 billion in 2020 and is expected to rise to USD 245.6 billion by 2030 in America.
This increases the demand for cheaper alternatives like generic drugs for cancer treatment. The immunology segment is expected to grow at a significant CAGR over the forecast period. Immunological disorders include rheumatoid arthritis, Addison disease, psoriasis, Alzheimer's disease, and others. One of the major causes of these diseases is the growing geriatric population. Furthermore, immunological diseases require treatment for a long period. This increases the cost of medications and thus supports the demand for generic medications for treating immunological disorders. These factors are supporting the segment growth.
Regional Insights
The Asia Pacific region dominated the global industry in 2022 and accounted for the maximum share of more than 38.19% of the overall revenue. The region is estimated to expand further at the fastest growth rate maintaining its dominant position in the global industry throughout the forecast period as countries in the region have a GMP-regulated infrastructure for manufacturing drugs. Furthermore, the low costs of manufacturing eventually encourage various pharmaceutical companies in developed economies, such as the U.S., to outsource their manufacturing activities in this region.
This factor also helps boost the market growth in the Asia Pacific region. The North America region also accounted for a considerable share in 2022 and will grow further at a steady CAGR from 2023 to 2032. This can be attributed to the growth of the pharmaceutical industries in the U.S. and Canada. The presence of a large number of major players in this region is expected to contribute significantly to its growth. The growing focus of pharmaceutical companies in the region to outsource non-core operations, such as manufacturing, is further supporting the region’s growth.
Some of the prominent players in the Generic Pharmaceuticals Contract Manufacturing Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Generic Pharmaceuticals Contract Manufacturing market.
By Drug Type
By Product
By Route of Administration
By Application
By Region
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers