The global pharmaceutical manufacturing market size was valued at USD 403.32 billion in 2020 and is anticipated to reach a CAGR of 11.2% during the forecast period, 2021–2028. The growth of the market is attributed to the increasing prevalence of chronic diseases and rising approvals of new product with research and development activities. Additionally, rising funding in medical sciences by government organization and non-government organization is also driving the market in the projected period.
The pharmaceutical industry works with the development of medications and scientific research activities that treat ailments and disorders. The pharmaceutical industry includes both private as well as public establishments that produce, promote, conceive, and retail medicines. The pharmaceutical manufacturing comprises of manufacturing of products on commercial-scale which are of medicinal characteristics as well as the product of pharmaceutical importance.
The pharmaceutical manufacturing is controlled by guidelines issued by regulatory bodies which look after the proper conduct of procedures so that the product remains harmless to patients and demonstrate positive effect. However, the monitoring agencies as well as pharmacy industry are focusing to implement procedures and technologies that can advance production efficiency along with quality. Furthermore, more modifications are essential to further accustom to new manufacturing procedures, such as personalized medicine, continuous manufacturing, and Industry 4.0, with subsidiary technologies, such as innovative process control and procedure analytics.
Pharmaceutical industry was tested by the challenges presented by COVID-19 pandemic such as need for fast research activities, supply chains, and development of manufacturing capacities. This abrupt high demand in all sectors of pharmaceutical industry, has given the boost to the market as attention of investors across the world was increased on this sector. The pharmaceutical manufacturers developed their strategies to answer the challenges put forth by pandemic situation. The best example of manufacturers’ efforts and advancements is development of vaccine against the corona virus in a record time-span to combat the pandemic. The various rapid testing approaches for early detection of COVID-19 by the key players has been the vital aspect of comprising the disease. Governments of many countries are working along with the major pharmaceutical companies to develop strategies for prevention and containing the future situations of such a prevalent diseases.
Market Trends, Drivers, Restraints, and Opportunities
- High government and non-government organizations investments in the research and development projects worldwide as well as major players are developing products with various formulation to increasing patient compliance and acceptability, which are major factors for the development of pharmaceutical manufacturing industry in coming future.
- Growing geriatric population in the world poses an opportunity for the pharmaceutical market growth due to increase in number of patient populations.
- Prevalence of several infectious and chronic diseases worldwide is a driving factor for the pharmaceutical market. As per Centers for Disease Control and Prevention (CDC), six in 10 adults in the US suffers from a chronic disease and four in 10 adults have two or more chronic disease at a time.
- Rising focus on outsourcing manufacturing activities, technological advancements in manufacturing processes, growing incidence of novel viral diseases, and increasing per capita healthcare expenditure, are propelling the pharmaceutical manufacturing market.
- Stringent regulatory laws of government for drug approvals in different countries and strict guidelines of regulatory bodies are key restricting factors of the market.
Scope of the Report
The report on the global pharmaceutical manufacturing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Pharmaceutical Manufacturing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Drug Development Types (Outsource and In-house), Formulations (Tablets, Capsules, Suspensions, Injectable, Powders, Sprays, and Others), Routes of Administration (Oral, Parenteral, Topical, Inhalations, and Others), Therapy Areas (Cardiovascular Diseases, Diabetes, Pain, Respiratory Diseases, Cancer, and Others), Prescriptions (Prescription Medicines and Over-the-counter Medicines), Age Groups (Children & Adolescents, Adults, and Geriatric), and Distribution Channels (Retail and Non-retail)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Novartis AG; Pfizer, Inc.; F. Hoffmann-La Roche Ltd.; AstraZeneca; GlaxoSmithKline plc; Merck & Co., Inc.; Johnson & Johnson; Sanofi SA; Eli Lilly and Company; and Lonza
Market Segment Insights
In-house segment is expected to grow at a rapid pace
Based on drug development types, the global pharmaceutical manufacturing market is bifurcated into outsource and in-house. The In-house segment is expected to grow at a rapid pace as it gives companies to keep their sensitive information safe related to the novel molecules. Extension of in-house pharmaceutical manufacturing facilities by major players’ energies the segment growth. For example, Grand River Aseptic Manufacturing extended its Michigan facilities in August 2020. However, the outsourcing segment is anticipated to expand at a rapid pace during the forecast period owing to the rising preference of major player in external service providers for R&D and manufacturing services purposes. Moreover, the necessity for improved productivity and efficiency across the value chain, constant pressure from regulatory bodies for drug pricing, high demand of customized product, and integration of Robotic Process Automation (RPA) by contract manufacturers are responsible for the growth of this segment during the forecast period. Additionally, it minimizes the reduce drug development costs, investments, and upsurge the efficiency of manufacturing procedures, and is easy to comply with various regulatory norms.
Tablet segment is anticipated to dominate the market
On the basis of formulations, the market is divided into tablets, capsules, suspensions, injectable, powders, sprays, and others. The tablet segment is anticipated to dominate the market in the coming years as tablets are widely used by patients due to the easy availability, along with presence of variety in the market as, in different shapes, colors, and sizes, types, such as film-coated, effervescent, enteric-coated, and disintegrating tablets.
On the other hand, the injectable segment is projected to exhibit a considerable growth rate in the forecast period as the numbers of approvals for prefilled syringes and auto-injectors as increased significantly in the recent years. This is also bolstered by the rise in demand for high volume doses which resulted in high demand for 2.25-mL needle syringes. Certain advantages such as, ease of use, self-administration, reliability, compact design, precision, compliance, use of fixed doses in prefilled syringes, and high patient comfort are favoring the segment growth for subcutaneous injectable as this increases the demand for this segment.
Oral segment is projected to expand at a considerable CAGR
Based on routes of administration, the global pharmaceutical manufacturing market is segmented into oral, parenteral, topical, inhalations, and other. The oral segment is projected to expand at a considerable CAGR during the forecast period and the segment was valued at USD 188.9 billion in 2020. The oral route of administration is cheap, easy to manufacture, and easy to administer. The progresses in drug delivery technologies, such as targeted drug delivery and sustained release dosage formulations, are the factors responsible for rapid growth of the market segment.
However, the parental segment is anticipated to show significant growth due to noteworthy rise in the application of automated systems as well as barrier systems, restricted access barrier systems, and isolators, in parenteral manufacturing. Moreover, an innovation in variety of packaging styles, such as cartridges, ready-to-fill syringes, and vials, have tremendously impacted the segment towards positive growth for the coming future. The parental route of drug administration is gaining popularity as most of the diseases requires direct administration of drugs in the body through parental route. In other words, this route is very effective and demonstrates quick action, the vaccines are also administered through this route.
Cancer disease segment is anticipated to dominate the market
On the basis of therapy areas, the market is segregated into cardiovascular diseases, diabetes, pain, respiratory diseases, cancer, and others. The cancer disease segment is anticipated to dominate the market in the coming years due to the high number of cases of cancer in the recent times. The cancer segment is on the second rank with a revenue share of 10% in the year 2019. High cancer prevalence, strong product pipeline, increased investment in research, technological advancements, and lack of treatment options are major factors boosting the segment growth in the near future.
On the other hand, the diabetes segment is projected to hold a key market share in the coming years owing to rising diabetes cases and changing lifestyle of people, and high approval rate of new drugs on diabetes. As per the study of the International Diabetes Federation, in 2019 nearly 463 million cases of diabetes were reported and this number was expected to climb to 700.0 million cases by 2045. The high number of cases demonstrates the opportunity for the market in this segment.
Prescription segment is estimated to grow at a substantial pace
Based on prescriptions, the global pharmaceutical manufacturing market is bifurcated into prescription medicines and over-the-counter (OTC) medicines. The prescription medicines segment accounted for a key share of the market with a prominent share of 85% in 2019 owing to the high number of prescription drugs worldwide. However, the OTC medicines segment is estimated to grow at a significant growth as many regulatory bodies have transferred great number of medicines from the prescription to OTC segment for pharmaceutical manufacturing. Additionally, the OTC segment holds some advantages as cost-effective treatment options and self-medication, which propels the market during the forecast period.
Geriatric segment is expected to expand at a considerable CAGR
On the basis of age groups, the market is classified into children & adolescents, adults, and geriatric. The geriatric segment is expected to expand at a considerable CAGR during the forecast period. Based on the statistics of World Population Prospects, one in six individuals will be over age 65 by 2050, which was one in 11 in year 2019. The rising aging population marks as a major factor for growth of this segment in the coming period.
The children & adolescents segment is projected to demonstrate significant growth in the near future owing to the increased approvals of child medicines as well as initiatives by the organizations for research and development. The Orphan Drug Act is boosting the development of specialty drugs that is driving the pediatric medicine. Moreover, the Pediatric Research Equity Act (PREA) as well as Best Practices for Children Act (BPCA) provides a system that concentrates on the progress of pediatric medicines. These factors are proving to show lucrative growth in the children & adolescents segment during the forecast period.
Retail segment is expected to gain considerable growth
On the basis of distribution channels, the market is divided into retail and non-retail. The retail segment is expected to gain considerable growth in the market in the coming years. Most people are using self-medication to the minor health problems as the medical cost and health insurance have become expensive. Furthermore, presence of OTC medicines as an easy and cost-effective option, more people prefer the retail medicines. This change in preference of the population resulted in the high demand for retail segment and is expected to dominate the market. With all sorts of technological advancements, the electronic information transfer is set to open huge opportunities for the non-retail segment. This reduces the problem of poor communication between primary and secondary care. And this shows that the non-retail segment is set to flourish in the future.
North America is anticipated to contribute a major market share
In terms of regions, the global pharmaceutical manufacturing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to contribute a major market share in the coming years due to the adequate number of highly-skilled persons, large number of strategic pharmaceutical partnerships, and high prevalence of chronic ailments in this region. Additionally, the US dominated in per capita drugs spending worldwide as well as for the highest number of drug efficacy studies & clinical trials in the world market. On the other hand, the market of Asia Pacific is a fast growing market in the projected period which is attributed to the high frequency of diseases, developing medical and healthcare facilities, presences of supportive regulatory system, and large number of untapped population in the region.
Segments Covered in the Report
The global pharmaceutical manufacturing market has been segmented on the basis of
Drug Development Types
Routes of Administration
- Cardiovascular Diseases
- Respiratory Diseases
- Prescription Medicines
- Over-the-counter Medicines
- Children & Adolescents
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Novartis AG
- Pfizer, Inc.
- F. Hoffmann-La Roche Ltd.
- GlaxoSmithKline plc
- Merck & Co., Inc.
- Johnson & Johnson
- Sanofi SA
- Eli Lilly and Company
Key players competing in the market are Novartis AG; Pfizer, Inc.; F. Hoffmann-La Roche Ltd.; AstraZeneca; GlaxoSmithKline plc; Merck & Co., Inc.; Johnson & Johnson; Sanofi SA; Eli Lilly and Company; and Lonza.
AstraZeneca invested USD 133.0 million in its Australian manufacturing site to increase the site in February 2020. Eli Lilly and Company grabbed FDA approval for the supplemental Biologics License Application for its Taltz injection in March 2020, which was designed for the cure of plaque psoriasis in children. Additionally, in January 2020, Neurelis, Inc. got FDA approval for VALTOCO nasal spray, which was developed for epilepsy treatment for six years of age or older.