| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 128.26 Billion |
| Market Size (2030) | USD 193.83 Billion |
| CAGR (2025 - 2030) | 8.61 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Active Pharmaceutical Ingredients CDMO Market Analysis
The Global Active Pharmaceutical Ingredients CDMO Market size is estimated at USD 128.26 billion in 2025, and is expected to reach USD 193.83 billion by 2030, at a CAGR of 8.61% during the forecast period (2025-2030).
Various factors, such as increasing pharmaceutical research and development investment, rising demands for generic drugs, complex manufacturing, and patent expiration, will lead to market growth during the forecast period.
The increase in pharmaceutical research and development (R&D) investment is one of the factors significantly driving the market growth. The rise in pharmaceutical R&D investment is expected to fuel the adoption of active pharmaceutical ingredient (API) contract development and manufacturing organizations (CDMO) to develop APIs. For instance, the report published by the European Federation of Pharmaceutical Industry and Associations in June 2023 highlighted that pharmaceutical companies invested USD 49,112 million in R&D in Europe in 2022. Additionally, the same source reported that the R&D investments were majorly allocated to clinical trials (49.2%), followed by pre-clinical functions (14.7%) and pharmacovigilance (12.9%). Thus, significant investments by pharmaceutical companies are the primary factors expected to boost the market during the forecast period.
In addition, the increasing demand for generic drugs due to the growing burden of chronic diseases contributes significantly to the market growth. Generic drugs are used to treat complicated chronic disorders like cancers, cardiovascular disorders, neurological disorders, and infections. For instance, an article published by the National Institutes of Health in July 2023 mentioned that about 10.5 million people had dementia in 2022, which is expected to increase to 18.7 million in 2050. Moreover, according to 2023 updated data published by the International Diabetes Federation, diabetic patients are expected to reach 643 million and 784 million globally by 2030 and 2045, respectively. Thus, the increase in chronic disease prevalence is anticipated to fuel the demand for generic drugs, further strengthening the market growth of API CDMO during the forecast period.
The market players have adopted various strategies to expand API manufacturing, further boosting market growth. For instance, in December 2022, Novasep invested approximately USD 6.3 million (EUR 6 million) to enhance its Chasse-sur-Rhône facility in France. The investment focused on improving the site's capabilities in handling advanced APIs related to specialized medical fields, including oncology, central nervous system (CNS) disorders, and infectious diseases. Additionally, in May 2022, Piramal Pharma Solutions stated that the company's new active pharmaceutical ingredient (API) plant in Aurora, Ontario, went online and completed its initial production runs. Thus, such initiatives are anticipated to drive the API CDMO market growth during the forecast period.
Hence, increasing R&D investments and rising demand for generic drugs due to the growing burden of chronic diseases among patients are the major factors driving the market growth. However, compliance issues while outsourcing and concerns about data quality and security are expected to affect the market growth of API CDMO during the forecast period.
Active Pharmaceutical Ingredients CDMO Market Trends
The Synthetic Segment is Expected to Hold the Major Market Share
Synthetic active pharmaceutical ingredients (API) are small molecules that comprise a significant portion of the market, with numerous commercially available drugs. Various market player strategies, such as expansion, approvals, collaborations, and agreements, are expected to increase market growth during the forecast period.
The growing burden of chronic diseases worldwide fuels the need to develop and manufacture effective pharmaceuticals, thus boosting the synthetic API segment growth. For instance, according to the report published by the World Heart Federation Organization in April 2023, around half a billion people are affected by cardiovascular diseases worldwide. Such a high burden of cardiovascular diseases involves adopting synthetic API, thus driving the segment growth.
As a result, many pharmaceutical companies started expanding their manufacturing footprint, and some began to rethink their footprint to plan for the years ahead. The largest source of additional capacity was CDMOs.
The market is projected to expand due to strategic actions from market participants, including investments, collaborations, and acquisitions. For instance, in December 2022, Almac Group completed the initial stage of its multi-million-pound investment program, expanding its GMP API facility. This investment aims to establish manufacturing centers of excellence dedicated to small molecule API production at 200-300 kg scales and boost capacity for peptide API production. Additionally, in October 2022, Cambrex expanded its small molecule development and manufacturing capabilities by investing in a new 21,000-square-foot research and development facility in Minneapolis, Minnesota. Thus, such investments by the companies to expand synthetic API manufacturing are anticipated to drive segment growth.
Therefore, owing to the above-mentioned factors, such as the growing burden of chronic diseases and market players' strategies and investments, the segment is anticipated to grow during the forecast period.
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Asia-Pacific is Expected to Hold a Significant Share in the Market During the Forecast Period
Asia-Pacific is expected to grow significantly and contribute to the API CDMO market growth during the forecast period. Factors such as rising investments by pharmaceutical companies, government initiatives, and market player strategies are anticipated to drive market growth in the region.
Increased investments in pharmaceutical production are expected to drive the need for API CDMO and contribute to market growth in the region. In the annual report for 2022-23, published by the Department of Pharmaceuticals, Government of India, in March 2023, it was stated that India is the third-largest pharmaceutical producer globally in terms of volume. The country achieved an annual turnover of USD 42.34 billion (INR 3,44,125 crore) for the fiscal year 2021-2022.
Moreover, government initiatives to boost API manufacturing are expected to propel market growth in the region. For instance, in February 2023, under the Production Linked Incentive (PLI) scheme, India initiated API and bulk drug production for critical life-saving medications and sophisticated medical equipment like computed tomography (CT) scans and magnetic resonance imaging (MRI) machines. With 51 approved projects, 14 have been commissioned and are actively manufacturing these drugs. Thus, such initiatives are anticipated to contribute to the market growth in the region.
Market players' business expansion strategies are also expected to contribute to market growth. For instance, in January 2024, AGC Biologics developed a new production site at AGC Inc.'s Yokohama Technical Center in Japan. This strategic move aims to provide high-quality pharmaceutical development and manufacturing services, catering to the growing demand for biologics and small active pharmaceutical ingredients. The facility is scheduled to become operational by 2026. In addition, in November 2022, Athenex Inc. completed the sale of its equity interests in Chinese subsidiaries, primarily encompassing its API manufacturing operations in China, to Chongqing Comfort Pharmaceutical Inc. (Chongqing Comfort). Thus, such strategies are expected to boost the demand for API CDMO in the region and propel market growth during the forecast period.
Therefore, factors such as rising pharmaceutical investments, government initiatives, and market player strategies are expected to drive API CDMO market growth in the region during the forecast period.
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Active Pharmaceutical Ingredients CDMO Industry Overview
The active pharmaceutical ingredients CDMO market is fragmented and consists of several major players. In terms of market share, a few major players dominate the market. A few of them are Cambrex Corporation, Patheon (Themo Fisher Scientific Inc.), Recipharm AB, Astorg (CordenPharma), Samsung Biologics, Lonza, Siegfried, Piramal Pharma Solutions, Abbvie Inc., and Catalent Inc.
The role of API manufacturers in the pharmaceutical supply chain is evolving in response to customers' newfound demands and increasing pressures from global competitors. Traditional generic firms are looking to China and India for bulk activities, while specialty pharmaceutical companies have generated new demands for more specialized capabilities than traditional generics require.
Active Pharmaceutical Ingredients CDMO Market Leaders
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Catalent, Inc.
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Cambrex Corporation
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Lonza Group
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Recipharm AB
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Astorg (Corden Pharma)
- *Disclaimer: Major Players sorted in no particular order
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Active Pharmaceutical Ingredients CDMO Market News
- May 2024: Eli Lilly and Company invested USD 5.3 billion to develop a manufacturing site in Indiana, the United States, to boost the production abilities of active pharmaceutical ingredients (APIs) for Zepbound (tirzepatide) injection and Mounjaro (tirzepatide) injection.
- February 2024: Chemex Global's state-of-the-art pharmaceutical API manufacturing facility launched in Guwahati, empowering Assam to emerge as India's premier pharmaceutical hub. The facility will foster business growth with key regions like Gujarat, Hyderabad, Sikkim, and Southeast Asia.
Active Pharmaceutical Ingredients CDMO Industry Segmentation
As per the scope of this report, an active pharmaceutical ingredient (API) is the part of the drug that produces the intended effects. It is the biologically active component of a drug product, such as a capsule, tablet, injectable, or cream. Traditionally, pharmaceutical companies would produce APIs. However, in recent years, many companies have opted to outsource the production of API, as most companies have realized that the returns on investments have been worthwhile. With the right outsourcing partner, the advantages outweigh the potential risks.
The active pharmaceutical ingredients CDMO market is segmented by molecule type, synthesis, drug type, workflow, application, and geography. By molecule type, the market is segmented into small and large molecules. By synthesis, the market is segmented into biotech and synthetic. By drug type, the market is segmented into innovative and generics. By workflow, the market is segmented into clinical and commercial. The market is segmented by application into cardiology, oncology, ophthalmology, neurology, orthopedic, and other applications. The market is segmented by geography into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. For each segment, the market size is provided in terms of USD value.
| By Molecule Type | Small Molecule | ||
| Large Molecule | |||
| By Synthesis | Biotech | ||
| Synthetic | |||
| By Drug Type | Innovative | ||
| Generics | |||
| By Workflow | Clinical | ||
| Commercial | |||
| By Application | Cardiology | ||
| Oncology | |||
| Ophthalmology | |||
| Neurology | |||
| Orthopedic | |||
| Other Applications | |||
| Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Spain | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| Australia | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | GCC | ||
| South Africa | |||
| Rest of Middle East and Africa | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
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Active Pharmaceutical Ingredients CDMO Market Research FAQs
How big is the Global Active Pharmaceutical Ingredients CDMO Market?
The Global Active Pharmaceutical Ingredients CDMO Market size is expected to reach USD 128.26 billion in 2025 and grow at a CAGR of 8.61% to reach USD 193.83 billion by 2030.
What is the current Global Active Pharmaceutical Ingredients CDMO Market size?
In 2025, the Global Active Pharmaceutical Ingredients CDMO Market size is expected to reach USD 128.26 billion.
Who are the key players in Global Active Pharmaceutical Ingredients CDMO Market?
Catalent, Inc., Cambrex Corporation, Lonza Group, Recipharm AB and Astorg (Corden Pharma) are the major companies operating in the Global Active Pharmaceutical Ingredients CDMO Market.
Which is the fastest growing region in Global Active Pharmaceutical Ingredients CDMO Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Global Active Pharmaceutical Ingredients CDMO Market?
In 2025, the Asia-Pacific accounts for the largest market share in Global Active Pharmaceutical Ingredients CDMO Market.
What years does this Global Active Pharmaceutical Ingredients CDMO Market cover, and what was the market size in 2024?
In 2024, the Global Active Pharmaceutical Ingredients CDMO Market size was estimated at USD 117.22 billion. The report covers the Global Active Pharmaceutical Ingredients CDMO Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Global Active Pharmaceutical Ingredients CDMO Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Active Pharmaceutical Ingredients CDMO Industry Report
Statistics for the 2025 Global Active Pharmaceutical Ingredients CDMO market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Active Pharmaceutical Ingredients CDMO analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
