Formulation Development Outsourcing Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 26.56 Billion |
| Market Size (2029) | USD 35.81 Billion |
| CAGR (2024 - 2029) | 6.16 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Formulation Development Outsourcing Market Analysis
The Global Formulation Development Outsourcing Market size is estimated at USD 26.56 billion in 2024, and is expected to reach USD 35.81 billion by 2029, growing at a CAGR of 6.16% during the forecast period (2024-2029).
Amid the COVID-19 pandemic, countries' health systems are rapidly investing in research and development to combat the virus, having a significant impact on the formulation development outsourcing market. For instance, in October 2020, AiPharma joined a global consortium of pharmaceutical, manufacturing, and distribution leaders to advance oral antiviral Avigan/Reeqomus for COVID-19. As a part of the consortium, AiPharma commercializes all formulations of favipiravir, a broad spectrum oral antiviral drug that targets COVID-19 and 11 other infectious diseases. Thus, the onset of the pandemic has significantly benefitted the formulation development outsourcing market. Moreover, as per an article titled 'Pharmaceutical Technology, 2021 Outsourcing Resources Supplement', published in August 2021, the pharmaceutical outsourcing market has seen a growth in vaccine development and manufacturing activity in the past year, particularly due to the industry's response to the COVID-19 pandemic. As a result of which, there has been an increase in the formulation development outsourcing activities, thereby contributing to the market growth.
Furthermore, the major factors fueling the market growth are the increasing trend of patent protection expiration of major drugs and the rising number of pharmaceutical and biopharmaceutical companies outsourcing their services. The increasing trend of patent protection expiration of major drugs is driving the market growth. For instance, as per a 2021 update by the Generics and Biosimilar Initiative, as part of ongoing action to improve the quality of generics and ensure an efficient and competitive generics market, the Korean Ministry of Food and Drug Safety (MFDS) announced that 158 patents for pharmaceutical products were anticipated to expire in 2021. As per the same source, the MFDS's Green List (a list similar to the US Food and Drug Administration's (FDA) Orange Book) shows that 44 of the patents will be ready for immediate generics entry, having no other patents on the products involved. Thus, this increases the need for formulation development outsourcing for newer candidates, thereby contributing to the market growth.
However, structural changes in the pharmaceutical industry and insufficient funding to perform the drug development process through formulation development are the major factors hindering the market growth.
Formulation Development Outsourcing Market Trends
This section covers the major market trends shaping the Formulation Development Outsourcing Market according to our research experts:
The Oncology Segment is Expected to Witness Significant Growth over the Forecast Period
By application, the oncology segment is anticipated to hold a major share of the market. This can be attributed to the rising incidence rates of cancer cases globally. According to the World Health Organization (WHO), cancer accounted for approximately 10 million deaths in 2020. Additionally, as per the 2021 statistics by the American Cancer Society, by 2040, the global burden of cancer is expected to grow to 27.5 million new cases and 16.3 million cancer deaths.
Formulation development plays a vital role in anti-cancer drugs, as formulation issues, including stability, solubility, and bioavailability, are important considerations for the drug development process. Hence, most pharma service companies are focused on oncology formulation development to provide end-to-end solutions for oncology drug development. For instance, in November 2021, Oncology Pharma Inc. revealed plans for the development of a lead drug candidate in a co-development project with NanoSmart Pharmaceuticals Inc. Likewise, in October 2021, Metrics Contract Services, the US-based contract pharmaceutical development and manufacturing division of Mayne Pharma entered a development and manufacturing agreement with ESSA Pharmaceuticals. Metrics will provide formulation development, analytical services, and manufacturing to support the ongoing clinical development of an orally administered oncology drug as a part of the agreement.
Thus, the high incidence rates of cancer cases and the increasing focus on cancer therapeutics by biopharmaceutical companies are expected to aid in the growth of the segment over the forecast period.
North America is Expected to Hold Significant Market Share over the Forecast Period
Within North America, the United States is expected to hold a major share of the market. This can be attributed to the growing burden of chronic diseases and the presence of key players in the region, especially in the United States. As most of the major drugs are in the stage of patent expiration, key players are involved in novel drug development. In this context, to save time and investment on a series of clinical trials and evaluation studies in formulation development, pharmaceutical companies are outsourcing formulation development services to CROs, which may drive market growth in the region.
Additionally, amid the COVID-19 pandemic, several collaborative research programs are looking to fast-track their process in terms of advancing therapeutics and vaccines by collaborating with institutions, such as the Biomedical Advanced Research and Development Authority (BARDA) and Coalition for Epidemic Preparedness Innovations (CEPI). For instance, in May 2020, the United States Department of Commerce's National Institute of Standards and Technology (NIST) funded around USD 8.9 million to the highly impacted biopharmaceutical manufacturing projects in response to the emerged outbreak. Therefore, such initiatives are contributing to the increasing outsourcing for formulation development, thereby contributing to the market growth.
Moreover, several market players are engaged in the implementation of strategic initiatives, thereby contributing to market growth. For instance, in January 2022, Recro Pharma Inc., a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges primarily in small molecule therapeutic development, reported being awarded a new formulation development and cGMP manufacturing contract from a key department of the United States government.
Thus, due to the above-mentioned factors, the market is expected to witness significant growth over the forecast period.
Formulation Development Outsourcing Industry Overview
The formulation development outsourcing market is moderately competitive. In terms of market share, a few companies, such as Charles River Laboratories, Aizant Drug Research Solutions Private Limited, Catalent Inc., Laboratory Corporation of America Holdings, and Syngene International Ltd, among others, hold the largest market shares. Key market players are evolving through various strategic alliances, such as acquisitions, collaborations, and new product launches, to expand their global product portfolios and secure their positions in the global market.
Formulation Development Outsourcing Market Leaders
Charles River Laboratories
Aizant Drug Research Solutions Private Limited
Syngene International Ltd
Catalent Inc.
IRISYS LLC
*Disclaimer: Major Players sorted in no particular order
Formulation Development Outsourcing Market News
In February 2022, Berkshire Sterile Manufacturing (BSM), a sterile filling contract manufacturer, added formulation, lyophilization, and method development capabilities to complement its clients' drug productions.
In January 2022, Coriolis Pharma opened new ATMP Formulation Development Facilities. The new facilities are located in close proximity to Coriolis' headquarters in Martinsried, which will significantly increase Coriolis' capabilities for ATMP development.
Formulation Development Outsourcing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Trend of Patent Protection Expiration of Major Drugs
4.2.2 Rising Number of Pharmaceutical and Biopharmaceutical Companies Outsourcing Their Services
4.3 Market Restraints
4.3.1 Structural Changes in the Pharmaceutical Industry
4.3.2 Insufficient Funding to Perform the Drug Development Process Through Formulation Development
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD million)
5.1 By Service
5.1.1 Pre-formulation Services
5.1.1.1 Discovery and Preclinical Services
5.1.1.2 Analytical Services
5.1.2 Formulation Optimization
5.1.2.1 Phase I
5.1.2.2 Phase II
5.1.2.3 Phase III
5.1.2.4 Phase IV
5.2 By Dosage Form
5.2.1 Injectable
5.2.2 Oral
5.2.3 Topical
5.2.4 Other Dosage Forms
5.3 By Application
5.3.1 Oncology
5.3.2 Genetic Disorders
5.3.3 Neurology
5.3.4 Infectious Diseases
5.3.5 Respiratory
5.3.6 Cardiovascular
5.3.7 Other Applications
5.4 By End User
5.4.1 Pharmaceutical and Biopharmaceutical Companies
5.4.2 Government and Academic Institutes
5.5 By Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Mexico
5.5.2 Europe
5.5.2.1 Germany
5.5.2.2 United Kingdom
5.5.2.3 France
5.5.2.4 Italy
5.5.2.5 Spain
5.5.2.6 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 China
5.5.3.2 Japan
5.5.3.3 India
5.5.3.4 Australia
5.5.3.5 South Korea
5.5.3.6 Rest of Asia-Pacific
5.5.4 Middle-East and Africa
5.5.4.1 GCC
5.5.4.2 South Africa
5.5.4.3 Rest of Middle-East and Africa
5.5.5 South America
5.5.5.1 Brazil
5.5.5.2 Argentina
5.5.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Charles River Laboratories
6.1.2 Aizant Drug Research Solutions Private Limited
6.1.3 Catalent Inc.
6.1.4 Laboratory Corporation of America Holdings
6.1.5 Syngene International Ltd
6.1.6 Irisys LLC
6.1.7 Intertek Group PLC
6.1.8 Piramal Pharma Solutions
6.1.9 Qiotient Sciences
6.1.10 Patheon (Thermo Fisher Scientific Inc.)
6.1.11 Emergent BioSolutions Inc.
6.1.12 Lonza Group AG
6.1.13 Dr. Reddy's Laboratories Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Formulation Development Outsourcing Industry Segmentation
As per the scope of the study, formulation development is a major area of product/drug development that determines the patentability, lifecycle, and success of a pharmaceutical product. Most pharmaceutical companies outsource formulation services to minimize the time and investment involved in trials. The market is segmented by service (pre-formulation services (discovery and preclinical services, and analytical services) and formulation optimization (Phase I, Phase II, Phase III, and Phase IV)), dosage form (injectable, oral, topical, and other dosage forms), application (oncology, genetic disorders, neurology, infectious diseases, respiratory, cardiovascular, and other applications), end-user (pharmaceutical and biopharmaceutical companies, and governments and academic institutes), and geography (North America, Europe, Asia Pacific, and Middle-East and Africa). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers values (in USD million) for the above segments.
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| By Dosage Form | |
| Injectable | |
| Oral | |
| Topical | |
| Other Dosage Forms |
| By Application | |
| Oncology | |
| Genetic Disorders | |
| Neurology | |
| Infectious Diseases | |
| Respiratory | |
| Cardiovascular | |
| Other Applications |
| By End User | |
| Pharmaceutical and Biopharmaceutical Companies | |
| Government and Academic Institutes |
| By Geography | ||||||||
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Formulation Development Outsourcing Market Research FAQs
How big is the Global Formulation Development Outsourcing Market?
The Global Formulation Development Outsourcing Market size is expected to reach USD 26.56 billion in 2024 and grow at a CAGR of 6.16% to reach USD 35.81 billion by 2029.
What is the current Global Formulation Development Outsourcing Market size?
In 2024, the Global Formulation Development Outsourcing Market size is expected to reach USD 26.56 billion.
Who are the key players in Global Formulation Development Outsourcing Market?
Charles River Laboratories, Aizant Drug Research Solutions Private Limited, Syngene International Ltd, Catalent Inc. and IRISYS LLC are the major companies operating in the Global Formulation Development Outsourcing Market.
Which is the fastest growing region in Global Formulation Development Outsourcing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Formulation Development Outsourcing Market?
In 2024, the North America accounts for the largest market share in Global Formulation Development Outsourcing Market.
What years does this Global Formulation Development Outsourcing Market cover, and what was the market size in 2023?
In 2023, the Global Formulation Development Outsourcing Market size was estimated at USD 25.02 billion. The report covers the Global Formulation Development Outsourcing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Formulation Development Outsourcing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Formulation Development Outsourcing Industry Report
Statistics for the 2024 Formulation Development Outsourcing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Formulation Development Outsourcing analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
