Pharmaceutical Manufacturing Market Size

Pharmaceutical Manufacturing Market Analysis

The Pharmaceutical Manufacturing Market size is estimated at USD 465.16 billion in 2024, and is expected to reach USD 967.12 billion by 2029, growing at a CAGR of 12.14% during the forecast period (2024-2029).

The market's growth can be attributed to factors such as increasing research and development expenditure by pharmaceutical companies, advancements in pharmaceutical manufacturing technologies, the growing burden of chronic diseases, and the surge in the geriatric population. Moreover, increasing outsourcing volumes by pharmaceutical companies are further expected to propel market expansion over the coming years.

The growing burden of chronic diseases and the surging elderly population are expected to propel the demand for novel pharmaceuticals, thereby driving the pharmaceutical manufacturing market. For instance, according to the American Cancer Society's 2023 update, around 1.93 million new cancer cases were diagnosed in 2023, as compared to 1.9 million cases in 2022 in the United States. In addition, as per the Centers for Disease Control's National Diabetes Statistics Report for 2022, the prevalence of diabetes in the United States rose to USD 37.3 million in 2022. Thus, the high prevalence of chronic diseases globally is projected to spur the demand for pharmaceuticals, thereby boosting the pharmaceutical manufacturing market.

In addition, as per Australian Institute of Health and Welfare, it is estimated that the country recorded 14,800 lung cancer cases in 2023 as compared to 14,529 lung cancer cases in 2022. Thus, such statistics are expected to propel pharma manufacturing, thereby facilitating the market growth over the coming years.

Similarly, the increasing emphasis of pharmaceutical companies on expansion and the rising investments to bolster pharmaceutical production are anticipated to contribute to market growth. For instance, in December 2023, Piramal Pharma Solutions (PPS) invested GBP 45 million (USD 57.15 million) to establish a new manufacturing facility to produce antibody-drug conjugate (ADC) in Grangemouth, Scotland, United Kingdom. This helped the company to bolster its ADC manufacturing capabilities.

Moreover, in April 2022, Ferring Pharmaceuticals opened its integrated R&D and manufacturing facility in Hyderabad, with a total investment of EUR 30 million (USD 31.78 million). The manufacturing facility is mainly designed to accelerate the manufacturing of solid dosage formulations. Hence, with the abovementioned factors, such as the rising burden of chronic disease and the expanding pharmaceutical sector, the market studied is believed to grow significantly over the forecast period.

Furthermore, the increasing research and development efforts by the pharmaceutical and biopharmaceutical companies are further projected to accelerate pharmaceutical manufacturing, thereby supporting the industry growth. For instance, as per the European Federation of Pharmaceutical Industries and Associates data of June 2023, the R&D expenditure of European pharma companies increased from EUR 42,533 million in 2021 to EUR 44,500 million in 2022. Thus, the increasing R&D expenditure by pharmaceutical companies is projected to spur pharma activities including production, thus supporting industry expansion.

As a result, the advancements in pharmaceutical manufacturing technologies, the growing burden of chronic diseases, and the increasing R&D spending by pharma companies are anticipated to support market growth over the coming years. However, the pricing pressure of biopharmaceutical and pharmaceutical companies and stringent regulations impede the market's growth.