Europe Pharmaceutical Contract Development and Manufacturing Market (2025-2032)

The Europe Pharmaceutical Contract Development and Manufacturing Market is expected to reach $68.12 billion by 2032 at a CAGR of 7.4% from 2025 to 2032.

Published
Jan 2025
Pages
150
Format
PDF + Excel
Report ID
MRHC - 104909
Base year
2024
Market size · USD billion · 2024–2032Forecast 2025–2032 · 7.4% CAGR
2032 · FORECAST
$68.12B
2032
$68.12B
CAGR 2025–2032
7.4%
$80B$60B$40B$20B0
2024
2025
'26
'27
'28
'29
'30
'31
'32

2024 baseline · 2025–2032 forecast at 7.4% CAGR · hover a bar for the value

Key highlights

01

The Europe Pharmaceutical Contract Development and Manufacturing Market is expected to reach $68.12 billion by 2032 at a CAGR of 7.4% from 2025 to 2032.

02

The pharmaceutical manufacturing services segment is expected to account for the largest share of the market.

03

The large pharmaceutical companies segment is expected to account for the largest share of the market.

04

Germany is expected to register the highest CAGR during the forecast period. Growing government investments in the life sciences industry and the increasing prevalence of chronic diseases are the major factors generating high demand for pharmaceuticals in the country.

Report summary

ParticularsDetails
Base Year2024
Estimated Year2025
Forecast Period2025–2032
Market Size (2032)USD 68.12 billion
CAGR (2025–2032)7.4%
FormatPDF, Excel & Cloud Portal · 150 pages
Segments CoveredBy Type: Tablet Manufacturing Services, Capsule Manufacturing Services, Oral Liquid Manufacturing Services, Other Formulations, Active Pharmaceutical Ingredient (API) Manufacturing Services, Finished Dosage Forms (FDF) Manufacturing Services · By End User: Large Pharmaceutical Companies, Small & Mid-Size Pharmaceutical Companies, Generic Pharmaceutical Companies
Countries CoveredEurope (Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, Denmark, Rest of Europe)
Key CompaniesAbbVie Inc. (U.S.), Aenova Group, Wuxi Biologics, Inc., Vetter Pharma International GmbH, Catalent, Inc. (U.S.), Lonza Group Ltd., Recipharm AB, Almac Group (U.K.), C.H. Boehringer Sohn Ag & Co. KG, Eurofins Scientific, Curia Global, Inc. (U.S.), Thermo Fisher Scientific, Inc. (U.S.), Evonik Industries AG, Cambrex Corporation (U.S.), Siegfried Holdings AG, Fabbrica Italiana Sintetici S.p.A, Corden Pharma GmbH

Report overview

Scope note

Segments covered: type, end user. Regions: Europe.

Pharmaceutical contract development and manufacturing organizations offer various services based on a contract to small or large pharmaceutical companies. These services include active pharmaceutical ingredient (API) manufacturing, finished dosage form (FDF) manufacturing, drug development & drug discovery services, and biologics manufacturing services. The COVID-19 pandemic positively impacts the pharmaceutical contract development and manufacturing market due to the increased demand for pharmaceutical products such as tablets, capsules, drugs, and vaccines.

The growth of the Europe pharmaceutical contract development and manufacturing market is attributed to the complex manufacturing requirements of the pharmaceutical industry, manufacturers' growing inclination toward the use of cutting-edge technologies, consistent growth in the pharmaceutical industry due to growing government support, and the rising demand for generic medicines & biologics. In addition, the growing demand for cell and gene therapies and personalized medicines and growth in high potency active pharmaceutical ingredients (HPAPI) and antibody-drug conjugates (ADC) markets is expected to offer significant opportunities for the growth of the pharmaceutical contract development and manufacturing market. However, the lack of skilled professionals is challenging the growth of this market.

Report infographic

Europe Pharmaceutical Contract Development and Manufacturing Market
Europe Pharmaceutical Contract Development and Manufacturing Market · Report infographic

Market dynamics

1 factors across 1 force
01

Increasing Investment in Pharmaceutical R&D is Driving the Market

Healthcare R&D activities have significantly increased in the last two to three decades with rising investments from various government organizations and pharmaceutical companies. This funding is mainly driven by the rising prevalence of chronic diseases due to the growing geriatric population, complexities in clinical trials, and higher failure of drugs in early-phase studies. Governments in European countries are increasing their funding for boosting pharmaceutical and biopharmaceutical research. In addition, several initiatives have been taken by the government of respective countries to boost pharmaceutical R&D. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), pharmaceutical R&D increased to USD 49,102 million in 2021 from USD 45,295.2 million in 2020.

Furthermore, pharmaceutical companies have also increased their spending on R&D. The extent of pharmaceutical R&D spending is an important metric to show a company's commitment to finding new drugs. Therefore, increasing government investments in pharmaceutical R&D is expected to expand the research pipeline, enhancing the number of products converted to usable forms with the help of pharmaceutical contract manufacturers and driving market growth.

In Europe, Germany has the highest investment in pharmaceutical research. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), in 2020, Germany invested USD 6,850 million (EUR 7,813 million) in R&D. The increasing investment in R&D by pharmaceutical and biotechnology companies is driving the market.

 

Table of contents

10 chapters · 88 sections · 150 pages · click to expand
Review the full research scope before you buy. Chapters can also be purchased individually.

1.1Market Definition & Scope
1.2Market Ecosystem
1.3Currency and Limitations
1.4Key Stakeholders

Segmental analysis

SegmentLargest share (2025)Fastest growth (2025–2032)
By TypePharmaceutical Manufacturing Services—
By End UserLarge Pharmaceutical Companies—
01

By Type

  • The pharmaceutical manufacturing services segment is expected to account for the largest share of the market.
  • The large of this segment is attributed to factors such as the growing need to reduce manufacturing costs in the pharmaceutical industry, the requirement for high-quality bulk manufacturing, and the growing demand for generic drugs.
  • According to EFPIA, in 2020, France accounted for 19.5% of generics sales in total pharmaceutical sales.
  • The highest generic drug sales in Europe were for Austria, which accounted for 49%.
CoversTablet Manufacturing ServicesCapsule Manufacturing ServicesOral Liquid Manufacturing ServicesOther FormulationsActive Pharmaceutical Ingredient (API) Manufacturing ServicesFinished Dosage Forms (FDF) Manufacturing Services
02

By End User

  • The large pharmaceutical companies segment is expected to account for the largest share of the market.
  • The factors attributing to the largest share of the market are the growing need for state-of-the-art processes and production technologies, the need for business expansion globally, the growing strategic focus of sponsors to focus on core business functions such as marketing and R&D, and continued efforts of pharmaceutical companies to reduce production costs.
  • Furthermore, the outbreak of the COVID-19 pandemic has led CDMOs to enter into strategic partnerships or agreements for large-scale vaccine development and manufacturing.
  • In May 2021, Siegfried Holdings AG (Switzerland) signed an agreement with Novavax, Inc. (U.S.) to manufacture and supply Novavax's protein-based COVID-19 Vaccine.
  • Under this agreement, Siegfried served as a non-exclusive supplier for the aseptic fill and finish of Novavax's COVID-19 vaccine NVX-CoV2373.
CoversLarge Pharmaceutical CompaniesSmall & Mid-Size Pharmaceutical CompaniesGeneric Pharmaceutical Companies

Geographic analysis

01

Europe

Fastest growth
Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, Denmark, Rest of Europe

Germany is expected to register the highest CAGR during the forecast period. Growing government investments in the life sciences industry and the increasing prevalence of chronic diseases are the major factors generating high demand for pharmaceuticals in the country. In addition, the shift towards developing precision medicines and high competition from generics is compelling the pharmaceutical and biotechnology industry to increase their production and outsource their activities to accelerate the development process. Germany: Fastest Growing Market

Competitive landscape

Companies profiled (17)
  • AbbVie Inc. (U.S.)
  • Aenova Group · Germany
  • Wuxi Biologics, Inc. · China
  • Vetter Pharma International GmbH · Germany
  • Catalent, Inc. (U.S.)
  • Lonza Group Ltd. · Switzerland
  • Recipharm AB · Sweden
  • Almac Group (U.K.)
  • C.H. Boehringer Sohn Ag & Co. KG · Germany
  • Eurofins Scientific · France
  • Curia Global, Inc. (U.S.)
  • Thermo Fisher Scientific, Inc. (U.S.)
  • Evonik Industries AG · Germany
  • Cambrex Corporation (U.S.)
  • Siegfried Holdings AG · Switzerland
  • Fabbrica Italiana Sintetici S.p.A · Italy
  • Corden Pharma GmbH · Germany

Frequently asked questions

The Europe pharmaceutical contract development and manufacturing market study different types of services, such as pharmaceutical manufacturing services, drug development services, and biologics manufacturing services used by end users. The Europe pharmaceutical contract development and manufacturing market studied in this report involves the analysis of various segments at country levels.

Cite this report

Meticulous Research. (2025). Europe Pharmaceutical Contract Development and Manufacturing Market - Opportunity Analysis and Industry Forecast (2025-2032) (Report No. MRHC - 104909). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/europe-pharmaceutical-contract-development-and-manufacturing-market-5592

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