The Europe Pharmaceutical Contract Development and Manufacturing Market is expected to reach $68.12 billion by 2030 at a CAGR of 7.4% from 2023 to 2030. 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.
The pharmaceutical industry is largely driven by scientific discovery, development, and toxicological and clinical experience. Pharmaceutical manufacturing operations may be categorized as primary production of bulk drug substances (APIs) and manufacturing of dosage form products (formulations).
In addition to the complexity of the pharmaceutical manufacturing process, many countries globally have specific legal protections for proprietary drugs and manufacturing processes, known as intellectual property rights. Some companies specialize in manufacturing and marketing generic drugs when legal protections are limited or nonexistent. The pharmaceutical industry requires large capital investments due to the high expenses associated with R&D, regulatory approvals, manufacturing, quality assurance & control, marketing, and sales.
Many countries have extensive government regulations affecting the development and approval of drugs for commercial sale. These countries have strict requirements for good manufacturing practices to ensure the integrity of drug manufacturing operations and the quality, safety, and efficacy of pharmaceutical products. These challenges have led pharmaceutical companies to partner with contract manufacturing and development organizations to develop and manufacture pharmaceuticals and biologics, driving the growth of the pharmaceutical contract development and manufacturing market.
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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.
In 2023, the Pharmaceutical Manufacturing Services Segment is Expected to Dominate this Market
Based on type, the Europe pharmaceutical contract development and manufacturing market is segmented into pharmaceutical manufacturing services, drug development services, and biologics manufacturing services. In 2023, 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%.
In 2023, the Large Pharmaceutical Companies Segment is Expected to Account for the Largest Share of the Market
Based on end user, the Europe pharmaceutical contract development and manufacturing market is segmented into large pharmaceutical companies, small & mid-size pharmaceutical companies, and generic pharmaceutical companies. In 2023, 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.
Germany: Fastest Growing Market
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.
Key Players
The report offers a competitive landscape based on an extensive assessment of the product portfolio offerings, geographic presences, and key strategic developments adopted by leading market players in the industry over the years. The key players operating in the Europe pharmaceutical contract development and manufacturing market are 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), and Corden Pharma GmbH (Germany).
Scope of the Report:
Europe Pharmaceutical Contract Development and Manufacturing Market Assessment, by Type
Europe Pharmaceutical Contract Development and Manufacturing Market Assessment, by End User
Europe Pharmaceutical Contract Development and Manufacturing Market Assessment, by Country
Key questions answered in the report:
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.
The Europe pharmaceutical contract development and manufacturing market is projected to reach $68.12 billion by 2030 at a CAGR of 7.4% from 2023 to 2030
Among all the types studied in the report, the pharmaceutical manufacturing services segment is expected to account for the largest share of the market in 2023. The large share of the segment is attributed to the growing need to reduce manufacturing costs, bring a new drug to the market quickly at the lowest possible cost, the requirement for high-quality bulk manufacturing, and the growing demand for generic drugs.
The growth of this market is driven by the complex manufacturing requirements of the pharmaceutical industry, manufacturers' growing inclination toward the use of cutting-edge technologies, patent expiration, increasing investments in pharmaceutical R&D, and the rising demand for generic medicines & biologics. In addition, the growing demand for cell and gene therapies and personalized medicine 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.
The key players operating in the Europe pharmaceutical contract development and manufacturing market are 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), and Corden Pharma GmbH (Germany).
Germany is expected to offer significant growth opportunities owing to the government initiatives to create favorable pharmaceutical drug approval programs, increase investment from existing pharmaceutical manufacturers in the country for infrastructure development, and growing investments towards biosimilar manufacturing.
This report provides pre & post COVID-19 market estimates.
1. Introduction
1.1. Market Definition & Scope
1.2. Market Ecosystem
1.3. Currency and Limitations
1.4. Key Stakeholders
2. Research Methodology
2.1. Research Approach
2.2. Process of Data Collection and Validation
2.2.1. Secondary Research
2.2.2. Primary Research/Interviews with Key Opinion Leaders of the Industry
2.3. Market Sizing and Forecast
2.3.1. Market Size Estimation Approach
2.3.2. Growth Forecast Approach
2.3.3. Assumptions for the Study
3. Executive Summary
4. Market Insights
4.1. Overview
4.2. Drivers
4.2.1. Complex Manufacturing Requirements of the Pharmaceutical Industry
4.2.2. Manufacturers' Growing Inclination Toward the Use of Cutting-Edge Technologies
4.2.3. Rising Demand for Generic Medicines and Biologics
4.2.4. Patent Expiration
4.2.5. Increasing Investments in Pharmaceutical R&D
4.3. Restraints
4.3.1. Stringent Regulatory Requirements
4.4. Opportunities
4.4.1. Growing Demand for Cell Therapies, Gene Therapies, and Personalized Medicines
4.4.2 Growth in High Potency Active Pharmaceutical Ingredients (HPAPI) and Antibody-drug Conjugates (ADC) Markets
4.5. Challenge
4.5.1. Shortage of Skilled Professionals
4.6. Trends
4.6.1 Virtual Business Models
4.6.2. Growing Consolidation Among CDMO Market Players
4.7. Factor Analysis
4.8. Regulatory Analysis
4.9. Porter’s 5 Force Analysis
5. Europe Pharmaceutical Contract Development and Manufacturing Market Assessment—Type
5.1. Overview
5.2. Pharmaceutical Manufacturing Services
5.2.1. Active Pharmaceutical Ingredient (API) Manufacturing Services
5.2.2. Finished Dosage Forms (FDF) Manufacturing Services
5.2.2.1. Parenteral/Injectable Manufacturing Services
5.2.2.2. Tablet Manufacturing Services
5.2.2.3. Capsule Manufacturing Services
5.2.2.4. Oral Liquid Manufacturing Services
5.2.2.5. Other Formulations
5.3. Drug Development Services
5.4. Biologics Manufacturing Services
5.4.1. Active Pharmaceutical Manufacturing Services (API) Manufacturing Services
5.4.2. Finished Dosage Form Manufacturing (FDF) Services
6. Europe Pharmaceutical Contract Development and Manufacturing Market Assessment—by End User
6.1. Overview
6.2. Large Pharmaceutical Companies
6.3. Small & Mid-Size Pharmaceutical Companies
6.4. Generic Pharmaceutical Companies
7. Europe Pharmaceutical Contract Development and Manufacturing Market Assessment–by Geography
7.1. Overview
7.2. Germany
7.3. U.K.
7.4. France
7.5. Italy
7.6. Spain
7.7. Switzerland
7.8. Netherlands
7.9. Denmark
7.10. Rest of Europe
8. Competitive Analysis
8.1. Overview
8.2. Key Growth Strategies
8.3. Competitive Benchmarking
8.4. Competitive Dashboard
8.4.1. Industry Leaders
8.4.2. Market Differentiators
8.4.3. Vanguards
8.4.4. Emerging Companies
8.5. Market Share Analysis, by the Key Player/Market Ranking, 2022
9. Company Profiles (Company Overview, Financial Snapshot, Product Portfolio, and Strategic Developments)
9.1. AbbVie Inc.
9.2. Aenova Group
9.3. Wuxi Biologics, Inc.
9.4. Vetter Pharma International GmbH
9.5. Catalent, Inc
9.6. Lonza Group Ltd.
9.7. Recipharm AB
9.8. Almac Group
9.9. C.H. Boehringer Sohn Ag & Co. KG.
9.10. Eurofins Scientific
9.11. Curia Global, Inc.
9.12. Thermo Fisher Scientific, Inc.
9.13. Evonik Industries AG
9.14. Cambrex Corporation
9.15. Siegfried Holdings AG
9.16. Fabbrica Italiana Sintetici S.p.A.
9.17. Corden Pharma GmbH
(Note: SWOT analysis is provided for the top 5 companies.)
10. Appendix
10.1. Available Customization
10.2. Related Reports
List of Tables
Table 1 Europe Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021-2030 (USD Million)
Table 2 Europe Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 3 Europe Pharmaceutical Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 4 Europe Active Pharmaceutical Ingredient (API) Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 5 Europe Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 6 Europe Finished Dosage Forms (FDF) Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 7 Europe Parenteral/Injectable Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 8 Europe Tablet Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 9 Europe Capsule Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 10 Europe Oral Liquid Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 11 Europe Other Formulations Market, by Country/Region, 2021–2030 (USD Million)
Table 12 Europe Drug Development Services Market, by Country/Region, 2021–2030 (USD Million)
Table 13 Europe Biologics Manufacturing Services, by Type, 2021–2030 (USD Million)
Table 14 Europe Biologics Manufacturing Services, by Country/Region, 2021–2030 (USD Million)
Table 15 Europe Active Pharmaceutical Manufacturing Services (API) Manufacturing Services Market, by Country/Region, 2021–2030 (USD Million)
Table 16 Europe Finished Dosage Form Manufacturing (FDF) Services Market, by Country/Region, 2021–2030 (USD Million)
Table 17 Europe Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 18 Europe Pharmaceutical Contract Development and Manufacturing Market for Large Pharmaceutical Companies, by Country/Region, 2021–2030 (USD Million)
Table 19 Europe Pharmaceutical Contract Development and Manufacturing Market for Small & Mid-Size Pharmaceutical Companies, by Country/Region, 2021–2030 (USD Million)
Table 20 Europe Pharmaceutical Contract Development and Manufacturing Market for Generic Pharmaceutical Companies, by Country/Region, 2021–2030 (USD Million)
Table 21 Europe Pharmaceutical Contract Development and Manufacturing Market, by Country/Region., 2021-2030 (USD Million)
Table 22 Europe: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 23 Europe: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 24 Europe: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 25 Europe: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 26 Europe: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 27 Germany: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 28 Germany: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 29 Germany: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 30 Germany: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 31 Germany: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 32 U.K.: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 33 U.K.: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 34 U.K.: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 35 U.K.: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 36 U.K.: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 37 France: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 38 France: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 39 France: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 40 France: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 41 France: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 42 Italy: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 43 Italy: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 44 Italy: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 45 Italy: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 46 Italy: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 47 Spain: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 48 Spain: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 49 Spain: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 50 Spain: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 51 Spain: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 52 Switzerland: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 53 Switzerland: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 54 Switzerland: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 55 Switzerland: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 56 Switzerland: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 57 Netherlands: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 58 Netherlands: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 59 Netherlands: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 60 Netherlands: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 61 Netherlands: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 62 Denmark: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 63 Denmark: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 64 Denmark: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 65 Denmark: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 66 Denmark: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 67 Rest of Europe: Pharmaceutical Contract Development and Manufacturing Market, by Type, 2021–2030 (USD Million)
Table 68 Rest of Europe: Pharmaceutical Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 69 Rest of Europe: Finished Dosage Forms (FDF) Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 70 Rest of Europe: Biologics Manufacturing Services Market, by Type, 2021–2030 (USD Million)
Table 71 Rest of Europe: Pharmaceutical Contract Development and Manufacturing Market, by End User, 2021–2030 (USD Million)
Table 72 Recent Developments, by Company, 2020—2023
List of Figures
Figure 1 Research Process
Figure 2 Key Secondary Sources
Figure 3 Primary Research Techniques
Figure 4 Key Executives Interviewed
Figure 5 Breakdown of Primary Interviews (Supply Side & Demand Side)
Figure 6 Market Size Estimation
Figure 7 Europe Pharmaceutical Contract Development and Manufacturing Market, by Type, 2023 VS. 2030 (USD Million)
Figure 8 Europe Pharmaceutical Contract Development and Manufacturing Market, by End User, 2023 VS. 2030 (USD Million)
Figure 9 Factors Affecting Market Growth
Figure 10 Europe Pharmaceutical Contract Development and Manufacturing Market, by Type, 2023 VS. 2030 (USD Million)
Figure 11 Europe Pharmaceutical Contract Development and Manufacturing Market, by End User, 2023 VS. 2030 (USD Million)
Figure 12 Europe Pharmaceutical Contract Development and Manufacturing Market, by Country, 2023 VS. 2030 (USD Million)
Figure 13 Europe: Pharmaceutical Contract Development and Manufacturing Market Snapshot
Figure 14 Key Growth Strategies Adopted by Leading Players, 2020—2023
Figure 15 Europe Pharmaceutical Contract Development and Manufacturing Market: Competitive Dashboard
Figure 16 Europe Pharmaceutical Contract Development and Manufacturing Market: Competitive Benchmarking, by Type
Figure 17 Europe Pharmaceutical Contract Development and Manufacturing Market: Market Share Analysis (2022)
Figure 18 AbbVie Inc.: Financial Snapshot (2022)
Figure 19 Aenova Group.: Financial Snapshot (2022)
Figure 20 Wuxi Biologics, Inc.: Financial Snapshot (2022)
Figure 21 Catalent, Inc.: Financial Snapshot (2022)
Figure 22 Lonza Group Ltd.: Financial Snapshot (2022)
Figure 23 Recipharm AB: Financial Snapshot (2022)
Figure 24 C.H. Boehringer Sohn Ag & Co. KG.: Financial Snapshot (2022)
Figure 25 Eurofins Scientific.: Financial Snapshot (2022)
Figure 26 Thermo Fisher Scientific, Inc.: Financial Snapshot (2022)
Figure 27 Evonik Industries AG: Financial Snapshot (2022)
Figure 28 Siegfried Holdings AG: Financial Snapshot (2022)
Figure 29 Fabbrica Italiana Sintetici S.p.A.: Financial Snapshot (2022)
This report provides pre & post COVID-19 market estimates.
This report provides pre & post COVID-19 market estimates.
