Global API Contract Development & Manufacturing Market Poised for Growth Amid Rising Chronic Diseases

The major Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization market growth factors are the rise in chronic diseases

VANCOUVER, BRITISH COLUMBIA, CANADA, March 26, 2025 /EINPresswire.com/ -- The Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization (CDMO) market is set for substantial growth, driven by the increasing prevalence of chronic diseases, rising government support, and advancements in artificial intelligence (AI) and digitalization.

Chronic illnesses, such as cardiovascular diseases, diabetes, and cancer, require long-term medical intervention, creating a high demand for pharmaceutical APIs. According to the National Library of Medicine, by 2035, nearly 36% of U.S. adults aged 50 and above are expected to have at least one chronic illness, with this number increasing to 48% by 2050. This surge in chronic diseases is fueling demand for APIs, contributing to the expansion of the API CDMO market.

Government initiatives worldwide are further propelling market growth. In June 2023, Saudi Arabia’s Public Investment Fund (PIF) launched Lifera, a contract development and manufacturing organization aimed at strengthening the local pharmaceutical industry and enhancing national resilience. Such initiatives demonstrate the growing importance of API contract manufacturing in global healthcare.

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The study performs a historical assessment of the Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization from 2024 to 2033, focusing on the market trends, revenue share, growth rate, production capacity, pricing structure, and other vital aspects during that period. The report emphasizes the demands and ongoing trends of the global Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization market, more importantly, across the major regions of the market.

Additionally, our analysts have included SWOT analysis and Porter’s Five Forces analysis in the report to offer a better understanding of the competitive spectrum of this ever-evolving industry. Moreover, the report sheds light on the cutting-edge expansion strategies adopted by the market contenders, such as mergers & acquisitions, joint ventures, partnerships & collaborations, new product launches, and brand promotions.

Advancements in AI and Digitalization Transforming the Market

The integration of AI and digitalization is revolutionizing the pharmaceutical CDMO industry. AI is being leveraged to analyze vast datasets, identify drug efficacy trends, and optimize production processes. In January 2023, Swiss-based CDMO Lonza implemented AI-driven data analysis to improve manufacturing efficiency, enhance process transparency, and increase yield. The adoption of Industry 4.0 technologies—such as real-time data exchange, automation, and predictive analytics—is expected to further drive market expansion in the coming years.

Challenges: Trade Restrictions Impacting Market Growth

Despite strong growth drivers, trade restrictions remain a challenge for the API CDMO market. Several developed and emerging economies are imposing trade barriers to protect local industries. The U.S. government has renegotiated trade agreements like NAFTA and increased tariffs on Chinese imports. According to the International Monetary Fund (IMF), a rise in trade restrictions could elevate import costs by 10% and reduce exports by 15%, potentially hindering the growth of CDMOs that rely on seamless global supply chains.

Market Segmentation: Innovative Drugs Leading, Generics Gaining Traction

The API CDMO market is categorized into innovative and generic drugs. In 2024, the innovative drug segment dominated the market, driven by a surge in FDA approvals for new molecular entities, increased investment in research and development, and higher pricing of innovative APIs compared to generics. A strong pipeline of new drug candidates is expected to maintain the segment’s leadership in the coming years.

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 Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Top Companies and Competitive Landscape

Market competition in the Active Pharmaceutical Ingredient (API) Contract Development & Manufacturing Organization industry is characterised by the presence of global and regional players such as Cambrex Corporation, Recipharm AB, Thermo Fisher Scientific Inc. (Pantheon), CordenPharma International, Samsung Biologics, and others.

The competitive landscape of Active Pharmaceutical Ingredient (API) Contract Development and Manufacturing Organizations (CDMOs) is a mix of established players and emerging companies. The main factors driving competition in this industry are technological advancement, regulatory compliance, and the capability to provide integrated services from development to manufacturing.

Major CDMOs are expanding their capabilities in complex APIs, biologics, and customised solutions to meet the growing demand from pharmaceutical companies. Collaborations and partnerships are common as firms seek to enhance their market presence and leverage each other's strengths.

This trend towards outsourcing API production further intensifies competition because CDMOs have to innovate and increase efficiency to win that share of the market.

In May 2022, Piramal Pharma Solutions announced the successful launch of its new active pharmaceutical ingredient (API) plant in Aurora, Ontario. The plant had already begun operations and completed its maiden manufacturing runs.

Some of the key companies in the global Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization market include:

Cambrex Corporation

Recipharm AB

Thermo Fisher Scientific Inc. (Pantheon)

CordenPharma International

Samsung Biologics

Lonza

Catalent, Inc.

Siegfried Holding AG

Piramal Pharma Solutions

Boehringer Ingelheim International GmbH

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Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Market Segmentation Analysis

By Product Outlook (Revenue, USD Million; 2020-2033)

Traditional Active Pharmaceutical Ingredient (Traditional API)

Highly Potent Active Pharmaceutical Ingredient (HP-API)

Antibody Drug Conjugate (ADC)

Others

By Synthesis Outlook (Revenue, USD Million; 2020-2033)

Synthetic

Biotech

By Drug Outlook (Revenue, USD Million; 2020-2033)

Innovative

Generics

By Workflow Outlook (Revenue, USD Million; 2020-2033)

Clinical

Commercial

By Application Outlook (Revenue, USD Million; 2020-2033)

Oncology

Hormonal

Glaucoma

Cardiovascular disease

Diabetes

Others

By Regional Outlook (Revenue, USD Million; 2020-2033)

North America

United States

Canada

Mexico

Europe

Germany

France

United Kingdom

Italy

Spain

Benelux

Rest of Europe

Asia-Pacific

China

India

Japan

South Korea

Rest of Asia-Pacific

Latin America

Brazil

Rest of Latin America

Middle East and Africa

Saudi Arabia

UAE

South Africa

Turkey

Rest of MEA

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Key Coverage of the Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Market:

Insightful information regarding the global Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization market

Identification of growth in various segments and sub-segments of the Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization market

Strategic recommendations for investment opportunities

The report covers significant statistics related to the industry along with products, applications, price analysis, demand & supply, and production and consumptions rate

Emerging trends and current market segment analysis to help investors formulate new business strategies

Accelerates the decision-making process through the availability of the drivers and limitations

Look Over transcripts provided by Emergen Research

Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Market Size@ https://www.emergenresearch.com/industry-report/active-pharmaceutical-ingredient-contract-development-manufacturing-organization-market/market-size

Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Market Share@ https://www.emergenresearch.com/industry-report/active-pharmaceutical-ingredient-contract-development-manufacturing-organization-market/market-share

Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Market Trends@ https://www.emergenresearch.com/industry-report/active-pharmaceutical-ingredient-contract-development-manufacturing-organization-market/market-trends

Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Regional Market Demand@ https://www.emergenresearch.com/industry-report/active-pharmaceutical-ingredient-contract-development-manufacturing-organization-market/regional-market-demand

Active Pharmaceutical Ingredient Contract Development & Manufacturing Organization Market Analysis@ https://www.emergenresearch.com/industry-report/active-pharmaceutical-ingredient-contract-development-manufacturing-organization-market/market-analysis

Eric Lee
Emergen Research
+91 90210 91709
sales@emergenresearch.com
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