This year, global pharmaceutical contracting revenues totaled nearly $218 billion, and by 2016 that will rise to almost $361 billion—at a compound annual growth rate (CAGR) of 10.6%, according to “Contract Pharmaceutical Manufacturing, Research and Packaging: Global Markets,” (PHM043D) from BCC Research.
BCC says the global market for pharmaceutical contracting can be broken down into four segments: contract manufacture of over-the-counter (OTC) drugs and nutraceuticals, contract manufacture of bulk and dosage form drugs, contract research, and contract packaging.
The OTC drug and nutraceutical segment accounted for nearly $128 billion in 2011 and is expected to grow at a CAGR of 10.9% to reach nearly $215 billion in 2016.
The bulk and dosage form drug segment held a value of $53.4 billion in 2011 and is expected to increase at a CAGR of 10.1% to reach $86.3 billion in 2016.
The research segment was worth $30.2 billion in 2011 and should be worth $50.5 billion in 2016, a CAGR of 10.8%.
The packaging segment, worth $6.4 billion in 2011, should be worth $9.3 billion in 2016, a CAGR of 7.8%.
According to the BCC report, “The current pharmaceutical industry is highly influenced and aided by contract manufacturers, packagers, and researchers. New state-of-the-art facilities as well as specialized expertise and capabilities have granted contract manufacturers a large share in the pharmaceuticals industry. With increasing competition among generic brands as well as drug patent expirations, pharmaceutical companies are relying increasingly on contract manufacturers to meet consumer demand.”