The generic pharmaceuticals contract manufacturing market size is calculated at USD 81.22 billion in 2025 and is expected to reach around USD 135.36 billion by 2034, growing at a CAGR of 5.84% from 2025 to 2034.
Rising number of patent expirations, supportive regulatory environment, burgeoning demand for affordable drugs and increasing number of contract manufacturers are driving the growth of the generic pharmaceuticals contract manufacturing market.
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Generic Pharmaceuticals Contract Manufacturing Market Highlights:
🔹North America is estimated to be the fastest-growing during the forecast period.
🔹The branded generics segment has contributed more than 63% of revenue share in 2024.
🔹The unbranded generics segment is significantly growing during the forecast period.
🔹The Active Pharmaceutical Ingredients (API) product segment has held a major revenue share of 58% in 2024.
🔹The oral segment has captured the largest revenue share of 62% in 2024.
🔹The parenteral segment is anticipated to be the fastest-growing during the forecast period.
🔹The oncology segment has generated the biggest revenue share of 23% in 2024.
🔹The immunology segment is expected to be the fastest-growing during the forecast period.
Market Overview and Industry Potential
Generic pharmaceuticals contract manufacturing refers to the process of utilizing outsourcing services for the production of generic drugs through a third party and this process is also known as pharmaceutical contract manufacturing (PCM). Contract Manufacturing Organizations (CMOs) offer specialized services for the manufacturing of drugs and also assist in outsourcing production and other drug development processes for biopharmaceutical companies with insufficient capabilities or facilities.
Utilization of outsourcing services is widely done by various pharmaceutical and generic drug manufacturing companies ultimately leading to reduced costs and streamlined manufacturing processes allowing the customers to focus on core competencies. Moreover, the increasing demand for generics, rising patient awareness, growing number of contract manufacturing facilities compliant with cGMP (current Good Manufacturing Practices) and industrial experts providing insights while mitigating risks, surging investments in R&D of generics, support from government authorities and increased distribution of generic through various healthcare facilities, drug stores and online retailers is driving the market growth of this segment.
Role of Artificial Intelligence in the Generic Pharmaceuticals Contract Manufacturing Market
Integration of artificial intelligence in generic pharmaceuticals contract manufacturing can help in streamlining production and drug approval processes with enhanced accuracy thereby reducing time to market reach with low production costs.
AI models can be applied for various processes such as assisting in designing and scaling-up processes, for trend monitoring of manufacturing operations and in monitoring of equipments and detection of anomalies thereby reducing downtime with timely interventions for maintenance activities. Furthermore, AI can assist in manufacturing generic pharmaceuticals while adhering to the stringent regulatory guidelines and quality standards.
How big is the Generic Pharmaceutical Contract Manufacturing Market?
The global generic pharmaceuticals contract manufacturing market size was valued at USD 76.73 billion in 2024 and is expected grow from USD 76.73 billion in 2024 to USD 135.36 billion by 2034, growing at a CAGR of 5.84% from 2024 to 2034
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Generic Pharmaceuticals Contract Manufacturing Market Trends:
Increased Focus on Developing API Production Facilities:
Several countries across the globe, dominant market players as well as emerging manufacturers are focusing on developing API facilities for generic pharmaceuticals manufacturing for reducing the dependence on foreign manufacturers leading to reduced times and cost-effective manufacturing of generics.
Furthermore, supportive government strategies and increased funding from various investors for developing contract manufacturing API production facilities in order to streamline manufacturing and supply chain distribution processes with the country and across the globe is expected to drive the market growth.
Rise in Expiration of Exclusivity Period:
Expiration of patented drugs paves the way for generic drug manufacturers to enter the market leading to production of low cost versions of the original drug. As the patent holder loses the exclusivity rights, the market competition significantly rises as the drug can be manufactured by several companies after seeking necessary regulatory approvals. This ultimately fuels the management of budgets for healthcare systems, increases the affordability and accessibility of treatment options for patients and helps in setting up of various generic pharmaceuticals contract manufacturing facilities for companies seeking outsourcing services. As of January 2025, the U.S. FDA (Food and Drug Administration) has approved 1,153 authorized generic drugs.
How big is the Pharmaceutical Contract Manufacturing Market?
According to Precedence Research. the global pharmaceutical contract manufacturing market size was valued at USD 182.84 billion in 2024 and is predicted to increase from USD 194.54 billion in 2025 to approximately USD 351.55 billion by 2034, expanding at a CAGR of 6.76% from 2025 to 2034.
The U.S. pharmaceutical contract manufacturing market size surpassed USD 46.12 billion in 2024 and is expected to be worth around USD 89.48 billion by 2034, growing at a CAGR of 6.85% from 2025 to 2034.
Pharmaceutical Contract Manufacturing Market Highlights
🔸North America contributed 36% of market share in 2024.
🔸Asia-Pacific is estimated to expand the fastest CAGR between 2025 and 2034.
🔸By service, the pharmaceutical manufacturing services segment has held the largest market share of 33% in 2024.
🔸By service, the drug development services segment is anticipated to grow at a remarkable CAGR of 8.9% between 2025 and 2034.
🔸By end-user, the big pharmaceutical companies segment generated over 42% of revenue share in 2024.
🔸By end-user, the small & mid-sized pharmaceutical companies segment is expected to expand at the fastest CAGR over the projected period.
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Generic Pharmaceuticals Contract Manufacturing Market Report Coverage
|
Report Attribute |
Key Statistics |
|
Base Year |
2024 |
|
Forecast Period |
2025 to 2034 |
|
Historic Period |
2023 to 2023 |
|
Market Size by 2034 |
USD 135.36 Billion |
|
Market Size in 2024 |
USD 76.73 Billion |
|
Market Size in 2025 |
USD 81.22 Billion |
|
CAGR from 2024 to 2034 |
5.84 Percent |
|
Leading Region |
Asia Pacific |
|
Segments Covered |
Drug, Product, Route of Administration, Application, and Regions |
|
Regions Covered |
North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Generic Pharmaceuticals Contract Manufacturing Market Regional Analysis: Asia Pacific dominated the global generic pharmaceuticals contract
manufacturing market in 2024. The
huge presence of generic drug manufacturers, low cost manufacturing,
technological advancements in research and development processes, development
of GMP (Good Manufacturing Practices) facilities in various countries for
ensuring the quality standards for outsourced production of generics, large
patient population and availability of a skilled labour are the factors driving
the market dominance and growth of this region. India
dominates the market in the Asia Pacific and is considered a global leader in
the generic pharmaceuticals contract manufacturing market owing to the
production of superior quality of generic drugs available at essentially
reduced prices in contrast to other countries. Additionally, the various
initiatives such as Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP),
Production Linked Incentive (PLI) scheme and Scheme for Promotion of Bulk Drug
Parks implemented by the Indian government and increased foreign direct
investment (FDI) in the pharmaceutical industry is strengthening the market
presence as well as driving the market growth. North America is expected to witness lucrative growth during the forecast
period. The
market growth of this region can be attributed to the rising demand for
affordable generic drugs, increasing number of expired patented drugs,
well-developed Contract Manufacturing Organizations (CMOs) with advanced
facilities and the growing number of authorized generics listings by the
regulatory agencies such as the U.S. FDA. Generic Pharmaceuticals Contract Manufacturing Market Segments Analysis: Drug Type Analysis The branded generics segment dominated the market with the largest share
in 2024. The
market dominance of this segment can be attributed to the increased awareness
among the population, growing number of expiring patents, regulatory reforms
enhancing the approval of generic drugs, support government policies, rising
disposable incomes and surge in healthcare expenditure across the globe. Furthermore,
the expanded market penetration of branded generics, surfacing of new markets
in various regions, efficient marketing strategies by manufacturers and
increasing cases of chronic disorders is fuelling the market growth of this
segment. The unbranded generics segment is expected to grow rapidly over the
forecast period. Unbranded
generics have faster market reach time and are usually cheaper than the branded
generics which drives their global market demand. Additionally, supportive
government initiatives, decreased complexity of regulatory approval processes,
attractive insurance coverages and emergence of number of unbranded generics
manufacturing facilities due to the rising patent expirations is anticipated to
drive the market growth if this segment in the imminent years. Product Analysis The API segment held the largest market share in 2024. Active
pharmaceutical product segment is dominating the market owing to the rising
demand for generic drugs, patent expirations, increased R&D activities,
preclinical studies conducted by various research organizations, growing demand
for cost-effective manufacturing and healthcare solutions, increased
investments through various investors and government organizations. Additionally,
the increased focus on commercializing API manufacturing facilities in various
countries for decreasing dependence of foreign manufacturers and cutting
production costs is also driving the market growth of this segment. Route of Administration Analysis The oral segment accounted for the largest market share in 2024. Oral
generic drugs are widely accepted in older patients and developing areas in
various regions of the world due to their affordability, increased
accessibility and biosimilarity to the original branded drug. Furthermore, the
scalability and flexibility for designing oral generic drugs, development of innovative
manufacturing processes, rising incidences of chronic diseases, supportive
government initiatives and policies, increase in number of generic drug
approvals and surge in strategic collaborations among various generic
pharmaceutical industries is boosting the market growth of this segment. The parenteral segment is anticipated to grow rapidly during the forecast
period. Parenteral
drugs offer rapid onset of action with enhanced bioavailability while avoiding
the first-pass metabolism which makes them a popular option for delivering
drugs with poor gastrointestinal tract (GIT) absorbability, for patients in
unconscious state and patients not able to take oral medications. The
increasing demand, advancements in continuous manufacturing and use of 3D printing technology for large
scale production with enhanced quality, ongoing regulatory changes,
incentivizing domestic manufacturing by government initiatives and growing
number of expiring patents are the factors expected to drive the market growth
of this segment in the upcoming years. Application Analysis The oncology segment dominated the market with the largest share in 2024. Furthermore,
the increased safety, efficacy and scalability in production of generic cancer
pharmaceuticals offered by contract manufacturers while adhering to the proper
manufacturing practices and regulatory guidelines for developing cost-effective
drugs with accelerated market reach is boosting the growth of this segment. The immunology segment is expected to witness lucrative growth over the
forecast period. Browse More Insights: 🔸Pharmaceutical Contract
Manufacturing and Research Services Market: https://www.precedenceresearch.com/pharmaceutical-contract-manufacturing-and-research-services-market 🔸Pharmaceutical CDMO Market:
https://www.precedenceresearch.com/pharmaceutical-cdmo-market 🔸Telemedicine Market: https://www.precedenceresearch.com/telemedicine-market 🔸Immunology Market: https://www.precedenceresearch.com/immunology-market 🔸Pharmaceutical
Manufacturing Market: https://www.precedenceresearch.com/pharmaceutical-manufacturing-market 🔸Healthcare Contract
Manufacturing Market: https://www.precedenceresearch.com/healthcare-contract-manufacturing-market 🔸Contract Development and
Manufacturing Organization Outsourcing Market: https://www.precedenceresearch.com/contract-development-and-manufacturing-organization-outsourcing-market 🔸Pharmaceutical
Intermediates Market: https://www.precedenceresearch.com/pharmaceutical-intermediates-market 🔸Specialty Generics Market:
https://www.precedenceresearch.com/specialty-generics-market Generic Pharmaceuticals Contract Manufacturing Market Top Companies 🔹Metrics Contract Services 🔹Pfizer Centre One 🔹Acme Generics Pvt Ltd. 🔹Catalent, Inc. 🔹Alcami Corp., Inc. 🔹Cambrex Corp. 🔹Aurobindo Pharma 🔹Siegfried Holding AG 🔹Recipharm AB 🔹Jubilant Generics Ltd. 🔹Metrics Contract Services What is Going Around the Globe? 🔹In September 2024, the API Innovation
Center (APIIC) received $14 million in a strategic funding by the
Administration for Strategic Preparedness and Response’s (ASPR) and Center for
Industrial Base Management and Supply Chain (IBMSC) for promoting the U.S.
independence in the pharmaceutical sector by leading the development and
domestic production of three critically active pharmaceutical ingredients
(APIs). 🔹In April 2024, Eli Lilly and Company
signed an agreement with Nexus Pharmaceuticals, LLC for acquiring Nexus’s
FDA-approved sterile manufacturing facility which will further expand Lilly’s
global parenteral (injectable) product manufacturing network. The production at
this facility will commence till the end of 2025. The research report categorizes the Generic Pharmaceuticals Contract
Manufacturing market into the following segments and subsegments: By Drug 🔹Branded Generics 🔹Unbranded Generics By Product 🔹API 🔹Drug Product By Route of Administration 🔹Oral 🔹Parenteral 🔹Topical 🔹Others By Application 🔹Oncology 🔹Immunology 🔹Antidiabetic 🔹Neurology 🔹Anticoagulants 🔹Cardiovascular 🔹Respiratory 🔹Pain 🔹HIV antivirals 🔹Others By Geography 🔹North America 🔹Asia Pacific 🔹Europe 🔹Latin America 🔹Middle East & Africa Immediate Delivery Available | Buy This Premium Research Report@ https://www.precedenceresearch.com/checkout/4675 You can place an order or ask any
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The increasing demand for affordable oncology drugs and the rising cancer
patient volume is driving the market growth of this segment. Contract
Manufacturing Organizations (CMOs) offer services such as research, development
of formulation, streamlining clinical trial studies, manufacturing,
packaging and supply chain distribution.
The growth of this segment can be attributed to the rising awareness of people
towards immunological disorders, growing regulatory approvals of affordable
drugs such as biosimilars, widespread acceptance of
immunotherapy, various environmental factors, changing lifestyle habits,
reimbursement policies for immunology treatments and increased R&D
activities for developing low cost options for treating autoimmune disorders.
Moreover, the growing number of organ transplants across the globe is driving
the demand of immunosuppressive drugs for post-transplant organ rejection
prophylaxis.
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