Top 10 Trends in the Global Pharmaceutical Manufacturing Market

Source: Yahoo Finance

Generic drugs that are cost-effective alternatives to their branded counterparts are observing strong demand worldwide. In emerging markets like India, generic drugs dominate the pharmaceutical market. For instance, generic pharmaceuticals dominate India’s retail market, accounting for 70 to 80% of it due to their inexpensive cost as a substitute for branded medications. Given that generic medications are just as effective and affordable as branded medications, their need has considerably augmented as India’s population ages and grows. Moreover, biopharmaceuticals derived from living organisms are gaining significant traction in Pharmaceutical Manufacturing. For instance, Moderna and Pfizer-BioNTech developed COVID-19 vaccines using bio Pharmaceutical Manufacturing processes.

Recent Development of the Global Pharmaceutical Manufacturing Market

• In June 2023, Pfizer and Samsung Biologics announced a strategic alliance for the long-term commercial manufacturing of Pfizer’s extensive product portfolio. In March 2023, Samsung Biologics and Pfizer agreed to an initial manufacturing agreement for a Pfizer product. Pfizer will receive additional large-scale manufacturing capacity from Samsung Biologics to support its multi-product biosimilar portfolio that addresses inflammation, immunology, and oncology.
• In March 2023, Eli Lilly and Company invested $1.5 billion in new manufacturing facilities. On March 27, 2023, Lilly executives and local authorities broke ground for their brand-new, cutting-edge biotech manufacturing campus in Raheen, Co. Limerick, Ireland. With this over $1 billion investment in its next-generation biotech plant, Lilly will have the most advanced manufacturing facility for its current monoclonal antibodies. Until 2026, this facility will manufacture the company’s current products and pipeline clinical products.

Market Drivers

The global elderly population base and the growing occurrence of chronic diseases are driving the demand for pharmaceutical products. According to the WHO, the world population aged 60 years or older is estimated to double by 2050, resulting in a high demand for medication to treat age-related conditions. Furthermore, worldwide healthcare expenditure is expanding due to population growth, increasing insurance coverage, and advancements in healthcare infrastructure. This leads to a higher need for pharmaceutical products, which, in turn, propels the Pharmaceutical Manufacturing market growth. According to the WHO, the sharp rises in government health spending across all income levels led to an increase in health spending to a new high of US $9 trillion (nearly 11% of global GDP).

Market Restraints
The pharmaceutical industry operates under strict regulations and standards imposed by regulatory bodies like the Food and Drug Administration in the United States and the European Medicines Agency (EMA) in Europe. These regulations ensure the safety, efficacy, and quality of pharmaceutical products. However, compliance with these regulations often needs significant investments in research, development, testing, and manufacturing processes, limiting market entry for small & medium-sized enterprises.

Market Opportunities
The Pharmaceutical Manufacturing industry is witnessing technological advancements such as 3D printing, artificial intelligence, and automation. These technologies can improve efficiency, minimize errors, and reduce production costs. Pharmaceutical manufacturers can leverage these technologies to streamline manufacturing processes and improve productivity.

Browse market data Tables and Figures spread through 150 Pages and in-depth TOC on Pharmaceutical Manufacturing Market Forecast Report (2023-2030).

Report Segmentation of the Global Pharmaceutical Manufacturing Market

Molecule Type Analysis
The conventional drugs (small molecules) segment is anticipated to exhibit significant market growth within the projected timeframe. The segment is driven by a growing demand for healthcare services worldwide and an increasing prevalence of chronic diseases. Conventional drugs are typically produced through a complex manufacturing process, ensuring strict quality control and adherence to regulatory guidelines. The segment is highly competitive, with major pharmaceutical companies continually investing in research and development to develop innovative and effective medications.

Drug Development Analysis
The global Pharmaceutical Manufacturing market is witnessing a significant rise in the outsourcing of drug production. This trend is driven by cost-effectiveness, increased efficiency, and access to specialized expertise. Companies increasingly leverage outsourcing to reduce manufacturing costs, focus on core competencies, and meet the growing demand for innovative drugs. Additionally, outsourcing allows pharmaceutical manufacturers to access facilities and technologies they may not possess in-house, enhancing their overall market competitiveness.

Formulation Analysis
The tablet segment dominated the Pharmaceutical Manufacturing market. Tablets are among the most popular and convenient drug delivery systems, favored by healthcare professionals and patients. The high cases of chronic diseases and the growing aging population drive the demand for tablet-based medications. Further, advancements in tablet manufacturing technologies, such as high-speed automated production lines and improved packaging techniques, are improving the efficiency and quality of tablet production, fueling market growth.

Route of Administration Analysis
The oral segment is predicted to grow largest during the forecast period. The oral segment, which includes tablets, capsules, and oral liquids, is vital to this market. The popularity of oral medications can be attributed to their ease of administration and patient convenience. Additionally, drug formulation and delivery technology advancements have developed innovative oral dosage forms. As a result, the oral segment is expected to continue growing in the coming years, driving the overall growth of the global Pharmaceutical Manufacturing market.

Therapy Area Analysis
The cancer segment in the global Pharmaceutical Manufacturing market is observing higher growth due to the rising prevalence of cancer worldwide. Increased research and development efforts have led to the introduction of innovative and effective cancer treatments, driving the demand for Pharmaceutical Manufacturing. Additionally, advancements in technology and personalized medicine approaches have further contributed to expanding the cancer segment in the market. With increasing investments in oncology drugs and therapies, the global Pharmaceutical Manufacturing market will likely grow in the coming years.

Prescription Analysis
The prescription medicines segment in the global Pharmaceutical Manufacturing market is a vital and lucrative sector. Prescription medicines are drugs that require a prescription from a licensed healthcare professional. This segment includes various medications for treating various disorders and conditions. The increasing prevalence of chronic disorders, aging populations, and medical research and technology advancements drive the demand for prescription medicines. As a result, pharmaceutical manufacturers focus heavily on producing high-quality and effective prescription medicines to meet the growing demand worldwide.

Age Group Analysis
The geriatric segment in the global Pharmaceutical Manufacturing market is rapidly growing. With the aging population worldwide, the demand for pharmaceutical products designed for elderly patients is increasing. Pharmaceutical companies are developing and manufacturing drugs that cater to the unique needs of the geriatric segment, such as medications for chronic diseases, pain management, and cognitive health. As a result, this segment is expected to contribute significantly to the global Pharmaceutical Manufacturing market growth.

Sales Channel Analysis
The retail segment is dominating the global Pharmaceutical Manufacturing market. This segment involves distributing and selling pharmaceutical products directly to consumers through pharmacies and drug stores. The retail segment is crucial in providing individuals access to essential medications and healthcare products worldwide. With the increasing demand for quality pharmaceuticals and consumer health products, the retail segment is expected to grow significantly in the global Pharmaceutical Manufacturing market, offering convenience and affordability to consumers.

Market Segmentation

By Molecule Type

• Biologics & Biosimilars (Large Molecules)
  • Monoclonal Antibodies
  • Vaccines
  • Cell & Gene Therapy
  • Other Monoclonal Antibodies
• Conventional Drugs (Small Molecules)

By Drug Development Type

• In-house (Forecast Period)
• Outsource (Dominating 54.3%)

By Formulation

• Tablets
• Capsules
• Injectable
• Sprays
• Suspensions
• Powders
• Other Formulations

By Therapy Area

• Cardiovascular Diseases (CVDs)
• Pain
• Diabetes
• Cancer
• Respiratory Diseases
• Other Diseases

By Prescription

• Prescription Medicines
• Over-the-counter (OTC) Medicines

By Age Group

• Children & Adolescents
• Adults
• Geriatric

By Sales Channel

• Retail
• Non-retail

By Route of Administration

• Oral
• Topical
• Parenteral
• Inhalations
• Other Routes of Administration

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa