What Has Driven the Growth of the Formulation Development Outsourcing Market in Recent Years?
The formulation development outsourcing market has seen considerable growth due to a variety of factors.
•The market size for outsourcing formulation development has experienced robust growth in the past few years. The anticipated growth is from $29.83 billion in 2024, escalating to $32.62 billion in 2025, at a Compound Annual Growth Rate (CAGR) of 9.4%.
Factors such as cost-effectiveness, concentrating on core capabilities, adherence to regulations, expedited drug development, and the utilization of specialized knowledge account for the growth witnessed in the historic period.
What is the Market Size Forecast for the Formulation Development Outsourcing Market?
The formulation development outsourcing market is expected to maintain its strong growth trajectory in upcoming years.
• Expect a swift expansion within the formulation development outsourcing market in the upcoming years. The market is anticipated to reach "$48.55 billion in 2029 with an impressive CAGR of 10.4%.
The surge during the projected period can be credited to factors such as the growing complexity of drug molecules, strategic alliances, escalating R&D expenses, developments in biopharmaceuticals, and flexible capacity. Significant trends during this period consist of the integration of nonstop manufacturing procedures, outsourcing of modified-release formulations, partnerships for exclusive drug delivery systems, regulatory proficiency in outsourced services, and the employment of artificial intelligence (AI) in formulating designs.
Which Factors Are Boosting Growth In The Formulation Development Outsourcing Market?
The proliferation of chronic illnesses is anticipated to fuel the expansion of the formulation development outsourcing market. Chronic illnesses, defined as conditions lasting a year or more that necessitate persistent medical attention and limit daily activities, call for specialized expertise and resources to develop effective treatments and management strategies. Outsourcing formulation development allows organizations to tap into external specialists or dedicated businesses to oversee the research, development, and optimization of drug formulations tailored for chronic illnesses. For instance, in November 2023, data published by Eurostat, a government agency in Luxembourg, showed that over a third (36.1%) of individuals in the EU were dealing with long-term chronic health issues in 2022. Thus, the escalating prevalence of chronic illnesses is a key impetus for the progress of the formulation development outsourcing market.
What Key Areas Define The Segmentation Of The Global Formulation Development Outsourcing Market?
The formulation development outsourcing market covered in this report is segmented –
1) By Service: Preformulation, Formulation Development
2) By Therapeutic Area: Oncology, Infectious Disease, Neurology, Hematology, Respiratory, Cardiovascular, Dermatology, Other Therapeutics
3) By Formulation: Oral, Injectable, Topical, Other Formulations
4) By End-User: Pharmaceutical Industries, Research And Academic Development
Subsegments:
1) By Preformulation: Physicochemical Characterization, Stability Testing, Formulation Feasibility Studies, Analytical Method Development
2) By Formulation Development: Drug Formulation Development, Process Development, Scale-Up And Technology Transfer, Quality By Design (QbD) Development
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How Are Emerging Trends Reshaping The Dynamics Of The Formulation Development Outsourcing Market?
The progression of technology is an emerging trend that is gaining traction within the market for formulation development outsourcing. Firms within this market are tapping into innovative technologies like artificial intelligence (AI) and machine learning (ML) in order to solidify their standing. To illustrate, in March 2023, Nvidia, a software technology firm from the US, introduced BioNeMo Cloud, an additional feature to their AI Foundations suite. This service grants researchers the ability to utilize pre-trained AI models and customize private data, thus facilitating speedier research in life sciences, drug discovery, and protein engineering. Global biotech colossal, Amgen, along with several startups, currently leverage this technology which, provided as a cloud service, accelerates the drug development process.
Who Are the Key Players in the Formulation Development Outsourcing Market?
Major companies operating in the formulation development outsourcing market include:
• Syngene International Ltd.
• Aizant Drug Research Solutions Private Limited.
• Catalent Inc.
• Intertek Group plc
• Recipharm AB
• SGS S.A.
• Lonza Group AG
• Eurofins Scientific SE
• Laboratory Corporation of America Holdings
• Charles River Laboratories International Inc.
• Emergent Biosolutions Inc.
• IRISYS LLC
• Piramal Pharma Limited.
• Biocon Limited.
• Dr Reddy's Laboratories Ltd.
• Quotient Sciences Ltd.
• Almac Group
• Patheon
• Evonik Industries AG
• Metrics Contract Services
• Aenova Group
• Fareva Group
• Vetter Pharma International GmbH
• Aesica Pharmaceuticals
• WuXi AppTec
• Formosa Laboratories Inc.
• Aptuit LLC
• ProPharma Group
• Laurus Labs Limited
What Is The Most Dominant Region In The Formulation Development Outsourcing Market?
North America was the largest region in the global formulation development outsourcing market in 2024. The regions covered in the formulation development outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
