How big is the small molecule cmo/cdmo market today, and what are its future growth expectations?
The small molecule CMO/CDMO market size has grown strongly in recent years. It will grow from $50.58 billion in 2024 to $54.58 billion in 2025 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to favorable government support, cost-effective solutions, growing complexity in drug development, industry consolidation, focus on core competencies.
The small molecule CMO/CDMO market size is expected to see strong growth in the next few years. It will grow to $73.3 billion in 2029 at a compound annual growth rate (CAGR) of 7.7%. The growth in the forecast period can be attributed to rise in drug pipelines, globalization of pharmaceutical operations, demand for flexible manufacturing, regulatory compliance expertise, biopharmaceutical convergence. Major trends in the forecast period include sustainable and green manufacturing practices, increased collaboration and partnerships, personalized medicine and niche therapies, rise in virtual and virtual-to-reality companies, integration of digital technologies, rapid response manufacturing.
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Which Market drivers have played a significant role in driving the small molecule cmo/cdmo market?
The rising demand for pharmaceuticals is expected to propel the growth of the small-molecule CMO/CDMO market going forward. The pharmaceutical industry is a sector that involves the discovery, development, and production of drugs and medicines by both governmental and private entities. Small-molecule CMO/CDMO is used in the pharmaceutical industry to outsource various services, including the development, manufacturing, and packaging of small-molecule drugs, allowing pharmaceutical companies to reduce costs, save time, and streamline processes. For instance, in August 2024, according to the Government of Canada, a Canada-based government agency, domestic exports in the pharmaceutical sector rose to 9.59 billion USD (12.79 billion CAD) in 2022, up from 10.71 billion CAD in 2021. Imports also increased, reaching 30.21 billion CAD compared to 26.63 billion CAD in 2021. Therefore, the rising demand for pharmaceuticals is driving the growth of the small-molecule CMO/CDMO market.
What are the key segments within the small molecule cmo/cdmo market?
The small molecule CMO/CDMO market covered in this report is segmented –
1) By Product: Small Molecule Drug Product, Small Molecule API
2) By Stage Type: Clinical, Commercial, Preclinical
3) By Therapeutic Area: Oncology, Neurology, Infectious Disease, Cardiovascular Disease, Respiratory Disorders, Metabolic Disorders, Other Therapeutics
4) By Application: Cardiovascular, Oncology, Diabetes, Immunological Disorders
Subsegments:
1) By Small Molecule Drug Product: Solid Dosage Forms (Tablets, Capsules), Liquid Dosage Forms (Injectables, Solutions), Topical Dosage Forms
2) By Small Molecule API (Active Pharmaceutical Ingredient): Generic APIs, Branded APIs, Custom Synthesis APIs
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Which key players are shaping the small molecule cmo/cdmo market?
Major companies operating in the small molecule CMO/CDMO market report are Patheon NV (Thermo Fisher Scientific), GlaxoSmithKline, Johnson Matthey PLC, Lonza Group Ltd., WuXi AppTec, Catalent Inc., Aurobindo Pharma, Fareva, Aesica Pharmaceuticals Limited, Siegfried holdings AG, Recipharm AB, Jubilant Life Sciences Limited, Almac Group, Piramal Pharma Solutions, Oxford Chemicals Inc., Syngene International Limited, Novasep, Pfizer CentreOne, GVK Biosciences, ChemPartner, Avid Bioservices Inc., Dishman Carbogen Amcis Ltd., ProChem Inc., Metrics Contract Services
Which transformative trends will shape the small molecule cmo/cdmo market landscape?
Major companies operating in the small-molecule CMO/CDMO market are focusing on innovative technologies, such as the state-of-the-art small-molecule platform in Shanghai, to elevate CDMO services. The state-of-the-art small-molecule platform represents the forefront of technological innovations to develop and produce small-molecule drugs and to create safer, more effective, and more efficiently produced pharmaceutical compounds. For instance, in June 2023, Porton Pharma Solutions Ltd., a China-based pharmaceutical company, launched a state-of-the-art small-molecule platform in Shanghai, elevating CDMO services. A state-of-the-art small molecule platform embodies a holistic approach, combining cutting-edge technologies and methodologies to advance the entire lifecycle of small molecule pharmaceuticals and one-stop-shop solutions, an end-to-end platform, flexibility and availability, and digital transformation.
How do regional factors impact the small molecule cmo/cdmo market, and which region is the largest contributor?
North America was the largest region in the small molecule CMO/CDMO market in 2024. The regions covered in the small molecule CMO/CDMO market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Small Molecule CMO/CDMO Market Report 2025 Offer?
The small molecule cmo/cdmo market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
A small-molecule contract manufacturing organization (CMO) or contract development and manufacturing organization (CDMO) is an entity that provides services to other companies in the pharmaceutical industry on a contract basis for the completion of projects and subsequent regulatory submission. These organizations offer a range of services, including contract development, manufacturing, and packaging of small-molecule drugs.
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