Market Overview
Global Oral Solid Dosage Contract Manufacturing Market size and share is currently valued at USD 37.82 billion in 2024 and is anticipated to generate an estimated revenue of USD 57.02 billion by 2032 , according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust 5.3% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2024 – 2032
The oral solid dosage (OSD) contract manufacturing market is witnessing robust growth as pharmaceutical companies increasingly outsource production to specialized contract manufacturing organizations (CMOs). Oral solid dosage forms, including tablets, capsules, powders, and granules, represent one of the most widely used drug delivery methods globally.
Rising demand for generic medications, increasing pharmaceutical R&D, and the need for cost-effective production solutions are driving the adoption of contract manufacturing. CMOs offer expertise, scalability, and regulatory compliance, enabling pharmaceutical companies to focus on research, development, and marketing while reducing capital expenditure and operational complexity.
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Growth Drivers
Several factors are fueling the growth of the OSD contract manufacturing market.
Increasing prevalence of chronic diseases, such as diabetes, cardiovascular conditions, and respiratory disorders, is driving demand for oral medications.
Rising adoption of outsourcing by pharmaceutical companies is a key driver. Outsourcing reduces operational costs, accelerates time-to-market, and ensures access to advanced manufacturing facilities.
The growth of generic drugs globally is further supporting market expansion. CMOs play a critical role in producing cost-effective generics while meeting stringent quality standards.
Regulatory support and emphasis on compliance with Good Manufacturing Practices (GMP) enhance confidence in contract manufacturing services, boosting adoption.
Market Challenges
Despite promising growth, the OSD contract manufacturing market faces certain challenges.
Stringent regulatory requirements and complex approval processes can delay production timelines and increase operational costs.
Quality control and consistency are critical concerns, as any deviations in manufacturing processes can impact product safety and efficacy.
Dependence on third-party manufacturers may pose risks related to supply chain disruptions, intellectual property protection, and confidentiality.
Market Opportunities
The market offers significant opportunities for expansion.
Increasing demand for specialized formulations, such as controlled-release and combination therapies, provides growth potential for CMOs with advanced capabilities.
Emerging markets with growing pharmaceutical production and healthcare infrastructure offer opportunities for outsourcing and contract manufacturing services.
Technological advancements, including continuous manufacturing, process automation, and digital monitoring, enhance production efficiency and product quality.
Strategic partnerships and collaborations between pharmaceutical companies and CMOs can strengthen market presence and expand service portfolios.
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- AbbVie Contract Manufacturing
- Aenova Group
- Alkem Laboratories
- Catalent, Inc.
- Dr. Reddy’s Laboratories
- Evonik Industries AG
- Famar Health Care Services
- Granules India Limited
- Jubilant Life Sciences
- Lonza Group
- Patheon (now part of Thermo Fisher Scientific)
- Pfizer CentreOne
- Piramal Pharma Solutions
- Recipharm AB
- Vetter Pharma International GmbH
Market Segmentation
The OSD contract manufacturing market is segmented by product type, service type, and end-user.
By product type, the market includes tablets, capsules, powders, granules, and others.
By service type, it is categorized into formulation development, manufacturing, packaging, and analytical services.
By end-user, the market serves pharmaceutical companies, biotech firms, and nutraceutical manufacturers.
Tablets and capsules dominate the market due to their high prevalence and versatility. Manufacturing services are the largest segment, while formulation development and packaging services are gaining traction as CMOs offer end-to-end solutions. Pharmaceutical companies remain the primary end users, leveraging CMOs to optimize costs and scale production.
Regional Analysis
The OSD contract manufacturing market demonstrates growth across regions.
In North America, the market is driven by a strong pharmaceutical industry, high outsourcing adoption, and regulatory compliance. The United States leads due to the presence of major CMOs and advanced manufacturing facilities.
In Europe, the market is supported by a well-established pharmaceutical ecosystem, stringent GMP standards, and the growth of generic drug production. Key markets include Germany, France, and the UK.
In Asia Pacific, rapid industrialization, low-cost manufacturing capabilities, and expanding pharmaceutical production fuel strong market growth. India and China are leading markets for contract manufacturing services.
In Latin America and the Middle East & Africa, adoption is gradually increasing, driven by growing pharmaceutical demand and investments in manufacturing infrastructure.
Summary of PR
The oral solid dosage contract manufacturing market is expanding steadily, driven by rising demand for oral medications, increasing outsourcing by pharmaceutical companies, and growth in generic drugs. While regulatory requirements, quality control, and supply chain dependence pose challenges, opportunities in specialized formulations, emerging markets, and technological advancements are substantial.
Market segmentation highlights tablets and capsules as dominant product types, with manufacturing services as the primary offering. Regionally, North America and Europe lead adoption, while Asia Pacific is the fastest-growing market due to low-cost manufacturing capabilities and expanding pharmaceutical production.
As pharmaceutical companies continue to optimize efficiency, reduce costs, and focus on R&D, the oral solid dosage contract manufacturing market is poised for sustained growth, offering opportunities for CMOs, investors, and healthcare stakeholders.
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