Formulation Development Outsourcing Market Expected to Reach $51.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Formulation Development Outsourcing Market," The formulation development outsourcing market was valued at $22.5 billion in 2021, and is estimated to reach $51.9 billion by 2031, growing at a CAGR of 9% from 2022 to 2031. As numerous pharmaceutical patents expire, there arises an increasing need to find fresh drugs, which is driving the industry. Additionally, the prevalence of diseases such as diabetes, cancer, chronic obstructive pulmonary disease (COPD), asthma, arthritis, and Alzheimer's disease is on the rise. This is causing the market for outsourcing formulation development to rise, along with the growing desire to lower the risk and expense of drug development.

The market is expanding as a result of rising healthcare costs, and substantial R&D expenditures is a major factor that is estimated to propel the formulation development outsourcing market size in the upcoming years.

However, Drug development is a lengthy, expensive, and difficult process with no guarantee that a drug will be successful. Funding is needed at every stage of the drug development process. High total R&D expenses are a result of protracted development times and dismal success rates. The pharmaceutical industry's structural changes and a lack of funds to complete the drug development process through formulation development are the main reasons preventing formulation development outsourcing market growth.

The need for the discovery and development of novel pharmaceuticals is being fueled by the rising prevalence of chronic diseases like diabetes, cancer, chronic obstructive pulmonary disease (COPD), asthma, arthritis, and Alzheimer's disease. This in turn serves as one of the main reasons that contract research organizations (CROs) all over the world are hired to provide formulation development services. In addition, there is a growing desire to reduce risk and save time and money when moving a medicine through the pipeline of development. Leading pharmaceutical and biotechnological firms all over the world are collaborating with outsourcing services in the first stages of the drug development process as a result.

The global formulation development outsourcing market share is segmented based on services type, route of formulation, end-user, and region. By services type, it is classified into pre-formulation, formulation development. By route of formulation, it is classified into oral, injectable and others. By end-user, it is classified into pharmaceutical industries, research, and academic institutes. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the formulation development outsourcing market report include Charles River Laboratories. Syngene International Limited, Catalent, Inc, Piramal Pharma Ltd., Intertek Group plc, Thermo Fisher Scientific, Eurofins Scientific, Laboratory Corporation of America Holdings., Dr. Reddy’s Laboratories Ltd., and EMERGENT.

The report offers a comprehensive analysis of the global formulation development outsourcing market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also sheds light on the present scenario and upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of Covid-19 on the Global Formulation Development Outsourcing Industry

• To advance the oral antiviral Avigan for COVID-19, for instance, AiPharma formed a global coalition of pharmaceutical, manufacturing, and distribution leaders in October 2020
• COVID-19 is shaping up to be a watershed moment in the healthcare business. The spread of coronavirus is hastening and catalysing transformational tendencies in the outsourced pharmaceutical business. Many were trending previous to the pandemic, but the crisis has changed both the momentum and amount of change. Thus, the market for outsourcing formulation development has benefited greatly from the start of the pandemic
• In addition, COVID-19 vaccinations are becoming increasingly important, notwithstanding a drop in COVID-19 cases. The worry of the introduction of novel COVID-19 variations is driving the demand for COVID-19 vaccinations. COVID-19 vaccines are being developed by a large number of pharmaceutical companies.
• To prepare for future pandemics, public organisations are investing significantly in medicine development. For example, the United States Agency for International Development (USAID) announced USD 150 million in drug development financing in March 2022. Such activities are anticipated to aid market expansion

Key Findings of the Study

• Based on services type, the pre-formulation segment emerged as the global leader in 2021 and formulation development segment is anticipated to be the fastest growing sub-segment during the forecast period
• Based on route of formulation, the oral segment emerged as the global leader in 2021 and injectable segment is predicted to show the fastest growth in the upcoming years
• Based on end-user, the pharmaceutical industries segment emerged as the global leader in 2021 and is predicted to show the fastest growth in the upcoming years
• Based on region, the Asia-Pacific market registered the highest market share in 2021 and is projected to maintain the position during the forecast period