Topical Drugs CDMO Market – By Product Type (Semi-solid [Creams, Ointments], Liquid, Transdermal, Solid), Therapeutic Area (Dermatology, Pain Management), Service Type (Contract Manufacturing, Contract Development), End-user, Global Forecast (2024 – 2032)

Topical Drugs CDMO Market – By Product Type (Semi-solid [Creams, Ointments], Liquid, Transdermal, Solid), Therapeutic Area (Dermatology, Pain Management), Service Type (Contract Manufacturing, Contract Development), End-user, Global Forecast (2024 – 2032)

Topical Drugs CDMO Market Size

Topical Drugs CDMO Market size was valued at USD 42.1 billion in 2023 and is estimated to grow at CAGR of 12.1% from 2024 - 2032. The growth of this market can be attributed to growing trend of outsourcing of manufacturing activities by pharmaceutical companies.

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Additionally, increasing prevalence of skin diseases and disorders, such as acne, eczema, and psoriasis, which has led to a growing demand for topical medications, further boosts the market growth. Moreover, advances in formulation technologies, novel drug delivery systems, and manufacturing processes are driving innovation in the market. CDMOs are investing in new technologies and capabilities to develop novel and differentiated topical products with improved efficacy, safety, and patient adherence. By investing in new capabilities, CDMOs can produce differentiated drugs that improve patient outcomes and adherence, increasing demand for their services, thereby driving market growth.
 

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Topical drugs CDMO refers to service providers that offers specialized outsourcing services for the development and manufacturing of topical drug products. Topical drugs are medications designed to be applied directly to the skin or mucous membranes for localized or systemic effects. CDMOs in this area offer a variety of services to pharmaceutical, biotechnology, and specialty pharma companies, helping them bring topical drug products from the research and development stage to commercialization.

Topical Drugs CDMO Market Trends

• Skin diseases and dermatological conditions such as acne, eczema, psoriasis, and skin cancer are increasingly prevalent worldwide. For instance, according to World Health Organization, skin diseases are among the most prevalent health issues globally, affecting nearly 900 million people at any given time.
• As a result, there is a growing demand for topical medications to manage and treat these conditions effectively, thereby propelling the growth of this market.
• Additionally, pharmaceutical companies are increasingly turning to outsourcing as a cost-effective strategy to reduce operational expenses associated with in-house manufacturing facilities. Outsourcing manufacturing activities to specialized CDMOs allows companies to leverage economies of scale, expertise, and infrastructure without significant capital investment.

Topical Drugs CDMO Market Analysis

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Based on product type, the market is segmented into semi-solid formulations, liquid formulation, transdermal products, and solid formulations. The semi-solid formulations segment is further sub-segmented into creams, ointments, gels, and other semi-solid formulations. The semi-solid formulations segment dominated the market with 65.1% of market share in 2023.

• Semi-solid formulations, such as creams, ointments, and gels, dominate the market due to their versatility and ease of application. These formulations can accommodate a wide range of active pharmaceutical ingredients (APIs), making them suitable for numerous therapeutic applications, including dermatological, analgesic, and anti-inflammatory treatments.
• Additionally, semi-solid formulations offer patient comfort, as they often contain emollients and other soothing agents that enhance skin health and adherence to treatment.
• Moreover, these formulations are relatively easy and cost-effective to produce at scale.

Based on therapeutic areas, the topical drugs CDMO market is classified into dermatology, pain management, wound care, ophthalmology, and other therapeutic areas. The dermatology segment accounted for USD 13.5 billion in 2023.

• The widespread prevalence of skin conditions such as acne, eczema, and psoriasis drives demand for dermatological treatments, and consequently, for CDMO services to develop and produce these medications.
• Further, the high demand for topical drugs that provide targeted, localized therapy directly to the affected area significantly drives the growth of this segment.
• CDMOs in the dermatology space are constantly innovating to create advanced formulations, such as creams, gels, and ointments, that improve drug absorption and patient comfort. This ongoing development related to dermatology drugs contributes to its high market share.

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Based on service type, the topical drugs CDMO market is categorized into contract manufacturing and contract development. The contract manufacturing segment held highest market share and is expected to grow at 11.9% CAGR over the analysis period.

• Contract manufacturing dominates the market due to its cost efficiency and access to specialized expertise. CDMOs provide advanced manufacturing techniques and high-quality product development, as well as scalable production capabilities that allow companies to adjust to market demand.
• Moreover, CDMOs ensure products meet stringent quality assurance and regulatory compliance standards, reducing compliance risks for their clients. These benefits collectively contribute to the dominance of the contract manufacturing segment in the market.

Based on end-user, the topical drugs CDMO market is divided into pharmaceutical companies, biotechnology companies, and other end-users. The pharmaceutical companies’ segment is predicted to reach USD 49.2 billion by 2032.

• Pharmaceutical companies often outsource manufacturing processes to CDMOs to benefit from their specialized knowledge, state-of-the-art facilities, and regulatory compliance. This allows pharmaceutical companies to focus on their core competencies, such as research and marketing, while ensuring the timely and cost-effective development of high-quality topical drugs.
• Further, strategic partnerships with CDMOs enables them to access specialized manufacturing capabilities while maintaining control over product development and quality, further solidifying their position as major end-users in the market.

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North America topical drugs CDMO market size in 2023 was valued at USD 16.2 billion and is anticipated to grow at a CAGR of 11.9% over the analysis timeframe.

• The region benefits from well-established medical facilities and world-class research institutions that support the development and manufacturing of high-quality topical drugs.
• Additionally, favorable regulatory environment, guided by the Food and Drug Administration (FDA), ensures high safety and efficacy standards, fostering trust in the industry.
• Further, increasing R&D investments in the region leads to the creation of innovative topical drug formulations and driving demand for CDMO services.

U.S. topical drugs CDMO market is anticipated to grow at a CAGR of 11.8% over the analysis timeframe.

• The U.S. market is driven by its advanced healthcare infrastructure and the high prevalence of skin conditions such as acne, eczema, and psoriasis, which create demand for topical treatments.
• For instance, according to American Academy of Dermatology, approximately 1 in 10 people develop atopic dermatitis during their lifetime.
• In addition, this market is driven by technological advancements, and clear regulatory framework. Strong partnerships and market demand, combined with a focus on personalized medicine and economic stability, further contribute to the growth.

Germany is experiencing high market growth in the topical drugs CDMO market.

• Strong pharmaceutical industry and advanced healthcare infrastructure, providing a solid foundation for the development, manufacturing, and distribution of high-quality topical drugs significantly drives the growth of this region.
• Furthermore, increased focus on innovation and technological advancements leads to the creation of novel and effective topical products, while its regulatory expertise and compliance ensure high safety and quality standards. Such aforementioned factors have contributed to the expansion of the market in the country.

China is anticipated to witness lucrative growth in the topical drugs CDMO market.

• The increasing growth of China’s pharmaceutical and skincare industries, along with increasing market access, creates opportunities for expansion in the market.
• For instance, according to an article published in China Briefing, Chinese pharmaceutical sector is comprised of roughly 5,000 small and medium manufacturers, thereby fostering the growth of this market.
• Additionally, skilled, and cost-effective workforce, large population and aging demographics, increasing prevalence of skin conditions, and regulatory reforms further supports the growth of this region.

Topical Drugs CDMO Market Share

The topical drugs CDMO industry is characterized by a mix of large multinational CDMOs and specialized smaller firms. Notable companies in the market include Contract Pharmaceuticals Limited, Ascendia Pharmaceuticals, Bora Pharmaceutical CDMO, and MedPharm Ltd. These CDMOs strive to meet the evolving needs of their clients by offering comprehensive and high-quality services.

Topical Drugs CDMO Market Companies

Prominent players operating in the topical drugs CDMO industry include

• Ascendia Pharmaceuticals
• Bora Pharmaceutical CDMO
• Cambrex Corporation
• Contract Pharmaceuticals Limited
• DPT Laboratories, Ltd.
• The Lubrizol Corporation
• MedPharm Ltd
• PCI Pharma Services
• Pierre Fabre Group
• Piramal Pharma Solutions

Topical Drugs CDMO Industry News

• In October 2022, Cambrex announced its investment for a new, 21,000-square-foot research and development facility in Minneapolis, Minnesota, expanding its capacity for small molecule development and manufacturing. This strategic initiative helped the company to strengthen its service offerings and generate revenue.
• In June 2021, MedPharm opened a manufacturing facility for topical and transdermal drug products in Raleigh-Durham, NC expanding its contract development and manufacturing organization services. This strategic expansion helped the company to enhance customer base and manufacturing capabilities resulting in increased revenue growth.

The topical drugs CDMO market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 – 2032 for the following segments

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Market, By Product Type

• Semi-solid formulations
  • Creams
  • Ointments
  • Gels
  • Other semi-solid formulations
• Liquid formulation
• Transdermal products
• Solid formulations

Market, By Therapeutic Area

• Dermatology
• Pain management
• Wound care
• Ophthalmology
• Other therapeutic areas

Market, By Service Type

• Contract manufacturing
• Contract development

Market, By End-user

• Pharmaceutical companies
• Biotechnology companies
• Other end-users

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa