Small Molecule Innovator CDMO Market Report 2025

The small molecule innovator cdmo market size has grown strongly in recent years. It will grow from $56.49 billion in 2024 to $60.88 billion in 2025 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to rising demand for outsourcing, increasing complexity of small molecule drugs, increasing focus on time-to-market, cost pressures on pharma companies, and stringent regulatory requirements.

The small molecule innovator cdmo market size is expected to see strong growth in the next few years. It will grow to $85.28 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to a rise in personalized medicine and targeted therapies, increased focus on green chemistry and sustainability, demand for faster time-to-market for new drugs, expansion of the biopharmaceutical pipeline, and the emergence of advanced therapies. Major trends in the forecast period include the rise of virtual and remote development models, increased collaboration and partnerships in the pharma industry, expansion of CDMO services to emerging markets, utilization of single-use technologies in manufacturing, and evolution of CDMOs into strategic development partners.

The growth of the small-molecule innovator CDMO market is expected to be fueled by the increasing prevalence of chronic diseases. Chronic diseases, which last a year or longer and often require continuous medical care, are on the rise. The small-molecule innovator CDMO market plays a crucial role in manufacturing medicines for chronic diseases, providing services to pharmaceutical and biotech companies. Projections from the National Center for Biotechnology Information (NCBI) in January 2023 indicate that by 2050, the number of individuals aged 50 and older with at least one chronic illness in the US is anticipated to surge by 99.5%, reaching 142.66 million, up from 71.522 million in 2020. Thus, the increasing prevalence of chronic diseases serves as a driving force for the small-molecule innovator CDMO market.

The increasing expenditures on research and development (R&D) are anticipated to drive the growth of the small-molecule innovator CDMO market in the future. R&D expenditure refers to the financial resources a company or organization allocates for activities focused on innovation, product development, and technological progress. The small-molecule innovator CDMO market is crucial in supporting this rise by offering specialized and efficient services to pharmaceutical and biotechnology companies, which accelerates drug discovery and development processes. For example, in June 2023, the European Federation of Pharmaceutical Industries and Associations, a Belgium-based trade association and lobbying group, reported that R&D expenditures grew from €42.53 billion ($46.79 billion) in 2021 to €44.5 billion ($48.95 billion) in 2022, representing an increase of €1.96 billion ($2.16 billion). Thus, the rise in R&D expenditures is fueling growth in the small-molecule innovator CDMO market.

A prominent trend in the small-molecule CDMO market is the focus on product innovation. Major companies within this market are adopting innovative products to sustain their positions. In May 2023, Oxford Biomedica, a UK-based company, introduced TetraVecta, a next-generation system for CDMO. This technology addresses previous challenges in medicinal development related to payload size, complexity, or interference, thereby facilitating the advancement of in vivo gene treatments.

Strategic partnerships are emerging as a key approach for major companies in the small-molecule innovator CDMO market to provide contract development and manufacturing organization (CDMO) services. Strategic partnerships involve leveraging each other's strengths and resources for mutual benefits and success. An example of this approach is the partnership between SST Corporation, a US-based pharmaceutical company, and Viwit Pharmaceuticals, a China-based research-based pharmaceutical and chemical company. Through this collaboration, they aim to enhance market growth in North America by expanding offerings, leveraging expertise, increasing capacity, and providing essential regulatory support to strengthen their competitive edge.

In February 2022, Recipharma AB, a Sweden-based pharmaceutical CDMO, acquired Vibalogics for an undisclosed amount. This acquisition allows Recipharm to utilize Vibalogics' expertise in oncolytic viruses, viral vaccines, and viral vector gene treatments, enabling diversification across multiple technologies and modalities. Vibalogics GmbH is a Germany-based pharmaceutical CDMO.

Major companies operating in the small molecule innovator cdmo market include Thermo Fisher Scientific Inc., Boehringer Ingelheim International GmbH, Evonik Industries AG, Lonza Group Ltd., Labcorp Drug Development, Catalent Inc., Wuxi AppTec Co. Ltd., Asymchem, Siegfried holdings, Recipharm AB, Almac Sciences Ltd., Curia Global Inc., Cambrex Corporation, Piramal Pharma Ltd., Hovione, Corden Pharma GmbH, Alcami Corporation, Lifecore Biomedical Inc., NovaTech LLC, Mikart LLC, Kymanox Corporation, August Bioservices LLC, Lyophilization Technology Inc., LGM Pharma LLC, INCOG BioPharma Services.

Asia-Pacific was the largest region in the small molecule innovator CDMO market in 2024. The regions covered in the small molecule innovator cdmo market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the small molecule innovator cdmo market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A small molecule innovator Contract Development and Manufacturing Organization (CDMO) refers to a pharmaceutical division that provides contract services for the development and manufacturing of small-molecule drugs. These services are often utilized in clinical trials to gather early relative bioavailability information.

The main product types offered by small molecule innovator CDMOs include small molecule active pharmaceutical ingredient (API) and small molecule drug product. Small molecule API refers to any material or combination of materials intended to be used as an active component in the production of a medication or medical product. The various stages involved in the development and manufacturing process include preclinical, clinical, and commercial stages, and these products are used in therapeutic areas such as cardiovascular disease, oncology, respiratory disorders, neurology, metabolic disorders, infectious disease, and others. The primary customers for small molecule innovator CDMOs are pharmaceutical and biotechnology companies.

The small molecule innovator CDMO market research report is one of a series of new reports that provides small molecule innovator CDMO market statistics, including small molecule innovator CDMO industry global market size, regional shares, competitors with a small molecule innovator CDMO market share, detailed small molecule innovator CDMO market segments, market trends and opportunities, and any further data you may need to thrive in the small molecule innovator CDMO industry. This small molecule innovator CDMO market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The small molecule innovator CDMO market includes revenues earned by entities by manufacturing the drug substance and providing innovation and services such as packaging, serialization, and shipment. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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