According to a recent study by Grand View Research, Inc., the global small molecule CDMO (Contract Development and Manufacturing Organization) market is projected to reach USD 108.46 billion by 2030, expanding at a compound annual growth rate (CAGR) of 7.1% from 2024 to 2030. Key factors driving this growth include the adoption of innovative technologies in small molecule drug development, the expansion of pharmaceutical pipelines focused on small molecule therapies, and the increasing reliance on CDMOs for their cost-efficiency and specialized services. Regulatory support for streamlined drug development and manufacturing processes, along with CDMOs scaling up their production capacities to meet growing industry needs, also contribute significantly to market expansion. For pharmaceutical companies, innovation and ease of access to clinical solutions remain essential.

Specialty pharmaceutical firms and small-scale players are playing a pivotal role in meeting these critical industry demands. Many CDMOs are adopting the “one-stop-shop” model, offering comprehensive services ranging from active pharmaceutical ingredient (API) production to dosage formulation, and from early-stage development to final commercialization. This approach requires CDMOs to possess a broad array of enabling technologies and advanced handling capabilities tailored to address specific challenges. The presence of a considerable number of CDMOs providing end-to-end services globally is expected to further propel market growth. Additionally, the rising prevalence of chronic diseases supports the increasing demand for innovative small molecule-based therapies, consequently boosting the need for CDMO services.

According to the International Diabetes Federation (IDF), diabetes cases in China are on a steady rise. In 2022, over 140 million individuals in China had diabetes, a number expected to increase to 174.4 million by 2030. Poor dietary habits and sedentary lifestyles are major contributors to this trend. The escalating diabetes burden is anticipated to drive the demand for CDMO services in the region. Furthermore, substantial investments in pharmaceutical research and development are accelerating industry growth. As pharmaceutical companies intensify efforts to discover and develop small molecule drugs, the demand for CDMO services that enable efficient and cost-effective development and manufacturing processes continues to rise.

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Small Molecule CDMO Market Report Highlights

• API Segment: In 2023, this segment held the largest share of 62.3%, driven by increased R&D in novel drug development and robust pipelines maintained by major pharmaceutical companies.
• Generics Segment: Expected to register the fastest CAGR of 8.0% from 2024 to 2030. This growth is fueled by the high prevalence of conditions such as cancer, diabetes, and cardiovascular diseases, along with government initiatives aimed at expanding access to generic medications.
• Oncology Segment: Accounted for the largest revenue share at 35.1% in 2023. The segment’s growth is attributed to the rising global cancer incidence, supportive government reimbursement policies, and increased funding for developing small molecule oncology drugs.
• Asia Pacific Region: Projected to record the highest CAGR of 7.7% from 2024 to 2030. The region, led by China and India, benefits from lower manufacturing costs and favorable regulatory conditions, making it a key market for CDMO services.

Key Players in the Small Molecule CDMO Market

• Lonza
• Catalent, Inc
• Thermo Fisher Scientific Inc.
• Cambrex Corporation
• Bellen Chemistry
• Siegfried Holding AG
• Recipharm AB
• Eurofins Scientific
• Aurigene Pharmaceutical Services Ltd.
• CordenPharma International

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