Report Overview
Small Molecule Innovator CDMO Highlights
The small molecule innovator CDMO market is projected to grow at a CAGR of 7.74% during the forecast period thereby reaching a market size of US$86.247 billion in 2029 from an initial value of US$51.165 billion in 2022.
The increasing aging population globally is creating demand for healthcare services tailored to the needs of elderly individuals. Additionally, the prevalence of chronic ailments has seen a notable uptick, further fueling the demand for innovative small-molecule drugs.
Moreover, governments are increasingly allocating resources to support the development and manufacturing of pharmaceuticals, including small-molecule drugs. This is in response to the growing healthcare needs of their populations. For instance, the establishment of the pharmaceutical investment company (Lifera) by the Public Investment Fund (PIF) of Saudi Arabia on June 2023.
Lifera is positioned as a commercial-scale CDMO with a focus on manufacturing life-saving and essential pharmaceutical products. This includes a diverse range of medical solutions such as insulins, vaccines, plasma therapeutics, monoclonal antibodies, cell and gene therapies, and innovative small molecules. The creation of such entities demonstrates a commitment to fostering the growth of the pharmaceutical and addresses the challenges posed by the surge in chronic diseases and the aging demographic.
Increasing cases of chronic ailments drive the market.
Globally, the increasing incidence of various health conditions such as cancer and diabetes has led to a heightened demand for small-molecule drugs, which are commonly employed in the treatment of these ailments. The available data indicates a substantial rise in the prevalence of diseases worldwide.
In the United States, according to data from the American Cancer Society, the projected number of new cancer cases in 2022 is approximately 983,160 for males and 934,870 for females. These statistics serve as a stark reminder of the profound impact of cancer as a widespread health issue. The prevalence of cancer underscores the critical importance of sustained and comprehensive efforts in prevention, early detection, diagnosis, and treatment within the healthcare sector. It emphasizes the ongoing imperative for healthcare professionals, researchers, policymakers, and communities to collaborate effectively in combating this pervasive disease.
Furthermore, these figures reinforce the urgency of advancing medical research, implementing evidence-based interventions, and enhancing access to quality care for individuals affected by cancer across all segments of society. Ultimately, addressing the multifaceted challenges posed by cancer remains a paramount priority in the quest to improve public health outcomes and alleviate the burden of this disease on individuals and communities alike.
Further, these statistics underscore the pressing need for pharmaceutical solutions, particularly in the realm of small-molecule drugs. The demand for these medicines is driven by their potential to reduce costs, provide access to specialized expertise, and enhance overall speed and efficiency in drug development and manufacturing processes. As the global health landscape evolves, the pharmaceutical industry faces the need to meet the growing demand for effective treatments, emphasizing the importance of such services and healthcare solutions.
Additionally, the growing elderly demographic is contributing to an increased need for novel healthcare services, specifically in the realm of small molecule innovation through Contract Development and Manufacturing Organizations (CDMOs). In the United States, the population aged 65 and older has undergone significant expansion, totaling 55.8 million individuals or 16.8% of the overall population in 2020. This demographic shift signals a clear trend toward an aging society. As people advance in age, there arises a growing demand for healthcare solutions that is meet the unique needs of the elderly population.
Increasing need for small molecule medications further propels the market growth.
The demand for small molecule drugs is witnessing a significant increase due to their proven effectiveness in treating a diverse array of diseases and medical conditions. Pharmaceutical companies are increasingly drawn to small molecule medications because of their straightforward manufacturing processes and lower production costs. Consequently, there has been a notable rise in the requirement for small molecule innovator Contract Development and Manufacturing Organization (CDMO) services. These specialized services are highly sought after for their expertise in both the development and production of small molecule drugs, catering to the escalating demand from pharmaceutical firms seeking efficient and cost-effective solutions. The growing reliance on small molecule drugs highlights the critical role of CDMOs in the pharmaceutical industry, fostering innovation and enabling the widespread delivery of vital therapies to patients across the globe.
The China small molecule innovator CDMO market is predicted to expand steadily.
The rise in clinical trial activity with a significant increase in contract development & and manufacturing organizations (CDMOs) offering end-to-end services in the country is expected to boost the market growth. In addition to this, the high disease burden in China provides further impetus to meet the growing demand for drug development and manufacturing processes. Furthermore, China is a highly preferred country for conducting clinical trials owing to its large pool of local experts and regulatory actions by clinical trial bodies. For instance- NMPA's Center for Drug Evaluation in China takes initiatives to improve the quality of clinical trial studies at low cost, supporting the development of CDMO services.
As per the estimates from WHO, the aging population in China is expected to grow multifold in upcoming years attributed to longer life expectancy and declining fertility rates. By the year 2040, it is expected to reach 402 million people from 254 million people in 2019. This reflects the increasing demand for drug discovery and development, promoting the growth of the small molecule innovator CDMO market till the forecast period.
Market Key Developments:
Small Molecule Innovator CDMO Market Scope:
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2022 | US$51.165 billion |
| Market Size Value in 2029 | US$86.247 billion |
| Growth Rate | CAGR of 7.74% from 2022 to 2029 |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
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| Companies Covered |
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| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |
Segmentation:
- By Product
- Small Molecule API
- Small Molecule Drug Product
- By Customer Type
- Preclinical
- Clinical
- Commercial
- By Therapeutic Area
- Cardiovascular Disease
- Oncology
- Respiratory Disorders
- Neurology
- Metabolic Disorders
- Infectious Disease
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- UK
- France
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- Japan
- China
- India
- Thailand
- Taiwan
- Indonesia
- Others
- North America