Global Formulation Development Outsourcing Market to Generate $51,901.3 Million by 2031 Owing to the Increasing Relevance of Novel Drug Development

Formulation development refers to development of a drug product and to determine the lifecycle, efficiency, success, and patentability of that pharmaceutical product. Almost all pharmaceutical companies outsource this process to a company who specializes in this business cycle so as to relieve itself (the pharmaceutical company) from investing capital and time in medical trials of the drug.

Forecast Analysis of the Formulation Development Outsourcing Market

According to the report published by Research Dive, the global formulation development outsourcing market is expected to gather a revenue of $51,901.3 million by 2031 and grow at 9.0% CAGR in the 2022-2031 timeframe.

In recent years, there has been an increasing relevance of novel drug development due to growing patent expirations of important pharmaceuticals. This increased relevance is predicted to be the primary growth driver of the formulation development outsourcing market in the forecast period. Additionally, increased outsourcing of formulation development services by the majority of pharmaceutical and biotechnological companies is anticipated to push the market forward. Along with this, growing incidence of chronic diseases across the globe and increase in clinical trials is projected to offer numerous growth and investment opportunities in the market in the analysis timeframe. However, limited funds for formulation development outsourcing is estimated to create hurdles in the full-fledged growth of the formulation development outsourcing market in the coming period.

Regionally, the formulation development outsourcing market in the North America region is expected to be the most dominant by 2031. Highly developed healthcare system and cutting-edge technical advancements are anticipated to be the two main factors contributing to the growth of the market in the forecast period.

Some prominent market players include Charles River Laboratories, Intertek Group plc, Laboratory Corporation of America Holdings., Syngene International Limited, Thermo Fisher Scientific, Dr. Reddy’s Laboratories Ltd., Catalent, Inc, Eurofins Scientific, EMERGENT, Piramal Pharma Ltd., and many others.

Covid-19 Impact on the Market

The outbreak of the Covid-19 pandemic has had a massive negative effect on almost all industries and businesses across the world. The formulation development outsourcing market faced a similar fate due to the pandemic. Though the impact of the pandemic on the pharmaceutical sector was not as severe as other sectors, nonetheless, formulation development processes were stalled due to shortage of active pharmaceutical ingredients across the globe. This limited the scope of production of new drugs which led to a decline in the growth rate of the market.

Significant Market Developments

The significant companies operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, thus helping the formulation development outsourcing market to flourish. For instance:

• In April 2022, DFE Pharma, an excipient providing pharmaceutical company, Harro Höfliger, a medical equipment manufacturer, and Sterling, an active pharmaceutical ingredient manufacturer, announced signing of a partnership. This partnership is aimed at developing dry-powder inhalation solutions for respiratory treatments and is expected to help all the three companies to pool their resources and achieve the intended target in a seamless manner.
   
• In October 2022, Catalent Inc., a global leader in pharmaceutical industry, announced the acquisition of Metrics Contract Services, a leading contract development and manufacturing organization (CDMO). This acquisition is expected to expand the footprint of Catalent substantially in the next few years.
   
• In October 2022, Symeres, a leading drug discovery company, announced the acquisition of Exemplify BioPharma, a US-based Contract Research Organization (CRO). The acquisition is predicted to boost the market share of Symeres in the North America region significantly in the coming period.