CMO/CDMO Market is threatened by the risk of intellectual property theft | Says FMI Analyst

As more pharmaceutical businesses contemplate outsourcing services, the need for services from contract manufacturing and contract development manufacturing organizations will grow. Future Industry Insights (FMI) believes that the CMO/CDMO Market has enormous potential for growth in the foreseeable future. The increased need for generic pharmaceuticals and biologics will fuel market expansion.

Contract manufacturing accounts for over 3/4 of all CMO and CDMO services, according to the report. Over the projected period, the market will be driven by a focus on cost control, improved process flow, and increased scalability. Aside from that, rising demand for skin care products, which also account for the largest share of product type, will propel the market forward in the future years.

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Key Takeaways from CMO/CDMOs Market Study

  • CMO/ CDMO services has become highly sought-after in pharmaceutical and beauty industries. FMI has projected the market to report 6.2% CAGR between 2020 and 2030
  • The U.S. is expected to account for over 77% of sales in North America by 2030
  • The U.K. will represent impressive scope for expansion, exhibiting above 7% CAGR through the forecast period
  • The rising focus on healthcare and wellness spending will support growth in Germany and France
  • The availability of inexpensive labor and resources will continue supporting growth in China. However, Japan and South Korea markets are expected to register higher percentage of growth over the forecast period

“Manufacturers operating in the market are keen on forging strategic partnerships with leading cosmetics brands and pharmaceutical companies. Collaborations are expected to remain a primary strategy adopted by market players to gain competitive edge,” says FMI analyst

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In terms of the effect of COVID-19 pandemic on the demand of CMO/CDMO services, there was a negative impact on the market growth. One of the major issues was related to the supply chain gap. Prior to COVID-19, contract manufacturing was one of the most preferred sectors in the growing beauty and personal care industry. However, due to the pandemic, the industry suffered major setbacks as expected product launches were delayed. A shift was observed in consumer habits. Reduction of sales of leading products was recorded along with production slowdowns, which caused overhead to curb the profitability.

Who is Winning?

Collaboration is the key strategy amongst market players. The CMO/CDMO companies continue to focus on collaborations to gain sustainability in the market.

  • For instance, In February 2021, Lonza signed an agreement to divest its specialty ingredients business to Bain Capital and Cinven, aiming to refocus as a pure-play partner to the healthcare industry.
    • In 2021, Pierre Fabre Group hosted a pioneering custom online partnering forum, partnering with biopharmaceutical firms aiming to accelerate the digital transformation of Pierre Fabre Group
    • In 2020, In March 2020, Pierre Fabre Group, in partnership with numerous hospitals in the Occitania region of France, donated hand care creams, body cleansing gels and thermal spring water sprays and hand sanitizers necessary to combat the spread of Covid-19.

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Some of the companies operating in the market are:

  • Swiss American CDMO
  • Pierre Fabre Group
  • Zymo Cosmetics
  • Fareva
  • Biofarma Srl C.F.
  • Chemineau
  • C.O.C. Farmaceutici Srl
  • Paragon Nordic

CMO/CDMOs Market By


  • Contract Development
    • Formulation development
    • Pilot studies
  • Contract Manufacturing
    • Bulk preparation & scale up
    • Safety Testing
    • Filling & Packaging
      • Close jars
      • Bottles
      • tubes
      • roll ons
  • Others


  • Hair Products
  • Skin Products
  • Lip Products
  • Eye Products
  • Body hygiene
  • Oral hygiene


  • Solid form & powder
  • Lotions
  • Creams
  • Others

About Future Market Insights (FMI) 

Future Market Insights, Inc. (ESOMAR certified, Stevie Award – recipient market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.


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