Topical Drugs CDMO Market Size & Share 2024 - 2032

Topical Drugs CDMO Market Size

The global topical drugs CDMO market size was valued at USD 43.7 billion in 2023 and is estimated to grow at a CAGR of over 10.5% from 2024 to 2032. The high market growth is attributed to the increasing focus on non-invasive holistic approaches to drug delivery. Creams, gels, ointments, and transdermal patches are prescription drug forms on the rise as they offer a reasonable alternative other than oral and injectable medications.

Also, there is a growing shift by the pharmaceutical industry to subcontract the marketing and even the development and manufacturing of these specialized topical drugs to CDMO integration companies that already have the infrastructure, advanced technology, and experience in meeting complex requirements.
 

For example, in September 2024, Blue Wolf Capital Partners LLC enhanced its pharmaceutical footprint by purchasing 7 manufacturing plants in Sweden, France, and Spain. Recipharm specializes in oral solid, semi-solid, and liquid dosage forms. In addition, Blue Wolf will obtain Synerlab, a French CDMO with 6 facilities. Such acquisitions have made it possible for Blue Wolf to increase its CDMO capabilities, regulatory proficiency, and expand the company's footprint in Europe, making Blue Wolf one of the major players in the pharmaceutical industry. Hence, the above-mentioned developments is expected to aid in accelerating the growth of the market in the years to come.
 

Topical drugs CDMO refers to services that claim to offer outsourcing for the creation and production of topical drugs. These drugs are directly applied onto a patient's skin or mucous membrane to achieve either local or systemic effects. CDMOs in this domain serve numerous pharmaceutical, biotechnology, and specialty pharma companies by helping them commercialize topical drug products that are at the research and development level.
  

Topical Drugs CDMO Market Trends

The continuous normalization of the adoption of dermal patches reveals a notable market trend, and the underlying reasons are also due to innovations in formulation technology and transdermal drug delivery systems. New innovations such as the use of nanoparticle topical formulations, liposomes, and microencapsulation, are improving the bioavailability and therapeutic effects of topical products. This improvement helps treat an array of conditions such as chronic skin problems prevalent in eczema and psoriasis, as well as pain relief medications and even hormonal therapies.
 

Moreover, an increase in the demand of skin disease that drives the usage of dermatological products is the main reason behind the growth of the CDMO market for topical drugs and medicine. As the number of patients suffering from skin problems is rising, so does the need for dermatological treatments. The international CDMO market for topical medicines is growing as pharmaceutical businesses look for expert providers to fulfill the high demands for formulation, regulatory processes, and steps to increase production.
 

Topical Drugs CDMO Market Analysis

Based on product type, the market is segmented into semi-solid formulations, liquid formulations, transdermal products, and solid formulations. The semi-solid segment accounted for USD 27.3 billion in 2023. The semi-solid formulations segment includes creams, ointments, gels, and other semi-solid formulations.
 

• The use of semi-solids is increasing due to their strong acceptance in the management of different skin disorders. These formulations provide targeted active pharmaceutical ingredient (API) delivery to the lesion while minimizing active ingredient system circulation, hence they are ideal for dermatological purposes.
   
• The wide range of conditions semi-solid formulations can be used for in addition to their ease of application has made them highly popular in prescription and non-prescription medicine. They are used in treatment of acne, eczema, psoriasis, and other highly prevalent global skin infections.
   
• This has resulted in a high growth rate of semi solid topical products, which has compelled pharmaceutical firms to widen their scope of products in this market segmentation.
   

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Based on therapeutic areas, the topical drugs CDMO market is classified into dermatology, pain management, wound care, ophthalmology, and other therapeutic areas. The dermatology segment dominated the market with 34.5% of market share in 2023.
 

• The requirement in the dermatology segment was the high burden of skin disorders and the growing need for effective topical treatment solutions.
   
• More than a hundred million people around the world suffer from skin disorders including acne, psoriasis, eczema and skin infections. This has led pharmaceutical companies to devise topical formulation treatments that will resolve these problems.
   
• In dermatology practice, topical drugs are the first choice when dealing with skin disorders and conditions, as they are administered locally and allow for easy penetration with little or no absorption in the circulation.
   
• Most pharmaceutical companies opt to employ CDMOs for specialized expertise in designing and formulating topicals including creams, gels, ointments, and lotions as these companies broaden their dermatology pipeline.
   

Based on service type, the topical drugs CDMO market is categorized into contract manufacturing and contract development. The contract manufacturing segment held the highest market share and is expected to grow at a 10.2% CAGR over the analysis period.
 

• The rise of U.S. pharmaceutical market and the need for contract development has become widespread as drug manufacturers increasingly engage in multi-product and multi-client businesses for development and manufacturing services.
   
• In addition, the growing skin diseases like acne or psoriasis or even dermatitis has led to an increase in the demand for topical drugs, leading to even further boosting the requirement of such services.
   
• The CDMO business model is flexible and includes producing higher-risk proprietary medicines that are chosen to be sold under the brand name. Also, the ability to meet regulatory requirements alongside strict quality controls and production flexibility makes these companies valuable supply chain partners.
   

Based on end use, the topical drugs CDMO market is divided into pharmaceutical companies, biotechnology companies, and other end-users. The pharmaceutical companies' segment is projected to reach USD 67.1 billion by 2032.
 

• Pharmaceutical companies' drug pipeline expansions stem from their increasing reliance on outsourcing for drug development and manufacturing. These firms are strengthening their drug pipelines to meet the increasing prevalence rate of skin diseases, which in turn will boost the need for topical therapies.
   
• Both of these factors have led to greater collaboration with CDMOs who have the necessary infrastructure, know-how, and capacity to meet market demands in a timely manner without compromising on quality.
   
• By CDMO outsourcing, pharmaceutical companies can save money and mitigate the challenges of in-house production, such as regulatory compliance, having the right production technology, being able to scale production, and many others. By working with CDMOs, the companies are able to concentrate on their core areas, which is research and marketing, and leave the manufacturing work to the specialized firms.
   

U.S. topical drugs CDMO market is expected to grow at 10.1% CAGR, to reach USD 35 billion by the end of 2032.
 

• The presence of leading CDMOs in the U.S. enhance the country's capability to produce quality topical products. These CDMOs maintain close relations with pharmaceutical companies in order to facilitate development and get new formulations marketed in record time.
   
• For instance, Swiss American CDMO and LiquiGlide, the developers of the EveryDrop dispensing platform, partnered in January 2023. Swiss American was able to broaden their offerings by liquiglide patented technology being used in global skincare markets. This collaboration has the potential to fully capture the market segment in the U.S.
   
• In addition, innovations in the health care sector are encouraging more patients to opt for less invasive methods to treat their conditions, and the demand for topical medications have provided a solution to the challenges commonly faced with oral based drugs.
   

The Germany topical drugs CDMO market is experiencing robust growth in the Europe market.
 

• The country is one of the top pharmaceutical markets in Europe and has a great potential in exports. There are major local CDMOs that partner with big pharma for production services, especially for domestic and international topical products, which helps foster the growth of the market.
   
• Further, the need for customized topical dermatological and cosmetic formulations is growing. This has forced CDMOs to expand their offerings to include flexible small batch production capabilities, which increases market growth.
   

The Asia Pacific topical drugs CDMO industry is witnessing substantial growth of 10.8% during the analysis period.
 

• Demand for beauty and skin-care products from Chinese consumers, especially in the cities, is very high. The growing focus on aesthetic dermatology drives the demand that is new and innovative in nature and topical formulations of that sort are possible through CDMOs.
   
• Furthermore, international pharmaceutical firms are increasing partnerships with Chinese CDMOs as a result of an expanding local market with prominent manufacturing capabilities, which aids CDMO development, resulting in market growth.
   

Brazil topical drugs CDMO market is experiencing robust growth in the Latin America market.
 

• As a result of its tropical environment and high levels of humidity, Brazil is experiencing a higher than average occurrences of dermatological conditions like acne, psoriasis, and fungal infections.
   
• Moreover, the Brazilian government has taken steps to foster the growth of the pharmaceutical industry through the provision of tax aids, regulatory aid, as well as investment aids for building manufacturing plants such as CDMO.
   

Saudi Arabia topical drugs CDMO market is witnessing substantial growth during the analysis period.
 

• Saudi Arabia is investing heavily on the CDMO pharmaceutical market due to the Nation Industrial Development and Logistics Program (NIDLP), which focuses on local production. This opens doors for CDMO to collaborate with international corporations and set up local production facilities for topical drugs.
   
• Furthermore, the Saudi Food and Drug Authority (SFDA) Regulation Relating to Product Registration has modified the regulations to support local manufacturing through faster product approvals and other incentives.
   
• As a result, the CDMOs exclusive to topical pharmaceutical drugs develop smoother regulatory pathways facilitating faster production and market access, which enhances growth.
   

Topical Drugs CDMO Market Share

The market is constantly evolving, as it fosters competition, innovation, and technology. Major pharmaceutical and biotechnology companies already possess a large segment of the market due to their portfolios of topical drugs and skin disease treatment options. In addition, mergers, acquisitions, and collaborations allow the top players of the market to fortify their position, as they can broaden their product and service offerings and enter new markets.
 

Topical Drugs CDMO Market Companies

Prominent players operating in the topical drugs CDMO industry include:

• Ascendia Pharmaceuticals
• Bora Pharmaceuticals
• Cambrex
• Contract Pharmaceuticals
• DPT Laboratories
• MedPharm
• PCI Pharma Services
• Pierre Fabre Group
• Piramal Pharma Solutions
• The Lubrizol
   

USPs of top players

• MedPharm is a leading CDMO serving the pharmaceutical industry. Its set of proprietary capabilities in clinical efficacy and in vitro model development uniquely position MedPharm as a preferred CDMO for drug innovation, particularly transdermal and semi-solid formulations.
   
• DPT Laboratories has dominance in vertical integration where the development and manufacturing of transdermal and topical drugs is concerned. Its extensive experience in meeting customized regulatory and quality assurance standards further enhances the reliability of services.
   

Topical Drugs CDMO Industry News

• In June 2024, Aterian has purchased Contract Pharmaceuticals Limited (CPL), a North American Contract Development and Manufacturing Organization (CDMO) who specializes in non-sterile liquid and semi solid dosages. This acquisition expands the company’s involvement in the Topical Drugs CDMO space and improves its potency in the development and manufacturing of topical medications within the Pharma industry.
   
• In February 2024, Bora Pharmaceuticals has acquired Upsher-Smith, the U.S. pharma manufacturer which marks its foray into the country as a major Contract Development and Manufacturing Organization (CDMO) player. This partnerships helped improve company's global footprint and broadened its capacity for manufacturing.
   

The topical drugs CDMO market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 - 2032 for the following segments:

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Market, By Product Type

• Semi-solid formulations
  • Creams
  • Ointments
  • Gels
  • Other semi-solid formulations
• Liquid formulations
• Transdermal products
• Solid formulations

Market, By Therapeutic Area

• Dermatology
• Pain management
• Wound care
• Ophthalmology
• Other therapeutic areas

Market, By Service Type

• Contract manufacturing
• Contract development

Market, By End Use

• Pharmaceutical companies
• Biotechnology companies
• Other end users

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE