US Contract Manufacturing Services Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 25.10 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Contract Manufacturing Services Market Analysis
United States Contract Manufacturing Services Market is expected to grow at a CAGR of 25.1% over the forecast period (2022-2027). The Evolution of service offerings has enabled organizations to rely on contract manufacturers for their production needs to increase. Challenges faced due to outsourcing manufacturing to Asian countries have played a key role in prompting organizations to rely on contract manufacturers. These are driving factors for the growth of the United States Contract Manufacturing Services Market.
- The market is driven by a growing emphasis on pharmaceutical drug discovery and manufacturing outsourcing. The country is increasing the use of scientific exploration of disease mechanisms leading to the discovery and development of agents. Pre-clinical testing is an important stage in pharmaceutical research. Several tests are performed to determine whether a drug is ready for clinical trials at this stage.
- The food processing and manufacturing sector has witnessed significant growth due to the wide presence of major food manufacturers and important innovations in food & beverage in the country.
- Increasing awareness of the benefits of contract manufacturing localization, such as a reduction in lead time, which is the most important factor for fast-moving personal care products, is expected to boost the market growth.
- There has been a shift in manufacturing firms' preferences toward local contractors, as beverage contract bottling and filling offers several benefits. For starters, it lowers the manufacturers' operational and labor costs as the primary driver of market growth.
- Due to a nationwide lockdown, the COVID-19 pandemic delivered a major blow to the nation's Contract Manufacturing Services distribution system. For instance, in March 2020, many US beverage makers, like Coca-Cola, temporarily suspended production across the country's manufacturing facilities.
US Contract Manufacturing Services Market Trends
This section covers the major market trends shaping the US Contract Manufacturing Services Market according to our research experts:
Growth of Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs
- Manufacturing regulations, particularly in the case of beverage products in the United States, are rapidly evolving. Companies opt for outsourcing bottling and filling activities to meet such strict regulations, and the stressful task of meeting such regulations is passed on to the contracting agency. Admiral Beverage Corp., for example, is a supplier of carbonated soft drinks (CSD) in the western United States. It has expanded to three large facilities that supply carbonated and fountain mixes to numerous distributors throughout the mountain and western states, as well as Alaska. Admiral Beverage simplified deaeration, optimized blending, and sped up filling and changeovers by implementing Bevcorp's MicrO2 system.
- Due to offerings, key players in the personal care industry, such as Unilever and P&G, have begun in-house production of innovative products to protect their intellectual property and are outsourcing mass production to contract manufacturers.
- Further, the increasing investment in the capacity of the pharmaceutical segment can lead to expansion and significantly assists the market growth. For instance, In April 2021, Lonza announced its expansion their sold from selection services at the US site. This helps the company to meet its capabilities in meeting its accelerated timelines.
- The United States government's increasing investment in the manufacturing sector of emerging economies is expected to attract major market contributors such as McBride and Formula Corp. These businesses work hard to expand into new markets while keeping current contracts. These businesses position their services in the emerging need to secure long-term contracts.
Beverages sector to witness the growth
- The expansion of beverage contract bottling and filling in the United States as it reduces manufacturers' operational costs. In many cases, it is estimated that operating costs can be significantly reduced by outsourcing bottling and filling activities to contract companies and lowering machine and labor costs.
- Brewers can buy their filling machines when they first start up, rent filling lines, or contract filling solutions as their operations expand. It was difficult to find the right filling machinery, which could cause significant problems for beer companies. For these reasons, many businesses in the United States are turning to contract bottling and filling, which allows them to maximize efficiency in bottling and packing.
- Because most people are concerned about the impact of the COVID-19 outbreak, the demand for bottled water has increased significantly, and the Federal Emergency Management Agency (FEMA) recommends keeping at least one gallon of water per person per day on hand in case of an emergency. Purchasing and storing bottled water is a safe and convenient way to ensure an adequate supply is available when needed. This is expected to drive up demand for bottled water, which will benefit the contract bottling and filling market in the United States.
US Contract Manufacturing Services Industry Overview
United States Contract Manufacturing Services Market is moderative competitive with diverse firms of different sizes. This market is anticipated to encounter several partnerships, mergers, and acquisitions as organizations continue to invest strategically in offsetting the present slowdowns they are experiencing. The market comprises key solutions and service providers, such as Catalent Inc, Lonza Group, Amerilab Technologies, Brooklyn Bottling, and KIK Custom Products.
- July 2021 - Catalent Inc announced their multi-phase expansion plan for their Italian manufacturing facility worth USD 100.0 million. Further, the expansion will strengthen the company's biologics manufacturing capabilities in Europe.
US Contract Manufacturing Services Market Leaders
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Catalent
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Lonza Group
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Amerilab Technologies
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Brooklyn Bottling
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KIK Custom Products
*Disclaimer: Major Players sorted in no particular order
US Contract Manufacturing Services Market News
- May 2022 - Lonza and Israel Biotech Fund Collaborated Framework Agreement to Support Biologics and Small Molecules Development and Manufacture for Portfolio Companies which Facilitate Access to Israeli Market for Lonza.
- July 2021 - Catalent Inc launched GPEx lightning, a next-generation cell lighting technology, and the new development would shorten the duration drug the timeline by three months.
US Contract Manufacturing Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definitions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness-Porter's Five Force Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Stakeholder Analysis
- 4.4 Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Evolution of service offerings has enabled organizations to increasingly rely on contract manufacturers for their production needs
- 5.1.2 Challenges due to outsourcing of manufacturing to Asian countries has played a key role in prompting organizations to rely on local contract manufacturers
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5.2 Market Challenges
- 5.2.1 Operational & Compliance challenges
- 5.3 Impact of COVID-19 on the US Contract Manufacturing industry
- 5.4 PESTEL Analysis - US Contract Manufacturing industry (to include comparative study on the major benefits and challenges involved in outsourcing within the US and outside the US
- 5.5 Market Opportunities
- 5.6 Analysis of current manufacturing industry in US
6. Market Segmentation
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6.1 By pharmaceutical
- 6.1.1 Current Market Scenario and growth influencers
- 6.1.2 Market Breakdown - by Service Type (Forecasts & Key Developments)
- 6.1.3 Active Pharmaceutical Ingredient (API) Manufacturing
- 6.1.3.1 Small molecule
- 6.1.3.2 Large Molecule
- 6.1.3.3 High Potency API (HPAPI)
- 6.1.4 Finished Dosage Formulation (FDF) Development and Manufacturing
- 6.1.4.1 Solid Dose Formulation
- 6.1.4.2 Liquid Dose Formulation
- 6.1.4.3 Injectable Dose Formulation
- 6.1.5 Secondary Packaging
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6.2 By Food processing & manufacturing
- 6.2.1 Market Breakdown - by Service Type
- 6.2.2 Current Market Scenario and growth influencers
- 6.2.3 Food Manufacturing Services
- 6.2.3.1 Convenience Foods
- 6.2.3.2 Bakery Products
- 6.2.3.3 Confectionary Products
- 6.2.3.4 Dairy Products
- 6.2.3.5 Research & Development
- 6.2.3.6 Food Packaging Services
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6.3 By Beverage
- 6.3.1 Current Market Scenario and growth influencers
- 6.3.2 Market Breakdown - by Type (Forecasts & Key Developments)
- 6.3.2.1 Beer
- 6.3.2.2 Carbonated Drinks & Fruit-based Beverages
- 6.3.2.3 Bottled Water
- 6.3.2.4 Others (Sport Drinks)
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6.4 By Personal Care
- 6.4.1 Current Market Scenario and growth influencers
- 6.4.2 Market Breakdown - by Type
- 6.4.2.1 Skin Care
- 6.4.2.2 Hair Care
- 6.4.2.3 Make up & Color Cosmetics
- 6.4.2.4 Others
7. Competitive Landscape
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7.1 Company Profiles
- 7.1.1 Catalent Inc
- 7.1.2 Jubilant
- 7.1.3 Lonza Group
- 7.1.4 Aenova Group
- 7.1.5 Amerilab Technologies Inc
- 7.1.6 Bernet Food & Beverage.
- 7.1.7 Big Brands, LLC
- 7.1.8 Delamaine Fine Foods Limited
- 7.1.9 Brooklyn Bottling
- 7.1.10 CSD Co-Packers
- 7.1.11 Southeast Bottling & Beverages
- 7.1.12 G3 Enterprises
- 7.1.13 Western Innovations
- 7.1.14 Niagara Bottling, and Robinsons Breweries
- 7.1.15 KIK Custom Products
- 7.1.16 Sensible Organics
- 7.1.17 Colep
- 7.1.18 Cosmetic Essence LLC
- 7.1.19 Formula Cap
- *List Not Exhaustive
8. Investment Analysis
9. Future Outlook of the Market
US Contract Manufacturing Services Industry Segmentation
Contract manufacturing is the outsourcing of previously performed by the manufacturer's production activities to a third party.
United States Contract Manufacturing Services Market is Segmented by (Pharmaceutical, Food processing & manufacturing, Beverage, and Personal Care).
| By pharmaceutical | Current Market Scenario and growth influencers | |
| Market Breakdown - by Service Type (Forecasts & Key Developments) | ||
| Active Pharmaceutical Ingredient (API) Manufacturing | Small molecule | |
| Large Molecule | ||
| High Potency API (HPAPI) | ||
| Finished Dosage Formulation (FDF) Development and Manufacturing | Solid Dose Formulation | |
| Liquid Dose Formulation | ||
| Injectable Dose Formulation | ||
| Secondary Packaging | ||
| By Food processing & manufacturing | Market Breakdown - by Service Type | |
| Current Market Scenario and growth influencers | ||
| Food Manufacturing Services | Convenience Foods | |
| Bakery Products | ||
| Confectionary Products | ||
| Dairy Products | ||
| Research & Development | ||
| Food Packaging Services | ||
| By Beverage | Current Market Scenario and growth influencers | |
| Market Breakdown - by Type (Forecasts & Key Developments) | Beer | |
| Carbonated Drinks & Fruit-based Beverages | ||
| Bottled Water | ||
| Others (Sport Drinks) | ||
| By Personal Care | Current Market Scenario and growth influencers | |
| Market Breakdown - by Type | Skin Care | |
| Hair Care | ||
| Make up & Color Cosmetics | ||
| Others |
US Contract Manufacturing Services Market Research FAQs
What is the current United States Contract Manufacturing Services Market size?
The United States Contract Manufacturing Services Market is projected to register a CAGR of 25.10% during the forecast period (2024-2029)
Who are the key players in United States Contract Manufacturing Services Market?
Catalent, Lonza Group, Amerilab Technologies, Brooklyn Bottling and KIK Custom Products are the major companies operating in the United States Contract Manufacturing Services Market.
What years does this United States Contract Manufacturing Services Market cover?
The report covers the United States Contract Manufacturing Services Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Contract Manufacturing Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Contract Manufacturing Services Industry Report
Statistics for the 2024 US Contract Manufacturing Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Contract Manufacturing Services analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
