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Growing Usage of Fermentation Techniques for Developing Active Pharmaceutical Ingredients expected to drive the Revenue Growth of the Contract Pharmaceutical Fermentation Services Market over 2018–2026

The contract pharmaceutical fermentation services market is majorly driven by increased government funding & grants, active research studies, and improvements in the regulatory scenario. According to the latest research by the company, the global contract pharmaceutical fermentation services market is expected to account for over US$ 4.0 Bn in terms of value by the end of 2026. The contract pharmaceutical fermentation services market is expected to witness significant growth with a CAGR of 5.9% through 2026.

It has been observed that the overall pharmaceutical industry has been developing at a significantly rapid pace. The manufacturing capacity of industries is elevated by mimicking the already existing manufacturing equipment and further transferring it to other contract manufacturing service providers. Microbial fermentation is the core for the production of a wide range of pharmaceutical-based products that target various medical indications such as anti-infectious disease antibiotics, anticancer cytotoxic vaccines & drugs, drugs for hormonal disorder therapy, etc. Thus, increase in the demand for fermentation processes and growth in the number of pharmaceutical companies is expected to boost the contract pharmaceutical fermentation services market.

Furthermore, with an increased understanding of various diseases, the production demand of pharmaceutical products has also accelerated. Various pharmaceutical companies have associated themselves with the providers of contract pharmaceutical fermentation services for combining their efforts to bring unique and innovative molecules to the market. Increase in the prevalence of various diseases, such as cancer, diabetes, rheumatoid arthritis, myocardial infarction, hemophilia, anemia, etc., has boosted the demand for large volumes of various pharmaceutical products that have numerous applications in disease management. According to the American Diabetes Association, approximately 30.3 million Americans suffered from diabetes in 2015, which is 9.4% of the total population. As per a study conducted in 2015, the association also concluded that almost 1.5 million Americans are diagnosed with diabetes annually. The commercialization of drugs to CMOs/CDMOs and focus on the reduction of the operating costs through the outsourcing of R&D is boosting the efficiency of value chain.

Browse more detail information about this report at https://www.factmr.com/report/1517/contract-pharmaceutical-fermentation-services-market

Outsourcing at the later stages of clinical development through identification and the appointment of a strategic partner also leads to improved efficiencies throughout the value chain. Players in the contract pharmaceutical fermentation services market are focusing on rationalization to attract more pharmaceutical companies.  Outsourcing processes help companies free up their facilities, staff, and resources to focus on other operations of the company, especially in early-stage research and clinical development. This is expected to contribute to the growth of the contract pharmaceutical fermentation services market.

However, the complexities and high production costs associated with contract pharmaceutical fermentation services are likely to hamper the growth of the global contract pharmaceutical fermentation services market. Large-scale fermentation is likely to pose a threat to the contract pharmaceutical fermentation services market. The providers of contract pharmaceutical fermentation services need to invest a large amount of capital for setting up their businesses as well as for hiring the required technical staff. Majority of the players operating in the contract pharmaceutical fermentation services market deal with large-scale fermentation challenges. Thus, higher overall cost and higher marginal production cost for lengthy operations and the severe complexities associated with large-scale fermentation processes are among the factors that are likely to hamper the growth of the contract pharmaceutical fermentation services market during the forecast period.

The global contract pharmaceutical fermentation services market has been studied based on contract pharmaceutical fermentation services type, contract pharmaceutical fermentation services platform, product type and the end users of contract pharmaceutical fermentation services. Based on the contract pharmaceutical fermentation services type, the contract pharmaceutical fermentation services market has been segmented into development services and commercial services. Based on the platform, the contract pharmaceutical fermentation services market has been segmented into bacterial and fungal/yeast. Based on the product type, the contract pharmaceutical fermentation services market has been segmented into bio-therapeutics, enzymes, peptides, plasmids, cytokines & growth factors, vaccines, and others (fusion proteins, etc.). In terms of revenue, the bio-therapeutics segment dominated the global contract pharmaceutical fermentation services market in 2017. Based on the end user, the contract pharmaceutical fermentation services market has been segmented into pharmaceutical companies, biotechnology companies, animal health companies, and academic & research institutes.

About the author

Shambhu Nath Jha

Shambhu Nath Jha

Mr. Shambhu Nath Jha is a seasoned consultant and researcher. His research papers have been published in reputed websites and trade journals. His interests include philosophy and history.

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