PUBLISHER: Grand View Research | PRODUCT CODE: 2067634
PUBLISHER: Grand View Research | PRODUCT CODE: 2067634
The global oral solid dosage contract manufacturing market size was valued at USD 10.20 billion in 2025 and is projected to reach USD 21.25 billion by 2033, growing at a CAGR of 9.2% from 2026 to 2033. The market is experiencing growth driven by rising demand for outsourcing by pharmaceutical companies, expansion of generic drug market and patent expirations, continuous advancements in drug delivery technologies and increasing focus on supply chain resilience and localization.
Pharmaceutical and biopharmaceutical companies are outsourcing oral solid dosage (OSD) manufacturing to contract development and manufacturing organizations (CDMOs) in large numbers to reduce capital expenditure and operational complexity. In addition, developing in-house capabilities for formulation, scale-up, and commercial production requires significant investment in infrastructure, skilled labor, and regulatory compliance. By partnering with CDMOs, companies can focus on core competencies such as research, clinical development, and commercialization. For instance, in December 2025, Bora Pharmaceuticals and Corealis Pharma partnered to provide integrated oral solid dosage development and manufacturing services, combining early-stage expertise with commercial-scale capabilities to accelerate drug development and reduce outsourcing complexity. In addition, outsourcing also provides access to specialized technologies, flexible production capacity, and global regulatory expertise. This trend is particularly strong among small and mid-sized biotech firms that lack manufacturing capabilities, as well as large pharmaceutical companies seeking to optimize costs, enhance efficiency, and accelerate time-to-market for new drug products.
In addition, growing generic drug market, driven by patent expirations of blockbuster drugs, is boosting demand for OSD contract manufacturing. As patents expire, generic drug manufacturers aim to quickly develop and launch cost-effective alternatives to capture market share. This creates a need for rapid formulation development, scale-up, and high-volume production capabilities, which CDMOs are well-equipped to provide. In addition, increasing healthcare cost pressures and government initiatives to promote affordable medicines are accelerating generic drug adoption globally. CDMOs offer cost-efficient manufacturing solutions, regulatory support, and scalability, enabling generic companies to meet high demand while maintaining compliance and quality standards, thus fueling growth in the market.
Furthermore, continuous advancements in drug delivery technologies is one of the key driver OSD contract manufacturing market. According to a report of March 2026, increasing complexity of highly potent oral solid dosage (HPOSD) drugs accelerates the growing pipeline of potent, low-dosage, and specialized formulations that requires advanced containment systems, specialized facilities, and strict safety protocols. These manufacturing challenges, combined with evolving regulatory expectations and occupational safety requirements, make in-house production difficult for many pharmaceutical companies. As a result, companies are outsourcing to CDMOs in large numbers with high-containment infrastructure, technical expertise, and proven quality systems. In addition, the need for efficient tech transfer, scalability, and "right-first-time" manufacturing approaches is accelerating reliance on experienced partners.
Moreover, pharmaceutical companies are placing greater emphasis on building resilient and flexible supply chains, particularly after disruptions experienced during global crises. This has led to increased investment in regional manufacturing capabilities and partnerships with CDMOs to ensure consistent supply of oral solid dosage drugs. In addition, companies are adopting multi-site manufacturing strategies and nearshoring approaches to reduce dependency on single regions and mitigate risks related to logistics, geopolitics, and regulatory changes. CDMOs with global footprints and integrated service offerings are well-positioned to support these strategies. Their ability to provide comprehensive solutions, from development to commercial manufacturing across multiple regions, enhances supply chain agility and reliability, making them critical partners in the evolving pharmaceutical landscape.
Global Oral Solid Dosage Contract Manufacturing Market Report Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global oral solid dosage contract manufacturing market based on product, mechanism, end use, and region.