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India set to capture 8-10% of CDMO outsourcing by 2033: McKinsey Report
Industry News- Oct 22,24
The global CDMO market, currently valued at $224 billion, is forecasted to reach $465 billion by 2032, McKinsey’s analysis revealed.
India is projected to account for 8-10% of the global outsourcing work to Contract Development and Manufacturing Organizations (CDMOs) by 2033, according to a report by McKinsey & Company. The shift in outsourcing trends from Europe and the U.S. to Asia is expected to make India and South Korea emerging powerhouses in the CRDMO (Contract Research, Development & Manufacturing Organisation) industry over the next decade.
The global CDMO market, currently valued at $224 billion, is forecasted to reach $465 billion by 2032, McKinsey’s analysis revealed. A significant portion of this growth is being driven by geopolitical developments, with many Indian CRDMOs expecting 20-40% of their new business to arise from these global shifts.
Anirudh Roy Popli, Partner, McKinsey & Company, emphasised that biopharmaceutical companies are increasingly recognising the value Indian CDMOs offer. "With a strong focus on value and innovation, Indian CDMOs are well-positioned to shape the future of healthcare,” he said.
Prem Pavoor, Senior Partner and Head of India & India Healthcare Investments, Eight Roads Ventures, highlighted the opportunities created by shifting geopolitical dynamics and impending legislation. He noted that leading Indian bio-pharma firms are receiving more requests for proposals from U.S. customers. “Although some customers are adopting a wait-and-watch approach, they are clearly looking to diversify their outsourcing footprint amidst global uncertainties,” Pavoor added.
While this shift presents a tremendous opportunity for India, Pavoor cautioned that Indian CDMOs must invest in the right infrastructure and services to handle the surge in demand. "Meeting these expectations will be essential for capitalising on the industry’s evolving needs," he said.
With these trends in motion, India’s CDMO sector stands poised to become a critical player in the global pharmaceutical supply chain, particularly as companies seek to diversify beyond traditional markets.
(ET)
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