Japan Contract Development And Manufacturing Organization Market (By Product: API, Drug Product; By Workflow: Clinical, Commercial; By Application) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030

The Japan contract development and manufacturing organization market was valued at USD 11.03 billion in 2021 and it is predicted to surpass around USD 19.71 billion by 2030 with a CAGR of 6.66% from 2022 to 2030.

Report Highlights

• The API segment accounted for 80.92% revenue share of the Japan CDMO market in 2021. 
• The oral solid dose segment accounted for the highest share of 48.16% in the market. 
• Based on workflow, the commercial segment dominated with the largest revenue share of 88.18% in 2021. 
• The clinical segment is expected to grow at the fastest CAGR of 7.3% during the forecast period. 
• The oncology segment accounted for 35.08% of the revenue share in 2021 and is projected to maintain its dominance over the forecast period.
• Glaucoma is expected to register the second-fastest CAGR of 7.14% during the forecast period.

The market is anticipated to expand at a CAGR of 6.7% from 2022 to 2030. The main drivers of this market are rising investment by contract development and manufacturing organizations (CDMOs) for capacity expansion, a high geriatric population and growing disease burden in Japan, and low costs associated with outsourcing drug manufacturing and development services.

The COVID-19 pandemic boosted the demand for the CDMO market. Several CDMOs in Japan had tried to improve their capability by expanding their facilities even during the pandemic. For instance, in August 2020, Bushu Pharmaceuticals expanded its facility in the Misato plant in Japan to be dedicated to the storage of temperature-controlled sterile drugs and biologics. Similarly, in July 2020, CMIC Group established a new facility in Japan dedicated to processing development and GMP manufacturing of antibody drugs. Such initiatives by CDMOs in the country are expected to have a positive impact on the market.

The market players are continuously engaging in major strategic initiatives like expanding their facilities, collaborating, partnerships, new service launches, and mergers & acquisitions. For instance, in May 2020, Catalent, a market leader in clinical supply services, announced plans to buy a clinical packaging facility from Teva-Takeda Pharmaceuticals, Nagoya Aichi, Japan. By making this purchase, a new clinical GMP production and distribution hub will be created to assist clinical research. Furthermore, in July 2022, Catalent announced that it would be constructing a high-speed blister packaging line in Shiga, Japan. This will be in addition to its automated fill-and-finish production facility.

Scope of The Report

Product Insights

The API segment accounted for 80.92% revenue share of the Japan CDMO market in 2021. Growing demand for new drugs in Japan and the high disease population in the country are supporting the segment's market growth. The increase in the interest of the government in improving the adoption of generics and the continuous expansion of facilities by market players are further supporting the segment’s growth. For instance, in March 2022, Sumitomo Chemical Company, Limited expanded its facility in Japan to improve its capacity for manufacturing API and intermediates for small-molecule drugs.

Based on drug product, the market is segmented into oral solid, semi-solid, liquid, and others. The oral solid dose segment accounted for the highest share of 48.16% in the market. The liquid dose segment is anticipated to experience the highest CAGR of 8.2% from 2022 to 2030. The market is expanding as a result of a growing demand for biopharmaceuticals such as biologics, biosimilars, and cell and gene therapy.

Workflow Insights

Based on workflow, the commercial segment dominated with the largest revenue share of 88.18% in 2021. The growing demand for generic drugs in the country, and the increase in the approval of biosimilar drugs and regenerative medicines are some of the factors contributing to the segment’s growth. The disease burden contributing to the demand for high consumption of drugs is further supporting the growth.

However, the clinical segment is expected to grow at the fastest CAGR of 7.3% during the forecast period. This segment includes CDMO services for clinical trials, such as manufacturing dosages for clinical trials and other clinical trial supplies. Japan has a significant number of pharmaceutical companies. These pharmaceutical companies are getting clinical trial dosage manufacturing outscored by CDMO to improve their profit margin.

Application Insights

The oncology segment accounted for 35.08% of the revenue share in 2021 and is projected to maintain its dominance over the forecast period owing to the high cancer burden in the country. Approval of regenerative products and virotherapy for cancer treatment is further supporting the market's growth. For instance, according to a report published by the World Health Organization, the number of new cases in Japan was 10,286,658 in 2020, of which 599,243 cases were found in males and 429,415 cases were found in females. Based on application, the Japanese CDMO market is categorized into hormonal, glaucoma, cardiovascular disease, diabetes, and other segments.

Glaucoma is expected to register the second-fastest CAGR of 7.14% during the forecast period. This is due to the rising number of the geriatric population residing in Japan is expected to promote the demand for glaucoma drugs in the country and thus support market growth. The WHO states that glaucoma is the world's second-largest cause of blindness. The growing need for lowering the disease burden of glaucoma is further expected to boost the industry’s growth in Japan during the forecast period.

Key Players

• CordenPharma International
• WuXi AppTec
• Cambrex Corporation
• Recipharm AB
• Lonza
• Catalent, Inc.
• Laboratory Corporation of America Holdings
• Thermo Fisher Scientific, Inc.
• Samsung BioLogics
• FUJIFILM Corporation
• Sumitomo Chemical Company, Limited
• CMIC HOLDINGS Co., LTD.
• Bushu Pharmaceuticals Ltd.
• Nipro Corporation

Market Segmentation

• By Product Outlook

• API

• Type

• Traditional Active Pharmaceutical Ingredient (Traditional API)
• Highly Potent Active Pharmaceutical Ingredient (HP-API)
• Antibody Drug Conjugate (ADC)
• Others
• Synthesis
• Synthetic

• Solid
• Liquid
• Biotech
• Drug
• Innovative
• Generic
• Manufacturing
• Continuous Manufacturing
• Batch Manufacturing
• Drug Product
• Oral Solid Dose
• Semi-Solid Dose
• Liquid Dose
• Others
• By Workflow Outlook     
• Clinical
• Commercial
• By Application Outlook
• Oncology
• Hormonal
• Glaucoma
• Cardiovascular Disease
• Diabetes
• Others