Vaccine Contract Manufacturing Market (By Vaccine Type: Attenuated, Inactivated; By Workflow: Downstream, Upstream; By Application: Human, Veterinary) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global vaccine contract manufacturing market size was valued at USD 2.17 billion in 2023 and it is predicted to surpass around USD 4.62 billion by 2033 with a CAGR of 7.85% from 2024 to 2033.

Key Pointers

• North America dominated the market with the largest market share in 2023.
• Asia Pacific is expected to expand at the highest CAGR from 2024 to 2033.
• By Vaccine Type, the attenuated vaccines segment held the largest revenue share of 30% in 2023.
• By Vaccine Type, the DNA vaccines segment is expected to grow at the fastest CAGR 9.53% from 2024 to 2033.
• By Workflow, the downstream segment generated the maximum market share of 51% in 2023.
• By Workflow, the upstream segment is anticipated to grow at the noteworthy CAGR of 8.04% over the forecast period.
• By Application, the human-use segment captured the maximum market share of 93% in 2023.

Vaccine Contract Manufacturing Market Growth Factors

The growth of the vaccine contract manufacturing market is propelled an increasing prevalence of infectious diseases worldwide drives the demand for vaccines, necessitating efficient manufacturing solutions. Secondly, rising investments in vaccine research and development initiatives contribute to the expansion of contract manufacturing services. Additionally, the emergence of novel vaccine technologies, such as mRNA vaccines, stimulates demand for specialized manufacturing capabilities offered by contract manufacturing organizations (CMOs). Moreover, the COVID-19 pandemic has underscored the importance of resilient vaccine manufacturing capacities, leading to heightened focus and investments in contract manufacturing services.

Vaccine Contract Manufacturing Market Trends:

• Increasing Outsourcing: Pharmaceutical companies are increasingly outsourcing vaccine production to contract manufacturing organizations (CMOs), driven by the complexity of vaccine manufacturing processes and the need for flexible production capacities.
• Adoption of Advanced Technologies: There is a growing adoption of advanced manufacturing technologies within the vaccine contract manufacturing sector, including single-use systems and process intensification, to enhance efficiency and reduce production costs.
• Focus on Flexibility: CMOs are placing greater emphasis on flexibility in manufacturing operations to accommodate fluctuating demand and respond quickly to emerging infectious diseases or vaccine shortages.
• Regulatory Compliance: Ensuring compliance with stringent regulatory requirements across different regions remains a significant trend in the vaccine contract manufacturing market, with a focus on maintaining quality standards and meeting safety regulations.

Vaccine Contract Manufacturing Market Challenges:

• Quality Control Issues: Maintaining stringent quality control throughout the vaccine manufacturing process poses a challenge, as any deviation from quality standards can have serious implications for vaccine safety and efficacy.
• Cold Chain Logistics: The requirement for maintaining cold chain logistics throughout the vaccine manufacturing and distribution process adds complexity and cost, as vaccines often require specific temperature-controlled environments to preserve their potency.
• High Upfront Costs: The establishment of vaccine manufacturing facilities involves substantial upfront costs, including investment in specialized equipment, infrastructure, and skilled personnel, which can be a barrier to entry for new players in the market.
• Capacity Constraints: Meeting the increasing global demand for vaccines while ensuring sufficient manufacturing capacity poses a challenge, particularly during pandemics or outbreaks when demand surges rapidly and strains existing production capabilities.

Vaccine Type Insights

In 2023, the attenuated vaccines segment took the lead in the market, boasting the largest revenue share at 30%. These vaccines are relatively simple to develop for certain viruses, thus as cases of viral illnesses rise, this segment is projected to experience a notable Compound Annual Growth Rate (CAGR) during the forecast period. Moreover, due to advancements in manufacturing technology, the risk of attenuated vaccines reverting to a disease-producing state is exceedingly low or non-existent, further bolstering this segment's dominance.

On the other hand, the DNA vaccines segment is poised to witness the swiftest CAGR of 9.53% over the forecast period. DNA vaccines hold promise for lucrative growth prospects in the future, with various types currently undergoing human testing. Ongoing experiments and investigations to assess the effectiveness and safety of these vaccines are anticipated to propel market growth. The advent of DNA vaccines is expected to bring about a revolution in immunization practices.

Workflow Insights

In 2023, the downstream segment asserted its dominance in the market, commanding the largest revenue share of 51%. This segment is anticipated to uphold its leading position throughout the forecast period. The production of vaccines necessitates skilled personnel for both upstream and downstream processing, and contract manufacturing organizations (CMOs) are playing a crucial role by offering expertise and cutting-edge technologies to streamline the entire production chain. Downstream processing, encompassing product recovery and purification steps, demands meticulous attention and significant capital investment. Consequently, the segment's growth has been propelled by the substantial need for advanced biotechnological tools, capital, and skilled personnel to ensure the successful recovery of the vaccine as the final product.

Meanwhile, the upstream segment is poised to witness the fastest Compound Annual Growth Rate (CAGR) of 8.04% over the forecast period. The upstream workflow involves developing scalable production processes and high-titer methods to express various target molecules utilizing cell culture systems, microbial fermentation, transgenic sources, and insect cells. This encompasses process transfer-in and development, supply and toxicology study supply batches, recovery of soluble or solid materials, cell disruption, and process monitoring. Ongoing advancements in recombinant technologies and process control strategies are anticipated to fuel growth within this segment.

Application Insights

In 2023, the human-use segment took the lead in the market, capturing the largest revenue share of 93%. According to a CDC report, vaccinations administered to young children and infants over the past two decades are projected to prevent 322 million illnesses and save 732,000 lives in the U.S. in the coming year. Various programs initiated by government bodies and healthcare agencies aim to meet the increasing demand for vaccines. The World Health Organization (WHO) collaborates with nations globally to emphasize the importance of vaccines and immunization, ensuring that governments receive essential guidance and technical assistance to establish high-quality immunization programs.

Moreover, vaccination plays a crucial role in enhancing veterinary health and preventing animal diseases. This is expected to drive significant utilization of contract manufacturing organizations (CMOs) for animal inoculation production. Vaccination reduces the reliance on antibiotics for treating animals. Additionally, with the expanding human population, the demand for animal-based food continues to rise. Consequently, the importance of vaccination in the meat-production industry is anticipated to grow as well. These factors are likely to fuel the growth of the segment.

Regional Insights

The vaccine contract manufacturing market in North America holds the largest share, primarily due to extensive vaccine manufacturing activities in the region, alongside the increasing presence of numerous biopharmaceutical facilities. Regulations governing the development of vaccines and other biologics in North America, particularly in the U.S. and Canada, are expected to have a significant impact on the advancement of contract manufacturing organizations (CMOs) and contract research organizations (CROs) in the industry.

Meanwhile, the vaccine contract manufacturing market in Asia Pacific is projected to witness a lucrative compound annual growth rate (CAGR) over the forecast period. This growth can be attributed to favorable regulatory changes, improving infrastructure, and a large pool of potential study subjects.

Vaccine Contract Manufacturing Market Key Companies

• Lonza
• FUJIFILM Diosynth Biotechnologies
• Ajinomoto Co., Inc.
• Merck KGaA
• Catalent, Inc
• IDT Biologika GmbH
• Curia Global, Inc.
• ICON plc.
• Cytovance Biologics (Hepalink)
• Syngene International Limited

Recent Developments

• In June 2023, FUJIFILM Corporation unveiled the opening of its commercial office in Tokyo. The objective of this facility is to offer improved sales and customer support services for contract development and manufacturing services focusing on biologics and advanced therapies to pharmaceutical and biotechnology companies based in Asia.
• In December 2023, Ajinomoto Co., Inc. completed the acquisition of shares of All Forge Biologics Holdings, LLC. This move is aimed at bolstering production capabilities for the manufacturing and development of biologics. The expansion is anticipated to stimulate growth and innovation within Japan's biologics industry.

Vaccine Contract Manufacturing Market Segmentations:

By Vaccine Type

• Attenuated
• Inactivated
• Subunit-based
• Toxoid-based
• DNA-based

By Workflow

• Downstream
  • Fill & Finish Operations
  • Analytical & QC Studies
  • Packaging
• Upstream
  • Mammalian Expression Systems
  • Bacterial Expression Systems
  • Yeast expression Systems
  • Baculovirus/Insect Expression Systems
  • Others

By Application

• Human Use
• Veterinary

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa