Topical Drugs CDMO Market Size to Expand USD 136.71 Billion by 2034

The global topical drugs CDMO market size is calculated at USD 51.62 billion in 2025 and is expected to reach around USD 136.71 billion by 2034, growing at a CAGR of 11.43 % for the forecasted period.

Ottawa, Sept. 18, 2025 (GLOBE NEWSWIRE) -- The global topical drugs CDMO market size was valued at USD 46.32 billion in 2024 and is predicted to expand around USD 136.71 billion by 2034, rising at a 11.43 % CAGR, a study published by Towards Healthcare a sister firm of Precedence Research.

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Key Takeaways

Asia Pacific led the market in 2024.
Latin America is expected to grow at a notable CAGR in the coming years.
North America is expected to grow steadily during 2025-2034.
By product type, the semi-solid formulations segment was dominant in the topical drugs CDMO market in 2024.
By product type, the liquid formulations segment is expected to witness significant expansion in the studied years.
By service type, the contract manufacturing segment held a major revenue share of the market in 2024.
By service type, the contract development segment is expected to grow notably during 2025-2034.
By end-use, the pharmaceutical companies segment led the market in 2024.
By end-use, the biopharmaceutical companies segment is expected to grow at a notable CAGR in the predicted timeframe.

Market Overview & Potential

Drugs that are intended to be applied locally on the body, where CDMOs are facilitating a comprehensive suite of services to support pharmaceutical and biopharmaceutical firms in developing and producing these kinds of drugs. The global topical drugs CDMO market is leveraging various applications, like dermatology (e.g., psoriasis, eczema), pain management, and anti-infectives, with a variety of formulations. Nowadays, the market is emphasizing drug delivery systems, including microneedles and nanocarriers to enhance penetration, and the application of 3D skin models for early-stage testing.

What are the Key Drivers Involved in the Market Expansion?

Currently, various pharmaceutical and biotechnology companies are dependent on CDMO for acquiring expertise, minimizing expenses, and speeding up product development and manufacturing. The global topical drugs CDMO market is further propelled by the expanding shift towards non-invasive, locally acting therapies that facilitate convenience and minimal systemic side effects, with accelerating demand for accessible topical formulations in both prescription and over-the-counter sectors. Besides this, consistent developments in nanotechnology, liposomal formulations, and microemulsions that further boost the efficacy, absorption, and patient compliance of topical drugs,

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What are the Trends in the Topical Drugs CDMO Market?

The pharmaceutical industry is focusing on the development of novel therapeutics by partnering with other robust companies.

In September 2025, Almirall and Absci to expand their collaboration to expand AI-enabled drug discovery for skin diseases.
In July 2025, LEO Pharma and Boehringer Ingelheim entered into a partnership to commercialise and advance the development of Boehringer’s generalised pustular psoriasis (GPP) drug Spevigo (spesolimab).
In July 2025, Ligand Pharmaceuticals Incorporated partnered with Pelthos Therapeutics Inc. to commercialize the launch of ZELSUVMI™ (berdazimer) topical gel 10.3%, the first and only FDA-approved at-home treatment for molluscum contagiosum.

What is the Emerging Challenge in the Market?

The global topical drugs CDMO market is facing limitations due to the stricter, expensive, and regionally diverse regulatory guidelines for topical drugs, which require extensive investment in compliance and analytical validation. Alongside, a requirement to transition rapidly from small-scale R&D to larger batch sizes for clinical studies is creating barriers in traditional formulation and engineering roles.

Regional Analysis

How did Asia Pacific Dominate the Market in 2024?

In 2024, the Asia Pacific accounted for the biggest revenue share of the topical drugs CDMO market. A prominent driver is a rise in several cases of skin concerns is boosting innovations in topical drugs. Whereas, many regions are emphasizing the developments in the healthcare systems with expanded access, especially in China and India are impacting the overall market progression. These countries are also experiencing growth in disposable incomes, and outsourcing by pharmaceutical companies that are looking for specialized manufacturing expertise is fueling the ASAPs market expansion.

For instance,

In June 2025, Corvus Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, partnered with Angel Pharmaceuticals Ltd., which has been approved by the Center for Drug Evaluation (CDE) of the China National Medical Products Administration (NMPA).

What Made Latin America Grow Notably in the Market in 2024?

In the upcoming era, Latin America is predicted to expand significantly in the topical drugs CDMO market. Due to the rising emphasis on dermatological and transdermal treatments, and developments in drug delivery systems for topical applications, like advanced creams, ointments, gels, and foams, which boost drug absorption and efficiency, propelling demand for specialized CDMO services in this region. Moreover, Brazil’s ongoing research activities are developing and evaluating new semi-solid formulations, like optimized tacrolimus creams and gels, for treating atopic dermatitis.

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Segmental Insights

By product type analysis

Why did the Semi-Solid Formulations Segment Lead the Market in 2024?

The semi-solid formulations segment held the dominant share of the topical drugs CDMO market in 2024. Diverse formulations are evolved to apply in external concerns, enabling localized treatment while reducing the side effects often associated with oral medications. Nowadays, the widespread patients are preferring semi-solid formulations, like creams, gels, and ointments, due to their ease of application and quicker absorption. Moreover, other developments of nano-emulsions have accelerated the bioavailability of active ingredients, which makes semi-solid formulations more efficacious in treating many issues, such as chronic pain and inflammatory diseases.

Eventually, the liquid formulations segment is anticipated to expand at a notable CAGR in the coming years. The emerging patient preferences for feasible solutions and innovations in delivery systems, like sprays and advanced suspensions, are fueling the adoption of novel liquid formulations. A major development in microencapsulation is in which active ingredients are enclosed in tiny spheres to offer sustained release, expanding the medication's effect, and probably lowering side effects, which is a widely transforming step in the market. Consistent breakthroughs in excipient technology and the application of permeation enhancers (like fatty acids and surfactants) are being used to enhance drug absorption, while innovative solutions, including pH-responsive and in situ gelling systems, provide customized drug release profiles.

By service type analysis

How did the Contract Manufacturing Segment Dominate the Market in 2024?

In the topical drugs CDMO market, the contract manufacturing segment captured the biggest share in 2024. An expanding outsourcing trend is supporting the development of this type of service within companies. Implementation of sophisticated manufacturing technologies for topical drugs by these kinds of services is imposing nanoencapsulation, continuous manufacturing, and 3D printing, which enhance product efficiency and consistency. As well as the use of continuous manufacturing, which is combined with process analytical technology (PAT) for real-time quality control, is influencing the provision of contract manufacturing services.

The contract development segment is estimated to witness significant expansion. This service mainly incorporates formulation development (creams, ointments, gels, foams, sprays, suspensions), stability testing, analytical services, and large-scale manufacturing. The emergence of microneedles and iontophoresis for boosting drug absorption, integration of AI in formulation, and development of advanced delivery systems, particularly ethosomes, are assisting in the overall market growth. The broader range of clients is greatly looking for CDMOs that further offer a full range of services, from feasibility studies and formulation development to clinical supply manufacturing and commercial production.

By end-use analysis

What Made the Pharmaceutical Companies Segment Dominant in the Market in 2024?

The pharmaceutical companies segment registered dominance in the topical drugs CDMO market in 2024. Many leading companies, such as Johnson & Johnson, AbbVie, Cosmo Pharmaceuticals, Glenmark Pharmaceuticals, and Bausch Health Companies, are focusing on innovations in topical drugs. Other approaches, comprising nano-formulations and microneedles for accelerated delivery and penetration, with a trend towards specialty companies focusing on new drugs like JAK inhibitors, are transforming the development of pharmaceutical companies.

On the other hand, the biopharmaceutical companies segment is predicted to expand significantly during 2025-2034. Specific biologics, including antibody-drug conjugates or topical gene therapies for skin concerns, are fueling the developments in biopharmaceutical companies. Ongoing research efforts on delivering genetic material directly to skin cells to treat genetic disorders or boost immune responses often employ specialized delivery vectors is also impacting the comprehensive company's progress. Currently, these companies are exploring transdermal delivery solutions consisting of monoclonal antibodies and other protein-based therapies.

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Recent Developments in the Topical Drugs CDMO Market

In April 2025, SKNV, a company in dermatologic innovation and custom prescription medications, launched Kefunova Cream (Fluorouracil 5% / Calcipotriene 0.005%), a new prescription-only topical therapy to treat actinic keratosis (AK) and superficial basal cell carcinoma (sBCC).
In November 2024, Purple Life Sciences, a company focused on exploring natural ingredients for medical treatment, unveiled PSOCARE, a healing oil for psoriasis.

Topical Drugs CDMO Market Key Players

Lubrizol Life Science
Cambrex Corporation
Contract Pharmaceuticals Limited
Bora Pharmaceutical CDMO
Ascendia Pharmaceuticals
Pierre Fabre group
Piramal Pharma Solutions
DPT Laboratories, LTD
MedPharm Ltd
PCI Pharma Services

Browse our Top Selling Insights:

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The cell and gene therapy market is projected to surge from USD 21.82 billion in 2024 to USD 187.44 billion by 2034, achieving a remarkable CAGR of 24%. The growth is fueled by an increasing number of clinical trials and product approvals in the sector.

The home healthcare market is expected to grow from USD 226.92 billion in 2025 to USD 476.80 billion by 2034, at an annual growth rate of 8.6%, supported by rising demand for in-home patient care solutions.

The global pharmaceutical market is estimated at USD 1,573.20 billion in 2023 and is projected to reach USD 3,033.21 billion by 2034, expanding at a CAGR of 6.15% from 2024 to 2034, driven by innovation and rising healthcare needs.

The cold storage market is anticipated to increase from USD 172.98 billion in 2025 to USD 479.69 billion by 2034, growing at a CAGR of 12%, reflecting the rising demand for temperature-sensitive pharmaceutical and biotechnological products.

The clinical trials market is expected to expand from USD 54.39 billion in 2024 to USD 94.68 billion by 2034, at a CAGR of 5.7%, fueled by the rising number of clinical studies and global research initiatives.

The medical devices market is projected to grow from USD 586.2 billion in 2025 to USD 1,022.50 billion by 2034, with a CAGR of 6.34%, driven by technological advancements and favorable regulatory policies.

The electronic health records (EHR) market is forecasted to grow from USD 28.60 billion in 2024 to USD 43.66 billion by 2034, registering a CAGR of 4.32%, reflecting the increasing adoption of digital healthcare solutions.

The pharmaceutical CDMO (Contract Development and Manufacturing Organization) market is expected to rise from USD 146.05 billion in 2023 to USD 315.08 billion by 2034, expanding at a CAGR of 7.24%, driven by outsourcing trends and increasing demand for drug development services.

The digital health market is projected to grow from USD 335.51 billion in 2024 to USD 1,080.21 billion by 2034, achieving a CAGR of 13.1%, fueled by technological innovations and increasing demand for digital healthcare solutions.

Segments Covered in The Report

By Product Type

Semi-solid Formulations
- Creams
- Ointments
- Gel
- Others
Liquid Formulations Drugs
Solid Formulations
Transdermal Products

By Service Type

Contract Development
Contract Manufacturing

By End-use

Pharmaceutical Companies
Biopharmaceutical Companies
Others

By Region

North America
- U.S.
- Canada
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
Latin America
- Brazil
- Mexico
- Argentina
Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait

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About Us

Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics, with a strong emphasis on life science research. Dedicated to advancing innovation in the life sciences sector, we build strategic partnerships that generate actionable insights and transformative breakthroughs. As a global strategy consulting firm, we empower life science leaders to gain a competitive edge, drive research excellence, and accelerate sustainable growth.

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