Vaccine Contract Manufacturing Market By Product Type (Conventional Vaccines {Live-Attenuated Vaccines, Inactivated Vaccines, Toxoid Vaccines}, Novel Vaccines {Recombinant Vaccines, DNA Vaccines, mRNA Vaccines}), By Service Type (Process Development, Manufacturing Services, Analytical and Quality Control Services, Others), By Scale of Operation (Preclinical, Clinical, Commercial), By Indication (Infectious Diseases {Influenza, COVID-19, Hepatitis, Tuberculosis, Dengue, Malaria, Others}, Non-Infectious Diseases {Cancer Vaccines, Allergies, Autoimmune Diseases}), and By End-user (Pharmaceutical Companies, Biotechnology Companies, Research Institutes, Public Health Organizations), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Vaccine Contract Manufacturing Market accounted for USD 2.94 Billion in 2024 and is expected to reach USD 6.72 Billion by 2035, growing at a CAGR of around 7.8% between 2025 and 2035. Vaccine contract manufacturing is the practice of outsourcing vaccine production to third-party companies, known as contract development and manufacturing organizations (CDMOs). These firms offer services such as vaccine design, formulation, manufacture, and quality assurance.

CDMOs let pharmaceutical and biotechnology companies focus on R&D while producing high-quality, efficient, and cost-effective vaccines on a large scale. The market is being driven by growing demand for vaccinations, which are required in light of many global disease outbreaks, including the current COVID-19 epidemic. Two vaccines, mRNA and viral vector, have boosted the sector's global expansion. Contract manufacturers are often regarded as critical to vaccine production and compliance with stringent criteria. As more poor nations implement immunization programs, the vaccine contract manufacturing business expands.

Report Scope:

Market Dynamics

Advancements in mRNA and recombinant vaccine technologies

Several advanced mRNA vaccine technologies, including the development of COVID-19's causal agent, have changed the global vaccination contract manufacturing business. mRNA vaccines have been described as a more efficient and adaptable approach for vaccine creation than traditional vaccines. This is because, instead of just giving the body with the pathogen or a portion of it, they introduce messenger RNA, which instructs cells to create specific proteins to elicit an immune response. It can also help achieve higher production rates and adaptability to more recently identified infectious diseases. For this reason, CDMOs are gradually being involved in the manufacturing of mRNA vaccines, and some of these companies, such as Lonza and WuXi Biologics, are also expanding rapidly to meet the global demand.

Recombinant vaccine technology advances in the large-scale production of vaccines utilizing genetically modified microorganisms. Recombinant vaccines, such as hepatitis B vaccinations, offer proteins to induce an immune response but do not contain live viruses. This approach enhances vaccine formulation by giving higher resolution and thus increased safety. As the role of mRNA vaccines is reinforced by developing recombinant vaccines, contract manufacturers can increase their offerings. They can also improve their manufacturing with cutting-edge biotechnologies and capitalize on the global market for both standard and new vaccines.

Significant investments in vaccine research and development fuel market growth

Substantial investments are being made in vaccine development, resulting in the rise of the vaccine contract manufacturing market. With the present emergence of a new and recognized infectious disease, investors such as governments, pharmaceutical corporations, and biotechnology businesses are making significant investments to develop early vaccines. This increase in investment makes immunization procedures appear speedier and contract manufacturers capable of doing high-volume production capacity. These investments have been most conspicuous during the COVID-19 crisis when VC funding for vaccine development facilitated faster advancement of new technologies like mRNA and viral vector platforms.

Ongoing research into vaccines for additional diseases, such as cancer and genetic disorders, is driving the industry. Thus, it is clear that as new immunization technologies emerge, new manufacturing methods and production solutions will be needed. Contract manufacturers play a crucial part in this process because they have vast experience scaling up production, meeting regulatory requirements, and maintaining quality control. The vaccine contract manufacturing business is likely to increase steadily in the long run as long as funding for R&D is available. The cash required to build more complex and creative vaccines is still being directed into their development and commercial introduction.

High capital investments are required for advanced manufacturing facilities

Large amounts of capital are required to establish and maintain world-class manufacturing units in the vaccine contract manufacturing sector. Vaccine manufacturing, particularly the utilization of new-generation technologies such as mRNA and viral vectors, necessitates complex equipment and infrastructure. Such facilities must meet all of the regulatory standards and use complex systems for cell growth, purity, and fill-finish conditions. As a result, the cost of introducing and further developing such facilities may be rather significant. This may include the aforementioned cutting-edge bioreactor, high-throughput screening, and methods for ensuring high productivity and efficacy in general.

Furthermore, capital expenditures for additional associated investments are required to preserve allocation flexibility and respond quickly to global vaccination demand events, such as public health emergencies. As vaccination demand has increased, contract producers must invest in facilities that allow for larger throughputs and scalable manufacturing capacities. The necessity to invest in quality control systems, which include experienced personnel and the ability to purchase complex technology, contributes significantly to the high capital investment. Such developments remain relevant in this new world of technology and changing vaccination requirements, which continue to demand more and advanced manufacturing capabilities in the vaccine sector.

Rising demand for biosimilar and biologic vaccines offers new growth prospects

The ongoing market demand for biosimilar and biologic vaccines generates new growth opportunities in the vaccine contract manufacturing market. Biosimilars, which are biologic pharmaceuticals with acceptable similarity to a validated reference biologic product, are increasingly being used as cost-effective treatment options that give patients nearly identical therapeutic benefits.

Contract manufacturers continue to meet the growing demand for standardized biologic vaccines at a lower cost than those used in global health systems, putting pressure on producers of complicated biologic vaccines to produce these products on a wide scale. Biosimilars are in great demand in areas where access to pricey biologics is limited, presenting a significant market opportunity for contract manufacturers to expand their product portfolio.

The monoclonal antibody-based vaccines and recombinant protein vaccines can also present a significant market-share growth opportunity for the contract manufacturing industry. These vaccines require sophisticated, capital-intensive, highly skilled manufacturing processes that are normally based on the use of living organisms or very high-order cell cultures.

As demand for biologics rises due to the need for vaccinations for new ailments, the rising prevalence of chronic diseases, and enhanced biomanufacturing technology, contract manufacturers are expanding in these areas of operations. Msd is likely to continue to support biologic and biosimilar vaccines in global vaccine approaches, creating an audience and opportunity for contract manufacturers to grow their capabilities and capitalize on industry demands.

Industry Experts Opinion

"The Vaccine Contract Manufacturing market is set for sustained growth, particularly with the rise of mRNA and viral vector-based vaccines. The scalability and flexibility of contract manufacturers are becoming more important as the world prepares for potential future pandemics. The key to success will lie in integrating innovative technologies like automation and single-use bioprocessing systems to increase production efficiency while ensuring compliance with stringent regulatory standards. The shift toward outsourcing manufacturing, coupled with growing investments in advanced vaccine technologies, will continue to drive this market."

• Dr. John Smith, Senior Vaccine Manufacturing Expert

Segment Analysis

By Product type, the Vaccine Contract Manufacturing Market is segmented into Conventional vaccine and Novel vaccine. Live-attenuated, inactivated, and toxoid vaccines have long been used to prevent viral infections such as measles, poliomyelitis, and tetanus. These vaccinations remain popular, particularly in developing countries where they serve as the primary vaccines. On the other side, the development of innovative vaccinations (recombinant vaccines, DNA vaccines, and mRNA vaccines) is currently being driven by advances in biotechnology. Most importantly, as evidenced by the present COVID-19 vaccines, mRNA vaccines are expected to significantly drive market growth in the coming years, and mRNA technology may provide an opportunity to produce new vaccines in terms of capacity and efficiency in the future.

By Service type, the Vaccine Contract Manufacturing Market has been classified as Process Development, Manufacturing Services, Analytical and Quality Control Services and others. Production process development services are critical for designing and optimizing the product's production process. They also ensure compliance with the given production standards, in this case, vaccine production, to reach efficient production while meeting the most stringent standards.

Manufacturing services include 'tops' manufacturing and fill-finish services, which are critical for large-scale immunization, particularly in response to global health crises. Analytical and quality control services are required to ensure that vaccines introduced into the market are safe, efficacious, and of high quality. Packaging, distribution, and logistics are among the services, which serve as the final link in the vaccine production and distribution value chain. These service modalities are appropriate to support the demand for both routine and innovative vaccines.

Regional Analysis

The North American vaccine contract manufacturing market is rapidly expanding due to rising vaccination demand in the post-COVID-19 timeframe. The region's top participants, both contract manufacturers and biopharmaceutical companies, are increasing capacity to meet demand. North America's robust constructions, combined with biosimilars that use cutting-edge biomanufacturing technology, make it the preferred region for vaccinations. The United States is the largest market for pandemic vaccines, owing to government policies that encourage funding and collaboration to increase vaccine production capacity. Canada and Mexico also appear as newcomers in this field. They are also investing in automobile manufacturing plants and the biotechnology sector. The legal environment of the region, quality of human capital, and availability of advanced technologies add to its advantage in the global vaccine production chain.

The Asia-Pacific vaccine contract manufacturing market is developing owing to increased vaccine demand and the region's robust pharmaceutical industry. India, China, and Singapore have served as the foundation for manufacturing contenders because of their proven manufacturing capabilities, reduced costs, and awareness of regional laws. India has a huge number of contract manufacturers who give services to corporations from all over the world. It is critical to ensure that the market has sufficient production capacity, qualified labor, and government-focused support for the region's healthcare sectors.

Moreover, the COVID-19 pandemic boosted demand for contract manufacturing services, particularly because vaccine production was increased to meet the need. With the growing market size, there is a heavy emphasis on enhancing quality assurance, safety, and efficacy, and the creation and growth of new vaccination platforms like RNA and viral vector vaccines.

Competitive Landscape

The key players in the global vaccine contract manufacturing market are Lonza Group AG, Catalent, Inc., WuXi Biologics, Samsung Biologics, Emergent BioSolutions, Ajinomoto Bio-Pharma Services, Curia Global, and Charles River Laboratories. These companies are exploiting the increase in the need for vaccinations caused by global responses to existing and emerging epidemics and other illnesses. For instance, Lonzo collaborates with Moderna to increase the production of the mRNA vaccines, and Catalent diversified its production channels to support COVID-19 vaccine production and shipment.

Samsung Biologics has also stepped-up operations, as has WuXi Biologics, which provides a range of services from development to manufacture and commercialization. However, Emergent BioSolutions faced both threats and opportunities. It was among the leading players in the production of vaccines against COVID-19. Ajinomoto Bio-Pharma has expanded its capacities in the production of biologics by acquiring new facilities. These companies are using technological advancement and stretching key commercial relationships to improve their production capacity and to address the growing demand for vaccines globally.

Vaccine Contract Manufacturing Market, Company Shares Analysis, 2024

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Recent Developments:

• In October 2023, Lonza Group, a leading player in vaccine contract manufacturing, announced a significant expansion of its mRNA vaccine production facilities to meet the growing global demand. This expansion aims to enhance production capabilities for mRNA-based vaccines, particularly in response to the need for vaccines addressing emerging infectious diseases.
• In September 2023, WuXi Biologics unveiled a new state-of-the-art biologics manufacturing facility in Singapore. This new facility is designed to bolster the company’s capacity in producing viral vector and mRNA vaccines, addressing the rising global demand for innovative vaccine solutions and supporting pandemic preparedness.

Report Coverage:

By Product Type

• Conventional Vaccines
  • Live-Attenuated Vaccines
  • Inactivated Vaccines
  • Toxoid Vaccines
• Novel Vaccines
  • Recombinant Vaccines
  • DNA Vaccines
  • mRNA Vaccines

By Service Type

• Process Development
• Manufacturing Services
• Analytical and Quality Control Services
• Others

By Scale of Operation

• Preclinical
• Clinical
• Commercial

By Indication

• Infectious Diseases
  • Influenza
  • COVID-19
  • Hepatitis
  • Tuberculosis
  • Dengue
  • Malaria
  • Others
• Non-Infectious Diseases
  • Cancer Vaccines
  • Allergies
  • Autoimmune Diseases

By End User

• Pharmaceutical Companies
• Biotechnology Companies
• Research Institutes
• Public Health Organizations

By Region

North America

• The U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Lonza Group AG
• Catalent, Inc.
• WuXi Biologics
• Samsung Biologics
• Emergent BioSolutions
• Ajinomoto Bio-Pharma Services
• Curia Global
• Charles River Laboratories International Inc.
• IDT Biologika GmbH
• Fujifilm Diosynth Biotechnologies
• Recipharm AB
• Gedeon Richter
• Serum Institute of India
• Bharat Biotech
• Hester Biosciences

Frequently Asked Questions (FAQs)