According to Precedence Research, the global topical drugs CDMO market size was valued at USD 46.62 billion in 2024 and is expected to reach around USD 136.39 billion by 2034, growing at a CAGR of 11.33% from 2025 to 2034.
Ottawa, Feb. 10, 2025 (GLOBE NEWSWIRE) — In terms of revenue, the worldwide topical drugs CDMO market is predicted to increase from USD 51.79 billion in 2025 to approximately USD 136.39 billion by 2034, accelerating a CAGR of 11.33% from 2025 to 2034. The Asia Pacific topical drugs CDMO market size reached USD 17.09 billion in 2025 and is representing a healthy CAGR of 11.50% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
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Topical Drugs CDMO Market Highlights:
- The worldwide topical drugs CDMO market was estimated at $46.62 billion in 2024.
- The market is projected to grow to $136.39 billion by 2034.
- The market is expected to grow at a compound annual growth rate (CAGR) of 11.33% from 2025 to 2034.
- Asia-Pacific dominated the market with the largest market share of 33% in 2024.
- Latin America is projected to grow at a double-digit of CAGR of 12.1% during the forecast period.
- The semi-solid formulations segment accounted for a major market share of 67% in 2024.
- The liquid formulations segment is expected to grow at a notable CAGR of 11.7% during the forecast period.
- The contract manufacturing segment has held the maximum market share of 69% in 2024.
- The contract development segment is expanding at a solid CAGR of 12.4% during the forecast period.
- The pharmaceutical companies segment contributed the biggest market share of 41% in 2024.
- The biopharmaceutical companies segment is growing at a CAGR of 11.7% during the forecast period.
Market Overview and Industry Potential
The topical drugs CDMO refers to the services offered by the contract development and manufacturing organizations to develop and manufacture topical pharmaceutical drugs. These CDMO services fulfill the needs of the biotechnology and pharmaceutical industries. The assistance is provided regarding drug development, manufacturing processes, and commercialization of drugs.
The growth of the aesthetic and cosmetic industries surged the demand for topical drugs which also drives the need for CDMO services. The products include skin-lightening agents, topical anti-aging creams, and scar reduction treatments that are gaining huge acceptance in the topical drugs CDMO market. Moreover, topical drugs provide benefits for wound healing, pain management, and systemic conditions.
They offer better treatments and efficient outcomes. The need for enhanced outsourcing has also increased. The other services provided by these CDMOs include research and development, and clinical trial material production. The principal product types of topical drugs are solid, semi-solid, liquid, and transdermal products which include ointments, pastes, and gels designed for topical applications. The leading industries contributing to the growth of the topical drugs CDMO market are Lubrizol Life Science, Bora Pharmaceutical CDMO, Cambrex Corporation, etc.
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Role of Artificial Intelligence in the Topical Drugs CDMO Market
Artificial intelligence showcases several applications in drug discovery which include drug repurposing, de novo drug design, biomarker discovery, and personalized medicine. AI can also identify interactions between drugs that are designed to treat the same or different diseases resulting in adverse reactions or altered effects. Additionally, machine learning algorithms, deep learning techniques, data integration and analysis, virtual screening, and molecular modeling also play major roles in drug discovery.
The integration of AI in medicinal chemistry allows scientists to predict the efficacy and toxicity of potential drug compounds. AI can also analyze large datasets of known drug interactions and identify patterns and trends. Machine learning algorithms can precisely and accurately predict the interactions between novel drug pairs.
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Major Trends in the Topical Drugs CDMO Market:
Mergers of the Leading Platforms:
A collaboration between QualDerm and Pinnacle Dermatology established A Skin and Aesthetics Wellness Family. In January 2024, Schweiger Dermatology announced the acquisition of United Skin Specialists for the expansion of its geographic presence in the Midwest.
At this time, there are more than 35 dermatology platforms that are supported by private equities across 20 states, and the number is expected to grow more significantly in the coming years. There are successful mergers of several companies like Platinum Dermatology Partners and West Dermatology, Waters Edge Dermatology and Riverchase Dermatology to form Aqua Dermatology, etc. Additionally, there is a recapitalization of Epiphany Dermatology. CI Capital sold the platform to Leonard Green & Partners and there is a sale of DOCS Dermatology from Sheridan Capital Partners to Skyknight.
Increased Focus of Dermatology Platforms on Improving Skin Health and Adding Plastic Surgery:
The excellent dermatology platforms like Forefront, DermCare, and QualDerm are making efforts to incorporate plastic surgery, aesthetics practices, medspa, etc. for the expansion of their services and offerings, and the enhancement of their potential to serve patients with aesthetic skin health and medical needs.
The private equities focus on acquiring or partnering with medical aesthetics practices and plastic surgery. Several platforms include Cosmetic Physician Partners, MedSpa Partners which is supported by Persistence Capital Partners, Skin Spirit supported by KKR, and the newly invented Ascend Plastic Surgery Partners supported by Sheridan Capital Partners.
Topical Drugs CDMO Market Report Coverage
| Report Coverage | Details | |
| CAGR 2025-2034 | 11.33% | |
| Market Size in 2025 | USD 46.62 Billion | |
| Market Size in 2025 | USD 51.79 Billion | |
| Market Size by 2034 | USD 136.39 Billion | |
| Leading Region in 2024 | Asia Pacific | |
| Historic Period | 2020 to 2023 | |
| Base Year | 2024 | |
| Forecast Period | 2025 to 2034 | |
| Segments Covered | Product Type, Service, End-use, and Regions | |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa | |
Key Regional Analysis:
Asia Pacific Topical Drugs CDMO Market Size 2025 to 2034
The Asia Pacific topical drugs CDMO market size was USD 15.38 billion in 2024 and is estimated to grow from USD 51.79 billion in 2025 to USD 45.69 billion by 2034. The market is poised to grow at a solid CAGR of 11.50% between 2025 and 2034 by holding 33% of market share in 2024.
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Asia Pacific dominated the topical drugs CDMO market in 2023 due to the cost-efficiency of topical drugs in countries like China and India and offerings like cost-effective manufacturing solutions. The region is leading due to the Asia-Pacific countries’ lower operational and labor costs. These benefits make the countries preferred locations for pharmaceutical companies looking for outsourcing for topical drug production.
The countries also look for CDMOs for substantial cost savings. The rising demand for innovative medications and healthcare needs also propels the regional market’s growth. The strategic collaborations between companies also boost the market’s growth.
- In February 2024, Cosette Pharmaceuticals announced the approval for the Abbreviated New Drug Applications (ANDA) from the U.S. Food and Drug Administration (USFDA) for the RECTIV® (nitroglycerin) ointment which is the first generic version.
- In December 2024, Akums Drugs and Pharmaceuticals Ltd., India’s largest CDMO, signed a licensing agreement with Caregen Co. Ltd. to launch pharmaceuticals, nutraceuticals, and differentiated topical and injectable cosmeceuticals, including advanced HairCeuticals and SkinCeuticals, designed to meet the unique needs of Indian consumers.
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Latin America is expected to be the fastest-growing in the topical drugs CDMO market during the forecast period due to the economic development in this region. The rising disposable income enables individuals to afford specialized cosmetics, dermatology products, and topical medications.
Brazil leads in this market by showcasing its strong beauty in cosmetic industries and the prominent demand for topical products for both cosmetic and therapeutic purposes. The growth of aesthetic and cosmetic industries and the growing demand for products including skin-lightening agents, topical anti-aging creams, and scar reduction treatments are accelerating the regional market’s growth significantly.
- In July 2024, Tergus Pharma merged with MedPharm, based in the UK, specializing in developing mucosal membranes, dermatology, and other products.
Topical Drugs CDMO Market Segments Outlook:
Product Type Outlook
The semi-solid formulations segment dominated the topical drugs CDMO market in 2024 due to the huge adoption of topical products like creams, gels, ointments, etc. by potential consumers all across the world. The rising approvals for semi-solid topical drugs in recent years also drive the growth of this segment. The increased demand for outsourcing from topical drugs CDMOs by the U.S. Food and Drug Administration (USFDA) accelerates this segmental growth noticeably.
The liquid formulations drugs segment is expected to be the fastest-growing in the topical drugs CDMO market during the forecast period. This segmental growth is attributed to the huge adoption of liquid formulations including suspensions and solutions. These products are produced on a large scale by pharmaceutical companies due to their non-invasive and convenient drug delivery potential through the skin.
The suitability of these formulations for several therapeutic indications boosts this segmental growth. Moreover, the significant investments in R&D, drug delivery technologies, and the rising shift towards personalized medicine contribute to the expanding pipeline of liquid formulation topical drugs. The pharmaceutical companies prefer topical drugs CDMO services to manage the development costs which leads to the growth of the market.
Service Outlook
The contract manufacturing segment dominated the topical drugs CDMO market in 2023 due to the rising importance of topical drugs CDMOs to the industries. The potential of these CDMOs to bring specialized expertise and knowledge to the production, manufacturing, formulation, etc. drives this segmental growth. These services ensure regulatory compliance and maintain high-quality manufacturing processes. The outsourcing with CDMOs provides cost-effective solutions to the industries. The CMOs can enhance economies of scale by reducing production costs.
The contract development segment is expected to grow at the fastest rate in the topical drugs CDMO market during the forecast period due to the rising demand for innovative expertise and technology in the development processes of topical drugs. The CDMOs provide specialized knowledge regarding the preferred choices of drug development processes. Investments in R&D for topical drugs also contribute to the significant segmental growth in this market.
End User Outlook
The pharmaceutical companies dominated the topical drugs CDMO market in 2023 due to the rising investments by pharmaceutical companies to develop innovative topical drugs. The increasing number of regulatory approvals for several topical products by pharmaceutical companies contributes to the significant demand for outsourced services.
The biopharmaceutical companies segment is expected to witness a remarkable growth rate in the topical drugs CDMO market during the forecast period. This segmental growth is attributed to the rising number of biopharmaceutical companies and the huge investments in the development and production of topical drugs for various medical conditions. The major rationales including the reduced systemic side effects, targeted drug delivery, and the growing demand for non-invasive treatment options contribute to the success of these investments.
Browse More Insights from Precedence Research:
- Pharmaceutical CDMO Market: The global pharmaceutical CDMO market size is estimated at USD 184.90 billion in 2024 and is anticipated to reach around USD 368.70 billion by 2034, expanding at a CAGR of 7.2% between 2024 and 2034.
- U.S. Pharmaceutical CDMO Market: The U.S. pharmaceutical CDMO market size accounted for USD 40.52 billion in 2024 and is expected to exceed around USD 83.25 billion by 2034, growing at a CAGR of 7.50% from 2024 to 2034.
- Veterinary CRO And CDMO Market: The global veterinary CRO and CDMO market size was estimated at USD 7.13 billion in 2024 and is anticipated to reach around USD 15.98 billion by 2034, expanding at a CAGR of 8.40% from 2025 to 2034.
- Biologics CDMO Market: The global biologics CDMO market size was estimated at USD 21.96 billion in 2024 and is anticipated to reach around USD 92.37 billion by 2034, growing at a solid CAGR of 15.45% from 2025 to 2034.
- Personal Care CMO and CDMO Market: The global personal care CMO and CDMO market size is worth around USD 28.02 billion in 2024 and is anticipated to reach around USD 44.86 billion by 2034, growing at a CAGR of 4.82% from 2024 to 2034.
- Contract Research Organization (CRO) Market: The global contract research organization (CRO) market size was valued at USD 60.85 billion in 2023 and is anticipated to reach around USD 118.81 billion by 2033, growing at a CAGR of 6.92% from 2024 to 2033.
Competitive Landscape and Major Breakthroughs in the Topical Drugs CDMO Market
The topical drugs CDMO market continues to evolve rapidly and showcases significant advancements through innovations in 2023 and 2024, with a dynamic competitive landscape. Major players such as Lubrizol Life Science (U.S.), Cambrex Corporation (U.S.), Contract Pharmaceuticals Limited (Canada), Bora Pharmaceutical CDMO (Taiwan), Ascendia Pharmaceuticals (U.S.), Pierre Fabre group (France), Piramal Pharma Solutions (India), DPT Laboratories LTD. (U.S.), MedPharm Ltd. (U.S.), PCI Pharma Services (U.S.), etc. hold a prominent position in the topical drugs CDMO market. These companies exhibit promising resources and technical expertise to conduct clinical research, R&D activities, drug formulation, drug design and development, marketing, etc. in diverse research areas and provide fruitful clinical and biopharmaceutical outcomes.
What is Going Around the Globe?
- In January 2025, Dow Development Laboratories LLC announced the Dermatology Summit at the Hyatt Regency, San Francisco, CA to bring together members of the financial community and business leaders from established and developing industries to boost partnerships and investments in the next generation of dermatology companies and products.
- Dow Development Laboratories LLC announced the Dermatology Innovation Forum in March 2025 to establish a leadership community of organizations and individuals to improve the production of skin healthcare products.
The research report categorizes the Topical Drugs CDMO Market into the following segments and subsegments:
By Product Type
- Semi-solid Formulations
- Liquid Formulations Drugs
- Solid Formulations
- Transdermal Products
By Service
- Contract Development
- Contract Manufacturing
By End-use
- Pharmaceutical Companies
- Biopharmaceutical Companies
- Others
By Regions
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
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