Vaccine Contract Manufacturing Market

Vaccine Contract Manufacturing Market by Vaccine Type (Inactivated Vaccine, Live attenuated Vaccine, RNA Vaccine, Subunit Vaccines, and Toxoid Based Vaccines), Expression System (Bacterial Expression Systems, Baculovirus/Insect Expression Systems, Mammalian Expression Systems, and Yeast Expression Systems), End-User (Pharmaceutical & Biotechnology Companies, Research Institutes & Academic Laboratories, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World) is expected to grow at a steady CAGR forecast till 2032 owing to the increase in vaccine demand, expansion of biobanks, increasing emergence of new diseases, and growing product development activities across the globe.

The vaccine contract manufacturing market was valued at USD 2,282.36 million in 2024, growing at a CAGR of 6.9% during the forecast period from 2025 to 2032 to reach USD 3,905.96 million by 2032. The vaccine contract manufacturing market is growing quickly due to increased global vaccine demand from widespread immunization and a focus on preventative healthcare. Biobanks support this by supplying quality biological samples essential for vaccine research and accelerating the development process. Additionally, the rise of new infectious diseases such as Zika, Ebola, COVID-19, and others underscores the need for flexible, rapid vaccine production, which CDMOs (Contract Development and Manufacturing Organizations) fulfill with scalable solutions. Furthermore, global investments in novel vaccine platforms, like mRNA and viral vectors, and innovative delivery technologies are driving market expansion further. These factors collectively contribute to the increasing need for effective storage solutions, boosting the overall market of vaccine contract manufacturing during the forecast period from 2025 to 2032.

Vaccine Contract Manufacturing Market Dynamics:

The recent surge in vaccine demand, especially around COVID-19 and RSV, has sparked increased interest in vaccine contract manufacturing as companies and governments aim to keep up with new variants and improved formulations. For instance, in August 2024, the U.S. Food and Drug Administration approved and granted emergency use authorization (EUA) for updated mRNA COVID-19 vaccines (2024-2025 formula) to include a monovalent (single) component that corresponds to the Omicron variant KP.2 strain of SARS-CoV-2. The mRNA COVID-19 vaccines have been updated with this formula to more closely target currently circulating variants and provide better protection against serious consequences of COVID-19, including hospitalization and death. This surge in demand for updated COVID-19 vaccines is likely to significantly boost the market for vaccine contract manufacturing. As pharmaceutical companies ramp up production to meet the needs of vaccination campaigns, contract manufacturers will be essential in scaling up production capabilities. This increased reliance on contract manufacturing will facilitate quicker responses to emerging health threats and ensure that vaccine supply chains remain robust and efficient.

Additionally, the emergence of new diseases across the globe has further bolstered the market of vaccine contract manufacturing. For instance, in May 2022, according to the information provided by the World Health Organization, a sudden outbreak of monkeypox was reported to WHO from 12 member states that are not endemic for the monkeypox virus. 

Thus, the emergence of new diseases such as Nipah virus, Hantavirus Pulmonary Syndrome, Monkeypox, COVID-19, Oropouche Virus, and others surge the demand for vaccines stems from the urgent need to develop and distribute effective vaccines to combat these newly emerging health threats. As governments and health organizations scramble to respond to outbreaks, they are increasingly relying on contract manufacturers to scale up production capabilities rapidly. The necessity for swift vaccine development and deployment creates a robust market for contract manufacturers, who play a crucial role in ensuring that vaccines are produced efficiently and in sufficient quantities to meet global demand.

However, rising strategic initiatives adopted by key players, such as business expansion, partnerships, and acquisitions, are estimated to propel the market's growth. For instance, in March 2022, Bharat Biotech, a global leader in vaccine innovation and developer of vaccines for infectious diseases announced a partnership with BIOFABRI, a Spanish biopharmaceutical company, to join forces to develop, manufacture, and market a new tuberculosis vaccine in more than 70 countries in Southeast Asia and sub-Saharan Africa.

Thus, the factors mentioned above are expected to boost the overall market of vaccine contract manufacturing across the globe during the forecast period from 2025 to 2032.

However, Vaccine production involves rigorous regulatory requirements, which can vary by region and vaccine type. Additionally, vaccines often require stringent storage and transportation conditions, such as ultra-cold chain requirements for mRNA vaccines. Thus, vaccine contract manufacturing requires a large cold chain and logistical requirements which may result in slight obstacles to the growth of the vaccine contract manufacturing market.

Vaccine Contract Manufacturing Market Segment Analysis:

Vaccine Contract Manufacturing Market by Vaccine Type (Inactivated Vaccine, Live attenuated Vaccine, RNA Vaccine, Subunit Vaccines, and Toxoid Based Vaccines), Expression System (Bacterial Expression Systems, Baculovirus/Insect Expression Systems, Mammalian Expression Systems, and Yeast Expression Systems), End-User (Pharmaceutical & Biotechnology Companies, Research Institutes & Academic Laboratories, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World)  

In the vaccine type segment of the vaccine contract manufacturing market, the inactivated vaccines are estimated to have a significant revenue share in the vaccine contract manufacturing market in 2024. Unlike live vaccines, inactivated vaccines contain pathogens that have been killed, eliminating the risk of causing disease even in immunocompromised individuals. This safety profile makes them highly favorable for widespread immunization efforts, particularly for vulnerable populations. The stability and well-established manufacturing processes of inactivated vaccines also appeal to governments and organizations aiming for large-scale distribution, as they are easier to store and transport compared to live vaccines, which often require strict cold chain logistics.

As a result, demand for inactivated vaccines has surged, particularly for diseases like influenza, polio, and COVID-19, where multiple booster doses may be needed for ongoing immunity. This demand has encouraged pharmaceutical companies to engage contract manufacturers who offer specialized expertise and scalable production capacities to meet these high-volume needs efficiently. For instance, in June 2024, Sanofi and Biovac, a Cape Town, South Africa-based biopharmaceutical company, announced their local manufacturing partnership to produce inactivated polio vaccines (IPV) in Africa. This agreement was designed to enable regional manufacturing of polio vaccines to serve the potential needs of over 40 African countries. This partnership with Sanofi made Biovac the first African producer of IPV on and for the African continent and supported the Africa Centers for Disease Control and Prevention’s ambition to have 60 percent of local vaccines produced in Africa by 2040.

Furthermore, the simplicity and reduced biosafety risks associated with inactivated vaccine production allow contract manufacturers to set up facilities more quickly, meeting global demand and fulfilling emergency supply needs. Consequently, the growing preference for inactivated vaccines supports the vaccine contract manufacturing market, expanding its role in ensuring vaccine accessibility and addressing global health priorities.

Thus, the factors mentioned above are expected to boost the segment thereby boosting the overall market of vaccine contract manufacturing across the globe.

North America is expected to dominate the overall vaccine contract manufacturing market:

Among all the regions, North America is expected to hold the largest share of the vaccine contract manufacturing market in 2024, driven by its advanced healthcare infrastructure, strict regulatory standards, and high investment in biopharmaceutical R&D. With numerous CMOs offering cutting-edge technology and large-scale production, along with rising vaccine demand due to emerging diseases, the region is well-positioned to lead globally in this sector.

As per the recent data provided by the Centre for Disease Control and Prevention (2024), the number of children vaccinated in North America by 24 months for Diphtheria, Tetanus, and Pertussis was 80.4%. Additionally, 92.5% of children for polio, 90.8% for Measles, Mumps, and Rubella, 91.4% for Hepatitis B, and 90.3% for Chickenpox. The high vaccination rates for key childhood vaccines such as Diphtheria, Tetanus, Pertussis, Polio, Measles, Mumps, Rubella, Hepatitis B, and Chickenpox highlight the significant and sustained demand for vaccines. This demand emphasizes the need for efficient, large-scale vaccine production, which makes vaccine contract manufacturing essential. Contract manufacturers can provide the production scalability and advanced facilities required to meet these high vaccination rates across regions, ensuring that supplies are readily available to meet public health goals. Additionally, as health authorities maintain or aim to increase these rates, the demand for reliable manufacturing partners will continue to grow, thus driving the market for vaccine contract manufacturing.

Additionally, rising strategic initiatives adopted by key players, such as business expansion, partnerships, and acquisitions, are estimated to propel the market's growth. For instance, in September 2024, Moderna announced plans to build a state-of-the-art mRNA vaccine manufacturing facility in Quebec, Canada. This facility aims to significantly enhance Moderna's production capacity for mRNA vaccines, reflecting the company's commitment to expanding its manufacturing capabilities in response to ongoing vaccine demand.

Furthermore, the approval of new vaccines further escalates the market of vaccine contract manufacturing. For instance, in August 2024, Emergent BioSolutions Inc. announced that the U.S. Food and Drug Administration (FDA) had approved the supplemental Biologics License Application (sBLA) for the expansion of the indication for ACAM2000®, (Smallpox and Mpox (Vaccinia) Vaccine, Live) to include prevention of mpox disease in individuals determined to be at high risk for mpox infection. The approval is based on previously available human safety data and data from a well-controlled animal study in which the ACAM2000® vaccine was shown to be effective in protecting against mpox virus exposure.

The expanded FDA approval of ACAM2000® for mpox prevention is likely to boost the vaccine contract manufacturing market by creating new production demand for this vaccine, particularly as it targets high-risk populations for mpox infection. This approval broadens the vaccine’s application, increasing the need for reliable and scalable manufacturing to meet potentially higher distribution needs. Contract manufacturers with the ability to quickly ramp up production and ensure quality control are positioned to become essential partners in meeting this expanded demand, supporting both stockpiling and distribution for public health readiness.

Thus, the above-mentioned factors are expected to escalate the market of vaccine contract manufacturing in the region.

Vaccine Contract Manufacturing Market Key Players:

Some of the key market players operating in the vaccine contract manufacturing market include Sanofi, Biovac, Emergent BioSolutions Inc., Lonza Group, Catalent Inc., Boehringer Ingelheim BioXcellence, Wockhardt, WuXi Biologics, Moderna, Inc., Syngene International, Meridian Life Sciences, Eurogentec, IDT Biologika, Serum Institute of India, GlaxoSmithKline (GSK), Soligenix Inc., Curia, Cobra Biologics, BioReliance, Recipharm, Jubilant HollisterStier, and others.

Recent Developmental Activities in the Vaccine Contract Manufacturing Market:

• In August 2024, In August 2024, Africa CDC entered into a strategic agreement with Bavarian Nordic to increase the production of the Mpox vaccine in Africa.
• In July 2024, AstraZeneca announced to invest USD 254 million at its Cambridge facility to expand its vaccine manufacturing capability.
• In May 2024, BioNTech received USD 145 million from CEPI to expand its mRNA vaccine production capacity.

Key Takeaways From the Vaccine Contract Manufacturing Market Report Study

• Market size analysis for current vaccine contract manufacturing size (2024), and market forecast for 8 years (2025 to 2032)
• Top key product/technology developments, mergers, acquisitions, partnerships, and joint ventures happened over the last 3 years.
• Key companies dominating the vaccine contract manufacturing market.
• Various opportunities available for the other competitors in the vaccine contract manufacturing market space.
• What are the top-performing segments in 2024? How these segments will perform in 2032?
• Which are the top-performing regions and countries in the current vaccine contract manufacturing market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for vaccine contract manufacturing market growth in the coming future?

Target Audience Who Can be Benefited From This Vaccine Contract Manufacturing Market Report Study

• Vaccine contract manufacturing product providers
• Research organizations and consulting companies 
•  Vaccine contract manufacturing-related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in vaccine contract manufacturing 
• Various end-users who want to know more about the vaccine contract manufacturing market and the latest technological developments in the vaccine contract manufacturing market.  

Frequently Asked Questions for the Vaccine Contract Manufacturing Market:

1. What is vaccine contract manufacturing?

• Vaccine contract manufacturing is the outsourcing of vaccine production to specialized third-party companies, known as contract manufacturing organizations (CMOs). These organizations handle various stages of vaccine development, including formulation, bulk production, and fill-finish processes, using advanced manufacturing capabilities to produce large volumes efficiently. 

2. What is the market for vaccine contract manufacturing?

• The vaccine contract manufacturing market was valued at USD 2,282.36 million in 2024, growing at a CAGR of 6.9% during the forecast period from 2025 to 2032 to reach USD 3,905.96 million by 2032. 

3. What are the drivers for the global vaccine contract manufacturing market?

• The vaccine contract manufacturing market is growing quickly due to increased global vaccine demand from widespread immunization and a focus on preventative healthcare. Biobanks support this by supplying quality biological samples essential for vaccine research and accelerating the development process. Additionally, the rise of new infectious diseases such as Zika, Ebola, COVID-19, and others underscores the need for flexible, rapid vaccine production, which CDMOs (Contract Development and Manufacturing Organizations) fulfill with scalable solutions. Furthermore, global investments in novel vaccine platforms, like mRNA and viral vectors, and innovative delivery technologies are driving market expansion further. These factors collectively contribute to the increasing need for effective storage solutions, boosting the overall market of vaccine contract manufacturing during the forecast period from 2025 to 2032.

4. Who are the key players operating in the global vaccine contract manufacturing market?

• Some of the key market players operating in vaccine contract manufacturing are Sanofi, Biovac, Emergent BioSolutions Inc., Lonza Group, Catalent Inc., Boehringer Ingelheim BioXcellence, Wockhardt, WuXi Biologics, Moderna, Inc., Syngene International, Meridian Life Sciences, Eurogentec, IDT Biologika, Serum Institute of India, GlaxoSmithKline (GSK), Soligenix Inc., Curia, Cobra Biologics, BioReliance, Recipharm, Jubilant HollisterStier, and others.

5. Which region has the highest share in the global vaccine contract manufacturing market?

• Among all the regions, North America is expected to hold the largest share of the vaccine contract manufacturing market in 2024, driven by its advanced healthcare infrastructure, strict regulatory standards, and high investment in biopharmaceutical R&D. With numerous CMOs offering cutting-edge technology and large-scale production, along with rising vaccine demand due to emerging diseases, the region is well-positioned to lead globally in this sector.