Why CMO expertise comes to the fore in testing times
Emma Verkaik, CEO, looks at how BCMPA chemical CMOs are adopting a‘ can do’ approach to outsourcing despite legislative, economic and sustainable challenges.
There are reasons to be optimistic if you are a CMO. While there are many headwinds – high energy, costs, regulatory complexity and global competition – market conditions are opening opportunities.
Businesses of all sizes are recognising the pressing need for third party partnerships, at a time when uncertainty is the watchword. Having a trusted CMO provides many brands with peace of mind.
“ Market conditions have accelerated a shift toward outsourced and contract manufacturing to manage cost, improve flexibility and meet sustainability and compliance demands without large capital expenditure,” explains Marie Woods, business development executive at Briar Chemicals.“ Speciality and value-added chemicals remain resilient. These niches rely on external partners for synthesis, formulation and packing expertise.”
With the market allowing CMOs to come into their own, how has the year shaped up and what products and services are in demand? With ongoing legislative changes, along with the need for sustainable solutions, businesses are continuing to find ways to innovate and add value.
Global outlook
Globally, the CDMO market is robust. According to Wise Guy Reports, it was valued at around $ 44 billion in 2023 and is set to hit the $ 90 billion mark by 2032.1 This market is driven by demand for high-spec, hazardous and speciality chemistry outsourcing.
“ Demand for outsourced manufacturing and services in the UK chemical sector is growing steadily, fuelled by cost efficiency, access to specialist capabilities and a focus on core activities,” explains Akshay Vijayan, head of strategic projects at McKLords.“ While the market has rebounded strongly post- 2023, there is an urgent demand for GMP-compliant production, which is in short supply.”
Woods adds:“ In the UK, growth in outsourced chemical services mirrors the global trend, supported by a strong speciality base, a skilled workforce and tightening environmental standards that favour trusted domestic partners.”
Briar Chemicals believes it is well placed to support this growth, offering UK-based, multipurpose chemical manufacturing, formulation and packing. Demand over the past few months has included a rise in enquiries for formulation, fill and packaging services. Customers are aiming to diversify and safeguard their future products.
For Glen Warriner, director at Spanjer Chemicals, growth is the watchword as outsourcing allows brand owners more time to focus on sales. Spanjer’ s primary reputation has been for manufacturing quality chemicals to the vehicle cleaning sector, but it has been able to diversify into other markets.
“ At this time of year, we see high demand for winter protection products such as screenwash or deicers,” explains Warriner.“ In February through to June, attention switches
32 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981