The global pharmaceutical contract sales outsourcing industry encompasses sales representatives that are outsourced from contract sales organizations to pharmaceutical companies. These sales representatives promote pharmaceutical companies’ products to healthcare professionals and help drive product sales. Commonly promoted products include prescription drugs, biologics, and over-the-counter medications. CSOs help reduce pharmaceutical companies’ costs by outsourcing their sales forces instead of maintaining large in-house sales teams. They also provide flexible staffing levels that can scale up or down based on market needs. The global pharmaceutical contract sales outsourcing (CSO) market is estimated to be valued at US$ 9.34 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the primary drivers for growth referred to in the heading is the increasing demand for advanced biologics and biosimilars. Biologics such as monoclonal antibodies, recombinant proteins, and gene therapies have revolutionized the treatment of various diseases. However, these products also require specialized knowledge to promote among healthcare professionals. CSOs provide pharmaceutical companies access to sales teams trained in the complexities of biologics and biosimilars to effectively market these advanced products.
Additionally, the high costs associated with internal sales teams compared to outsourced teams is also fueling the CSO market growth. CSOs help pharmaceutical companies reduce operating expenses through their flexible, scalable staffing models without having to bear the financial burden of large in-house sales divisions. This cost-effective approach allows pharmaceutical companies to reallocate resources towards research and development activities.
Segment Analysis
The Global Pharmaceutical Contract Sales Outsourcing (CSO) Market is dominated by the specialty medicine segment which accounts for over 35% of the market share. This is primarily due to the complex nature of specialty medicines which require high degree of expertise for effective sales and marketing. Specialty medicines are used for the treatment of complex diseases like cancer and rare diseases. Outsourcing sales and marketing of such complex drugs allows pharmaceutical companies to leverage the therapeutic expertise of CSO providers.
PEST Analysis
Political: Government policies play a major role in pharmaceutical markets. Regulations related to drug approval process and pricing pressures impact CSO providers. Economic: Economic growth and higher disposable income in developing countries are driving increased healthcare spending which is benefiting the pharmaceutical CSO market. Social: Rising awareness about diseases and treatment options is pushing patients to seek specialty drugs. This is driving pharmaceutical companies to outsource sales and marketing activities. Technological: Advanced digitalization and adoption of AI is enabling CSO providers to enhance their customer engagement strategies through more personalized interactions.
Key Takeaways
The global Pharmaceutical Contract Sales Outsourcing (CSO) market is expected to witness high growth over the forecast period of 2024 to 2031. The market size for 2024 is estimated to be US $9.34 Bn growing at a CAGR of 8.6%.
Regional analysis: North America dominates the global CSO market with over 40% share backed by presence of well-established CSO providers and adoption of specialty drugs in the region. Asia Pacific is expected to witness fastest growth during the forecast period attributed to rising healthcare spending, increasing presence of pharmaceutical MNCs and growing acceptance of CSO models in the region.
Key players operating in the pharmaceutical contract sales outsourcing market are IQVIA Inc., Syneos Health Inc., Parexel International Corporation, PPD, ICON plc, Publicis Touchpoint Solutions, Inc., PRA Health Sciences, Inc., The Medical Affairs Company (TMAC), Ashfield Healthcare Communications Group, and GTS Solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it