Rising Demand for Biologics Spurs 8.7% CAGR Growth in CDMO Secondary Packaging Market

According to the latest market research study published by P&S Intelligence, the global biologics CDMO secondary packaging market, valued at USD 1.71 billion in 2024, is on track to achieve USD 3.30 billion by 2032, expanding at a robust CAGR of 8.7%. This growth reflects the surging production of biologic drugs, a rapidly advancing pharmaceutical sector, and the increasing prevalence of chronic, infectious, and genetic diseases.

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Global Investments Accelerating Growth

Pharma giants are committing billions to expand manufacturing and packaging capabilities. Notable moves include:

• Johnson & Johnson: Over USD 2 billion invested (Oct 2024) in a state-of-the-art biologics facility in Wilson, North Carolina.
• AbbVie: A USD 223 million expansion of its Singapore facility (Jan 2024), creating 100 jobs and enhancing biologics manufacturing capacity.
• Catalent Inc.: A USD 350 million multi-year expansion in Bloomington, Indiana (Apr 2022) to strengthen drug manufacturing and biologics portfolios.
• AstraZeneca: A landmark USD 3.5 billion U.S. investment (Nov 2024) to boost R&D and build next-generation biologics manufacturing facilities.

These strategic expansions not only enhance innovation but also elevate the demand for advanced secondary packaging solutions that ensure biologics’ stability, safety, and integrity.

Market Dynamics: Partnerships, M&A, and CDMO Shifts

The sector is experiencing rapid transformation, fueled by:

• M&A activity: In Nov 2024, GHO Capital Partners and Ampersand Capital Partners acquired Avid Bioservices in a USD 1.1 billion deal, strengthening capabilities across biologics services.
• Collaborations: From Chime Biologics’ partnership with Kings Pharm (Sep 2023) to Thermo Fisher’s collaboration with Moderna for mRNA vaccine packaging (Feb 2022), alliances are reshaping supply chains.
• Shift toward CDMOs: Biopharma players increasingly outsource to CDMOs, leveraging their scalability, cost-efficiency, and expertise in biologics packaging to accelerate time-to-market.

Regional Outlook: North America Leads, APAC Rises Fastest

• North America holds the largest share (40% in 2024) driven by outsourcing trends and demand for innovative packaging solutions.
• Asia-Pacific (APAC) is the fastest-growing region, benefiting from rising chronic disease prevalence and heavy investments in contract manufacturing.
• Europe maintains steady growth, propelled by biologics pipeline expansion and strong demand for vaccine packaging solutions.

Market Opportunities & Challenges

• Opportunities: Demand for temperature-sensitive, eco-friendly, and customized packaging solutions is surging, especially in biologics transport and storage.
• Challenges: Rising raw material costs, plastic packaging taxes, and supply chain disruptions due to geopolitical tensions continue to exert pressure on the industry.

Leading Players Driving Innovation

Prominent market players include Catalent Inc., Lonza Group, WuXi Biologics, Samsung Biologics, Thermo Fisher Scientific, FUJIFILM Diosynth, Pfizer, and Eurofins Scientific. Strategic expansions and acquisitions remain central to their growth strategies.

Recent Industry Developments

• Jan 2025: Samsung Biologics partnered with LigaChem Biosciences to provide ADC services.
• Dec 2024: Lonza announced strategic focus solely on CDMO business, exiting CHI.
• Nov 2024: Novo Holdings completed a USD 16.5 billion acquisition of Catalent Inc.
• Nov 2024: FUJIFILM Diosynth launched the first phase of its global CDMO ecosystem expansion.