PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803395
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803395
The global biologics CDMO (Contract Development and Manufacturing Organization) secondary packaging market was valued at USD 1,711.7 million in 2024 and is projected to reach USD 3,299.3 million by 2032, growing at a compound annual growth rate (CAGR) of 8.7% during the forecast period. This growth is driven by the increasing production of biologic drugs, expanding pharmaceutical industries, and the rising prevalence of diseases such as chronic, infectious, and genetic disorders. As the biologics market continues to expand, secondary packaging solutions that ensure the safe transportation and storage of these sensitive products have become increasingly important.
The demand for biologics CDMO secondary packaging is also bolstered by significant investments from key pharmaceutical companies. For instance, Johnson & Johnson committed over $2 billion in October 2024 to establish a state-of-the-art biologics manufacturing facility in North Carolina, and AbbVie made a $223 million investment to expand its Singapore manufacturing site in January 2024. These investments reflect the growing need for biologics packaging solutions that guarantee product integrity and safety.
Key Insights
Mergers & Acquisitions and Partnerships: The biologics CDMO secondary packaging market is witnessing a growing trend of mergers, acquisitions, and partnerships, which are driving industry consolidation and expanding market capabilities. For example, in September 2023, Chime Biologics collaborated with Kings Pharm to accelerate biosimilar launches. Additionally, GHO Capital Partners and Ampersand Capital Partners acquired Avid Bioservices in a $1.1 billion deal in November 2024. Such moves are enabling companies to enhance their manufacturing and packaging capabilities for biologics.
Shift Toward CDMOs: Increasingly, biopharmaceutical companies are turning to CDMOs to manage the cost-intensive processes of drug development and manufacturing. By outsourcing secondary packaging and other production services, companies can reduce capital investment and focus on R&D, which boosts the demand for flexible and cost-effective CDMO services.
Price Increases in Packaging: A significant challenge to market growth is the rising cost of packaging materials, driven by global supply chain disruptions and the increasing demand for packaging in other industries such as e-commerce. Additionally, the Plastics Packaging Tax, which was imposed on plastic packaging that contains less than 30% recycled material, has contributed to the surge in packaging costs.
Boxes dominate the biologics CDMO secondary packaging market, holding a 65% share in 2024. This is due to their suitability for transporting biologic products, including those requiring frozen and controlled ambient conditions. Boxes are custom-engineered to ensure product safety and maintain quality during transit, making them an essential packaging solution for biologics.
Blister Packs are the fastest-growing category in primary packaging, with a 20% share in 2024. Their versatility, transparency, and ability to preserve the integrity of biologics, especially in monodose applications, are driving their increasing demand in the biologics sector.
North America is the largest regional market for biologics CDMO secondary packaging, accounting for 40% of the global market share in 2024. The region is benefiting from high levels of drug R&D outsourcing and the growing demand for innovative and customized packaging solutions for biologics.
Asia-Pacific (APAC) is expected to exhibit the highest growth rate during the forecast period, driven by the increasing prevalence of chronic diseases, the rising focus on contract manufacturing, and the expansion of biologics manufacturing capabilities in the region.
BFSI Sector: The biologics CDMO secondary packaging market for the BFSI (Banking, Financial Services, and Insurance) sector is expected to continue growing rapidly due to the sector's rising vulnerability to cyberattacks and the need for secure packaging solutions for sensitive materials.
Market Fragmentation: The market is fragmented, with numerous players offering specialized solutions for biologics manufacturers. Key players in the market include Catalent Inc., Lonza Group Ltd., WuXi Biologics, Samsung Biologics, and Fujifilm Diosynth Biotechnologies. These companies are expanding their capabilities through mergers, acquisitions, and the introduction of innovative packaging solutions to meet the growing demands of the biologics industry.
Recent Developments: In January 2025, Samsung Biologics entered into a collaboration with LigaChem Biosciences to provide antibody-drug conjugate (ADC) services. Furthermore, Lonza announced plans to focus exclusively on its CDMO business in November 2024, divesting from its capsules and health ingredients business. Additionally, Fujifilm Diosynth Biotechnologies launched the first phase of its global CDMO ecosystem expansion in November 2024. These moves signify the growing importance of specialized CDMO services in the biologics market.