Pharmaceutical Fill and Finish Outsourcing Global Market Report 2024

The pharmaceutical fill and finish outsourcing market size has grown strongly in recent years. It will grow from $3.25 billion in 2023 to $3.51 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The growth observed in the historical period can be attributed to several factors, including the emergence of Contract Development and Manufacturing Organizations (CDMOs), the increased demand for specialized services, a shift towards outsourced models, market expansion strategies, and the need to meet stringent regulatory requirements.

The pharmaceutical fill and finish outsourcing market size is expected to see strong growth in the next few years. It will grow to $4.73 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The anticipated growth in the forecast period can be attributed to factors such as the continued demand for specialized services, global market expansion initiatives, a focus on core competencies by pharmaceutical companies, the desire for rapid market entry for new drugs, and the flexibility offered by outsourced manufacturing capacity to accommodate fluctuations. Noteworthy trends expected in the forecast period encompass an increase in biologics outsourcing, sustainability initiatives in the pharmaceutical manufacturing sector, the geographic expansion of outsourcing hubs, the integration of technology for enhanced efficiency, and a rise in the prevalence of Contract Development and Manufacturing Organizations (CDMOs).

The anticipated increase in demand for biologic drugs is poised to drive the growth of the pharmaceutical fill and finish outsourcing market. Biologic drugs, also known as biologics or biosimilars, constitute a class of pharmaceutical products derived from living organisms or containing components of living organisms. To streamline production processes, drug manufacturers often leverage the expertise and infrastructure of contract manufacturing organizations (CMOs) through outsourcing the fill and finish phase. This strategic approach allows pharmaceutical companies to concentrate on the development, research, and scale-up of their biologic drugs, relying on CMOs for efficient and cost-effective fill and finish operations. Notably, in September 2022, the Association for Accessible Medicines (AAM) reported that 91% of the 6.4 billion prescriptions in the United States in 2021 were generic and biosimilar medications, yielding annual savings exceeding $373 billion. This underscores the escalating demand for biologic drugs, thereby driving the pharmaceutical fill and finish outsourcing market.

The significant upswing in research and development (R&D) investments in biopharmaceuticals is a key driver contributing to the expansion of the pharmaceutical fill and finish outsourcing market. R&D investments denote financial resources allocated to activities focused on discovering, developing, and introducing new biopharmaceutical products to the market. As pharmaceutical companies intensify their emphasis on innovation and drug development, the outsourcing of fill and finish services allows them to redirect resources and investments towards core R&D activities. In the UK, the government announced a spending of $18.9 billion (£15.3bn) on pharmaceutical R&D in 2020, with a budget allocation of $49.2 billion (£39.8 bn) for the years 2022-2025. Additionally, Roche Holding AG revealed a 3.7% increase in its R&D expenditure for 2022 compared to 2021. Consequently, heightened investments in research and development by biopharmaceutical companies are acting as a catalyst for the pharmaceutical fill and finish outsourcing market.

A noteworthy trend gaining prominence in the pharmaceutical fill and finish outsourcing market is the integration of AI-driven tools. Companies within this market are embracing new technologies, particularly AI solutions, to enhance patient outcomes and maintain a competitive edge. For instance, Carenostics, a US-based healthcare startup specializing in AI solutions, introduced a product designed to analyze electronic health record (EHR) data for the early identification of chronic kidney disease (CKD). The seamless integration of AI-powered clinical decision support models into healthcare providers' EHR systems empowers clinicians to accurately identify high-risk patients with chronic diseases, facilitating proactive measures for improved patient outcomes.

Major companies in the pharmaceutical fill and finish outsourcing market are adopting a strategic partnership approach to enhance patient care, drive innovation, and expedite the commercialization of therapies. Southern California Kidney Consultants Inc., a US-based medical practices company, recently partnered with Strive Health, a US-based healthcare company, with the goal of improving kidney disease treatment and care. This collaboration involves 21 providers primarily based in Orange County, serving 5,000 patients with chronic kidney disease (CKD) and end-stage renal disease (ESRD).

In January 2023, AstraZeneca Pharmaceuticals LP, a US-based biopharmaceutical company, completed the acquisition of CinCor Pharma Inc. for $1.8 billion. This strategic move allows AstraZeneca to strengthen its cardiorenal portfolio by incorporating CinCor's promising compound, baxdrostat (CIN-107). Baxdrostat, an aldosterone synthase inhibitor (ASI), is designed to lower blood pressure in patients with treatment-resistant hypertension, including those with chronic kidney disease. CinCor Pharma Inc. is a US-based clinical-stage biopharmaceutical company specializing in kidney disease medications and treatments.

Major companies operating in the pharmaceutical fill and finish outsourcing market report are Groninger and Co. GmbH, Merck and Co. Inc., Abbott Laboratories, Wockhardt Limited., Boehringer Ingelheim International GmbH, Becton Dickinson and Company, AbbVie Inc., Teva Pharmaceuticals Industries Ltd., Recipharm AB., Lonza Group AG, Catalent Inc., Dr. Reddy’s Laboratories Ltd., West Pharmaceutical Services Inc., Sun Pharmaceutical Industries Ltd., Patheon N.V., Piramal Enterprises Ltd., Gerresheimer AG, CordenPharma International, Fujifilm Diosynth Biotechnologies, Optima Packaging Group GmbH, Jubilant HollisterStier LLC., Ajinomoto Bio-Pharma Services, Cytovance Biologics Inc., Grand River Aseptic Manufacturing, Baxter Pharmaceutical Solutions LLC., Halo Pharma Inc., MabPlex Inc., August Bioservices, Syntegon Technology GmbH (Robert Bosch GmbH), Ranbaxy Laboratories Limited.

North America was the largest region in the pharmaceutical fill and finish outsourcing market in 2023. The regions covered in the pharmaceutical fill and finish outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the pharmaceutical fill and finish outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of pharmaceutical fill and finish outsourcing products are liquids, solids, and semi-solids. Liquids refer to pharmaceutical formulations that are pourable and consist of a combination of active drug or chemical components and inert components. These formulations may be processed from organic substances isolated from animal origin, organic substances isolated from microorganisms, and inorganic substances. Pharmaceutical and biopharmaceutical companies commonly utilize these outsourcing services for their production needs.

The pharmaceutical fill and finish outsourcing market research report is one of a series of new reports that provides pharmaceutical fill and finish outsourcing market statistics, including pharmaceutical fill and finish outsourcing industry global market size, regional shares, competitors with a pharmaceutical fill and finish outsourcing market share, detailed pharmaceutical fill and finish outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the pharmaceutical fill and finish outsourcing industry. This pharmaceutical fill-and-finish outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The pharmaceutical fill and finish outsourcing market includes revenues earned by entities by providing outsourcing of aseptic or sterile filling and finishing services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.