Pharmaceutical Contract Packaging - Market Insights, Competitive Landscape, and Market Forecast - 2030

Pharmaceutical Contract Packaging Market By Service Type (Primary Packaging [Bottles, Vials, Ampoules, Blister Packs, And Others], Secondary Packaging, And Tertiary Packaging), By Material (Plastics & Polymers, Paper & Paperboard, Glass, Aluminum Foil, And Others), and by geography is expected to advance at a respectable CAGR forecast till 2030 owing to the increasing stringent quality requirements specially to the sterilization and lack of in-house packaging capabilities, expertise, and budget constraints

The global pharmaceutical contract packaging market was valued at USD 17,964.22 million in 2022 and is likely to register a CAGR of 8.32% during the forecast period from 2024 to 2030 to reach USD 28,932.35 million by 2030. The pharmaceutical contract packaging market is observing remarkable market growth owing to the factors such as increasingly stringent quality and sterilization requirements and the growing adoption of smart packaging solutions. Further, the lack of in-house packaging capabilities, expertise, and budget constraints, the rising number of pharmaceutical players, the rising launch of new and generic drugs across the globe, the presence of key players in the market, and other factors will create a requisite for the pharmaceutical contract packaging service in the market. Therefore, the market for pharmaceutical contract packaging is estimated to grow at a substantial CAGR during the forecast period from 2024 to 2030.

Pharmaceutical Contract Packaging Market Dynamics:

One of the key aspects driving the pharmaceutical contract packaging market is the rising demand for pharmaceutical products globally.

For instance, the annual report for 2020-2022 provided by the Ministry of Chemicals & Fertilizers, India, stated that the total annual turnover of Pharmaceuticals was INR 2,89,998 crore for the year 2020-2022. The global pharmaceutical industry in different regions around the globe is growing exponentially, driven by global economic growth, a growing aging population, a surging patient pool, and new product launches. Thus, the increasing demand for pharmaceutical products will in turn increase the demand for pharmaceutical contract packaging as the companies will be requiring packaging services for their raw materials or end-products (including drugs or devices). Moreover, many pharmaceutical vendors recognized that the profits could be increased by outsourcing the commercial and clinical packaging to a pharmaceutical contractor, thereby expected to expand the contract packaging market during the forecast period.

Further, the increasing number of novel and generic drugs in the market will increase the demand for many primary or secondary packing such as bottles, and blisters, among others. As per the FDA's Center for Drug Evaluation and Research (CDER), till October 2022, nearly 29 novel drugs were approved. Further, as per the same source, 50 novel drugs were approved in 2022 and 53 novel drugs in 2020. Also, the generic drug program approved or tentatively approved 948 generic drug applications during the year 2020. Thus, the increase in the number of new drugs approved by the FDA will positively impact the global pharmaceutical contract packaging market as the launch of new drugs will increase the demand for packing services that require packaging in the form of bottles, vials, blister packs, and others.

Moreover, strategic steps taken by the key players will in turn propel the demand for pharmaceutical contract packing in the upcoming years. For instance, in June 2020, PCI Pharma announced that the company has entered into a partnership agreement with Experic, a contract manufacturing organization, and pharmaceutical supply service company, to explore clinical and commercial manufacturing, packaging, and supply chain services driving collective growth for both parties.

Also, in November 2022, Pharma Packaging Solutions, a part of Carton Service Inc., was acquired by Tjoapack. Tjoapack's acquisitions of PPS are likely to lead toward creating opportunities to develop a new worldwide leader in pharmaceutical contractual packaging and distribution network services.

Therefore, the factors stated above collectively will drive the overall pharmaceutical contract packaging market during the forecast period from 2022 - 2028.

However, increased costs of packaging, monitoring issues, and lack of standardization, may hamper the growth of the pharmaceutical contract packaging market during the forecast period (2022 - 2028).

The unprecedented COVID-19 pandemic has had a substantial effect on the pharmaceutical contract packaging market. This is because, in the initial days of the pandemic, several industries had stopped their production units and other operations owing to the imposition of strict lockdown rules by the government. Also, the lockdown across the globe and the stringent regulations on import-export trade activities that had led to the containment of the virus, disrupted the global supply chain, thereby disturbing the manufacturing of the drugs and devices. Contrarily, as the demand for vials, medicines, and other drugs increases to treat the coronavirus infection, the market for pharmaceutical contract packing witnessed a sudden rise, owing to which, the manufacturers in the industry scrambled for their resources and pushed for faster manufacturing and packaging processes. Moreover, the demand for vaccines increased exponentially to immunize people against COVID-19, thereby increasing the demand for pharmaceutical contract packaging services. Henceforth, the afore-said factors were responsible for driving the market of pharmaceutical contract packaging and are anticipated to do the same during the forecast period.

Pharmaceutical Contract Packaging Market Segment Analysis:

Pharmaceutical Contract Packaging Market by Service Type (Primary Packaging [Bottles, Vials, Ampoules, Blister Packs, and Others], Secondary Packaging, and Tertiary Packaging), Material (Plastics & Polymers, Paper & Paperboard, Glass, Aluminum Foil, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

In the service type segment of the pharmaceutical contract packaging market, the bottles segment is expected to have a significant revenue share in the year 2023. This was primarily owing to the growing requirement for pharmaceutical bottles worldwide and the increasing adoption of pharmaceutical bottles for unit dose packaging.

Also, plastic bottle filling will significantly grow due to its various advantages, including light-weightiness that further saves space and transportation, and freight charges. Plastic bottles are not prone to breakage and help with necessary cost-savings associated with glass bottles.

Additionally, the solid dosages, liquid dosages, and liquid suspensions are filled in glass, metal, and plastic bottles.

Moreover, the increasing demand for injectable pharmaceuticals is significantly driving the growth of glass bottles in the pharmaceutical sector as glass bottles are used to store injectable drugs. Also, the injectable drugs which need to be stored under freezing temperatures are usually stored in glass bottles.

Further, the increasing expansion and funding activities by the key players in bottle packing services will positively influence the growth of the bottle segment in the market. For instance, in January 2022, Aphena Pharma Solutions, an organization providing pharmaceutical contract packaging services, announced that the company had added ten high-speed bottling lines leveraging its USD 21 million investment in solid dosage contract packaging. The company further intends to install 30 more high-speed lines in its newly acquired 500,000 sq. ft. facility to increase the monthly capacity to over 80 million bottles to target the pharmaceutical solid dose packaging industry.

Therefore, owing to the above-mentioned factors, the demand for the bottles rises, thereby the category is expected to witness considerable growth eventually contributing to the overall growth of the global pharmaceutical contract packaging market during the forecast period.

North America is expected to dominate the overall Pharmaceutical Contract Packaging Market:

Among all the regions, North America is expected to hold the largest share in global pharmaceutical contract packaging in 2022 and is expected to do the same during the forecast period from 2024-2030. This can be ascribed to the increasing demand for pharmaceutical contract packaging among the region increasing launches of generic or novel drugs, increasing government initiatives concerned with sterilized packaging, technological advancement, the presence of domicile of key players and others will be contributing to the growth of the pharmaceutical contract packaging market in North America.

Further, increasing the adoption of different packaging methods to meet the expectations of changing consumer preferences and rising environmental concerns have stimulated the demand for sustainable contract packaging in the pharmaceutical industry.

Additionally, the rising penetration of automation in pharmaceutical contract packaging has minimized human handling errors and will increase the market growth in the region.

Further, many contract packaging companies have been investing in expanding their presence in the sector through acquisitions and partnerships. For instance, in September 2020, Essentra Packaging announced the purchase of a 3C! Based in North Carolina, Packaging is a designer and manufacturer of cartons, literature, labels, and packaging primarily for the pharmaceutical industry. Such acquisitions allow companies like Essentra Packaging to enhance their position in the pharmaceutical packaging space and provide opportunities to grow in the pharmaceutical manufacturing hub in various regions including North America.

Moreover, the presence of the major market players such as Amcor PLC, Winpak ltd., Sonoco products co., and others will create a positive outlook for the market in North America.

Therefore, the interplay of the aforementioned factors above would provide a conducive growth environment for the North America region in the pharmaceutical contract packaging market.

Pharmaceutical Contract Packaging Market Key Players:

Some of the key market players operating in the pharmaceutical contract packaging market include ROPACK INC., Sharp Services, LLC, Reed-Lane, Unicep, PCI Pharma Services, Jones Healthcare Group., Almac Group, AmeriPac., MJS Packaging, Carton Service Inc., Nelipak BV, Aphena Pharma Solutions., Tjaopak, Central Pharma, Wasdell Packaging Group, Daklapack Group, Experic, Amcor plc, Tripak Pharmaceuticals, CCL Industries Inc., and others.

Recent Developmental Activities in the Pharmaceutical Contract Packaging Market:

In April 2022, Catalent completed a USD 14 million expansion for increasing biologics packaging capabilities and capacity at its Bloomington, Indiana facility.

In May 2022, Sharp, a contract packaging, clinical supply services company owned by UDG Healthcare plc, purchased new land as part of a USD 17 million investment in its Conshohocken, PA location. This land purchase will enable Sharp to add future capacity for cGMP packaging services and is part of a broader USD 43 million investment into its Pennsylvania operations, increasing the firm's blister packaging capacity by over 35%.

In September 2020, Legacy Pharmaceutical Packaging expanded its services, including 3PL services, covering supply chain transparency solutions and retail pharma product procurement for over-the-counter medications. In addition to this, the company also expanded its open-space facility near its St Louis, MO, headquarters from 215,000 ft2 to 500,000 ft2.

Key Takeaways from the Pharmaceutical Contract Packaging Market Report Study

• Market size analysis for current pharmaceutical contract packaging market size (2023), and market forecast for 5 years (2024-2030)
• The effect of the COVID-19 pandemic on this market is significant. To capture and analyze suitable indicators, our experts are closely watching the pharmaceutical contract packaging market.
• Top key products/services/developments, mergers, acquisitions, partnerships, and joint ventures happened for the last 3 years
• Key companies dominating the global pharmaceutical contract packaging market.
• Various opportunities available for the other competitor in the pharmaceutical contract packaging market space.
• What are the top-performing segments in 2023? How these segments will perform in 2030.
• Which are the top-performing regions and countries in the current pharmaceutical contract packaging market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for pharmaceutical contract packaging market growth in the coming future?

Target Audience who can be benefited from this Pharmaceutical Contract Packaging Market Report Study

• Pharmaceutical contract packaging providers
• Research organizations and consulting companies
• Pharmaceutical contract packaging -related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in pharmaceutical contract packaging
• Various end users who want to know more about the pharmaceutical contract packaging market and the latest developments in the pharmaceutical contract packaging market.

Frequently Asked Questions for the Pharmaceutical Contract Packaging Market:

1. What is pharmaceutical contract packaging?

Pharmaceutical contract packaging is a type of service in which the company provides all the packaging functions from the simplest to the most complex and from the glamorous to the hazardous.

2. What is the global market for pharmaceutical contract packaging?

The global pharmaceutical contract packaging market was valued at USD 17,964.22 million in 2022 and is likely to register a CAGR of 8.32% during the forecast period from 2024 to 2030 to reach USD 28,932.35 million by 2030.

3. What are the drivers for the global pharmaceutical contract packaging market?

The pharmaceutical contract packaging market is witnessing positive market growth owing to the factors such as the increasingly stringent quality requirements, the rising number of pharmaceutical players across the globe, and the rising efforts towards sterilization of the end products. Further, the lack of in-house packaging capabilities, expertise, and budget constraints among small-scale companies will create an exigency for the pharmaceutical contract packaging market.

4. Who are the key players operating in the global pharmaceutical contract packaging market?

Some of the key market players operating in the pharmaceutical contract packaging market include ROPACK INC., Sharp Services, LLC, Reed-Lane, Unicep, PCI Pharma Services, Jones Healthcare Group., Almac Group, AmeriPac., MJS Packaging, Carton Service Inc., Nelipak BV, Aphena Pharma Solutions., Tjaopak, Central Pharma, Wasdell Packaging Group, Daklapack Group, Experic, Amcor plc, Tripak Pharmaceuticals, CCL Industries Inc., and others.

5. Which region has the highest share of the pharmaceutical contract packaging market?

Among all the regions, North America is estimated to hold the major revenue share in the global pharmaceutical contract packaging market. This can be ascribed to the increasing launches of generic or novel drugs, increasing government initiatives concerned with sterilized packaging, technological advancement, and the presence of key players in the region are the reasons which act as a supportive factor for the North America pharmaceutical contract packaging market growth.