Pharmaceutical Contract Packaging Market

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) is expected to advance at a respectable CAGR forecast till 2030 owing to the increasing stringent quality requirements especially to the sterilization and lack of in-house packaging capabilities, expertise, and budget constraints.

The pharmaceutical contract packaging market was valued at USD 17,964.22 million in 2023 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 experiencing significant growth due to increasingly stringent quality and sterilization requirements, growing adoption of smart packaging solutions, lack of in-house packaging capabilities and expertise, budget constraints, frequent launches of new and generic drugs globally acting as key factors that are expected to propel the pharmaceutical contract packaging market from 2024 to 2030.

Pharmaceutical Contract Packaging Market Dynamics:

The demand for pharmaceutical contract packaging is rising due to the increasing demand for pharmaceutical products globally. For example, the annual report for 2022-2023 provided by the Ministry of Chemicals & Fertilizers (India), stated that the total annual turnover of pharmaceuticals was INR 3,44,125 crore for the year 2021-2022, with a growth rate of 4.89%. The pharmaceutical industry in different regions around the globe is growing exponentially, driven by global economic growth, the growing aging population, and new product launches. Thus, the increasing demand for pharmaceutical products will in turn increase the demand for pharmaceutical contract packaging as companies require packaging services for their raw materials and end-products (including drugs or devices). Many pharmaceutical vendors recognized that their profits could be increased by outsourcing commercial and clinical packaging to a pharmaceutical contractor.

The increasing number of novel and generic drugs in the market is also expected to increase the demand for many primary or secondary packing such as bottles, blisters, and others. As per the FDA’s Center for Drug Evaluation and Research (CDER), till October 2022, nearly 29 novel drugs were approved. As per the same source, 50 novel drugs were approved in 2021. Thus, the increase in the number of new drugs approved by the FDA will positively impact the pharmaceutical contract packaging market as the launch of new drugs will increase the demand for such services that require packaging in the form of bottles, vials, blister packs, and others.

In November 2021, 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 2024 to 2030. 

However, leakage of confidential information, monitoring issues, and lack of standardization may hamper the growth of the pharmaceutical contract packaging market during the forecast period 2024 to 2030.

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 category is expected to have a significant revenue share in the year 2023. This is primarily owing to the growing requirement for pharmaceutical bottles worldwide and the increasing adoption of pharmaceutical bottles for unit dose packaging.

Plastic bottle filling will significantly grow due to its various advantages, including light-weightiness that further saves space 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.

The increasing demand for injectable pharmaceuticals is also significantly driving the growth of glass bottles in the pharmaceutical sector, as glass bottles are used to store injectable drugs. Also, the injectable drugs that 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 2021, 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 intended 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 all the above-mentioned factors, the demand for bottles increases, owing to which this category is expected to witness considerable growth, eventually contributing to the overall growth of the pharmaceutical contract packaging market during the forecast period from 2024 to 2030.

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 pharmaceutical contract packaging in 2023 and is expected to do the same during the forecast period from 2024 to 2030. This can be ascribed to the increasing demand for pharmaceutical contract packaging in the region, increasing launches of generic or novel drugs, increasing government initiatives concerned with sterilized packaging, technological advancements, and the presence of domicile of key players, among others are responsible for contributing to the growth of the pharmaceutical contract packaging market in North America.

The increasing adoption of different packaging methods in North America 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. Many contract packaging companies have been investing in expanding their presence in the sector. For example, in October 2022, Aphena Pharma Solutions announced the completion of a USD 20 million expansion. This expansion resulted in the addition of a 500,000-square-foot facility specifically designed for FDA pharmaceutical packaging of solid-dose and biologic products. The new facility underwent FDA inspection and completed its first batch of generic and branded product transfers with FDA approval. This increased the available solid dose packaging capacity significantly. Such instances allow companies like Aphena Pharma Solution to enhance their position in the pharmaceutical packaging space and provide opportunities to grow in the pharmaceutical manufacturing hub in various regions in North America.

Moreover, the presence of the major market players such as Amcor PLC, Winpak Ltd, Sonoco Products Co., and others in North America bring extensive expertise, advanced technologies, and robust infrastructure to the market, ensuring high-quality and efficient packaging solutions. Their presence enhances trust and reliability among pharmaceutical companies, encouraging more firms to outsource their packaging needs. This creates a positive outlook for the pharmaceutical contract packaging market in North America.

Therefore, the interplay of all the above-mentioned factors would provide a conducive growth environment for the North American pharmaceutical contract packaging market during the forecast period from 2024 to 2030.

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:

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• In March 2024, Bormioli Pharma announced a significant 47% increase in its North American sales for 2023. This notable growth resulted from the company's rapidly advancing infrastructure and increased capacity, strategically developed to meet the specific needs of the North American pharmaceutical market. A major contributor to this success was the rising demand for pharmaceutical glass vials, which Bormioli Pharma effectively addressed through its enhanced production capabilities.
• In May 2021, 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 enabled Sharp to add future capacity for cGMP packaging services, thus increasing the firm's blister packaging capacity by over 35%.
• In April 2021, Catalent completed a USD 14 million expansion for increasing biologics packaging capabilities and capacity at its Bloomington, Indiana facility. This expansion was aimed at increasing the facility's capabilities and capacity for biologics packaging. The investment included upgrades and enhancements to the existing infrastructure, enabling Catalent to meet the growing demand for biologic drugs, which require specialized packaging solutions to ensure stability and efficacy.

Key Takeaways from the Pharmaceutical Contract Packaging Market Report Study

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• Market size analysis for current pharmaceutical contract packaging market size (2023), and market forecast for 6 years (2024 to 2030)
• Top key product/technology developments, mergers, acquisitions, partnerships, and joint ventures happened for the last 3 years
• Key companies dominating the pharmaceutical contract packaging market.
• Various opportunities available for the other competitors 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

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• 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 market for Pharmaceutical Contract Packaging?

The pharmaceutical contract packaging market was valued at USD 17,964.22 million in 2023 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 Pharmaceutical Contract Packaging market?

The pharmaceutical contract packaging market is experiencing significant growth due to increasingly stringent quality and sterilization requirements, growing adoption of smart packaging solutions, lack of in-house packaging capabilities and expertise, budget constraints, frequent launches of new and generic drugs globally acting as key factors that are expected to propel the pharmaceutical contract packaging market from 2024 to 2030.

4. Who are the key players operating in the Pharmaceutical Contract Packaging market?

Some of the key market players operating in Pharmaceutical Contract Packaging 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 in the Pharmaceutical Contract Packaging market?

Among all the regions, North America is estimated to hold the major revenue share in the 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 that act as a supportive factor for the North America pharmaceutical contract packaging market growth.