Pharmaceutical Contract Packaging Market Size, Share, Growth Analysis, By Type (Primary Packaging, Secondary Packaging), By Material (Plastics & Polymers, Paper & Paperboard), By Region - Industry Forecast 2024-2031


Report ID: SQMIG35H2311 | Region: Global | Published Date: November, 2024
Pages: 208 |Tables: 70 |Figures: 67

Pharmaceutical Contract Packaging Market Insights

Global Pharmaceutical Contract Packaging Market size was valued at USD 5.65 billion in 2022 and is poised to grow from USD 6.11 billion in 2023 to USD 10.91 billion by 2031, growing at a CAGR of 7.51% during the forecast period (2024-2031).

Increasing demand for high-quality chemical packaging from contract packers in emerging markets, and outsourcing is expected to propel the market during in the forecast period. Pharmaceutical companies contract packaging services to reduce overall manufacturing costs. This is expected to contribute to the growth of the market during the forecast period. Furthermore, lack of in-house packaging materials, expertise and financial constraints are the major issues facing the small pharmaceutical companies in the industry. Contract packaging service providers is an effective way to address such small business issues due to the cost-effective service delivery.

Lack of resources and budgets has led many small pharmaceutical companies to form profitable relationships with contract packaging organizations (CPOs) and contract manufacturing. Furthermore, the growing pharmaceutical industry across the globe is expected to propel the market. As packaging outsourcing offers many advantages such as advanced packaging technology, focus on key areas, more efficient packaging and faster and better services, pharmaceutical companies are increasingly outsourcing packaging services to CPOs and CDMOs.

Market Snapshot - 2024-2031

Global Market Size

USD 5.65 billion

Largest Segment

Plastics & Polymers

Fastest Growth

Paper & Paperboard

Growth Rate

7.51%

Global Pharmaceutical Contract Packaging Market $ Bn)
Country Share for North America Region (%)

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Pharmaceutical Contract Packaging Market Segmental Analysis

Global Pharmaceutical Contract Packaging Market is segmented by Type, Material, and region. Based on Type , the market is segmented into Primary Packaging (Bottles, Vials, Ampoules, Blister Packs, Others), Secondary Packaging, Tertiary Packaging. Based on Material, the market is segmented into Plastics & Polymers, Paper & Paperboard, Glass, Aluminum Foil, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. 

Analysis by Type

Primary packaging segment dominating the pharmaceutical contract packaging market, as it is directly responsible for protecting the integrity and safety of the product. This segment consists of packaging materials or consumption of the product direct contact, such as blister packs, vials, ampoules and syringes. Special packaging is essential to maintain product stability, ensuring that it is protected from environmental factors such as moisture, light and pollution. This section is particularly important in the case of chemical packaging sensitive living organisms, vaccines and injectables, where reproducibility and precision are required.

Contract packaging companies have increasingly focused on innovative customized solutions in this segment to meet the needs of specialty and complex chemicals. The demand for advanced materials, simple clear seals and child-resistant materials continues to drive growth in the primary packaging segment. As the pharmaceutical industry moves towards mechanization on top of biological materials and personalized medicines, the specialty packaging segment will be a key area for continued growth, as well as material science and permanent packaging.

The bottles segment is another important segment in the pharmaceutical contract packaging market, especially pouches for tablets, capsules and other oral dosage forms are widely used for prescription and over the counter (OTC) drugs) to protect against moisture, dirt and breakage. The increase in bottle fraction is due to the ability to provide safe and convenient sources for bulk medication, which is common in the management of chronic diseases. Contract packaging companies are increasingly focused on lightweight, sustainable and sustainable bag packaging solutions, while consumer needs for environmentally friendly products increases. Furthermore, new features such as smart bags equipped with RFID chips arrive to help track product authentication and delivery.

Analysis by Material

Glass segment dominates the pharmaceutical contract packaging market due to its widespread use in pharmaceutical solutions, biologics and injectables. Glass is highly valued for its imperviousness, chemical stability and impurities a resistant Items like these are often made from glass, especially for vaccines, biologics, and other injectables that require sterility and precision in dosing. Biochemicals and specialty pharmaceuticals continue to gain popularity in the glass segment, requiring complex packaging solutions to preserve the effectiveness of these expensive compounds. However, challenges such as fragility and the risk of breakage during handling and transportation are driving new developments in reinforced and coated glass packaging to address these issues.

Aluminium foil is the fastest growing segment in the market. The aluminium foil segment is important in the pharmaceutical contract packaging market, especially for secondary soft packaging solutions such as blister packs, strip packs, pouches etc. Aluminium foil is prized for its barrier properties, protecting against chemical light, moisture, oxygen, and pollution, among other environmental elements. These properties make aluminium foil ideal for packaging tablets, capsules and other solid oral products, especially in blister packaging, which is a common method used in the pharmaceutical industry.

Global Pharmaceutical Contract Packaging Market By Type (%)

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Pharmaceutical Contract Packaging Market Regional Insights

North America holds a dominant position in the pharmaceutical contract packaging market for several reasons. The region is home to many of the world’s leading pharmaceutical companies, with extensive packaging outsourcing focused on new products and drug development, and stringent regulatory guidelines by the FDA and other agencies. Additionally, stringent regulatory guidelines by organizations such as the FDA drive demand for high-quality, compliant packaging solutions, further supporting the market. Biologics and the growing demand for specialty chemicals in the region will also create opportunities for contract packaging companies that can meet these demanding packaging needs.

Asia Pacific is emerging as the fastest growing market for pharmaceutical contract packaging, due to cost advantages and expanding pharmaceutical industry. Countries such as China, India and Japan are becoming major manufacturing and contracting hubs work due to lower costs of pharmaceuticals and increasing skilled labor. The sector is also seeing an increase in government investment in health care and pharmaceutical research and development, creating demand for a regarding advanced packaging solutions has increased. Furthermore, the increasing prevalence of chronic diseases and the increasing use of pharmaceutical products in the region are providing opportunities for contract packaging companies but to exploit regulatory spaces across the region.

Global Pharmaceutical Contract Packaging Market By Geography
  • Largest
  • Fastest

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Pharmaceutical Contract Packaging Market Dynamics

Drivers

Increased Outsourcing by Way of Pharmaceutical Companies

  • The driver of the pharmaceutical contract packaging market is the growing trend of outsourcing among pharmaceutical agencies. Faced with complicated packaging needs, stringent regulatory necessities, and the demand for price performance, many pharmaceutical producers are opting to outsource packaging to specialized corporations. This permits pharmaceutical businesses to awareness on center sports together with drug discovery and advertising even as leveraging the knowledge of agreement packaging organizations that may provide revolutionary and compliant solutions.

Rising Demand for Biologics and Specialty Drugs

  • The increasing occurrence of continual sicknesses and the growth in biologics and specialty tablets have appreciably boosted the demand for pharmaceutical contract packaging. These tablets often require the specialized packaging solutions, such as temperature-controlled packaging to keep product balance and make certain affected person safety. Contract packaging companies offer advanced technology and knowledge to fulfill those requirements, making them integral to pharmaceutical organizations trying to meet market demand.

Restraints

Strict Legal Standards

  • While regulatory compliance is important in the pharmaceutical contract packaging industry, navigating the ever-changing regulatory environment can be very restrictive for the market. Different countries have different packaging guidelines about, including packaging guidelines, labeling, indestructible seals, durability warranties and specifications. The high cost of complying with these standards, coupled with the risk of non-compliance resulting in recalls or lawsuits, can deter small- and medium-sized contract packaging companies that may not have the resources to comply in the development of these requirements.

Disruption of Supply Chains

  • The global supply chain has faced many disruptions in recent years due to events such as the COVID-19 pandemic, geopolitical tensions and raw material shortages. These challenges have affected pharmaceutical contracting packaging materials market adverse effects, especially glass, plastics and coatings on material availability. Delays in key components can lead to production stoppages, increased costs, and ultimately slow deliveries to lost customers. This limitation makes it difficult for the contract packaging company to maintain consistency in service delivery.

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Pharmaceutical Contract Packaging Market Competitive Landscape

The pharmaceutical contract packaging market is highly competitive, with a mix of global players, regional companies and specialty packaging companies offering innovative pharmaceutical packaging solutions. The competition is primarily for pharmaceutical packaging more complex products, stringent regulatory requirements and increased demand for biochemicals and specialty chemicals. Key players in this market are focusing on expanding their product portfolio on a constant basis, investing in advanced packaging technologies and forming partnerships to maintain their competitiveness.

Top Player’s Company Profiles

  • Amcor plc 
  • Newell Brands  
  • Nipro Corporation 
  • Daito Pharmaceutical Co., Ltd. 
  • Pfizer  
  • West Pharmaceutical Services, Inc. 
  • Smurfit Westrock  
  • Thermo Fisher Scientific Inc. ( Patheon) 
  • Novo Holdings (Catalent, Inc.) 
  • Simtra BioPharma Solutions 
  • Kohlberg & Company LLC (PCI Pharma Services) 
  • Vetter Pharma International GmbH 
  • The McClay Foundation (Almac Group) 
  • CordenPharma International 
  • Aphena Pharma Solutions 
  • Ecobliss Packaging Group 
  • Recipharm AB 
  • Ropack Inc. 
  • Körber AG

Pharmaceutical Contract Packaging Key Market Trends

  • Adopting Sustainable Packaging Solutions: Sustainability has become a priority in the pharmaceutical contract packaging market as companies face increasing pressure to reduce their environmental footprint. Packaging that does not yield environmental issues, such as reducing biodegradable plastics, recyclable materials and bulky packaging, are gaining momentum. Packaging contract companies invest in the research and development to develop packaging products that not only meet regulatory standards but also meet environmental goals. This trend is expected to continue as governments and consumers push for more sustainable solutions.
  • Integration of Smart Packaging Technologies: The combination of smart packaging technologies such as Radio Frequency Identification (RFID) and Near Field Communication (NFC) is changing the landscape of the pharmaceutical packaging. These technologies can track products in real-time during shipments to enhance security and ensure that the drugs reach the destination intact with features such as temperature control and certification.

Pharmaceutical Contract Packaging Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research. 

According to SkyQuest analysis, the pharmaceutical contract packaging market is witnessing strong growth, driven by increasing outsourcing of pharmaceutical companies and increasing demand for pharmaceutical and specialty drugs but stringent regulatory standards and ongoing supply disruptions have hampered the market. Key trends such as shift towards sustainable packaging and adoption of smart packaging technologies are shaping the future of the market. North America remains a strong force, to a very prominent pharmaceutical industry and improved regulation. Asia-Pacific is growing rapidly owing to cost advantage and growing pharmaceutical industry. As the market continues to evolve, companies focus on innovation and compliance to meet the needs of dynamic and highly regulated industries.

Report Metric Details
Market size value in 2022 USD 5.65 billion
Market size value in 2031 USD 10.91 billion
Growth Rate 7.51%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Primary Packaging (Bottles, Vials, Ampoules, Blister Packs, Others), Secondary Packaging, Tertiary Packaging
  • Material
    • Plastics & Polymers, Paper & Paperboard, Glass, Aluminum Foil, Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Amcor plc 
  • Newell Brands  
  • Nipro Corporation 
  • Daito Pharmaceutical Co., Ltd. 
  • Pfizer  
  • West Pharmaceutical Services, Inc. 
  • Smurfit Westrock  
  • Thermo Fisher Scientific Inc. ( Patheon) 
  • Novo Holdings (Catalent, Inc.) 
  • Simtra BioPharma Solutions 
  • Kohlberg & Company LLC (PCI Pharma Services) 
  • Vetter Pharma International GmbH 
  • The McClay Foundation (Almac Group) 
  • CordenPharma International 
  • Aphena Pharma Solutions 
  • Ecobliss Packaging Group 
  • Recipharm AB 
  • Ropack Inc. 
  • Körber AG
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Pharmaceutical Contract Packaging Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Pharmaceutical Contract Packaging Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Pharmaceutical Contract Packaging Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Pharmaceutical Contract Packaging Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Pharmaceutical Contract Packaging Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Pharmaceutical Contract Packaging Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Pharmaceutical Contract Packaging Market size was valued at USD 5.65 billion in 2022 and is poised to grow from USD 6.11 billion in 2023 to USD 10.91 billion by 2031, growing at a CAGR of 7.51% during the forecast period (2024-2031).

The pharmaceutical contract packaging market is highly competitive, with a mix of global players, regional companies and specialty packaging companies offering innovative pharmaceutical packaging solutions. The competition is primarily for pharmaceutical packaging more complex products, stringent regulatory requirements and increased demand for biochemicals and specialty chemicals. Key players in this market are focusing on expanding their product portfolio on a constant basis, investing in advanced packaging technologies and forming partnerships to maintain their competitiveness. 'Amcor plc ', 'Newell Brands  ', 'Nipro Corporation ', 'Daito Pharmaceutical Co., Ltd. ', 'Pfizer  ', 'West Pharmaceutical Services, Inc. ', 'Smurfit Westrock  ', 'Thermo Fisher Scientific Inc. ( Patheon) ', 'Novo Holdings (Catalent, Inc.) ', 'Simtra BioPharma Solutions ', 'Kohlberg & Company LLC (PCI Pharma Services) ', 'Vetter Pharma International GmbH ', 'The McClay Foundation (Almac Group) ', 'CordenPharma International ', 'Aphena Pharma Solutions ', 'Ecobliss Packaging Group ', 'Recipharm AB ', 'Ropack Inc. ', 'Körber AG'

The driver of the pharmaceutical contract packaging market is the growing trend of outsourcing among pharmaceutical agencies. Faced with complicated packaging needs, stringent regulatory necessities, and the demand for price performance, many pharmaceutical producers are opting to outsource packaging to specialized corporations. This permits pharmaceutical businesses to awareness on center sports together with drug discovery and advertising even as leveraging the knowledge of agreement packaging organizations that may provide revolutionary and compliant solutions.

Adopting Sustainable Packaging Solutions: Sustainability has become a priority in the pharmaceutical contract packaging market as companies face increasing pressure to reduce their environmental footprint. Packaging that does not yield environmental issues, such as reducing biodegradable plastics, recyclable materials and bulky packaging, are gaining momentum. Packaging contract companies invest in the research and development to develop packaging products that not only meet regulatory standards but also meet environmental goals. This trend is expected to continue as governments and consumers push for more sustainable solutions.

North America holds a dominant position in the pharmaceutical contract packaging market for several reasons. The region is home to many of the world’s leading pharmaceutical companies, with extensive packaging outsourcing focused on new products and drug development, and stringent regulatory guidelines by the FDA and other agencies. Additionally, stringent regulatory guidelines by organizations such as the FDA drive demand for high-quality, compliant packaging solutions, further supporting the market. Biologics and the growing demand for specialty chemicals in the region will also create opportunities for contract packaging companies that can meet these demanding packaging needs.

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