Pharmaceutical Contract Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 17.19 Billion |
| Market Size (2029) | USD 27.45 Billion |
| CAGR (2024 - 2029) | 9.82 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Pharmaceutical Contract Packaging Market Analysis
The Pharmaceutical Contract Packaging Market size is estimated at USD 17.19 billion in 2024, and is expected to reach USD 27.45 billion by 2029, growing at a CAGR of 9.82% during the forecast period (2024-2029).
- Due to the COVID-19 pandemic, the demand for vials, medicines, and other essential drugs increased. In response, manufacturers rapidly mobilized resources, accelerating manufacturing and packaging processes. Early in the pandemic, contract manufacturing organizations (CMOs) and contract packaging organizations (CPOs) faced material shortages. These shortages were largely due to supply chain disruptions in Asia-Pacific, a key player in the pharmaceutical raw materials and packaging industries, leading to delays in manufacturing and packaging.
- The global pharmaceutical industry is on an exponential growth trajectory, fueled by worldwide economic expansion, an aging population, and the introduction of new products. Recognizing the potential for increased profits, many pharmaceutical vendors have outsourced commercial and clinical packaging, leading to a surge in contract packaging within the industry.
- In recent years, the US FDA has significantly ramped up its drug approvals. For example, the FDA's Center for Drug Evaluation and Research (CDER) approved 55 novel drugs in 2023, a notable increase from 37 in 2022. Additionally, the generic drug program greenlit 90 generic applications. This uptick in FDA approvals has bolstered the global pharmaceutical contract packaging market.
- Moreover, injectables are poised to capture a larger market share, surpassing traditional oral administration routes. This trend is set to boost the demand for injectable solutions in contract packaging, prompting major pharmaceutical players to enhance their capabilities in this domain.
- Furthermore, the demand for bottling services is anticipated to remain steady, especially in high-volume markets. Blister packaging and bottling services are expected to register high demand, driven by maintenance drugs and the need for efficient packaging solutions for new products, particularly focusing on 30-60-90 day presentations for these maintenance drugs.
- Additionally, EU regulations stipulate that pharmaceutical manufacturers must adhere to EU Good Manufacturing Practices (GMP) to supply products within the EU. Manufacturers and importers need authorization and registration from a competent authority in a member state. Regular inspections by an EU competent authority or an approved body ensure compliance with EU GMP, regardless of the manufacturer's location. If a company imports products, the responsibility for GMP compliance falls on the importer. The EU's pharmaceutical regulations are detailed in "The Rules Governing Medicinal Products in the European Union."
Pharmaceutical Contract Packaging Market Trends
The Bottles Segment is Expected to Drive the Market's Growth
- Filling bottles is a crucial step in the primary packaging of pharmaceuticals. Bottle filling services have a notable share in the market, as numerous pharmaceutical firms rely on contract packaging companies for this essential process.
- Plastic bottle filling is poised for substantial growth during the forecast period. Its advantages, such as being lightweight (which conserves space and reduces transportation costs) and resistance to breakage (unlike glass bottles), lead to significant cost savings.
- Contract packaging companies are expanding, adding bottling lines to boost production capacity. This is evident as they fill solid dosages and liquid suspensions in glass, metal, and plastic bottles.
- In January 2024, Loop Industries, a clean technology firm, partnered up with Bormioli Pharma to unveil a new pharmaceutical packaging bottle crafted from 100% recycled virgin-quality polyethylene terephthalate (PET) resin.
- Furthermore, the surging demand for injectable pharmaceuticals is propelling the use of glass bottles. This trend is largely driven by a robust market for oncology and other high-potency drugs, including antibody conjugates, steroids, and IV fluids that necessitate a rapid onset of action.
- The increasing prevalence of global diabetes is bolstering the demand for glass bottles in injectables. The World Health Organization (WHO) reported approximately 29.3 million diagnosed diabetes cases in 2023 across the world. This figure is expected to increase the demand for penicillin, subsequently fueling the market's growth.
North America is Expected to Account for the Largest Share in the Market
- In North America, the pharmaceutical contract packaging market is adopting diverse packaging methods to align with evolving consumer preferences. Heightened environmental concerns are driving the pharmaceutical industry's shift toward sustainable contract packaging.
- Moreover, the growing integration of automation in pharmaceutical contract packaging has reduced human handling errors, further boosting the region's market growth. Additionally, rising disposable incomes and heightened health awareness among consumers are fueling the demand for pharmaceutical contract packaging.
- Numerous contract packaging firms are broadening their facilities, expanding their customer base, and augmenting their geographical reach through strategic acquisitions and partnerships.
- Further, the expansion of biologics is expected to have a significant impact on the regional market. For example, in June 2024, Kyowa Kirin Inc. received the green light from its board of directors to channel up to USD 530 million into a cutting-edge manufacturing facility in Sanford, North Carolina. With 171,700 sq. ft and featuring two reactors, this facility is set to fast-track the company's efforts in developing and producing biologic therapies tailored for patients grappling with rare and severe diseases. Beyond just production, the facility is poised to craft next-generation antibodies and other innovative biologic therapies, catering to upcoming clinical trials and future commercial endeavors. This strategic move also aims to fortify the company's supply lines, making them more resilient to global fluctuations. Nestled on a 75-acre plot within Helix Innovation Park at The Brickyard, the campus is designed with foresight, allowing for expansion as the company's portfolio and pipeline programs evolve.
- In July 2024, CordenPharma, a comprehensive contract development and manufacturing organization (CDMO) specializing in active pharmaceutical ingredients (APIs), excipients, drug products, and packaging services, is set to invest around USD 984 million (EUR 900 million) over the next three years to bolster its peptide technology platform. Key initiatives include simultaneous expansion plans in the United States and Europe, adhering to stringent quality and technical standards for short and long-peptide manufacturing, and meeting Biologics License Applications (BLA) requirements.
- In April 2024, Aterian Investment Partners (“Aterian”), a private investment firm, announced that one of its affiliates reached an agreement to recapitalize Contract Pharmaceuticals Limited Canada (“CPL” or the “Company”). CPL stands out as a premier North American contract development and manufacturing organization (CDMO), specializing in non-sterile liquid and semi-solid dosage forms.
Pharmaceutical Contract Packaging Industry Segmentation
The competitive landscape of the pharmaceutical contract packaging market is fragmented due to the presence of a large number of vendors. The major players with a significant share of the market are expanding their customer base across various regions. In addition, many companies are forming strategic and collaborative initiatives with multiple companies to increase their market share and profitability. Some of the major companies operating in the market are Ropack Inc., Sharp (UDG Healthcare), Reed-Lane Inc., and PCI Pharma Services.
- February 2024: Aptar CSP Technologies, a division of AptarGroup Inc., partnered with ProAmpac, a leader in material science and flexible packaging, to unveil the ProActive Intelligence Moisture Protect (MP-1000). This cutting-edge platform integrates Aptar CSP’s 3-Phase Activ-Polymer technology with ProAmpac’s advanced blown film technology, resulting in a moisture-adsorbing flexible packaging solution. MP-1000 marks the inaugural offering in a suite of active microclimate management packaging solutions aimed at reducing degradation risks, preserving potency, and enhancing product performance.
- June 2024: PCI Pharma Services, a leading pharmaceutical contract development and manufacturing organization (CDMO), signed a 25-year lease agreement with McGarrell Reilly. The new industrial facility will be built at the CityNorth Business Campus in Stamullen, County Meath, Ireland. Boasting direct access to the M1 motorway, this state-of-the-art development is poised to support PCI's ongoing expansion in the area.
Pharmaceutical Contract Packaging Market Leaders
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Ropack Inc.
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Sharp (UDG Healthcare)
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Reed-Lane Inc.
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PCI Pharma Services
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UNICEP Packaging LLC
*Disclaimer: Major Players sorted in no particular order
Pharmaceutical Contract Packaging Market News
- May 2024: Adare Pharma Solutions, a global technology-driven CDMO, expanded its high potency handling capabilities in the United States and Europe. In the United States, Adare is adding a second high potency suite to its 128,000 sq. ft (12,000 sq. m) Orthodox Street facility in Philadelphia. This new suite handles encapsulation, high-shear granulation, blending, and other manufacturing processes. Set to be completed by Q4 of 2024, this suite will enhance the site's existing potent suite, which already offers roller compaction, milling, bin blending, and tablet compression.
- October 2023: Egis Pharmaceuticals, one of the leading generic pharmaceutical companies in Eastern and Central Europe, expanded its presence in Hungary. With investments surpassing HUF 100 billion, Egis introduced Egis Pharma Services, which offers drug substance contract development and manufacturing services to its established and new pharmaceutical partners.
Pharmaceutical Contract Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitute Products
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of Microeconomic Factors on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Ongoing Efforts Toward Serialization to Aid the Market's Growth
5.1.2 Recent Capacity Expansions and Investments in Expanding Bottling and Filling Services
5.2 Market Challenges
5.2.1 Stringent Regulatory Requirements
6. MARKET SEGMENTATION
6.1 By Service Type
6.1.1 Primary
6.1.1.1 Bottles
6.1.1.2 Vials
6.1.1.3 Ampoules
6.1.1.4 Blister Packs
6.1.2 Secondary
6.1.3 Tertiary
6.2 By Geography
6.2.1 North America
6.2.2 Europe
6.2.3 Asia-Pacific
6.2.4 Latin America
6.2.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Ropack Inc.
7.1.2 Sharp (UDG Healthcare)
7.1.3 Reed-Lane Inc.
7.1.4 PCI Pharma Services
7.1.5 UNICEP Packaging LLC
7.1.6 Jones Packaging Inc.
7.1.7 Almac Group
7.1.8 Assemblies Unlimited Inc.
7.1.9 AmeriPac
7.1.10 MJS Packaging
7.1.11 AbbVie Contract Manufacturing
7.1.12 Pharma Packaging Solutions
7.1.13 Nelipak BV
7.1.14 Aphena Pharma Solutions Inc.
7.1.15 Southwest Packaging
7.1.16 MPH Co-Packing
7.1.17 Tjaopak
7.1.18 SternMaid GmbH
7.1.19 Variopack Lohnfertigungen GmbH
7.1.20 Central Pharma
7.1.21 Sepha Limited
7.1.22 Delorbis Pharmaceuticals Limited
7.1.23 Wasdell Group
7.1.24 DaklaPack Filling
7.1.25 LABO Phytophar
7.1.26 Tripak Pharmaceuticals
7.1.27 Jam Jams
7.1.28 Asia Pack Limited (Elanders Group)
7.1.29 Finishing Services
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Pharmaceutical Contract Packaging Industry Segmentation
Pharmaceutical contract packaging refers to the outsourcing of packaging services by pharmaceutical companies to specialized third-party providers. These companies handle various packaging needs, such as primary packaging (blister packs, bottles, and vials) and secondary packaging (cartons, labels, and inserts).
The pharmaceutical contract packaging market is segmented by service type (primary (bottles, vials, ampoules, and blister packs), secondary, and tertiary) and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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| Middle East and Africa |
Pharmaceutical Contract Packaging Market Research FAQs
How big is the Pharmaceutical Contract Packaging Market?
The Pharmaceutical Contract Packaging Market size is expected to reach USD 17.19 billion in 2024 and grow at a CAGR of 9.82% to reach USD 27.45 billion by 2029.
What is the current Pharmaceutical Contract Packaging Market size?
In 2024, the Pharmaceutical Contract Packaging Market size is expected to reach USD 17.19 billion.
Who are the key players in Pharmaceutical Contract Packaging Market?
Ropack Inc., Sharp (UDG Healthcare), Reed-Lane Inc., PCI Pharma Services and UNICEP Packaging LLC are the major companies operating in the Pharmaceutical Contract Packaging Market.
Which is the fastest growing region in Pharmaceutical Contract Packaging Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Pharmaceutical Contract Packaging Market?
In 2024, the North America accounts for the largest market share in Pharmaceutical Contract Packaging Market.
What years does this Pharmaceutical Contract Packaging Market cover, and what was the market size in 2023?
In 2023, the Pharmaceutical Contract Packaging Market size was estimated at USD 15.50 billion. The report covers the Pharmaceutical Contract Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Pharmaceutical Contract Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Pharmaceutical Contract Packaging Industry Report
Statistics for the 2024 Pharmaceutical Contract Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Pharmaceutical Contract Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
