Pharmaceutical Contract Packaging Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 18.15 Billion |
| Market Size (2029) | USD 29.03 Billion |
| CAGR (2024 - 2029) | 9.84 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Medium |
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 18.15 billion in 2024, and is expected to reach USD 29.03 billion by 2029, at a CAGR of 9.84% during the forecast period (2024-2029).
The pharmaceutical industry is growing exponentially, driven by global economic growth, an aging population, and new product launches. The increasing sales of pharmaceuticals are driving the logistics and warehousing requirements as vendors in the market are constantly expanding their facilities. With the understanding that pharmaceutical companies can boost their profits by outsourcing the packaging of their products, there has been a noticeable rise in the use of pharmaceutical contractors for commercial and clinical packaging.
Continued Endeavors to Implement Serialization to Support Market Expansion
- The pharmaceutical packaging market's key factors are growth in self-medication and multi-drug protocols, safety and compliance, product and patient engagement, and serialization. Packaging that helps and engages patients via ease of managing doses and drug compliance is among the foremost trends.
- Technological and innovative packaging is critical to protecting the integrity of the supply chain and ensuring that consumers have access to safe and reliable medicines and medical devices. Serialization and tracking capabilities not only help brands fight off counterfeit goods but can also be used to generate more value by creating new channels for revenue generation. Because these approaches are essential in the fight to protect patients from counterfeit medicines, the printing and packaging industry must stay ahead of illicit manufacturers and prevent potentially dangerous counterfeits from falling into the hands of unsuspecting patients.
Competition from In-house Packaging Key Verticals to Restrict the Market Growth
- Contract packaging can be time-consuming, as products are transported several times between manufacturers and packagers, thus increasing the potential for damage. In the case of a liquid product, the percentage will be higher since damage to one bottle can destroy multiple units. Many companies may choose to handle packaging in-house because it can be more cost-effective for them. By doing so, they can have more control over the entire packaging process, including material sourcing, design, and production, potentially reducing costs compared to outsourcing to a contract packaging provider.
- Factors such as unwillingness to share information with contract packagers, availability of in-house machinery, and high switching costs encourage in-house packaging and act as a restraining factor for contract packagers.
In the pharmaceutical contract packaging market, microeconomic factors like surging input costs, escalating labor expenses, and mounting pressures from regulatory compliance are driving up business costs. Concurrently, there's a rising demand for intricate and tailored packaging solutions spurred by technological advancements and a wave of competitive consolidations. These dynamics present lucrative opportunities for firms adept at innovation and efficient scaling. Companies that navigate these challenges through strategic tech investments, forging partnerships, and emphasizing sustainability are poised to excel in this fiercely competitive landscape.
Pharmaceutical Contract Packaging Market Trends
The Primary Segment to Register Significant Growth
- The primary packaging of pharmaceuticals in bottles entails filling the bottles. The bottle-filling services hold a significant market share in the studied market as multiple pharmaceutical companies depend on contract packaging companies to partake in the filling procedure.
- The ease of outsourcing bottling services allows pharmaceutical companies to focus on the research and development of drug discovery and getting it certified and approved by regulatory authorities like the Food and Drug Administration (FDA). Furthermore, companies can detach themselves from their primary packaging responsibilities. The cost and the time-saving shift of responsibility of filling pharmaceutical bottles drive the growth in demand for the studied segment.
- Over the forecast period, plastic bottle filling is expected to grow significantly due to its various advantages, including its lightweight, which further saves space, transportation, and freight charges. Unlike pharmaceuticals filled in glass bottles, plastic bottles are not prone to breakage and help with the necessary cost savings associated with glass bottles.
- Vial packaging of pharmaceuticals is one of the critical packaging processes as vials are usually made of glass, and quartz which can be brittle and further lead to breakage and huge losses during filling, packaging, and transportation.
- The demand for contract packaging for vials significantly increased, owing to th increasing complexity in the supply chain of drug development. The COVID-19 pandemic has played a vital role in increasing vial production due to the drastically large need for vaccines.
- Over the forecast period, vials made out of borosilicate glass are expected to hold a significant market share owing to the rising complexity of diseases like diabetes that require self-injecting pharmaceuticals. According to the International Diabetes Federation, the global adult population of Around 10.5 percent suffer from diabetes in 2021, and by the year 2045, this ratio is expected to rise to over 12 percent. Vials are increasingly used for storing single-shot medicines and the market is expected to grow.
North America Holds Largest Market Share
- In North America, the pharmaceutical contract packaging market is swiftly adopting diverse packaging methods. This shift is largely driven by evolving consumer preferences and heightened environmental concerns, leading to a surge in demand for sustainable packaging solutions within the industry.
- Moreover, the growing integration of automation in pharmaceutical contract packaging has significantly reduced the risks associated with human errors, further fueling the market's expansion in the region. Additionally, rising disposable incomes coupled with heightened health awareness among consumers are boosting the demand for contract packaging services.
- To meet the surging demand for packaging solutions, the market is seeing a flurry of acquisitions and partnerships. For example, in October 2024, GenNx360 Capital Partners (GenNx360) proudly announced Nutra-Med's acquisition of Legacy Pharma Solutions. Nutra-Med, a proud member of GenNx360's portfolio, specializes in contract packaging services catering to the pharmaceutical, Over-the-Counter (OTC), medical device, and dietary supplement sectors.
- By leveraging contract packaging, pharmaceutical companies can sharpen their focus on core competencies. This shift, coupled with rising R&D expenditures in the pharmaceutical realm, is poised to propel the global pharmaceutical contract market's growth. Data from the Pharmaceutical Research and Manufacturers of America (PhRMA) highlights a consistent uptick in R&D spending across the pharmaceutical sector since 2015. Moreover, the urgency brought on by the COVID-19 pandemic has further amplified research endeavors in the industry.
- North America, a hub for major pharmaceutical players and packaging solution providers, is witnessing a surge in demand. Given the escalating packaging requirements from pharmaceutical firms, the market is set for growth during the forecasted period.
Pharmaceutical Contract Packaging Industry Segmentation
The pharmaceutical contract packaging market remains highly fragmented, with many players competing for contracts from leading pharmaceutical companies. In response to intensifying competition, larger firms increasingly turn to mergers and acquisitions to broaden their capabilities and extend their geographic reach. The imperative primarily fuels this trend toward consolidation to provide integrated services and scale operations for enhanced competitiveness.
Market players engage in continuous product development, breakthrough innovations, and strategic acquisitions and partnerships to target high-growth or emerging use cases. Key players in the global pharmaceutical contract packaging market include Sharp, Nelipak BV, Almac Group, AmeriPac, Sepha Ltd., and Wasdell Group. These companies are channeling investments into innovation, automation, and sustainability to ensure they stay competitive and adept at addressing the growing complexities of pharmaceutical packaging demands.
Advancements in biopharmaceuticals, regulatory compliance needs, and outsourcing trends drive the global pharmaceutical contract packaging market toward sustained growth. To remain competitive and address the pharmaceutical industry's evolving demands, key market players are prioritizing innovation, especially in areas like serialization, sustainability, and automation.
Pharmaceutical Contract Packaging Market Leaders
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Ropack Inc.
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Reed-Lane Inc.
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PCI Pharma Services
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Silgan Unicep (Silgan Dispensing Systems)
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Sharp Services, LLC
*Disclaimer: Major Players sorted in no particular order
Pharmaceutical Contract Packaging Market News
- September 2024: Jones Healthcare Group announce its partnership with Quebec-based GDK Marketing as its exclusive pharmacy market sales partner in the province. This strategic collaboration reinforces Jones Healthcare Group’s ongoing commitment to expanding its presence in Quebec while delivering exceptional customer service and support in French.
- February 2024: Aptar CSP Technologies, part of AptarGroup Inc., collaborated with ProAmpac, a frontrunner in material science and flexible packaging. Together, they launched the ProActive Intelligence Moisture Protect (MP-1000). This innovative platform merges Aptar CSP’s 3-Phase Activ-Polymer technology with ProAmpac’s advance blown film technology, creating a moisture-adsorbing flexible packaging solution. The MP-1000 is the first in a series of active microclimate management packaging solutions designed to mitigate degradation risks, maintain potency, and boost product performance.
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 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Macroeconomic Factors on the Market
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
6.1.1.5 Other Primary Types
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
6.2.4 Australia and New Zealand
6.2.5 Latin America
6.2.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Ropack Inc.
7.1.2 Sharp Services, LLC
7.1.3 Reed-Lane Inc.
7.1.4 PCI Pharma Services
7.1.5 Silgan Unicep (Silgan Dispensing Systems)
7.1.6 Jones Healthcare Group
7.1.7 Almac Group Limited
7.1.8 Assemblies Unlimited Inc.
7.1.9 AmeriPac, Inc. (Veritiv Corporation)
7.1.10 MJS Packaging
7.1.11 Pharma Packaging Solutions
7.1.12 Nelipak
7.1.13 Aphena Pharma Solutions Inc.
7.1.14 Southwest Packaging
7.1.15 MPH Co-Packing
7.1.16 Tjoapack Netherlands B.V.
7.1.17 Quantrelle Packaging Solutions Ltd.
7.1.18 Variopack Lohnfertigungen GmbH
7.1.19 Central Pharma Contract Packing Limited
7.1.20 Sepha Ltd.
7.1.21 TPC Packaging Solutions
7.1.22 Wasdell Group
7.1.23 DaklaPack Group
7.1.24 Recipharm AB
7.1.25 Tripak Pharmaceuticals
7.1.26 Jam Jams Group
7.1.27 Asiapack Limited (Elanders Group)
7.1.28 Finishing Services
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Pharmaceutical Contract Packaging Industry Segmentation
The study on the Pharmaceutical Contract Packaging market tracks demands in terms of revenue for vendors who are offering pureplay outsourcing pharmaceutical contract packaging services across major segments such as Primary, Secondary, and Tertiary. The study also delves into the major trends, regulatory landscape, and key factors shaping the trends related to the contract pharmaceutical packaging market. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers the major factors impacting the growth of the pharmaceutical contract packaging market in terms of drivers and restraints.
The pharmaceutical contract packaging market is segmented by service type (primary [bottles, vials, ampoules, and blister packs, other primary types], 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.
| By Service Type | |||||||
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| Secondary | |||||||
| Tertiary |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| 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 18.15 billion in 2024 and grow at a CAGR of 9.84% to reach USD 29.03 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 18.15 billion.
Who are the key players in Pharmaceutical Contract Packaging Market?
Ropack Inc., Reed-Lane Inc., PCI Pharma Services, Silgan Unicep (Silgan Dispensing Systems) and Sharp Services, LLC are the major companies operating in the Pharmaceutical Contract Packaging Market.
Which is the fastest growing region in Pharmaceutical Contract Packaging Market?
North America 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 16.36 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.
Pharmaceutical Contract Packaging Market Report Snapshots
