Market Trends of Pharmaceutical Contract Packaging Industry
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.
Understand The Key Trends Shaping This Market
Download PDF
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.
Get Analysis on Important Geographic Markets
Download PDF
