US Pharmaceutical Contract Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.78 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Pharmaceutical Contract Packaging Market Analysis
The United States Pharmaceutical Contract Packaging Market is expected to grow at a CAGR of 8.78% during the forecast period. The packaging of drugs and other medicines plays an essential part in solving these issues. In that regard, pharmaceutical vials are increasingly being administered to ensure that patients take medicine at the inappropriate dosage and at the prescribed time. Besides, products in such form also provide ease of medication intake by the patients. This may help reduce their time of recovery and the burden on the healthcare system.
- Contract packaging gives pharmaceutical companies a chance to differentiate their product against the competition. Differentiation in pharmaceutical packaging is usually focused on the user's needs and use case. For example, the specific indication requirements section is one such need for contract packaging.
- Further, Serialization continues to be a driving factor for flexible, sterile packaging used for medical equipment, devices, implantable devices, and consumables, such as vials and syringes, among others. Increased demand for administering oral drugs, prescription dose medicines, and over-the-counter (OTC) medicines is expected to increase the use of flexible aluminum foil in the pharmaceutical sector.
- Furthermore, according to IQVIA, a human data science company, pharmaceutical sales worldwide are anticipated to reach USD 1.5 trillion in 2023 from USD 491 billion in 2019. The United States dominates the pharmaceutical sector, both in consumption and development. According to STAT, prescription drug spending in the nation is considered to add up to USD 600 billion by 2023, up from an estimated USD 500 billion in 2019.
- Manufacturers in the sector rushed their resources and pushed for quicker manufacturing and packaging procedures as a result of COVID-19's considerable impact on the demand for vials, medications, and other products. Due to supply chain issues in the Asia-Pacific region, which holds a prominent position when it comes to pharmaceutical raw materials as well as packaging industry raw materials, there was a significant shortage of materials for both CMOs and CPOs in the market during the early months of the pandemic, which caused slower manufacturing and packaging.
US Pharmaceutical Contract Packaging Market Trends
This section covers the major market trends shaping the US Pharmaceutical Contract Packaging Market according to our research experts:
Increasing Outsourcing Volumes by Major Pharmaceutical Companies
- With cost containment a priority, especially in the era of the COVID-19 pandemic and the threat of other previously unimagined business disruptions, the race to contract packaging of life-saving drugs for trusted service providers is accelerating.
- Also, the development and manufacturing of medications is a capital-intensive business. With margins shrinking for generics, manufacturers are reducing the scale of their investments within this category. Outsourcing the packaging mechanism enables companies to work with packaging experts while reducing the packaging expenses of the drugs.
- Owing to the increasing demand in the market, in October 2021, Tjoapack, a Netherlands-based contract packaging organization serving the pharmaceutical industry, acquired US-based Pharma Packaging Solutions ("PPS"), a leading healthcare packaging services business based in Clinton, TN. Tjoapack's acquisition of PPS creates an opportunity to build a new global leader in contract packaging and supply chain services for the pharmaceutical market. The acquisition supports Tjoapack's growth strategy and is indicative of our commitment to customers
Blister Packs to Hold the Highest Market Share
- Blister packaging is mostly used to provide barrier protection from moisture, gas, light, and temperature and longer shelf life. Blister packaging helps retain product integrity as drugs that are pre-packed in blisters are shielded from adverse conditions. Blister packs are mainly used for packaging pharmaceutical products, such as OTC drugs and medicines (capsules), and small medical devices.
- The growing demand for the pharmaceutical industry is one of the primary drivers of the blister packaging demand in the North American region. The implementation of FDA regulations that require that all prescribed pharmaceuticals that are dispensed in hospitals and nursing homes are to be packaged in unit-dose formats, including barcodes to reduce dispensing errors, has also increased the sales of blister packs over the past few years.
- In the United States, blister packaging is used for products that are not behind the prescription counter, such as allergy medication or chewing gum. The US retailers and consumers are catching up with the rest of the world when it comes to packaging prescribed medications. The demand for blister packaging is increasing in the country.
- The US pharmaceutical market is among the world's most important national markets. The United States alone holds over 45% of the global pharmaceutical market. It is expected that almost USD 60 billion is spent annually on pharmaceutical R&D purposes in the country.
- Pharmaceutical companies are stringent about their policies regarding drug safety and effectiveness of drug packaging, and this, in turn, is leading to an increase in pharmaceutical packaging such as blister packs, thereby, driving the market's growth positively.
US Pharmaceutical Contract Packaging Industry Overview
The United States Pharmaceutical Packaging market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with extensive adoption of prescription drugs and vaccines is increasing the demand in the market. Many companies are increasing their market presence by securing new contracts and by tapping new markets.
- December 2021 - KD Pharma Group, an international contract manufacturer for the pharmaceutical and nutraceutical industries, announced recently that it has acquired the manufacturing assets of the former Rohner AG, a chemical manufacturer based in Switzerland.
US Pharmaceutical Contract Packaging Market Leaders
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Thermo-Pak Co., Inc.
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Aphena Pharma Solutions
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Sonic Packaging Industries, Inc.
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Assemblies Unlimited, Inc.
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Action Pak, Inc.
*Disclaimer: Major Players sorted in no particular order
US Pharmaceutical Contract Packaging Market News
- January 2022 -West Pharmaceutical Service, Inc., a global player in innovative solutions for injectable drug administration, announced an exclusive supply and technology agreement with Corning Incorporated. The new collaboration includes a multimillion-dollar investment to expand Corning's Valor Glass technology to enable advanced injectable drug packaging and delivery systems for the pharmaceutical industry with the goal of advancing patient safety and expanding access to life-saving treatments.
- February 2022 - Moderna and Thermo Fisher announced to have entered into a 15-year strategic collaboration agreement for the dedicated, large-scale manufacturing of Spikevax, Moderna's COVID-19 vaccine, in the United States. The agreement also applies to other investigational messenger RNA (mRNA) therapeutic candidates in Moderna's pipeline. The partnership included the quick scale-up of aseptic fill/finish services and packaging of Moderna's COVID-19 vaccine.
US 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 DYNAMICS
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/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of COVID-19 Impact on the market
4.4 Market Drivers
4.4.1 Cost-Effectiveness Of The Outsourcing
4.4.2 Access to the advanced technologies and expertise
4.5 Market Restraints
4.5.1 Monitoring issues and lack of standardization
5. MARKET SEGMENTATION
5.1 Service Type
5.1.1 Primary
5.1.1.1 Medical Pouches
5.1.1.2 Blister Packs
5.1.1.3 Cartridges and Syringes
5.1.1.4 Vials
5.1.1.5 Ampoules
5.1.1.6 Others Product Types
5.1.2 Secondary
5.1.3 Tertiary
5.2 Material Type
5.2.1 Plastic
5.2.2 Paper & Paperboard
5.2.3 Glass
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Thermo-Pak Co., Inc.
6.1.2 Aphena Pharma Solutions
6.1.3 Sonic Packaging Industries, Inc.
6.1.4 Assemblies Unlimited, Inc.
6.1.5 Action Pak, Inc.
6.1.6 AmeriPac, Inc.
6.1.7 MBK Tape Solutions
6.1.8 Elitefill, Inc.
6.1.9 Tru Body Wellness
6.1.10 Deluxe Packaging
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Pharmaceutical Contract Packaging Industry Segmentation
The United States is one of the largest regions for the pharmaceutical contract packaging industry because of its large pharmaceutical manufacturing base and the ability to introduce technological advancements to pharmaceutical packaging.
The United States Pharmaceutical Contract Packaging Market is segmented by Service Type ( Primary (Medical Pouches, Blister Packs, Cartridges and Syringes, Vials, Ampoules, Bottles), Secondary, Tertiary), and Material Type (Plastic, Paper & Paperboard, Glass). The market study is focused on the trends affecting the market in the United States. The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry. The study tracks the impact of COVID-19 on the overall pharmaceutical packaging industry and its performance. The market sizes and forecasts are provided in terms of value (USD million) for all the segments.
| Service Type | ||||||||
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| Secondary | ||||||||
| Tertiary |
| Material Type | |
| Plastic | |
| Paper & Paperboard | |
| Glass |
US Pharmaceutical Contract Packaging Market Research FAQs
What is the current US Pharmaceutical Contract Packaging Market size?
The US Pharmaceutical Contract Packaging Market is projected to register a CAGR of 8.78% during the forecast period (2024-2029)
Who are the key players in US Pharmaceutical Contract Packaging Market?
Thermo-Pak Co., Inc., Aphena Pharma Solutions, Sonic Packaging Industries, Inc., Assemblies Unlimited, Inc. and Action Pak, Inc. are the major companies operating in the US Pharmaceutical Contract Packaging Market.
What years does this US Pharmaceutical Contract Packaging Market cover?
The report covers the US Pharmaceutical Contract Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the US Pharmaceutical Contract Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Pharmaceutical Contract Packaging Industry Report
Statistics for the 2024 US Pharmaceutical Contract Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Pharmaceutical Contract Packaging analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
