Pharmaceutical Contract Packaging Market Size (2024 - 2029)

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 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.