Market Trends of Pharmaceutical Contract Packaging Industry
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.
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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.
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