Pharmaceutical Contract Packaging Market

Pharmaceutical Contract Packaging Market Outlook 2032 

The global pharmaceutical contract packaging market size was USD 15.6 Billion in 2023 and is likely to reach USD 36.4 Billion by 2032, expanding at a CAGR of 9.82% during 2024–2032. The market growth is attributed to the increasing demand for an efficient packaging solution.

Pharmaceutical contract packaging refers to the outsourcing of tasks related to packaging medications by pharmaceutical companies to specialized firms. These contract packagers handle various aspects of the process, ensuring the medications are safe, meet regulatory requirements, and are presented effectively.

Contract packaging offers several benefits for pharmaceutical companies, including cost-effectiveness, scalability, expertise, compliance, and focus on core competencies. By outsourcing packaging to specialists with necessary equipment and expertise, companies can save money, meet fluctuating packaging needs, stay updated on regulations, and access advanced technologies.

Contract packagers provide access to specialized equipment and technologies that pharmaceutical companies may not have in-house. The latest pharmaceutical packaging trends include sustainable packaging solutions, smart packaging and serialization, child-resistant packaging innovations, enhanced labeling and information accessibility, personalized packaging experiences.

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Impact of Artificial Intelligence (AI) in Pharmaceutical Contract Packaging Market

Artificial intelligence (AI) is poised to significantly impact the pharmaceutical contract packaging market, bringing about advancements and potential challenges. AI-powered systems can optimize production and manage pharmaceutical packaging by analyzing historical data, demand forecasts, and storage conditions. They track products throughout the packaging process, identifying anomalies or defects for quality control as well.

AI automate various aspects of contract packaging, such as robotic arm manipulation and quality inspection. AI algorithms predict potential maintenance issues before they occur, minimizing downtime and ensuring smooth operations. AI improve supply chain management by analyzing vast amounts of data related to inventory levels, transportation schedules, and potential disruptions.

AI can offer personalized packaging solutions, such as customized labeling or packaging designs. However, challenges include integration and implementation costs, data security and privacy, regulatory landscape, and potential job displacement within the contract packaging industry.

Pharmaceutical Contract Packaging Market Dynamics

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Major Drivers

Increasing demand for an efficient packaging solution is propelling the market. The pharmaceutical industry is constantly innovating, leading to a wider variety of medications with complex packaging requirements. Contract packagers offer expertise and flexibility in handling these specialized needs, and efficient production lines to meet growing demand. The rise of biologics, personalized medicine, and other complex medications fuels the demand for contract packagers with expertise in handling these sensitive and specialized products.

Existing Restraints

High capital investments and stringent regulation and compliance cost is expected to restrain the global market during the forecast period. While regulations ensure safety, they add complexity and cost to the contract packaging process. Contract packagers need to invest in maintaining compliance with evolving regulations and quality standards, which can be a burden for small players.

Emerging Opportunities

Regulations mandating sterilized track-and-trace solutions are rising, with growing concerns about counterfeit drugs. Contract packagers offering expertise in integrating these technologies into their packaging processes are likely to be high demand.  As environmental concerns escalate, the demand for eco-friendly packaging solutions is growing. Contract packagers offering sustainable materials including recycled plastics, biodegradable materials, or minimal packaging designs are well-positioned to attract environmentally conscious pharmaceutical companies.

• In October, 2023, Bayer stated that it has joined the Blister Pack Collective and in collaboration with PulPac, it is expected to deploy dry molded fiber technology to contribute to the annual reduction of 100,000 tons of plastic pharmaceutical packaging used by industry.

Scope of the Pharmaceutical Contract Packaging Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Pharmaceutical Contract Packaging Market Segment Insights

Products Segment Analysis

Based on products, the pharmaceutical contract packaging market is divided into flexible packaging, plastic containers, glass containers, and caps or closures. The plastic containers segment dominated the global market in 2023 owing to its cost-effectiveness. The plastic containers are cheaper than glass or flexible containers, driving the segment. Moreover, the lighter weight and high durability boosts the segment significantly. Additionally, the versatility of plastic containers which can be molded into various shapes and sizes is fueling the segment. 

The glass containers segment is anticipated to expand  at a substantial CAGR during the forecast period owing to high barrier properties. Rising demand for sustainable packaging is boosting the segment. Consumers are increasingly concerned about environmental impact, and glass is a highly recyclable material. This shift in consumer preferences creates opportunities for pharmaceutical companies seeking eco-friendly packaging solutions.

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Application Segment Analysis

On the basis of application, the global market is segregated into autacoids & related drugs, contraceptives, hormone replacements, cardiovascular medicines, cancer therapeutics. The cardiovascular medicine segment is anticipated to register a considerable CAGR in 2023 increasing number of heart risks. Chronic diseases such as hypertension requires long term medication, which is expected to boost the segment. Moreover, growing geriatric population is increasing the prevalence of heart disease, propelling the segment. For instance,

• The World Health Organization (WHO) projects that the percentage of people over 60 in the world is projected to double from 12% to 22% between 2015 and 2050.

The cancer therapeutics segment is projected to register a robust growth rate during the assessment years owing to increasing number of cancer cases. The ongoing fight against cancer fuels constant research and development of new drugs. This translates to a high demand for contract packaging services for these often complex and sensitive medications, propelling the segment.

Industry Segment Analysis

On the basis of industry, the pharmaceutical contract packaging market is segmented into small molecule, biopharmaceuticals, and vaccine. The small molecule segment is expected to register a robust growth rate in 2023 owing to its manufacturing efficiency. Small molecules are generally simpler to manufacture and package as compared to biopharmaceuticals. This allows for efficient production lines and cost-effective packaging solutions. Furthermore, the high and consistent demand for contract packaging, surge the segment.

The biopharmaceutical segment is expected to expand at a significant growth rate during the projection period due to advancements in biotechnology and development of complex drugs. Biopharmaceuticals often require specialized packaging solutions due to their sensitivity and complex storage requirements. This fuels the demand for contract packagers with expertise in handling these advanced drugs.

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Type Segment Analysis

Based on type, the pharmaceutical contract packaging market is divided into sterile, and non-sterile. The sterile segment dominated the global market in 2023 owing to stringent regulation. Furthermore, sterile drugs are often complex and delicate. They require specialized packaging materials and handling techniques to maintain sterility throughout the shelf life. Contract packagers offer the necessary equipment, facilities, and expertise for handling these sensitive products. Additionally, the growing demand for injectable drugs is propelling the segment.

Regional Analysis

In terms of region, the global pharmaceutical contract packaging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period owing to the high demand of effective packaging solutions. North America is a hub for pharmaceutical manufacturing,  increasing the demand for packaging solutions, thus driving the regional market. Moreover, the presence of top-notch infrastructure is increasing the product launch and advancing the packaging technology, thus boosting the regional market.

The market in Europe is projected to grow at a significant pace in the coming years owing to the presence of established key market players. Increasing product manufacturing and high disposable income in this region is fueling the market. Plastic pre-filled syringes, vials, ampoules, and an increase in their use, boost the need for pharmaceutical contract packaging in this region.

• In August 2023, Amcor Plc, a well-known global innovator and producer of sustainable packaging solutions, disclosed its choice to purchase Phoenix Flexibles Pvt Ltd. By expanding its capacity, this calculated action seeks to strengthen Amcor's position in the quickly expanding market in India.
  

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Segments

Products

• Flexible Packaging
• Plastic Containers
• Glass Containers
• Caps or Closures

Application

• Autacoids & Related Drugs
• Contraceptives
• Hormone Replacements
• Cardiovascular Medicines
• Cancer Therapeutics

Industry

• Small Molecule
• Biopharmaceuticals
• Vaccine

Type

• Sterile
• Non-sterile

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Amcor plc
• AptarGroup, Inc.
• Becton, Dickinson, and Company
• Berry Global, Inc.
• Constantia Flexibles
• Drug Plastics Group
• Gerresheimer AG
• Südpack
• Vetter Pharma International
• West Pharmaceutical Services, Inc.

Competitive Landscape

Key players competing in the global pharmaceutical contract packaging market are Amcor plc; AptarGroup, Inc.; Becton, Dickinson, and Company; Berry Global, Inc.; Constantia Flexibles; Drug Plastics Group; Gerresheimer AG; Südpack; Vetter Pharma International; and West Pharmaceutical Services, Inc.

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,

• In November 2023, Amcor Plc signed a Memorandum of Understanding with NOVA Chemicals Corporate to procure mechanically recycled polyethylene resin (rPE) for flexible packaging films, promoting packaging circularity and increasing its use in flexible packaging applications.
• In July 2023, Constantia Flexibles launched REGULA CIRC, a novel pharmaceutical packaging solution that makes use of coldform foil. The package substitutes a PE sealing layer for traditional PVC, which lowers the amount of plastic and increases the amount of aluminum. This modification boosts material recovery during recycling procedures while improving the packaging's sustainability.
• In April 2023, Südpack unveiled the PharmaGuard blister, a blister package made of polypropylene. In addition to providing an excellent water vapor barrier, this novel substance effectively blocks oxygen and UV rays.