Pharmaceutical Contract Packaging Market By Packaging Type (Bottles, Blister Packs, Pouches, Syringes and Vials, Cartons, Labels and Leaflets, Others), By Service Type (Primary Packaging, Secondary Packaging, Tertiary Packaging), By Product Type (Prescription Drugs, Over-the-Counter Drugs, Biopharmaceuticals, Nutraceuticals, Medical Devices, Other), By Material (Plastic, Polymers and Glass, Metal, Paperboard, Others), and By End-user (Pharmaceutical Companies, Biotech Companies, Contract Research Organizations, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035
Published Date: Dec 2024 | Report ID: MI1559 | 235 Pages
Industry Outlook
The Pharmaceutical Contract Packaging market accounted for USD 17.45 Billion in 2024 and is expected to reach USD 47.83 Billion by 2035, growing at a CAGR of around 9.6% between 2025 and 2035. The pharmaceutical contract packaging market refers to the provision of services by an independent third party that assumes the responsibility of packaging medicinal products for pharmaceutical companies.
These companies specialize in a variety of services that include bottling, labeling, blister packaging, and carton filling to meet regulations of various levels. The market's growth is driven by a rising demand for effective and cheap packaging services that allow pharmaceutical companies to focus on critical business sectors such as drug production and distribution. Other factors driving this market include rising global healthcare spending, increased demand for generics, and expanding regulatory difficulties.
Report Scope:
Parameter | Details |
---|---|
Largest Market | North America |
Fastest Growing Market | Asia Pacific |
Base Year | 2024 |
Market Size in 2024 | USD 17.45 Billion |
CAGR (2025-2035) | 9.6% |
Forecast Years | 2025-2035 |
Historical Data | 2018-2024 |
Market Size in 2035 | USD 47.83 Billion |
Countries Covered | U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, Switzerland, Sweden, Finland, Netherlands, Poland, Russia, China, India, Australia, Japan, South Korea, Singapore, Indonesia, Malaysia, Philippines, Brazil, Argentina, GCC Countries, and South Africa |
What We Cover | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PESTLE analysis, value chain analysis, regulatory landscape, pricing analysis by segments and region, company market share analysis, and 10 companies |
Segments Covered | Packaging Type, Service Type, Product Type, Material, End-user, and Region |
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Market Dynamics
Increasing Demand for Cost-Efficient and Scalable Pharmaceutical Packaging Solutions
The pharmaceutical contract packaging market is continuously expanding due to the rising demand for affordable and easily scalable pharmaceutical packaging options. Many pharmaceutical businesses are concerned about the strain on their operational expenses and production, and outsourcing packaging benefits them. Contract packaging services can give economies of scale, allowing pharmaceutical companies to reduce their investments in infrastructure, labor, and machinery.
These firms provide simple, adaptable, and flexible packaging that can be altered based on manufacturing size to double or shrink as needed, making it ideal for pharmaceutical companies dealing with market swings. Such scalability is especially relevant in businesses that have fluctuating traffic or experience big fluctuations during specific months. Subcontracting the packing operation also saves money on hiring specialized personnel, as doing so internally could take a lengthy time, delaying other critical procedures like medical research and development or distribution.
Growing Pharmaceutical Industry and Rising Number of Drug Launches Worldwide
The pharmaceutical contract packaging market is being pushed by growth in the pharmaceutical industry and an increase in the number of drugs available globally. The world's population is aging, and people have more access to healthcare than ever before. There is an increasing need for healthcare products, and pharmaceutical companies are developing a diverse range of new offerings. The increased production of pharmaceuticals and medicines, both branded and generic, has created a greater demand for packaging materials. Contract packaging businesses are useful in ensuring that these pharmaceuticals are safely packed, meet all regulatory criteria, and are well-positioned for marketing. The number of new medicine releases is increasing, particularly in emerging countries, highlighting the need for efficiency and specialist packaging services. Furthermore, as biopharmaceuticals and tailored drugs become more prevalent, packaging requirements have expanded to encompass more particular packaging forms, necessitating increasingly sophisticated packaging techniques.
Complexities in Managing Diverse Packaging Requirements for Different Drug Types
Pharmaceutical items, such as oral tablets, shots, injectables, biologics, and vaccinations, have varying packaging requirements based on the type or nature of the tablet, shot, or injection, and sensitivity to environmental variables. These variations demand different packing materials, storage conditions, and drug-specific labeling. Inconsistent regulation among countries, tables, and directives adds to the complexity of compliance.
Challenging these many objectives while maintaining productivity and a competitive cost of operation may be a barrier to contract packaging and impede the further development of the pharmaceutical contract packaging business. Packaging enhancements, such as tamper-evident packages and child-resistant packaging, complicate and raise the cost of the process since businesses must invest in technological advancement. Because operational requirements change according to the volume and nature of the problems they seek to tackle, management must create more intricate solutions that take longer to implement and cost more than simpler answers.
Growth in Biopharmaceuticals Driving Demand for Specialized Packaging Solutions
The pharmaceutical contract packaging market is a worthwhile potential due to the growing usage of biopharmaceuticals, which require more advanced packaging solutions. Biopharmaceutical products such as biologics, gene treatments, and biosimilars are sensitive to packaging because they require proper stability, potency, and shelf life. These drugs are sensitive to smell and can be affected by temperature and humidity, necessitating the use of complex packaging such as cold chains, shielded vials, and sterilized packing.
Players who can provide a high level of differentiation, such as cutting-edge packaging materials, unique packaging design, and knowledge of biopharmaceutical packaging regulations, will be well-positioned to benefit from the industry's growth. This packaging requirement is projected to persist when additional next-generation biological therapeutic products are created.
Technological Innovations Enhancing Packaging Efficiency and Reducing Operational Costs
The pharmaceutical contract packaging market benefits from technology advancements that improve packing efficacy while lowering costs. New automation, robotics technologies, and the expansion of artificial intelligence to the packaging system as an advanced approach have enabled packaging companies to gain better control and reduce human intervention, resulting in increased efficiency. These allow for faster package manufacture, lower payment rates, and smaller amounts of raw material to be destroyed, all of which reduce packaging prices.
Smart packaging and track-and-trace technologies add value by allowing pharmaceutical items to be tracked and traced more effectively. This allows contract pharmaceutical packaging companies to provide more efficient, easily scalable, and cost-effective services to their customers. Therefore, pharmaceutical contract packaging companies may provide more effective, scalable, and cost-efficient services to their clients. As the world's population rises, the innovative creation of novel packaging materials such as biodegradable plastics and smart sensors aids in market expansion, since many pharmaceutical companies seek environmentally friendly and high-tech packaging solutions.
Industry Experts Opinion
“The shift towards ready-to-use vials and cartridges reflects a collective industry move to advance quality and efficiency in aseptic filling processes and this alliance shows readiness by expanding capacity and thereby supporting this market trend. Ready-to-use solutions can reduce complexities and better meet the stringent requirements of modern pharmaceutical production.”
- Andreas Reisse, CEO, SCHOTT Pharma.
Segment Analysis
Based on product type, the Pharmaceutical contract packaging market is divided into prescription drugs, over-the-counter drugs, biopharmaceuticals, medical devices, and nutraceuticals. The pharmaceutical contract packaging market is divided into product types, with prescription pharmaceuticals accounting for the greatest share. This is due to the growing number of specialized medications, biologic drugs, and other personalized therapies that demand effective packaging techniques for drug stability, sterility, and stringent regulatory compliance. Pharmaceutical package functionality needs, such as child-resistant, tamper-evident, and sterile packaging, are the driving forces behind this category. Furthermore, the rise in chronic diseases and the frequent introduction of new prescription pharmaceuticals are contributing factors to the growth of this category in the overall market.
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Based on packaging type, the Pharmaceutical contract packaging market is broadly classified into primary packing, secondary packing, and tertiary packing. Analyzing the segments in the pharmaceutical contract packaging market, the most prominent and largest segment is the primary packaging. This is because primary packaging comes into direct contact with the pharmaceutical product and has an influence on the product’s protection, stability, and compliance with certain regulations. Bottles, blister packs, vials, syringes, and other containers are vital for safeguarding medicine quality and ensuring safe dosing. A rising emphasis on product quality, patient needs, and compliance drives up customer demand for specialized primary packaging services, making it the largest category within contract packaging.
Regional Analysis
The North American pharmaceutical contract packaging market dominates due to the strength of the US pharmaceutical market. This area is saturated with healthcare, medication production, and stringent regulatory regulations that require professional and compliant packaging solutions. Further, the presence of major contract packaging companies and the growing demand for complicated packaging solutions for off-the-shelf and next-generation drugs contribute to North America's competitive advantage. There is also increased healthcare spending, a well-developed sector, and a large number of pharmaceutical manufacturing firms in the region, so package providers must avoid diversifying to cut costs and focus on their main sales offering.
The Asia-Pacific (APAC) pharmaceutical contract packaging market is quickly developing as the region's pharmaceutical sector grows, particularly in China and India. These are the countries where generics and biopharmaceuticals are produced in larger quantities, resulting in a major need for outsourced packaging services. Moreover, APAC can provide a low-cost manufacturing location, convincing pharmaceutical companies to outsource packaging services to comply with such settings. Another ongoing factor boosting future market phase expansion in the APAC region of the pharmaceutical contract packing industry is the rising use of new packing techniques and expanding healthcare awareness requirements.
Competitive Landscape
Pace Analytical Services, Inc., Kerry Group Plc, Lonza Group Ltd., WuXi AppTec, Sharp Packaging Services, SteriPack, and Amcor Limited are some of the leading pharmaceutical contract packaging firms. These companies offer a variety of services, like pharmaceutical packaging and labeling, serialization, and supply chain management. Catalent has increased its North American packaging operations to suit the growing need for clinical trials and commercial packaging, while Amcor has developed novel product packs built from biodegradable and recyclable materials.
Lonza Group and WuXi AppTec focus on comprehensive drug research and manufacturing solutions that use innovative technology to achieve greater efficiency and regulatory compliance. Legislative reforms and an emphasis on innovation and sustainability are causing such businesses to change market dynamics and create global positions.
Pharmaceutical Contract Packaging Market, Company Shares Analysis, 2024
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Recent Developments:
- In October 2024, Nipro Corporation launched innovative D2F (Direct-to-Fill) glass vials, designed to enhance the efficiency of pharmaceutical packaging processes. By enabling direct filling from production to the vial, this new product line simplifies the filling procedure, lowering the risk of contamination and handling. The D2F vials are designed to satisfy strict quality requirements while offering pharmaceutical makers a more environmentally friendly option.
- In April 2024, Amcor announced the launch of its new line of sustainable packaging solutions specifically designed for the pharmaceutical industry. By preserving the safety and effectiveness of medicinal items, this creative packaging seeks to lessen its negative effects on the environment. In line with global sustainability goals and meeting growing consumer demand for eco-friendly solutions, the new products use recyclable materials and less plastic.
Report Coverage:
By Packaging Type
- Bottles
- Blister Packs
- Pouches
- Syringes and Vials
- Cartons
- Labels and Leaflets
- Others
By Service Type
- Primary Packaging
- Secondary Packaging
- Tertiary Packaging
By Product Type
- Prescription Drugs
- Over-the-counter Drugs
- Biopharmaceuticals
- Nutraceuticals
- Medical Devices
- Others
By Material
- Plastic
- Polymers & Glass
- Metal
- Paperboard
- Others
By End-user
- Pharmaceutical Companies
- Biotech Companies
- Contract Manufacturing Organizations
- Others
By Region
North America
- U.S.
- Canada
Europe
- U.K.
- France
- Germany
- Italy
- Spain
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest of Asia Pacific
Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
Middle East & Africa
- GCC Countries
- South Africa
- Rest of the Middle East & Africa
List of Companies:
- Pace Analytical Services, Inc.
- Kerry Group Plc
- Lonza Group Ltd.
- WuXi AppTec
- Sharp Packaging Services
- Catalent, Inc.
- PCI Pharma Services
- UFP Technologies, Inc.
- SteriPack
- Amcor Limited
- Northwest Pharmaceutical Services, Inc.
- Horizon Pharma
- Rondo-Pak, LLC
- Sanner GmbH
- Schreiner MediPharm
- Optel Group
- Medipak Systems AG
Frequently Asked Questions (FAQs)
The Pharmaceutical Contract Packaging market accounted for USD 17.45 Billion in 2024 and is expected to reach USD 47.83 Billion by 2035, growing at a CAGR of around 9.6% between 2025 and 2035.
Key growth opportunities in the Pharmaceutical Contract Packaging market include Rising Adoption of Eco-Friendly and Sustainable Packaging Materials, Growth in Biopharmaceuticals Driving Demand for Specialized Packaging Solutions, and Technological Innovations Enhancing Packaging Efficiency and Reducing Operational Costs.
The largest segment in the pharmaceutical contract packaging market is solid dosage forms, particularly tablets and capsules, due to their widespread use and cost-effectiveness. The fastest-growing segment is biologics packaging, driven by the rapid advancements in biologics and personalized medicine. Additionally, injectable packaging is also expanding rapidly due to the increasing demand for injectable therapies in chronic disease management. The rise of e-commerce and direct-to-consumer delivery models is also contributing to the growth of packaging solutions for small-batch and direct shipments, further diversifying the market.
North America is expected to make a notable contribution to the global pharmaceutical contract packaging market, driven by the high demand for pharmaceutical products and advancements in drug development. The Asia Pacific region is also growing rapidly due to cost-effective manufacturing, increasing healthcare infrastructure, and rising pharmaceutical production in countries like China and India. These regions are expected to lead due to strong regulatory frameworks and expanding healthcare needs.
Leading players in the global pharmaceutical contract packaging market include Lonza Group, WuXi AppTec, Pharmaceutical Packaging Inc., and Kraft Heinz. These companies offer a wide range of packaging solutions, from primary packaging to final product distribution, and are known for their technological advancements and compliance with regulatory standards. Their global reach and strategic partnerships enable them to meet the growing demand for pharmaceutical packaging services.
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