Pharmaceutical Contract Packaging Market by Service (Primary Packaging {Bottle, Vial, Ampoules, Blister Packs}, Secondary Packaging), Material (Plastic, Polymer, Paper, Glass, Aluminum Foil), and Geography - Global Forecast to 2029

The Pharmaceutical Contract Packaging Market is projected to reach $42.03 billion by 2029, at a CAGR of 8.4% from 2022 to 2029. Pharmaceutical companies outsource packaging operations to contract packaging firms to reduce their operating costs and focus on the core operations of developing a drug. Furthermore, serialization regulations for pharmaceuticals are progressing globally, and many pharmaceutical contract packaging firms already have efficient serialization workflows. Thus, outsourcing packaging functions allows pharmaceutical companies to meet serialization requirements without investing time and money in developing serialization workflows.

The growth of the pharmaceutical contract packaging market is driven by the growing adoption of smart packaging solutions, stringent regulatory policies concerning serialization regulations, and complex packaging requirements of the pharmaceutical industry. Furthermore, the adoption of postponement packaging to improve operations efficacy is offering market growth opportunities.

COVID-19 Impact Assessment

The outbreak of COVID-19 has created severe uncertainty about the demand for pharmaceuticals worldwide. In the light of the pandemic, the pharmaceutical companies pivoted their resources to vaccine production and R&D to develop a therapy for COVID-19, offering opportunities to the pharmaceutical contract packaging businesses. Pharmaceutical contract packaging firms are equipped with facilities that offer extensive benefits to pharmaceutical companies. Therefore, these companies focused on having a flexible capacity to support the growing demand for contract packaging.

The demand for vaccines increased exponentially to immunize people against COVID-19. This increased the demand for contract packaging services. Additionally, the demand for cryogenic labels also increased.

Thus, apart from the temporary supply chain disruptions in procuring materials for pharmaceutical packaging, the overall impact of the pandemic on the pharmaceutical contract packaging market has been positive.

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Adoption of Smart Packaging Solutions is Driving the Market Growth

The main purpose of the packaging is to protect the drug or drug product against the harmful effects caused by exposure and usage in the external environment. Smart packaging solutions utilize biosensors or chemical sensors to monitor the quality and safety of the product. Smart packaging solutions in pharmaceutical contract packaging help stakeholders monitor pharmaceuticals from dispatch to delivery. Furthermore, smart solutions offer benefits such as integration, safety and authenticity, patient adherence, and sustainability. The advent of contract packaging has helped pharmaceutical companies save on packaging costs, as new packaging formats can be expensive.

Adoption of Biodegradable Packaging Solutions is the Trend Prevailing in the Market

Packaging ensures the drugs' safety and storage without damaging their composition. Many pharmaceutical contract packaging companies are shifting to biodegradable packaging solutions due to their advantages, such as ease in disposal, reduction of carbon footprint, and non-hazardous to the environment. Pharmaceutical manufacturing, as well as contract packaging companies, are focusing on developing biodegradable variants for pharmaceutical packaging.

Key Findings in the Global Pharmaceutical Contract Packaging Market Study:

Based on service, in 2022, the primary packaging segment is expected to account for the largest share

Based on service, the pharmaceutical contract packaging market is segmented into primary packaging and secondary packaging. The primary packaging is further segmented into bottles, vials, ampoules, blister packs, and other primary packaging. In 2022, the bottles sub-segment is expected to account for the largest share of the market. The large market share of this segment is attributed to its benefits, such as cost-effectiveness, flexibility, and safety, while storing the pharmaceuticals in bottles.

Based on material, in 2022, the plastics & polymers segment is expected to account for the largest share

Polymers like high-density polyethylene and acrylic are used for fluid handling applications within the pharmaceutical sector. These materials keep medicine safe for use. Plastics & polymers also keep the pharmaceuticals safe during sterilization, offer UV protection, and are non-reactivity with chemicals. Furthermore, the growing trend of adopting biodegradable and reusable plastic is positively impacting the growth of this segment.

Asia-Pacific: Fastest Growing Regional Market

The growth in Asia-Pacific is attributed to the presence of a large number of contract packaging service providers in the region and the growing investments. The players operating in this market are continuously expanding their pharmaceutical operations. Furthermore, the presence of cost-effective labor and machinery also supports the market growth.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments that led market participants to adopt over the past three years. The key players profiled in the global pharmaceutical contract packaging market report are Daito Pharmaceutical Co., Ltd. (Japan), WestRock Company (U.S.), Baxter (U.S.), CCL Industries (Canada), Sharp Services, LLC (U.S.), Tjoapack Netherlands B.V.(Pharma Packaging Solutions) (Netherlands), IDT Biologika (Germany), Vetter Pharma International GmbH (Germany), Alcami Corporation Inc. (U.S.), and CIT srl (Italy).

Scope of the Report:

Pharmaceutical Contract Packaging Market, by Service

• Primary Packaging
  • Bottles
  • Vials
  • Ampoules
  • Blister Packs
  • Other Primary Packaging
• Secondary Packaging
  Note: Other primary packaging includes syringes, sachets, and strips.

Pharmaceutical Contract Packaging Market, by Material

• Plastics & Polymers
• Paper & Paperboard
• Glass
• Aluminum Foil
• Other Materials
  Note: Other materials include metal and paper.

Pharmaceutical Contract Packaging Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • Rest of APAC (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (RoLATM)
• Middle East & Africa

Key questions answered in the report: