Global Pharmaceutical Contract Packaging Market Grows at a Staggering CAGR of 10.2%

Introduction

Medications need to be packaged securely after production to ensure optimal pharmacological effects for patients. Companies throughout the world's pharmaceutical industry outsource tertiary tasks like labeling and packing to third-party companies. These companies provide vial assembly, secondary packaging, and other services for auto-injectors, prefilled syringes, and vials. Contract packaging for pharmaceuticals is becoming increasingly popular worldwide due to its relative adaptability, profitability, and usefulness in today's fast-moving industry.

Market Dynamics

Expansions and Investments in Improving Bottling and Filling Services Drive the Global Market

With the growing focus on creating new pharmaceuticals and the availability of vials on the market, investments in capacity expansions and bottling and filling services are increasing. Like other industries, the pharmaceutical industry is increasingly focusing on its resources and contracting out the remaining work to specialized businesses. Aphena Pharma Solutions spends USD 21 million in Cookeville, Tennessee, to expand its Solid Dose Division. The project includes a 500,000-square-foot structure designed for FDA manufacturing and packaging operations. The company's capacity for bottle packaging has increased with the construction of 10 high-speed bottling machines to start for solid-based products such as tablets, capsules, caplets, soft gels, and gel caps.

Growing Demand for Bottle Filling Services Creates Tremendous Opportunities

Bottle-filling services hold a sizable market share in the industry under investigation since many pharmaceutical companies depend on contract packaging companies to participate in the filling process. Plastic bottle filling is anticipated to experience considerable growth over the projection period due to its many benefits, including lightweight, which further reduces space, transportation, and freight costs. Plastic bottles are less likely to break than glass bottles, which helps with the necessary cost savings connected with using glass bottles for pharmaceutical products. As contract packaging companies concentrate on adding bottling lines to boost production capacity, solid dosage and liquid and liquid suspensions filling pharmaceuticals in glass, metal, and plastic bottles are highlighted by expansion activities.

Regional Analysis

North America is the most significant shareholder in the global pharmaceutical contract packaging market and is expected to grow at a CAGR of 9.6% during the forecast period. The market for pharmaceutical contract packaging in North America, which is quickly growing the usage of various packaging techniques to meet the demands of changing client preferences, has stimulated the need for sustainable contract packaging in the pharmaceutical industry. Additionally, the possibility of human handling errors has decreased with increased automation in pharmaceutical contract packaging, stimulating regional market growth. Rising demand, manufacturing businesses' shifting preferences toward contract packagers, and the U.S. government's enforcement of numerous rules and regulations on the labeling and packaging of pharmaceuticals all favorably affect the need for contract packaging in the region. Many contract packaging companies have invested in expanding their facilities, clients, and geographic reach through alliances and acquisitions. CPOs supplying the North American market must adhere to the region's stringent packaging regulations, which rank among the most difficult in the world.

Europe is expected to grow at a CAGR of 10.8%, generating USD 10.55 billion during the forecast period. The pharmaceutical packaging industry is employing cutting-edge technologies to meet the particular needs of Europe's rising population. The pharmaceutical contract packaging industry has expanded due to the increasing use of sustainable materials, innovative technology integration, and the e-commerce industry. Pharmaceutical packaging regulations in the EU are among the strictest, and CPOs also support compliance with packaging standards for pharma vendors. It is critical to increase the safety of child-resistant packaging because, according to European Child Safety Alliance studies, acute poisoning kills more than 3,000 children under 14 every year. To be deemed child-resistant in Europe, packaging must meet the requirements of EN 14375:2018.

There are great opportunities in the Chinese pharmaceutical industry as more people in the Asia-Pacific region have access to both Western medicine, which is produced in huge quantities, and Traditional Chinese Medicine (TCM). China has also become one of the most sought-after countries for outsourcing. The nation has surpassed India's top APIs and major pharmaceutical component producers. Even though producing APIs is common in China, most of the country's CMOs can only produce liquid or solid dosage formulations. As a result, it is projected that demand for primary, secondary, and tertiary co-packing services, such as blister packaging, plastic containers, labeling, and others, would increase for the leading pharmaceutical businesses in the country.

Key Highlights

• The global pharmaceutical contract packaging market was valued at USD 13.02 billion in 2021. It is projected to reach USD 31.21 billion by 2030, growing at a CAGR of 10.2% during the forecast period (2022-2030). 
• Based on service, the global pharmaceutical contract packaging market is bifurcated into primary, secondary, and tertiary. The primary segment is the highest market shareholder and is expected to grow at a CAGR of 10.1% during the forecast period.
• North America is the most significant shareholder in the global pharmaceutical contract packaging market and is expected to grow at a CAGR of 9.6% during the forecast period.

Competitive Players

Competitive Players

The global pharmaceutical contract packaging market’s major key players are Ropack Inc., Sharp (UDG Healthcare), Reed-Lane Inc., PCI Pharma Services, UNICEP Packaging LLC MPH Co-Packing, Tjaopak, SternMaid GmbH, Variopack Lohnfertigungen GmbH, CentralPharma, Tripak Pharmaceuticals, Jam Jams, Asiapack Limited (Elanders Group), and Finishing Services.

 

Recent Developments

Market News

• In January 2022, Sharp, a global leader in contract packaging and clinical supply services, completed the construction of new purpose-built production suites to facilitate the packaging, storage, and distribution of gene therapies, at its facility in Heerenveen (the Netherlands).
• In September 2022, Ropack announced immediate commercial-scale blister packaging services capacity for Q4.

Segmentation

Global Pharmaceutical Contract Packaging Market: Segmentation

By Service

• Primary
• Secondary
• Tertiary

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA