Global Contract Pharmaceutical Packaging Market - 2024-2031

Overview

Global Contract Pharmaceutical Packaging Market reached US$ 5.9 billion in 2023 and is expected to reach US$ 10.5 billion by 2031, growing with a CAGR of 7.5% during the forecast period 2024-2031.

The global pharmaceutical sector is expanding at an exponential rate, propelled by global economic growth, an aging and growing population and new product introductions. According to IQVIA, the globally pharmaceutical market's revenue in 2020 was US$ 1,265.2 billion and is expanding steadily. Many pharmaceutical vendors understood that outsourcing commercial and clinical packaging to a pharmaceutical contractor boost earnings, hence the contract packaging in the business is expanding.

The number of new pharmaceuticals approved by U.S. Food and Drug Administration has increased significantly in recent years. For example, the Food and Drug Administration said that CDER approved 53 innovative medications in 2020, up from 48 the previous year. Additionally, the generic medication program authorized or conditionally approved 948 generic medicine applications this year. The market has been positively impacted by the FDA's approval of more innovative medications.

In 2023, Europe is expected to be hold about 1/4th of the global contract pharmaceutical packaging market. EU regulations require all pharmaceutical firms to follow EU Good Manufacturing Practices if they want to sell their medicines in the EU. In January 2021, Novartis made a strategic investment in drug delivery startup Credence MedSystems. The investment is intended to help advance the development and scalability of Credence's drug delivery systems.

Dynamics

Increasing Demand for Injectable Pharmaceuticals

The growing demand for injectable medications is accelerating the expansion of glass bottles in the pharmaceutical industry. The healthy market for cancer and other high-potency medications (such as antibody conjugates, steroids and IV fluids with a rapid beginning of action) is expected to be the primary growth driver. Furthermore, the growing number of diabetics contributes significantly to the growth of glass bottles for injectable medications.

In accordance with the World Health Organization, over 422 million people globally have diabetes. Changes in this figure enhance demand for penicillin, contributing to market growth. Furthermore, the growth of biologics is anticipated to have a substantial impact on the regional market. For example, in April 2021, Catalent completed a US$ 14 million expansion to increase biologics packaging capacity at its Bloomington, Indiana facility.

Technological Advancements in Packaging

Technological improvements in packaging machinery and materials have helped to shape the globally contract pharmaceutical packaging market. The developments, driven by innovations in automation, materials science and sustainability, are expected to open up significant market potential opportunities. Automating packing operations is an important component of technological innovation.

Modern packaging technology includes advanced robotic systems, electronic controls and real-time monitoring capabilities. It translates into increased precision, efficiency and fewer human errors in the packing process. For example, in June 2020, PCI Pharma announced a cooperation deal with Experic to investigate clinical and commercial manufacturing, packaging and supply chain services, resulting in collective growth for both parties.

Sustainability and Alternative Concerns

Consumer tastes may shift due to growing lifestyle trends and cultural developments, affecting contract pharmaceutical packaging demand. Owing to the high market penetration and mature client preferences, the contract pharmaceutical packaging business in industrialized countries has become saturated. Manufacturers may find it difficult to differentiate their products and compete in saturated markets, resulting in pricing pressures and decreased profit margins.

Consumers choose these alternatives because of benefits such as mobility, insulation and convenience, which reduces demand for traditional ceramic or glass contract pharmaceutical packaging. Growing concerns about environmental sustainability have driven consumers to look for eco-friendly alternatives to traditional contract pharmaceutical packagings. As a result, there is a desire for recyclable and biodegradable options, which poses a challenge to producers who rely on non-sustainable types.

Segment Analysis

The global contract pharmaceutical packaging market is segmented based on type, raw material, application and region.

Lightweigth and Not Prone to Breakage Drives the Segment Growth

Plastics & polymer is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Plastic bottle filling will be expected to increase rapidly over the projection period due to its several benefits, including its light weight, which saves space and transportation, as well as freight costs. Unlike medications contained in glass bottles, plastic bottles are less likely to break and contribute to the necessary cost savings associated with glass bottles.

For example, Aphena Pharma Solutions, a pharmaceutical contract packaging company, said in January 2021 that it had built ten high-speed bottling lines, leveraging a US$ 21 million investment in solid dose contract packaging. The company also wants to add 30 more high-speed lines in its newly purchased 500,000 sq ft facility, increasing the monthly capacity to over 80 million bottles to target the pharmaceutical solid dose packaging market.

Geographical Penetration

Rising Investments in Pharmaceutical Sector in North America

North America is the dominant region in the global contract pharmaceutical packaging market covering more than 35% of the market. The presence of multiple pharmaceutical contract packaging service providers in the region increased the overall market size. Many contract packaging companies have made investments in extending their facilities and customer base, as well as increasing their geographical footprint, through acquisitions and collaborations.

In September 2020, Essentra Packaging revealed the acquisition of a 3C! Packaging, a North Carolina-based company that designs and manufactures cartons, literature, labels and packaging for the pharmaceutical sector. Such acquisitions allow companies like Essentra Packaging to strengthen their position in the pharmaceutical packaging industry and create prospects for growth in the pharmaceutical manufacturing hub in North America.

Competitive Landscape

The major global players in the market include Catalent Pharma Solutions, Aphena Pharma Solutions, ROPACK INC, Wasdell Packaging Group, Baxter BioPharma Solutions, AbbVie Contract Manufacturing, Pfizer CentreSource, Daito Pharmaceutical, Nipro Corporation and Becton Dickinson & Company.

COVID-19 Impact Analysis

The pandemic caused an increase in demand for pharmaceutical products such as vaccinations, drugs and medical equipment to battle the spread of COVID-19 and treat affected people. The rising demand for pharmaceuticals necessitated the use of contract packaging services to assure the timely packaging and distribution of important medicines. Regulatory authorities introduced temporary regulatory flexibilities and expedited approval processes to support the development, manufacturing and distribution of COVID-19 vaccines and treatments.

Contract packaging facilities took steps to guarantee staff safety and well-being while continuing operations during the pandemic. To reduce the danger of COVID-19 transmission, it includes creating remote labor arrangements, increased hygiene controls and social distancing measures within production facilities.

Russia-Ukraine War Impact

Russia and Ukraine are both major actors in the global pharmaceutical supply chain, supplying raw materials, active pharmaceutical ingredients and packaging materials to pharmaceutical producers globally. Any supply chain disruptions caused by the conflict, like transportation disruptions, export prohibitions or trade restrictions, may have an impact on the availability and pricing of pharmaceutical packaging materials.

The dispute interrupts the manufacture and export of vital pharmaceutical packaging materials such as polymers, plastics, glass vials and aluminum foils, causing global shortages and price instability. Contract packaging companies may experience difficulty in procuring necessary packaging materials, affecting their capacity to execute orders and meet the demand of pharmaceutical clients.

By Type

• Primary Packaging System
• Secondary Packaging System
• Tertiary Packaging System

By Raw Material

• Plastic & Polymers
• Glass
• Metals
• Paper & Board
• Rubber
• Cotton
• Others

By Application

• Transmucosal Drug Delivery Packaging
• Pulmonary Drug Delivery Packaging
• Nasal Drug Delivery Packaging
• Topical Drug Delivery Packaging
• Injectable Packaging
• Oral Drug Delivery Packaging
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In December 2022, Nelipak Corporation constructed a cutting-edge flexible packaging production facility in Winston-Salem, North Carolina. The strategic initiative will expand Nelipak's healthcare packaging capabilities across Europe to the Americas, catering to the region's growing need.
• In October 2022, Aphena Pharma Solutions Inc. reported that its US$ 20 million expansion and renovation, which began in mid-2019 in Cookeville, Tennessee, has now completed, providing a considerable amount of available solid dose packaging capacity.
• In October 2020, Alnylam Pharmaceuticals collaborated with Sharp to package its authorized RNAi therapeutic medicines for European markets. Sharp's Hamont-Achel facility in Belgium is going to handle the packaging for Alnylam's offerings throughout Europe. The agreement represented a significant foreign investment for Alnylam in Belgium, identifying with their objective to strengthen their presence in the region and establish it as a vital hub for operations.

Why Purchase the Report?

• To visualize the global contract pharmaceutical packaging market segmentation based on type, raw material, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of contract pharmaceutical packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global contract pharmaceutical packaging market report would provide approximately 62 tables, 61 figures and 193 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies