Number of pages: 100 | Report Format: PDF | Published date: April 17, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
Report Attribute |
Details |
Market Size Value in 2022 |
US$ 23.82 billion |
Market Size Value in 2031 |
US$ 50.28 billion |
CAGR |
8.1% |
Base Year For Estimation |
2022 |
Forecast Period |
2023 to 2031 |
Historical Year |
2021 |
Segments Covered |
Type, Material, and Region |
Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global pharmaceutical contract packaging market was valued at US$ 23.82 billion in 2022 and is expected to register a revenue CAGR of 8.1% to reach US$ 50.28 billion by 2031.
Pharmaceutical Contract Packaging Market Fundamentals
Contract packaging services for pharmaceutical businesses include capabilities such as assembly and kitting. Secondary services include inspection, raw material procurement, clinical trials, and laboratory testing. Contract packaging can be a simple or complex procedure since it is tailored to the unique scope of the product packaging, which differs widely across retail, commercial, and trade industries. Contract packaging and co-packing companies offer contract packaging services to product manufacturers and frequently function as an extension of the company. Contract packaging services come in varied degrees and can be used separately or in combination depending on the product's overall scope and product development. Contract package manufacturers collaborate with product managers and manufacturers to discuss, plan, customize, and execute the process based on the timeframe, pre-produced or to-be-produced packaging components, and industry needs.
Small pharmaceutical firms have significant challenges due to a lack of knowledge, funding restrictions, and in-house packaging skills. As a result, demand for pharmaceutical contract packaging services is increasing globally. Pharmaceutical contract packaging providers can handle various packaging projects and quickly resolve challenges arising from sophisticated packaging needs. These suppliers are also engaging in R&D initiatives to improve the quality of their goods. Furthermore, contract packaging service providers are making significant efforts to deliver highly advanced packaging facilities while meeting their client's requirements. Aside from that, the execution of strict norms and regulations related to medicine packaging by the governing authorities of several nations works as another market growth-inducing element. Likewise, the rising use of smart packaging solutions, such as smart labels, is expected to fuel market expansion.
Technological innovation is a prevalent trend in the pharmaceutical contract packaging market. To increase their market share, major companies in the pharmaceutical contract packaging market are focusing on developing new technical improvements. For example, Schott, a German business specializing in pharmaceutical contract packaging, will unveil Smart Containers in April 2020, a new digitized smart container with a laser mark and unique identity, enabling unprecedented traceability throughout the production process. It improves the lyophilization process, reduces the likelihood of a mix-up, and allows for targeted container-based recalls. The approach enables pharmaceutical producers to use machine vision and big data analytics in pharmaceutical filling lines.
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Pharmaceutical Contract Packaging Market Dynamics
The pharmaceutical industry is expanding exponentially due to global economic development, an aging and increasing population, and new product introductions. According to IQVIA, the worldwide pharmaceutical market's revenue in 2020 will be USD 1,265.2 billion, and it will continue to rise at a stable rate. Contract packaging in the pharmaceutical business is growing since many pharmaceutical vendors recognize that outsourcing commercial and clinical packaging to a pharmaceutical contractor may boost earnings.
Due to a lack of resources and budgets, several small pharmaceutical businesses have formed mutually advantageous partnerships with Contract Packaging Organizations (CPOs) and Contract Development and Manufacturing Organizations (CDMOs). Contract service providers work hard to match their client's expectations and provide advanced packaging facilities. Furthermore, the expanding pharmaceutical sector throughout the world is expected to fuel the market revenue. Pharmaceutical companies are increasingly outsourcing wrapping services to CPOs and CDMOs because it provides several benefits, such as access to advanced packaging technologies, increased efficiency, focus on core areas, access to skilled resources, and faster and better services.
Serialization, including the Drug Delivery Chain Security Act (DSCSA) in the United States and the Falsified Medicines Derivative (FMD) in the European Union, has enforced the use of barcodes on pharmaceutical packaging and the sharing of huge amounts of data in the delivery of medicines. This has compelled manufacturers to build suitable infrastructure to comply with the new rules. Serialization is projected to boost the market throughout the forecast period.
Additionally, the popularity of generic drugs in emerging nations will fuel the need for pharmaceutical packaging. Many firms are concentrating on producing generic medications to provide medical treatment at a reduced cost. This packaging is critical in producing generic pharmaceuticals since it is essential for proper packing during storage and transportation. As a result, the industry is driven by rising demand for generic medications.
Pharmaceutical Contract Packaging Market Ecosystem
The global pharmaceutical contract packaging market has been analyzed from three perspectives by type, material, and region.
Pharmaceutical Contract Packaging Market by Type
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Based on type, the global pharmaceutical contract packaging market is segmented into primary, secondary, and tertiary packaging. The primary packaging segment is further segmented into bottles, vials, ampoules, blister packs, and others.
The primary packaging segment accounts for the highest sales and is expected to rise during the forecast period. The segment is expected to lead the pharmaceutical contract packaging market during the forecast period, owing to an increase in primary packaging outsourcing due to a lack of in-house resources and skills.
The bottles segment showed the fastest revenue growth in the primary packaging market because of the growing demand for pharmaceutical bottles globally and the increasing usage of pharmaceutical bottles for unit dosage packaging, particularly in high-demand countries such as Asia Pacific. However, due to a growth in outsourcing blister wrapping operations to rising nations such as China, India, and Brazil, the blister packs category is expected to post a higher revenue CAGR during the forecast period.
Secondary packaging is expected to have a profitable share during the forecast period. Secondary packaging is essentially a second layer of covering that protects pharmaceutical items from external barriers while providing instructive information such as the presence of active and inert substances, the kind of medicine, warning precautions, and many others.
Pharmaceutical Contract Packaging Market by Material
Based on material, the global pharmaceutical contract packaging market is segmented into paper & paperboard, plastics & polymers, glass, aluminum foil, and others.
The plastics and polymers segment is predicted to have the largest market revenue share. Plastic packaging is in great demand due to its numerous advantages. For example, the composition of plastic or other polymers is such that they are inert and have no effect on the drug's stability or efficacy. Furthermore, using recycled and biodegradable plastics has a favorable influence on market revenue.
Pharmaceutical Contract Packaging Market by Region
Based on region, the global pharmaceutical contract packaging market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
To fulfill the demands of changing customer preferences, North America's pharmaceutical contract packaging industry is fast growing using various packaging technologies. Rising environmental concerns have fueled the pharmaceutical industry's search for sustainable contract packaging. Furthermore, the increasing penetration of automation in pharmaceutical contract packaging has reduced human handling mistakes, catalyzing market revenue growth in the region. Aside from that, greater consumer health awareness and increased disposable budgets drive demand for pharmaceutical contract packaging in the region.
Several contract packaging companies have expanded their facilities and customer base through acquisitions and collaborations while increasing their geographical footprint. Essentra Packaging purchased 3C in September 2020. The company is a designer and manufacturer of cartons, literature, labels, and packaging for the pharmaceutical sector. Such acquisitions enable firms such as Essentra Packaging to strengthen their position in the pharmaceutical packaging industry and to expand in the pharmaceutical production powerhouse of North America, the United States.
Europe is the second most dominant region in terms of revenue in the pharmaceutical contract packaging market. A substantial presence of major pharmaceutical manufacturers generates profitable prospects and boosts the usage of pharmaceutical contract packaging. The growing usage of pharmaceutical items such as plastic bottles and containers, vials and ampoules, and pre-fillable syringes is expected to drive demand for pharmaceutical contract packaging in this region.
However, due to the region's high number of contract packaging service providers, Asia Pacific is predicted to develop faster during the forecast period. These players are concentrating on expanding their facilities to meet the rising demands of pharmaceutical corporations. In addition, increased outsourcing of pharmaceutical manufacturing to emerging nations such as India is fueling regional market revenue expansion.
Pharmaceutical Contract Packaging Competitive Landscape
The presence of a large number of providers appears to have fragmented the competitive environment of the global pharmaceutical contract packaging market. The leading players are diversifying their consumer base across many geographies. Furthermore, many businesses are developing strategic and collaborative ventures with other companies to enhance their market revenue share and profitability. The prominent market players in the pharmaceutical contract packaging market include:
Pharmaceutical Contract Packaging Strategic Developments
Contract packaging services for pharmaceutical businesses include capabilities such as assembly and kitting. Secondary services include inspection, raw material procurement, clinical trials, and laboratory testing.
The expected size of the pharmaceutical contract packaging market 2031 will be 50.28 billion.
The expected revenue CAGR of the pharmaceutical contract packaging market during the forecast period will be 8.1%.
Some prominent market players operating in the pharmaceutical contract packaging market include Amcor plc, BALL CORPORATION, and Daito Pharmaceutical Co., Ltd.
The primary packaging segment led the global pharmaceutical contract packaging market with the largest revenue share.
*Insights on financial performance are subject to the availability of information in the public domain