Global Pharmaceutical Contract Packaging Market Size Likely to Reach at a CAGR of 7.34% By 2034

Pharmaceutical Contract Packaging Market Size

As per the Pharmaceutical Contract Packaging Market size analysis conducted by the CMI Team, the global pharmaceutical contract packaging Market is expected to record a CAGR of 7.34% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 18.40 Billion. By 2034, the valuation is anticipated to reach USD 34.80 Billion.

Pharmaceutical Contract Packaging Market Overview

As per the industry experts at CMI, the pharmaceutical contract packaging industry is highly driven by increased demand for outsourced packaging processes by pharmaceutical businesses seeking to contain operating costs and enhance efficiency. As drug development activity increases and advanced biologics enter the pipeline, pharmaceutical businesses increasingly seek specialized contract packaging solutions to allow regulatory compliance and speedy market delivery.

In addition, growing emphasis on tamper-evident, anti-counterfeit, and environmentally friendly packaging forms triggered by strict government regulations and safety awareness among consumers further propels the market forward. Greater traceability and serialization demands across North America and Europe also contribute to the necessity of third-party reliable packaging services.

The integration of digital solutions and automation with contract packaging operations continues to increase service capacity, efficiency, and customer satisfaction across this expanding global market.

Pharmaceutical Contract Packaging Market Growth Factors and Dynamics

• Rising Complexity of Pharmaceutical Product Portfolios: The pharma industry is undergoing change with biologics, personalized medicine, and combination product development. Specialized packaging demands are common to these products with respect to overcoming stability, sterility, and patient compliance needs. CPOs provide expertise and facilities that can manage the complexity so the pharma organization can concentrate on core business. For example, as per the U.S. Food and Drug Administration (FDA), biologic license applications have registered a consistent growth, with more than 60 approvals in 2023 alone, reflecting an escalating demand for customized packaging solutions. Increasing demand for customized packaging solutions is thus driving the contract packaging market growth.

• Stringent Regulatory Requirements and Serialization Mandates: Global regulatory agencies have imposed strict regulations to guarantee the safety and traceability of pharmaceutical products. Serialization requirements, which necessitate unique identification codes on packs of drugs, have become a central issue in the fight against counterfeit medicines. The application of these requirements demands sophisticated packaging technologies and processes, leading pharmaceutical companies to outsource to CPOs with such capabilities. For example, the Falsified Medicines Directive (FMD) of the European Union requires serialization of all prescription drugs, scanning in excess of 4 billion packages a year, hence enhancing dependence on specialist contract packaging services. This phenomenon enormously promotes the contract packaging industry because compliance issues become an important business driver.

• Increasing Complexity of Pharmaceutical Product Portfolios: The pharmaceutical industry is confronted with diversification of product portfolios in the shape of personalized drugs, combination treatments, and multiple dosage forms. Such sophistication is demanding flexibility and versatility in packaging needs to suit individual product requirements. For example, the U.S. National Institutes of Health (NIH) states that personal medicine programs have been funded to the tune of more than $1 billion since 2020, reflecting increasingly complex and individualized pharmaceutical products. Contract packagers provide the flexibility and technical expertise required to handle such varied demands in an efficient manner and thus prove to be beneficial partners for drug companies seeking to simplify operations and concentrate on core functions.

• Rising Demand for Sustainable and Eco-Friendly Packaging: Sustainability has become a key driver of the pharmaceutical contract packaging industry, driven by mounting regulatory pressures, environmental issues, and changing consumer behavior. Governments and international institutions are promoting plastic waste, carbon footprint, and non-recyclable material reductions in all industries, including pharmaceuticals. In response, contract packaging companies (CPOs) are investing in sustainable materials like biodegradable plastics, lightweight glass, and recyclable aluminium parts. Solutions such as recyclable blister packs, solvent-free adhesives, and mono-material packaging are becoming more popular. Aside from environmental concerns, sustainable packaging solutions can lower transportation costs through lighter weight and maximize shelf-space efficiency. Pharmaceutical companies are also integrating sustainability into their ESG (Environmental, Social, Governance) strategies, which enhances brand equity and meets investor expectations. CPOs that can offer verified eco-friendly packaging options and closed-loop recycling systems are increasingly being favored. Therefore, sustainability is no longer optional it’s a competitive differentiator that influences buyer decisions in the contract packaging market.

Report Scope

Pharmaceutical Contract Packaging Market SWOT Analysis

• Strengths: The pharmaceutical contract packaging market benefits from the move by the industry toward outsourcing for cost savings and concentrating on its core competencies, such as commercialization and R&D. The contract packagers provide niche services such as cold chain logistics, compliance-ready labelling, and serialization, making it easier for pharmaceutical companies to comply with stricter regulatory requirements of several regions. The presence of experienced contract packaging partners, particularly in Europe and North America, ensures on-time shipment, flexibility of packaging design, and scalability. They enable improved operational efficiency, speed-to-market, and overall product safety, rendering contract packaging an essential part of the pharmaceutical supply chain.

• Weaknesses: Despite its growth, the pharmaceutical contract packaging industry is faced with in-house limitations such as dependence on customer specifications and lack of ability to control the quality of the finished product from the customer’s perspective. Small-sized contract packaging businesses may struggle with keeping pace with evolving regulatory mandates, automation technology, and investments required for improving infrastructure. Moreover, communication gaps and misaligned expectations between pharmaceutical firms and packaging providers can lead to delays and non-compliance issues. These weaknesses can create reputational risks and lower the level of trust, especially in high-value segments like biologics and personalized medicines.

• Opportunities: There are premium opportunities because of increasing pharma R&D spending, improving market expansion in generics and biosimilars, and growing global demand for personalized medicines. Moreover, the global movement towards green packaging and sustainable supply chains offers opportunities for packaging innovations in the form of biodegradable and recyclable materials. Government initiatives to promote local manufacturing and stringent traceability laws, such as serialization laws in the U.S. and EU, are forcing pharmaceutical companies to seek specialized partners. The Asia-Pacific and Latin American emerging markets also provide untapped growth opportunities, especially for companies that offer cost-effective yet quality contract packaging services.

• Threats: With the trend toward digitalization, the market will experience increased threats from increased raw material supply chain disruption and reasonable increases in the costs associated with cybersecurity. Compliance is also a major challenge, as packaging, labeling, and safety regulations evolve in global markets. Furthermore, along with significant competition within the industry for contract packagers, pricing pressures and margin compression may impact future profitability. They may also be susceptible to being overly dependent on larger customers or customers in certain geographic regions, which may interfere with business continuity during times of political or economic instability.

List of the prominent players in the Pharmaceutical Contract Packaging Market:

• Amcor plc
• BALL CORPORATION
• Nipro Corporation
• Daito Pharmaceutical Co. Ltd.
• Pfizer CentreOne
• CELESTICA INC.
• West Pharmaceutical Services Inc.
• WestRock Company
• Patheon
• Baxter BioPharma Solutions.
• Others

The Pharmaceutical Contract Packaging Market is segmented as follows:

By Type

• Primary Packaging
• Secondary Packaging
• Tertiary Packaging

By Material

• Plastics & Polymers
• Paper & Paperboard
• Glass
• Aluminum Foil
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America