Global Pharmaceutical Contract Packaging Market 2025 – 2034

Reports Description

As per the Pharmaceutical Contract Packaging Market 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

Pharmaceutical contract packaging is the contract packaging of pharmaceutical specialty packaging solutions for drugs like tablets, injectables, biologics, and combination therapies. It involves a broad range of activities, from labeling, blister packing, bottling, and pouching to serialization and cold-chain packaging, to comply with regulatory, quality, and safety standards. Compared to in-house operations, contract packaging offers pharmaceutical companies flexibility, speed-to-market, and access to advanced technologies without having to make capital-intensive investments.

The increasing complexity of drug products, driven by the development of biologics and cell & gene therapy, has encouraged demand for tamper-proof, high-accuracy, and contamination-free packaging. Third-party contract packagers now provide value-added services such as track-and-trace regulatory requirements, serialization, and digital authentication to keep up with FDA and EMA traceability mandates. Moreover, with personalized medicine coming increasingly into focus, the greater need for production in small batches with bespoke packaging to patient order illustrates the value of third-party packaging alternatives that are able to respond quickly.

Furthermore, rising geriatric patient populations and disease incidences of chronic diseases are fueling the demand for child-proof, simple-to-use, and senior-friendly packaging formats. Sustainability goals also influence market tendencies that are pressuring the providers to make investments in power-efficient manufacturing and recyclable packages as well as low-carbon prints. As supply chain disruptions force pharma producers to de-risk operations, proximity-based contract packagers in influential consumption markets like North America, Europe, and Asia-Pacific are becoming strategic partners through which cost-effectiveness and regulatory compliance can be achieved.

Pharmaceutical Contract Packaging Market Significant Growth Factors                 

The Pharmaceutical contract packaging Market Trends presents significant growth opportunities due to several factors:

• 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.

Pharmaceutical Contract Packaging Market Significant Threats

The pharmaceutical contract packaging Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Regulatory Compliance and Quality Assurance Challenges: One of the key challenges for drug contract packaging organizations (CPOs) is coping with high and increasing regulatory pressures. Regulators such as the US Food and Drug Administration (FDA), European Medicines Agency (EMA), and Japan’s PMDA impose stringent requirements on recycled materials, accuracy of labels, traceability, sterility, and packaging quality. Every geographic region usually has its own packaging regulation, where CPOs are made to be compliant at a local level but also accommodating at a global level. A deviation from these can lead to importation bans, product recall, or loss of reputation. To obtain these, CPOs must employ high-quality equipment, apply electronic batch records, audit packaging, and continually train staff. The cost and effort of compliance increase even higher when handling biologics or temperature-controlled medications. In addition, regular audits, certifications (such as ISO 15378 for packaging components), and traceability systems (serialization and track-and-trace) must be applied, which are operationally burdensome. These pose entry obstacles to smaller firms and limit flexibility to mid-size participants, retarding market growth.

• High Initial Capital Investment for Advanced Packaging Technologies: The packaging industry of pharmaceutical drugs relies heavily on advanced technologies such as automation, robotics, serialization, and vision inspection systems to achieve global quality and safety standards. The biggest bottleneck, however, is the enormous initial investment required to implement these technologies, especially for small- to medium-sized contract packaging organizations (CPOs). Fill lines, cold rooms, and track-and-trace systems are high-ticket products that entail massive initial capital outlay, as well as periodic costs in the form of calibration, training, and validation. In addition, with more sophisticated drug forms (i.e., biologics and injectables), precision-engineered sterile packaging rooms become increasingly essential, which exerts increased pressure on investment in infrastructure. If these upgrades do not take place, CPOs stand to lose business from big pharma firms that require sophisticated capabilities and complete regulatory compliance. This capital limitation tends to result in small CPOs forming joint ventures with or being acquired by large companies, resulting in industry consolidation. Thus, high capital needs for sophisticated packaging capabilities are a major entry barrier and inhibitor of innovation.

Pharmaceutical Contract Packaging Market Opportunities

• Expansion into Emerging Markets: Emerging markets like India, Brazil, Indonesia, and Sub-Saharan African countries represent untapped opportunities for pharmaceutical contract packaging suppliers. Driven by an increasing emerging middle class, urbanization, and expanding healthcare coverage, the consumption of pharmaceuticals is growing unprecedentedly in these economies. They often lack, however, the necessary infrastructure or know-how to achieve international packaging and compliance standards. This opens up options for global contract packaging firms (CPOs) to build local facilities or form strategic alliances, offering compliant, high-quality packaging solutions. Additionally, the lower labor and real estate costs provide operational efficiencies that can impact profit margins. Local production decreases lead times, streamlines logistics, and addresses “country-of-origin” requirements of purchasing policy for drugs. Emerging markets also open the door to introduce new packaging formats that address local requirements, e.g., single packs for antibiotics or humidity-resistance packs for tropical environments. With more multinational pharma firms operating in these emerging markets, growth increasingly depends on veteran CPOs.

• Integration of Smart Packaging Technologies: Intelligent packaging technologies are transforming the pharmaceutical industry through enhanced supply chain transparency, patient safety, and authenticity assurance. The use of tools such as RFID tags, QR codes, NFC chips, and time-temperature indicators allows real-time tracking of drug conditions to avoid spoilage, particularly in the case of cold-chain biologics and vaccines. Serialization and track-and-trace solutions ensure compliance with global anti-counterfeit legislation, including end-to-end product traceability from production through to patient. For Contract Packaging Organizations (CPOs), offering intelligent packaging solutions enhances differentiation in services and positions them at the forefront in terms of innovation. These types of technologies open up new means of patient involvement for instance, QR codes may be designed to link to instructions on how to use the medicine, reminder telephone calls to consume medicine, or product information. While high investment in such technology may be required in the beginning, the long-term advantages encompass higher customer retention, lower risk of recall, and compliance with global regulations such as the U.S. DSCSA and EU FMD. With digital health gaining momentum, smart packaging is becoming a key enabler for connected, secure, and responsive pharmaceutical delivery systems.

Pharmaceutical Contract Packaging Market Category Wise Insights

By Type

• Primary Packaging: Primary packaging is the first layer of packaging that directly comes into contact with the drug of the pharmaceutical, protecting it, stabilizing it, and keeping it sterile. It comprises blister packs, bottles, vials, prefilled syringes, ampoules, and sachets. The primary packaging is essential in ensuring the integrity of the drug as it protects the drug from water, oxygen, light, and microbial invasion. Sterile and high-barrier primary packaging solutions requirements have been spurred on by the increasing use of injectable drugs and biologics. Contract packaging firms (CPOs) are preparing with cleanroom suites and advanced filling technology to support regulatory needs as well as manage small and large batch sizes. Segment growth is also influenced by the increase in the use of patient-level and unit-dose packaging types.

• Secondary Packaging: Secondary packaging provides additional protection and presentation to pharmaceutical products and is vital for branding, labeling, and compliance. Cartons, boxes, inserts, and shrink wraps are bundled together to group primary packaged units. It is used to convey key information such as instructions for dosage, expiry dates, barcodes, and tamper evidence. Serialization, aggregation, nation-specific flexibility, and marking are usually managed by the contract packaging suppliers at this point. With the world moving towards anti-counterfeiting, secondary packaging has now turned out to be very important to implement serialization and track-and-trace technologies. Moreover, further requests for multilingual packaging to send overseas beyond national borders further increase the importance of secondary packaging in pharma supply chains.

• Tertiary packaging: Tertiary packaging refers to the third level packaging that is used to ship and handle secondary-packaged drugs in bulk volume. Examples of tertiary packaging are pallets, stretch wraps, and corrugated containers usually made by a supplier of shipping containers. The primary purpose of tertiary packaging is to protect bulk quantities from adverse environmental exposures such as temperature changes, mechanical shock, and contamination during storage and distribution. Tertiary packaging facilitates good handling and logistics, especially for international supply chains. Contract packaging companies should ensure that such packaging complies with international shipping regulations and cold chain regulations for temperature-sensitive drugs. As global pharmaceutical trade increases, the demand for reliable and compliant tertiary packaging is on the rise, making this a significant component in the end-to-end packaging service offered by CPOs.

By Material

• Plastics & Polymers: Polymers and plastics are the most commonly used materials in contract packaging in pharma because they are strong, flexible, and cost-effective, and they are routinely used for bottles, prefilled syringes, closures, and blister packs. Polyethylene (PE), polypropylene (PP), and polyethylene terephthalate (PET) polymers exhibit high-performance polymer properties, each with very good barrier performance to oxygen and moisture, which are essential in maintaining drug stability. Moreover, advanced polymer blends offer design freedom and enable tamper-evident and child-resistant pack functionality. The need for lightweight, shatterproof, and recyclable packaging is driving innovation in this sector. Greenhouse gas regulations, however, are persuading contract packagers to seek sustainable bioplastics and recyclable alternatives without compromising on functional performance.

• Paper & Paperboard: Paper and paperboard substrates are widely used in secondary and tertiary pharmaceutical packaging, which provides us with a sustainable, printable, and recyclable material substrate, which is frequently used for cartons, labeling, leaflets, and outer boxes. Paper-based packaging substrates are lighter than alternatives and biodegradable and are increasingly utilized in sustainable packaging. With the increasing focus on brand communication and regulatory compliance, high-quality paperboard allows clear printing of dosage instructions, product details, and regulatory information. Contract packagers often prefer paper-based packaging for its cost-effectiveness and adaptability to various printing and folding techniques. However, paper materials are typically coated or laminated when higher barrier protection is needed, especially for humidity-sensitive pharmaceutical products.

• Glass: Glass is predominantly used as a first pharmaceutical packaging material, particularly for injectables, vaccines, and biologics, due to its high chemical inertness and impermeability. Type I borosilicate glass is generally used in vials, ampoules, and prefilled syringes, which offer an extremely effective barrier against contamination and leaching for the drug within the package. The use of glass is a robust way to allow pharmaceutical companies to provide extended-term stability and assurance of the drug containing package, especially for sensitive formulations. Glass is breakable and heavier than polymers; however, glass provides barrier properties and transparency that are employed in sterile packaging environments. Contract packagers who focus on biologics and parenterals often invest in automated glass filling lines and a variety of inspection methodologies around vision inspection.

• Aluminum foil: Aluminum foil is mainly used in strip blister packaging because of its barrier properties against oxygen, moisture, light, and microbial ingress. It is extensively used for tablets and capsules in solid oral formulations, and foil-laminated forms are found in sachets and pouches for powders and topical formulations. Aluminum provides tamper-evident, lightweight, long shelf-life packaging that meets all the safety packaging standards for pharmaceutical use. There has also been an increasing regulatory push for footprint numbering and expiration dates and anti-counterfeit stamps, while aluminum packaging allows for high-resolution printing of these items. Furthermore, aluminum can be recycled and therefore is included as a possible environmentally friendly packaging material that is often used by pharmaceutical companies and contract packaging companies.

• Others: The Others segment contains specialty materials like rubber, elastomers, laminates, biodegradable films, and hybrid composites employed in niche pharmaceutical uses. They are typically utilized in closures, stoppers, transdermal patches, and sophisticated drug delivery systems. For example, thermoplastic elastomers and medical-grade rubber find application in vial stoppers and syringe plungers owing to their sealability and elasticity. Laminated substrates like plastic, foil, and paper offer multilayer protection for state-of-the-art formulations. With the growth of targeted and controlled-release therapy, there is growing demand for new packaging substrates. Contract packaging companies are looking to new, sustainable, and functional substrates that deliver performance and regulatory compliance in highly specialized drug classes.

Pharmaceutical Contract Packaging Market Impact of Recent Tariff Policies

Recent tariff policies, particularly by the U.S. administration, are set to heavily influence the contract packaging market of pharmaceuticals. These tariffs, perhaps even up to 25%, focus on pharma imports in the interest of national security and are intended to promote domestic manufacturing. These measures will have a disruptive impact on global value chains, with significant prevalence of import-sensitive active pharmaceutical ingredient (API)-based supply chains and packaging materials.

Tariff imposition can cause higher costs of production, which may be passed on to patients, impacting the accessibility and affordability of drugs. Generic drug manufacturers, having thin margins, might be particularly vulnerable, potentially leading to supply shortages or market withdrawals. Furthermore, the complexity of pharmaceutical supply chains means that even if finished drugs are not hit, component tariffs may have a cascading effect.

Companies are countering measures by taking measures such as bringing back production closer to home or reshoring production, diversification of sources, and investment in plant infrastructure closer to home. These actions incur an unbelievable investment of time and resources and incur short-term difficulty. The emerging trade landscape reflects the significance of adaptable supply chain management and constructive policy interaction for steering around risk imposed by the imposition of tariffs.

Report Scope

Pharmaceutical contract packaging Market Regional Analysis

The pharmaceutical contract packaging market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: The region of North America accounts for the most significant share of contract packaging in pharmaceuticals, due to the sophisticated regulatory environment, significant investments in drug development, and the existence of a relatively mature pharmaceutical industry in North America. The United States has the largest impact with the most recognized pharmaceutical companies, biotechnology, and contract packaging organizations (aka CPOs). Stringent regulation by the U.S. FDA stimulates high-quality packaging practices, such as serialization and anti-counterfeit technologies. Expansion in biologics and specialty drugs, coupled with growing outsourcing of packaging operations, is driving CPOs to enhance capabilities, especially for sterile packaging and cold-chain solutions. Canada also supports market growth through its rising generic drug manufacturing and supportive healthcare policies. Additionally, demand for sustainable and smart packaging formats is rising in this region.

• Europe: Europe is a mature market for pharmaceutical contract packaging, underpinned by stringent regulatory norms from the European Medicines Agency (EMA) and growing demand for efficient, sustainable, and compliant packaging solutions. Countries like Germany, the UK, Switzerland, and France host numerous pharmaceutical manufacturing hubs, creating consistent outsourcing opportunities. The serialization and anti-counterfeiting regulation push in the region, particularly with the Falsified Medicines Directive (FMD), has generated investment in secure secondary packaging presentation and electronic track-and-trace technology. In addition, the shift toward biologics and biosimilars is driving demand for sterile high-barrier primary packaging, such as prefilled syringes and glass vials. Europe is also a leader in sustainable packaging efforts with its emphasis on recyclable and light-weight packaging. With its heavily regulated marketplace, elderly population, and cross-border pharmaceutical trading, Europe remains a key market for pharmaceutical contract packagers serving quality-oriented and compliance-conscious buyers.

• Asia-Pacific: The Asia-Pacific market is witnessing the fastest growth of pharmaceutical contract packaging market because of the rapidly emerging generics industry, government support, and rising drug exports. India, China, Japan, and South Korea are all becoming global hubs for high-volume, low-cost drug manufacture. This evolution has generated strong demand for contract packaging services in order to fulfill local and international supply chains. Besides this, the burgeoning middle-class consumers, enhanced health care access, and rising burden of chronic disease are fueling demand for advanced drug delivery mechanisms and good-quality packaging. Regulatory convergence in economies like China and ASEAN is boosting facilitation of pharmaceutical enterprise, attracting foreign investment. With growing emphasis on automation, compliance with GMP standards, and cold chain logistics development, the Asia-Pacific region is becoming a focus point for global CPOs to realize cost savings, scalability, and access to emerging markets.

• LAMEA: The LAMEA region is a developing market for pharmaceutical contract packaging, with significant long-term prospects driven by increasing healthcare spending, changing regulatory environments, and increasing pharmaceutical consumption. Latin America, dominated by Brazil and Mexico, is witnessing local drug manufacturing and export activity, which is driving demand for cost-efficient yet compliant packaging solutions. In the Middle East, nations such as the UAE and Saudi Arabia are making significant investments in local drug production under nationwide healthcare reform initiatives. Africa is gradually opening up with improved access to healthcare, rising demand for primary drugs, and international collaborations fueling local drug production. Differences in regulations and infrastructure issues slow down the pace of growth. However, rising foreign direct investment (FDI), government incentives, and chronic disease rates are driving demand for innovative, safe, and scalable drug packaging solutions, so LAMEA represents a high-growth opportunity frontier for contract packagers through the next several years.

Pharmaceutical Contract Packaging Market Key Developments

In recent years, the pharmaceutical contract packaging Market has experienced a number of crucial changes as the players in the market strive to grow their geographical footprint and improve their product line and profits by using synergies.

• In October 2024, Nipro Corporation introduced its innovative D2F (Direct-to-Fill) glass vials, engineered to enhance pharmaceutical packaging efficiency. This product line simplifies the filling process by enabling direct filling from production into the vial, minimizing handling and lowering contamination risks. The D2F vials are designed to meet stringent quality standards while offering a more sustainable solution for drug manufacturers.

• In April 2024, Amcor unveiled a new line of sustainable packaging solutions tailored for the pharmaceutical industry. These innovative solutions focus on reducing environmental impact while ensuring the safety and efficacy of pharmaceutical products. The packaging includes recyclable materials and minimizes plastic usage, aligning with global sustainability initiatives and responding to the growing consumer demand for eco-friendly options.

• In September 2024, Jones Healthcare Group announced a strategic partnership with Quebec-based GDK Marketing, appointing them as its exclusive sales partner for the pharmacy market in the province. This collaboration underscores Jones Healthcare Group’s commitment to expanding its presence in Quebec and enhancing customer service and support in French.

• In February 2024, Aptar CSP Technologies, a division of AptarGroup Inc., joined forces with ProAmpac, a leader in material science and flexible packaging, to introduce the ProActive Intelligence Moisture Protect (MP-1000). This groundbreaking platform combines Aptar CSP’s 3-Phase Activ-Polymer technology with ProAmpac’s advanced blown film technology, creating a moisture-adsorbing flexible packaging solution. The MP-1000 is the first in a series of active microclimate management packaging solutions designed to mitigate degradation risks, preserve potency, and enhance product performance.

These important changes facilitated the companies to widen their portfolios, to bolster their competitiveness, and to exploit the possibilities for growth available in the pharmaceutical contract packaging Market. This phenomenon is likely to persist since most companies are struggling to outperform their rivals in the market.

Pharmaceutical Contract Packaging Market Competitive Landscape

The pharmaceutical contract packaging Market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• 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

Leading players in the pharmaceutical contract packaging market are strategically investing in specialized capabilities for biologics and complex formulations, which require advanced containment solutions such as dual-chamber syringes and lyophilized product-friendly formats. Companies are integrating automated visual inspection, robotics, and IoT-enabled sensors to boost production efficiency, ensure compliance, and minimize defects during high-speed packaging lines.

To expand their global footprint, several firms are pursuing joint ventures and cross-border acquisitions. For example, Catalent’s acquisition of Pharmapak Technologies supports its expansion into Southeast Asia, while West Pharmaceutical Services is scaling up smart device-compatible packaging operations in the U.S. and Germany. In addition, Amcor and SGD Pharma are scaling up low-carbon packaging technologies to align with ESG targets, including reusable, compostable, and refillable systems.

Emerging regional players, particularly in Eastern Europe and ASEAN nations, are entering the market by offering agile, affordable packaging for generics and small-batch APIs. The industry is also witnessing rising interest in active packaging systems—solutions that monitor humidity, temperature, and integrity to prolong shelf life, especially for temperature-sensitive biologics and vaccines.

Digital transformation is reshaping the competitive landscape. Firms like Berry Global and Origin Pharma Packaging are leveraging digital printing, serialization, and QR code-based track-and-trace features to enhance supply chain transparency and patient engagement. The evolution of home-based treatment models and telehealth is pushing demand for easy-to-use, single-dose packaging and tamper-proof, e-commerce-ready kits.

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