Market Trends of Pharmaceutical Contract Packaging Industry
This section covers the major market trends shaping the Pharmaceutical Contract Packaging Market according to our research experts:
Bottles Pharmaceutical Packaging is Expected to Drive the Market Growth
- The primary packaging of pharmaceuticals in bottles entails filling the bottles. The bottle filling services hold a significant market share in the studied market as multiple pharmaceutical companies depend on contract packaging companies to partake in the filling procedure.
- Over the forecast period, plastic bottle filling is expected to significantly grow due to its various advantages, including light-weightedness that further saves space and transportation, and freight charges. Unlike pharmaceuticals filled in glass bottles, plastic bottles are not prone to breakage and help with necessary cost-savings associated with glass bottles.
- Both solid dosage and Liquid and liquid suspensions filling pharmaceuticals in glass, metal, and plastic bottles are marked with expansion activities as contract packaging companies focus on adding bottling lines to increase production capacity.
- For instance, Aphena Pharma Solutions, an organization providing pharmaceutical contract packaging services, announced in January 2021 that the company had added ten high-speed bottling lines leveraging its USD 21 million investment in solid dosage contract packaging. The company further intends to install 30 more high-speed lines in its newly acquired 500,000 sq ft facility to increase the monthly capacity to over 80 million bottles to target the pharmaceutical solid dose packaging industry.
- Moreover, the increasing demand for injectable pharmaceuticals is significantly driving the growth of glass bottles in the pharmaceutical sector. The robust market for oncology and other high-potency drugs (such as antibody conjugates, steroids, and IV fluids that require quick onset of action) is expected to be the key growth driver.
- Further, the increasing number of people who have diabetes significantly supports the growth of glass bottles for injectable pharmaceuticals. According to the World Health Organization (WHO), around 422 million people have diabetes worldwide. The change in this number increases the demand for penicillin, which is, thereby, contributing to the growth of the market.
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North America Accounts for the Largest Market Share
- The pharmaceutical contract packaging market in North America is rapidly increasing the adoption of different packaging methods to meet the expectations of changing consumer preferences. Rising environmental concerns have stimulated the demand for sustainable contract packaging in the pharmaceutical industry.
- In addition to this, the rising penetration of automation in pharmaceutical contract packaging has minimized human handling errors, thereby catalyzing market growth in the region. Apart from this, increased disposable incomes and rising consumer health awareness are propelling the demand for pharmaceutical contract packaging in the area.
- Many contract packaging companies have been investing in expanding their facilities and customer base and enhancing their geographical presence through acquisitions and partnerships. In September 2020, Essentra Packaging announced the purchase of a 3C! Based in North Carolina, Packaging is a designer and manufacturer of cartons, literature, labels, and packaging primarily for the pharmaceutical industry. Such acquisitions allow companies like Essentra Packaging to enhance their position in the pharmaceutical packaging space and provide opportunities to grow in the pharmaceutical manufacturing hub in North America, United States.
- Further, the expansion of biologics is expected to have a significant impact on the regional market. For example, in April 2021, Catalent completed a USD 14 million expansion for increasing biologics packaging capabilities and capacity at its Bloomington, Indiana facility.
- Moreover, North America is home to some of the most prominent pharmaceutical vendors and packaging solution providers; among the key growth trends, CPOs in the region extend their service offering with 3PL services.
- For instance, in September 2020, Legacy Pharmaceutical Packaging expanded its services, including 3PL services, covering supply chain transparency solutions and retail pharma product procurement for over-the-counter medications. In addition to this, the company also expanded its open-space facility near its St Louis, MO, headquarters from 215,000 ft2 to 500,000 ft2.
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