The global pharmaceutical contract packaging market size was valued at $28.2 billion in 2019 and is expected to grow at a CAGR of 7.1% from 2020 to 2027, to reach $47.7 billion. That’s according to a new report from Grand View Research, Inc., which lists several drivers of this growth. Among them, the desire of pharmaceutical companies to reduce their overall cost of production and to increase speed to market; the lack of in-house packaging capabilities and expertise along with budget constraints by smaller pharma companies; the need for pharma companies to meet serialization regulations; and the overall growth and increasing competitiveness of the global pharmaceutical industry.

In 2019, North America accounted for the largest share of the pharmaceutical Contract Packaging Organization (CPO) market, at 32.7%, due to the quality offerings provided by CPOs and Contract Development and Manufacturing Organizations (CDMOs), the report explained. During the forecast period of 2020 to 2027, however, Grand View Research forecasts that Asia Pacific will witness the fastest growth, owing to the presence of a large number of contract service providers in the region.

When it comes to the type of packaging services requested, the report notes that primary packaging accounted for the largest share of revenue in 2019, at 40.2%, and is expected to dominate the pharmaceutical contract packaging market through the forecast period. By packaging format, bottles comprise the largest segment, owing, the report says, “to the growing requirement of pharmaceutical bottles worldwide and the increasing adoption of pharmaceutical bottles for unit-dose packaging, particularly from high-demand regions such as Asia Pacific.” However, it adds that the blister-pack segment is expected to register a higher CAGR over the forecast period due to an increase in the outsourcing of blister-packing activities to emerging countries such as China, India, and Brazil.

In terms of packaging material, in 2019, glass held the largest revenue share, at 37.6%, as it is suitable for most parenteral and non-parenteral preparations in the industry. As for plastic, it is anticipated to witness an 8% CAGR over the forecast period, due to the growing demand for plastic packaging for the storage and delivery of medicines.