Pharmaceutical Contract Packaging Market Size, Share & Analysis Report by Type (Primary, Secondary, Tertiary Packaging), By Material (Plastics & Polymers, Paper & Paperboard), By Region, And Segment Forecasts, 2025 - 2030
Pharmaceutical Contract Packaging Market Size, Share & Analysis Report by Type (Primary, Secondary, Tertiary Packaging), By Material (Plastics & Polymers, Paper & Paperboard), By Region, And Segment Forecasts, 2025 - 2030
The global pharmaceutical contract packaging market size is expected to reach USD 26.2 billion by 2030, registering a CAGR of 7.1% from 2025 to 2030, according to a new report by Grand View Research, Inc. Access to advanced technologies, cost-saving, and focus on core competencies are anticipated to propel market growth.
The growing pharmaceutical industry with high competition within the market is the major factor driving the market. Pharmaceutical companies are outsourcing packaging activities to third parties, mainly in emerging nations such as China, India, and Brazil. Further, rising pricing pressure on pharmaceutical companies is boosting the demand for contract packaging services in the industry. The stringent regulatory scenario in developed countries and changing regulations in emerging countries are driving the market.
Moreover, large Contract Packaging Organizations (CPOs) and Contract Development and Manufacturing Organizations (CDMOs) are continually acquiring small contract service providers to fill any gaps in the value chain or expand their existing portfolios. As smaller service providers have customer bases that comprise small and mid-sized pharmaceutical companies, it allows larger CPOs and CDMOs to better compete with small service providers. Thus, maintaining the threat of new entrants at a moderate level for larger CPOs and CDMOs.
In addition, lack of in-house wrapping capabilities, expertise, and budget constraints are the major issues faced by small pharmaceutical companies in the industry. Contract packaging service providers are recognized as a practical approach to curbing such problems of small companies owing to the low-cost service offering. The lack of resources and budgets has prompted many small pharmaceutical companies to establish mutually beneficial relationships with CPOs and CDMOs. Contract service providers are making significant attempts to meet their client’s expectations and provide highly sophisticated wrapping facilities.
The stringent regulations in developed regions such as North America and Europe are expected to drive the market over the forecast period. For instance, compulsory barcodes system for pharmaceutical wrapping and the transfer of large volumes of data related to the supply of medicines under serialization legislation.
By type, primary packaging led segment dominating the market with the largest revenue share of 76.6% in 2024 due to the essential role primary packaging plays in safeguarding the pharmaceutical product’s integrity, safety, and compliance.
The secondary packaging segment is expected to grow significantly over the forecast period, driven by the increasing need for enhanced branding, consumer safety, and regulatory compliance.
The plastics and polymers segment contributed the largest revenue share, 41.5%, by 2024, mainly due to their versatility, cost-effectiveness, durability, ease of manufacturing, and ability to be molded into various shapes and sizes.
North America's pharmaceutical contract packaging market has dominated the global market and accounted for the largest revenue share of 36.0% in 2024 due to the region’s highly established pharmaceutical industry, technological advancements, and regulations.
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