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Market Overview

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The global pharmaceutical packaging market is projected to achieve a compound annual growth rate (CAGR) of 4.65% and surpass USD 106.37 billion by 2027, compared to USD 81 billion in 2021. This growth is driven by increasing demand for advanced and innovative solutions, such as self-administered drug delivery devices, in high-income countries. Additionally, the prevalence of diseases, including various types of flu and the recent COVID-19 pandemic, has grown in recent years. Rising healthcare expenses and growing consumer awareness of healthier lifestyles also contribute to the industry’s expansion.

Factors such as the rising prevalence of chronic diseases, growth in the biologics market, and technological advancements are expected to propel the market further. However, fluctuations in raw material prices and challenges posed by emerging markets, such as newly developed drugs, as well as non-compliance with regulatory standards, hinder the market’s growth.

High-income countries in North America and Europe have seen increased adoption of virtual visits and e-prescriptions, leading to a greater reliance on home delivery of medicines. Home delivery poses a significant challenge for pharmaceutical packaging companies, as customers may not be aware of proper disposal methods for packaged products and materials, resulting in significant environmental impact. Addressing these concerns, aluminum packaging has emerged as an improved solution.

Approximately 85% of waste produced by healthcare operations, including pharmaceutical and medical equipment packaging, is non-hazardous and therefore has the potential to be replaced by eco-friendly and reusable alternatives, enabling significant cost savings. Many pharmaceutical companies are transitioning to sustainable packaging that utilizes recyclable materials and biodegradable plastics. The market for sustainable pharmaceutical packaging is expected to grow during the forecast period. PET (polyethylene terephthalate) is a recyclable plastic material widely used in the manufacturing of pharmaceutical product packaging. It offers excellent carbon dioxide (CO2), oxygen, and moisture barrier properties, ensuring the freshness of liquids and solids. Europe is anticipated to lead the growth in the biodegradable pharmaceutical packaging market, with key players including Gerresheimer, Berry Global, International Paper, and Amcor.

Counterfeit pharmaceutical products are intentionally mislabeled with fraudulent claims about their identity. Counterfeit products may contain correct or incorrect ingredients, lack active ingredients, contain incorrect quantities of active ingredients, or feature fake packaging. The global pharmaceutical packaging market faces a significant challenge from the increasing incidence of counterfeit products. Consequently, many manufacturers have introduced various anti-counterfeiting features to combat the distribution of counterfeit pharmaceuticals. These features include thermochromic inks for labeling, holograms, QR codes, RFID labels, and more. Innovations in this field also include child-resistant, senior-friendly, high barrier, unit-dose, multi-dose, and specialty film packaging.

The COVID-19 pandemic has had adverse effects on the global healthcare industry, impacting the growth of the pharmaceutical packaging market. Effects of the pandemic on the pharmaceutical sector include changes in demand, regulatory adjustments, modifications to the research and development process, and restructuring of the supply chain. Furthermore, long-term impacts of the COVID-19 pandemic on the pharmaceutical industry globally are expected to include industry slowdown, delays in approvals, changes to clinical trial methods, increased self-sufficiency in the pharmaceutical product supply chain, and variations in the consumption of health and nutritional products.

During the pandemic, pharmaceutical packaging companies experienced stable revenue growth in 2020. Major companies in the industry increased their production capacity to meet the heightened demand for pre-filled syringes, blister packs, ampoules/vials, bags, cartridges, containers, and bottles, primarily driven by the surge in demand for COVID-19-related medications and vaccines. Additionally, pharmaceutical packaging for biologics, sterile packaging, smart packaging, patient-focused packaging, cleanroom expansion, and other related areas are expected to drive the global pharmaceutical packaging market in the long term.

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Market Segmentation

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The market is segmented based on various factors, including type, material, end-user, and geography.

Segmentation by Type
Primary – Blister Packs, Bottles, Vials, Ampoules, Others
Secondary
Tertiary

Segmentation by Material
Paper
Glass
Plastic
Others

Segmentation by End-User
Pharmaceutical Companies
CMO/ CDMO
Plastic

Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain
APAC – China, Japan, India, South Korea, Australia
Latin America – Brazil, Mexico, Argentina
Middle East & Africa – South Africa, Saudi Arabia, Turkey

In 2021, the primary pharmaceutical packaging segment held the largest market share of 70.20%. This can be attributed to the increasing demand for various packaging types such as blister packs, bottles, vials, ampoules, pouches, sachets, and bags. Among these, blister packs contributed significantly to the revenue with a share of 35.23% due to the high demand for both prescription and non-prescription medications. Generic drugs, in particular, had the highest demand among low- and middle-income countries (LMICs). Despite the pharmaceutical sector being dominant in the global market, the consistent surge in blister packaging demand is driven by its cost-effectiveness. The primary packaging segment is also witnessing a trend towards ready-to-sterilize (RTS) components and systems, moving away from simple bulk packaging materials.

Secondary pharmaceutical packaging innovations include the development of child-resistant (CR) and tamper-evident (TE) cartons, as well as cold-chain packaging. This segment accounted for 20.30% of the global pharmaceutical packaging market share.

Tertiary packaging, which ensures safe handling and transportation, includes plastic bags, shrink wraps, and cardboard boxes. The increasing trend of e-pharmacy is expected to further drive the adoption of tertiary packaging in the pharmaceutical packaging market. It is projected to grow at a compound annual growth rate (CAGR) of 3.96% during the forecast period.

Paper materials held the highest revenue share of 39.36% in 2021, primarily due to their demand in secondary and tertiary packaging. They are preferred for their low cost and increasing focus on recyclable and eco-friendly materials. The European market has witnessed a rise in demand for paper-based packaging, including corrugated and folding cartons, making it the largest pharmaceutical market and exporter. WestRock Company is one of the leading manufacturers in this segment.

Plastics, the third largest material segment in the pharmaceutical packaging market, is expected to grow at the highest CAGR of 4.94% from 2022-2027. Plastics are widely used in all three packaging types due to their versatility, flexibility, and cost-effectiveness. However, environmental concerns and bans on non-decomposable plastics have led to a high demand for recyclable plastics. PET, HDPE, and PP are among the most commonly used-recyclable plastics in pharmaceutical packaging, with PET being the most widely recycled plastic globally, followed by HDPE. Governments and companies are actively developing initiatives to incorporate recycled plastics in pharmaceutical packaging.

Pharmaceutical companies hold the largest market share of 48.18% in the global pharmaceutical packaging market by end-user segment. It is expected to grow at a CAGR of 5.10% during the forecast period. This dominance is attributed to the fact that pharmaceutical companies are the primary source of demand for pharmaceutical packaging. As the demand for pharmaceuticals continues to rise, the need for packaging also increases significantly.

In terms of regional market share, North America accounts for 36% of the global pharmaceutical packaging market. The region benefits from the growing pharmaceutical sales, particularly in the United States, which has a well-established drug-producing sector. The US market is projected to maintain moderate growth due to factors such as an aging population, constant innovations, and increasing consumer demand for sophisticated packaging.

Emerging markets like Brazil, China, and India are expected to exhibit the fastest growth rates. This can be attributed to their large populations and demographic factors such as a growing young population and longer life expectancy. The Asia-Pacific (APAC) region is estimated to experience the highest growth rate of 5.01% during the forecast period. The pharmaceutical industry is thriving in both developing countries like China, India, and Brazil, as well as developed countries like the US, UK, and Germany. India, in particular, is a major provider of generic drugs globally and supplies a significant portion of the global demand for vaccines, generic drugs in the US, and tablets in the UK, as stated by the India Brand Equity Foundation (IBEF).

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Competitive Landscape

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The global pharmaceutical packaging market is characterized by its dynamic and competitive nature, as it houses numerous international, regional, and local vendors who provide a wide range of pharmaceutical packaging products for various applications. Leading players in this industry include Berry Global, Amcor, Gerresheimer, WestRock, and AptarGroup. Additionally, the market features the presence of other prominent players such as ACG, Airnov, Borosil, CCL Industries, and Drug Plastics Group.

Key companies profiled in this report include Amcor, Aptar Group, Berry Global, Gerresheimer, WestRock, ACG, Airnov, AVI Global Plast, BD, Bilcare, Borosil, CCL Industries, Coesia, Drug Plastics Group, DWK Life Sciences, LOG, Meghmani Group, Neelam Global, Nolato, Nemera, PolyCine, RENOLIT, Schur Flexibles Holding, Specialty Polyfilms, SGD Pharma, SCHOTT, Sippex IV bags, SUPER OLEFINS, West Pharmaceutical Services, Wihuri Group.

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Recent Industry Developments

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In February 2018, Berry Global completed the acquisition of Clopay Plastic Products Company for a total purchase price of USD 475 million. This strategic acquisition aimed to strengthen Berry Global’s position in the market.

In July 2019, Berry Global successfully acquired RPC Group, which is recognized as a global leader in plastics conversion for both packaging and non-packaging markets. This acquisition further enhanced Berry Global’s capabilities and expanded its reach in the industry.

On June 11, 2019, Amcor, a renowned packaging company, finalized the acquisition of Bemis Company. Bemis Company is a global manufacturer of flexible packaging products, with its flexible segment catering to the global market. The flexible segment accounted for approximately 78% of Amcor’s net sales in FY2021, contributing significantly to their business.

In November 2021, Gerresheimer, a prominent pharmaceutical packaging and medical devices company, acquired the intellectual property (IP) of a new generation cartridge-based autoinjector from Midas Pharma. This acquisition allowed Gerresheimer to enhance its substantial portfolio in medical devices and primary packaging, specifically for small and large molecules.

In 2018, Gerresheimer expanded its business model by acquiring Sensile Medical, a drug delivery technology company. This acquisition enabled Gerresheimer to extend its expertise in the original equipment manufacturer (OEM) sector, focusing on drug delivery platforms for pharmaceutical and biopharmaceutical customers.

On October 27, 2021, Amcor introduced its dual-chamber pouch for drug-device combination product packaging exclusively in Europe. This innovative packaging solution showcased Amcor’s commitment to providing advanced and specialized packaging options for the pharmaceutical industry.

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Key Questions Answered

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How large is the global pharmaceutical packaging market?

The global pharmaceutical packaging market was valued at USD 81.00 billion in 2021 and is projected to exceed USD 106.37 billion by 2027. This growth can be attributed to the increasing demand for pharmaceutical packaging in emerging economies like Brazil, India, and China. Furthermore, rising healthcare expenditures and growing consumer awareness of healthier lifestyles are driving factors for the industry.

What is the growth rate of the global pharmaceutical packaging market?

The global pharmaceutical packaging market is experiencing a compound annual growth rate (CAGR) of 4.65% from 2021 to 2027.

Who are the major players in the global pharmaceutical packaging market?

Amcor, Aptar Group, Berry Global, Gerresheimer, and WestRock are the key players in the global pharmaceutical packaging market.

Which region will dominate the global pharmaceutical packaging market?

North America holds the largest market share in the pharmaceutical packaging industry, primarily due to the increasing demand for pharmaceuticals, a growing aging population, robust innovations, and rising consumer demand for sophisticated packaging.

What are the factors driving the growth of the pharmaceutical packaging market?

The main drivers of the global pharmaceutical packaging market include the growing demand for pharmaceutical products, increased need for primary pharmaceutical packaging, and a rising demand for flexible packaging.