The global pharmaceutical packaging market was valued at USD 139.37 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.7% from 2024 to 2030. This growth is largely driven by the rapid expansion of the pharmaceutical industry, which has been advancing due to scientific and technological innovations. The ongoing growth is expected to continue, especially in developing regions such as China, India, Saudi Arabia, and Brazil, where healthcare infrastructure and demand for medicines are expanding significantly.

In 2023, the United States represented the largest pharmaceutical market globally. Several factors contribute to this, including a well-established healthcare system, high per capita income, and substantial investments in research and drug development. The increasing focus on generic drugs and the improvement in healthcare services are expected to provide promising opportunities for the pharmaceutical packaging market. Notably, the 21st Century Cures Act (Cures Act), signed in 2016, is aimed at accelerating medical product development in the U.S., thus fostering innovation in the pharmaceutical industry. This legislation is anticipated to boost demand for pharmaceutical packaging by supporting the launch of new and innovative drug formulations.

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Europe’s pharmaceutical sector is one of its high-performing and technologically advanced industries, significantly contributing to the regional economy. The sector is evolving with an increased focus on developing biopharmaceutical drugs, which has grown over recent years. Many biotechnology-based drug therapies are sensitive to degradation and thus require specialized packaging, such as lyophilized or dry powder forms, to maintain stability. This demand for sophisticated packaging solutions is creating new growth opportunities for packaging manufacturers.

Pharmaceutical products are primarily available in forms such as tablets, capsules, liquids, and powders. They require various packaging solutions, including rigid bottles, stand-up pouches, flat pouches, sachets, and blister packs, each designed to meet specific needs. Packaging companies are now prioritizing features like dispensing aids, administration tools, eco-friendly materials, tamper-evident seals, and anti-counterfeiting measures to enhance product safety, accessibility, and sustainability.

End-use Segmentation Insights:

The pharma manufacturing segment was the largest end-use segment in 2023, accounting for a 49.9% market share, and is anticipated to see strong growth through to 2030. This trend is primarily due to the rising demand for medicines worldwide. According to the World Health Organization (WHO), the global population aged over 60 is expected to nearly double from 12% in 2015 to 22% by 2050, increasing the need for medicines and healthcare. The aging population requires more medical assistance, which is driving pharmaceutical production and, subsequently, the demand for pharmaceutical packaging.

To manage costs and increase efficiency, pharmaceutical companies are increasingly outsourcing packaging activities. By outsourcing, companies can avoid investing directly in packaging materials and equipment, instead working with specialized contractors who provide efficient packaging solutions. This shift is expected to fuel demand for contract manufacturing and pharmaceutical packaging equipment.

Retail pharmacies, especially in developing countries like India, China, and Brazil, are using branding on packaging materials such as polybags and paper pouches to differentiate their products. As retail penetration expands in these regions, the retail pharmacy segment is likely to see significant growth.

Institutional pharmacies, which operate within healthcare facilities like hospitals, nursing homes, and assisted living communities, are expected to grow as well. The increasing number of hospitals and healthcare facilities, along with rising healthcare expenditures, is likely to drive demand for pharmaceutical packaging in this segment. With a growing focus on healthcare accessibility and quality, the institutional pharmacy end-use sector is anticipated to contribute significantly to the overall growth of the pharmaceutical packaging market.

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