From serialization and sustainability to patient-centric design, experts reveal the trends shaping the contract packaging outsourcing market.
Packaging plays a pivotal role in the pharmaceutical supply chain by serving multiple functions such as presentation, promotion, identification, information dissemination, compliance, and stability maintenance of drug products. It also ensures protection during distribution, storage, sale, and consumption.
According to a recent report by Grand View Research, the global pharmaceutical contract packaging market size was valued at $17.6 billion in 2024 and is anticipated to grow at a CAGR of 7.1% from 2025 to 2030, driven by the increasing trend of outsourcing packaging operations to specialized contract packaging companies.
One key factor driving the market’s growth is the increasing demand for customized, complex packaging products, particularly biologics, biosimilars, and personalized medicines. These products necessitate specialized packaging due to their unique characteristics. Contract packaging suppliers have responded by leveraging their technical expertise and resources to handle these intricate packaging requirements.
Other growth drivers include stringent regulatory requirements, a growing focus on patient needs and sustainability, the integration of digital technologies, and the necessity for resilient supply chains.
However, the sector’s opportunities are accompanied by a unique set of challenges, from ensuring patient compliance and balancing sustainability with regulations and product protection to combating counterfeits—all of which will be discussed in this article. The following offers perspectives from contract packaging organizations (CPOs) on today’s contract packaging trends, challenges and more.
State of the Market
The consensus among industry experts is that the pharmaceutical contract packaging market is experiencing significant growth and showing no signs of slowing down.
“The pharmaceutical contract packaging market is experiencing dynamic growth and transformation, driven by increased demand for specialized packaging solutions and the evolving needs of complex therapies,” says Justin Schroeder, Global VP of Technical Services, PCI Pharma Services. “As pharmaceutical pipelines shift toward biologics, personalized medicines, and innovative drug delivery systems, the need for customized, flexible, and scalable packaging solutions has never been greater.”
Stacey Falconer, VP Healthcare and Commercial Strategy, Premium Label & Packaging Solutions (PLPS), adds, “The pharmaceutical contract packaging market continues to grow rapidly, driven by a heightened focus on speed to market and the increasing complexity of therapies. As R&D timelines remain long and costly, pharma companies are looking for partners who can accelerate packaging design, validation, and scale-up without sacrificing quality or compliance.”
Yves Massicotte, CEO, Ropack Pharma Solutions, concurs. He says, “The pharmaceutical contract packaging market is experiencing strong momentum, driven by rising demand, a heightened emphasis on regulatory compliance and sustainability, as well as continuous technological innovation. As pharmaceutical companies navigate increasingly complex supply chains and product portfolios, contract packagers are stepping up as strategic partners, offering flexible, compliant, and efficient solutions that can adapt to evolving market needs.”
Lon Johnson, Senior VP Sales, Colbert SME, calls the contract packaging sphere “one of the fastest growing segments Colbert has experienced in recent years.”
He says, “Pharmaceutical and healthcare companies are leaning on contract packagers as a resource to strengthen their supply chain and fill in the capability gaps that occur, resulting from ongoing labor shortages and the challenges created by the ever-evolving geopolitical landscape.”
“What we are seeing,” observes Raymond Sell, SVP, Business Development, Praxis Packaging Solutions, “is that pharmaceutical companies and CDMOs are focusing on what they do best (drug development and manufacturing) while outsourcing primary and secondary packaging to contract packaging experts.”
Ensuring Regulatory Compliance with Serialization
Like any market, providing contract packaging services comes with its challenges, one of which is ensuring compliance, especially as governments are increasingly mandating serialization to combat counterfeit drugs and ensure supply chain transparency.
PCI’s Justin Schroeder says, “As regulatory requirements for serialization and track-and-trace solutions become more stringent, CDMOs are investing in advanced serialization technologies to ensure compliance, supply chain security, and product authenticity across global markets.”
Sheila McGinnis, Director, Customer Success, Tjoapack, concurs. “Keeping abreast of diverse and changing requirements across different regions is a primary challenge,” she says. “Implementing and integrating technologies and systems to manage the vast amounts of serialization data and ensure interoperability across the supply chain also presents significant technical challenges.”
According to McGinnis, “Effective strategies include investing in flexible and adaptable serialization technologies that can accommodate various regulatory standards.” Technologies being increasingly considered include smart labels utilizing radio-frequency identification (RFID) and near-field communication (NFC) technology.
“Smart labels offer more robust information, including unique identifiers and serialization data, and facilitate seamless scanning,” McGinnis explains. “Establishing strong data management systems and fostering clear communication and collaboration across the pharmaceutical value chain—including developers, suppliers, CPOs, logistics providers and destination pharmacies and clinics—are crucial for ensuring accurate and efficient compliance.”
“Smart packaging encompasses technology that, for instance, can enable reminders for patient adherence, as well as traceability from manufacturing through patient consumption, or delivering product information electronically,” clarifies Colbert’s Lon Johnson.
“QR codes, near-field communication (NFC) tags, and RFID technology are revolutionizing the tracking and authentication of pharmaceuticals,” remarks Rob O’Brien, Director of Operations, Packaging, Almac Pharma Services. “These technologies help to prevent counterfeiting, improve supply chain visibility, and give patients instant access to medication details.”
O’Brien emphasizes the importance of continually investing in upgrading production lines for serialization and establishing data exchange with clients to maintain compliance and business continuity.
“Serialization is now table stakes, but challenges remain,” adds Mike Horsfield, Vice President, Business Development, Jones Healthcare Group. “Regulations differ widely by market, and integration into packaging workflows without affecting throughput is critical.”
Colbert’s Lon Johnson expresses a similar point. “Suppliers must have the capability and technology to keep up with regulations and provide tracking by origin, batch number, expiration date, etc., right down to item-level identification.”
“Overall,” concludes PCI’s Justin Schroeder, “effective serialization compliance strategies involve leveraging technology, fostering collaboration with serialization software providers and stakeholders in the supply chain to help streamline processes and ensure real-time monitoring of compliance, and staying ahead of regulatory changes through continuous education and audits.”
Patient-Centric Design
Another major trend in contract packaging outsourcing is the increased need for intuitive, easy-to-use packaging. The current focus on patient-centric design is driven by the rise in availability of direct-to-consumer drugs and a surge in consumer usage of medicines that were initially developed for a specific disease or condition, but later discovered to have beneficial side effects that positively impact another condition.
“Now, more than ever, details in design and functionality must be viewed from the patient perspective,” claims Colbert’s Lon Johnson.
“The shift toward patient-centric design is fundamentally transforming pharmaceutical packaging strategies, especially for complex therapies like biologics and injectables,” comments PCI’s Justin Schroeder. “As treatments for chronic conditions increasingly move from clinical settings to the home, packaging must enable ease of use, safety, and adherence without sacrificing product integrity.”
“Packaging is now expected to guide users clearly through each step, incorporating ergonomic design, clear and intuitive labeling, and human factors engineering to reduce user error,” Schroeder adds. “Additionally, tamper-evident and protective features must work seamlessly with these designs to maintain sterility and stability throughout the product’s lifecycle.”
Tjoapack’s Sheila McGinnis says, “Secondary packaging is now crucial for enhancing the patient experience and supporting self-administration. For products like prefilled syringes (PFS), there’s a growing need for efficient kitting to include necessary ancillaries such as swabs, replacement needles, clear usage instructions and informative content. This approach helps improve PFS usability and potentially allows more injectable treatments to be self-administered at home.”
“Providing clear guidance for patients is also paramount,” according to McGinnis. “This includes clear labeling and easily understandable instructions in the patient’s own language for the preparation, administration and safe disposal of devices like PFS. With increased self-administration, child-proof secondary packaging is essential to prevent accidental exposure to medications and ensure safety.”
“Today, the expectation is that packaging doesn’t just contain a product—it enhances the patient experience,” argues Jones Healthcare Group’s Mike Horsfield. “For complex therapies, especially those that are self-administered, packaging must be easy to open, secure, and intuitive. That’s especially true for older adults or patients managing multiple medications.”
“With a focus on ease of use, safety, and adherence, pharmaceutical companies are demanding more intuitive and accessible packaging solutions,” observes Ropack’s Yves Massicotte. “In response, CDMOs are investing in advanced automation and specialized equipment to handle these sophisticated formats efficiently and at scale. This not only ensures product integrity but also aligns with growing expectations for a better patient experience and improved therapeutic outcomes.”
Sustainability
Of course, any discussion about packaging would be incomplete without a mention of sustainability. CDMOs are increasingly exploring ways to use less plastic and offering features such as biodegradable secondary packaging, PET and PVC materials, paper packaging, biodegradable inks, and more, but all these considerations must simultaneously be balanced with regulatory standards and financial considerations.
“Sustainability is a key focus in the pharmaceutical contract packaging industry,” says Tjoapack’s Sheila McGinnis. “There is a strong emphasis on exploring and implementing more sustainable materials and innovative designs aimed at minimizing environmental impact while still maintaining product integrity and adhering to regulatory requirements. Options such as recyclable and biodegradable secondary packaging materials may help with sustainability where appropriate and feasible.”
Mike Horsfield of Jones Healthcare Group also sees a growing interest in sustainable formats, however witnesses price competition, especially in generics, as a potential barrier to adoption.
“In generics, where margins are thin and cost increases can’t be passed through, the adoption of eco-friendly alternatives is slower,” Horsfield observes. “We help clients move forward with low-barrier changes first—like switching tertiary packaging—while planning for longer-term strategies to qualify primary packaging materials.”
PCI’s Justin Schroeder says, “The pharmaceutical industry’s growing emphasis on environmental sustainability is driving demand for eco-friendly packaging materials and processes,” but recognizes that, “balancing sustainability with strict regulatory and safety standards is critical, especially for sensitive pharmaceutical products.”
To balance these considerations, he says PCI “rigorously tests all sustainable materials to ensure they meet or exceed global compliance and stability requirements.”
Ultimately, the goal of contract packaging providers is to help clients meet their sustainability objectives while maintaining the highest levels of product protection, patient safety and regulatory assurance—all at a competitive price.
Looking Ahead
As the market for contract packaging continues to evolve over the next five years, companies must adapt to stay competitive. Flexibility and agility will be key but so will maintaining strong partnerships and adopting new technologies.
“Over the next five years, we anticipate an even greater emphasis on flexibility and agility,” says Tjoapack’s Sheila McGinnis. “Pharmaceutical companies will need to adapt quickly to evolving patient needs, such as the increasing demand for user-friendly, self-administration-compatible packaging for complex therapies.”
“For service providers to remain competitive, several capabilities will be critical and the ability to readily adopt and implement new packaging innovations will be crucial,” McGinnis continues. “Given the significant capital investment often required for equipment and installation, CPOs that can offer this to pharmaceutical companies will be highly valued.”
McGinnis also highlights the importance of “deep expertise in navigating complex regulatory landscapes and ensuring compliance,” as well as “strong partnerships with leading suppliers.”
“By offering readily available infrastructure, in-house expertise and these strategic partnerships, CPOs can empower pharmaceutical companies to stay ahead of packaging market changes and ultimately benefit patients,” she concludes.
“The future is agile, integrated, and insight driven,” remarks Jones Healthcare Group’s Mike Horsfield. “To stay competitive, service providers need to offer a modular mix of services, invest in connected technologies and support data-rich decision making.”
“Most importantly,” Horsfield adds, “it’s about partnership—sitting at the table early with brand owners to simplify complexity and bring ideas to life faster.”
PCI’s Justin Schroeder says, “CDMOs will need to embrace flexibility, technological innovation, and sustainability to stay competitive over the next five years. Those that can adapt to the changing landscape of regulatory, technological, and patient-driven demands will be best positioned for success.”
“Incorporating Artificial Intelligence is also an exciting new frontier that is rapidly evolving in real-time,” Schroeder adds.
Almac’s Rob O’Brien echoes the same sentiment: “Digitization and AI will play a crucial role in enhancing efficiency and accuracy, with smart packaging with features like QR codes becoming increasingly prevalent as we shift towards a more patient-centric approach,” he says. “Suppliers will increasingly be required to leverage digital technologies for advanced data management, automation, and quality control.”
“As therapies evolve, so must the packaging,” PLPS’ Stacey Falconer concludes. “The CPO market will continue to expand, especially as drug products become more personalized, temperature-sensitive, and regulated. Speed, scalability, and specialization will be critical differentiators.”
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