From serialization and sustainability to patient-centric design, experts reveal the trends shaping the contract packaging outsourcing market.

Source: Contract Pharma May 2025 Digital Magazine, Page 34-36.

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.

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.

“Serialization is now table stakes, but challenges remain,” adds Mike Horsfield, Vice President, Business Development, Jones Healthcare Group. “Regulations will differ by market, and keeping up with changing regulations without avoiding their throughput is critical.”

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 effects that positively impact another condition.

“Packaging’s effectiveness is seen in 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.”

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 constraints.

“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.”

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.