I want to focus on the opportunities for everyone. In this report, we surveyed both OEMs and brands, and there is a lot of opportunity on both sides. That’s what I’d like you to focus on today.
A little bit about me before we get started: I work for PMMI on the Custom Research and Business Intelligence team. We created this report in partnership with a vendor we work with frequently called DDR. If you’ve downloaded any of our reports before, you’ve probably seen their work—they’re a great team and we collaborate with them often.
Here’s an overview of what we’ll cover today. We’ll start with packaging trends, then look at e-commerce, because it’s an area impacting both pharma and packaging. We’ll discuss regulations, since they always influence what both sides do. We’ll also talk about machine sales and purchasing intent, and then we’ll go over the key findings. If we have time, we’ll end with Q&A.
On packaging trends, one of the biggest themes we found is that things are evolving rapidly. A major shift is toward connectivity in pharma—more connected systems, more digital features, and more emphasis on data and interaction. For this research, we conducted both a survey and interviews with OEMs and end users to capture perspectives from both sides. We asked end users what features they’re using today and what they’re considering for the future. The top features currently in use include temperature control, QR codes, and RFID tags. I want to emphasize RFID, NFC, and other connected features because they tie directly to connectivity and patient experience. We’re seeing packaging paired with alarms that tell patients when to take medication, and interactive codes that create an expanded experience. These features are clearly trending upward, and while some companies are already implementing them, nearly 30% of the companies we spoke with are planning to pursue these capabilities in the future. The gap between what’s being used today and what companies plan to use is where a lot of the opportunity sits—for both end users and OEMs.
We also need to talk about sustainability, which is a topic that comes up frequently and is especially important to me and to the work we do at PMMI. Sustainability in pharma is unique compared to other sectors like food and beverage, home care, or CPG, largely because of the specific regulatory environment and performance requirements. Right now, we’re seeing more direct printing instead of full labels, along with continued growth in recyclable materials. We’ve been researching sustainability for four to five years, and the pace of change has been rapid—especially as the industry revisits materials that previously weren’t viable for certain applications. The future focus includes lightweighting, greater use of PCR, and compostable materials. In a sustainability report we did a couple of years ago with Ameripen, compostability emerged as a major theme, especially in other sectors, and it showed up in pharma as well. It’s a complicated area because the U.S. infrastructure isn’t well set up for industrial composting, so there’s still a long way to go, but we are moving in that direction.
We also heard in our interviews that tariffs and supply chain issues continue to influence purchasing decisions. End users told us that raw materials remain a challenge due to ongoing supply chain disruptions. Things improved after the pandemic, but the situation still isn’t fully resolved, and many companies continue to experience constraints.
Packaging security is another important topic. When I say security, I mean patient safety as well as protection against counterfeiting, which is a major concern. End users are using several features to help prevent counterfeiting and tampering, including external seals like shrink bands, tamper-resistant materials, and scannable features such as QR codes that can help verify authenticity and trace products.
We also asked both end users and OEMs which packaging formats they expect to grow. At the top for both groups is injectables, driven in part by the rise of GLP-1 drugs. Demand for injectable and syringe-related packaging has increased significantly and appears to be a major growth area. We’re also seeing growth in formats like blister packs, and this ties into e-commerce as well. Companies you might not expect—including large retailers—are increasingly involved in pharmacy fulfillment, shipping pills and medications directly to consumers. Another growing trend on the CPG side is products in bottles without secondary packaging. Overall, both sides anticipate growth across many formats, which again points to opportunity for both OEMs and end users.
On e-commerce, it’s hard to talk about pharma today without addressing it. The growth of large retailers entering the pharma space is changing distribution and influencing packaging formats and materials. We asked end users what they’re currently doing for their e-commerce plans. What we heard is that e-commerce growth is steady but not explosive. Even so, the operational transformation required is substantial. Companies are upgrading equipment, hiring automation engineers, and investing in IT to meet e-commerce demands. From the OEM perspective, end users are demanding machinery capable of handling serialization, randomization, and online consolidation. The key takeaway is that participation may be gradual, but the operational shifts needed to support it are significant.
Regulations are also a major factor, and they remain one of the biggest challenges for end users. We looked at both U.S. and EU regulations and asked end users what affects them most. On the U.S. side, major drivers include the Drug Supply Chain Security Act (DSCSA), FDA good manufacturing practices, and state-level regulations. Like sustainability policy, many regulatory pressures come from the state level, which creates complexity because requirements can vary depending on where products are shipped. In the EU, companies must comply with EU good manufacturing practices and the evolving packaging regulations coming out of the region. These tend to be stricter than domestic regulations, and they include changes affecting materials and packaging use. Many companies expect at least some of these requirements to influence broader markets over time.
When we asked about the regulatory challenges causing the most headaches, documentation and reporting came up at the top. Brands told us they collect a lot of data but don’t always know how to use it effectively, and keeping documentation organized to meet regulatory demands is difficult. Other major challenges include product testing and quality verification, as well as serialization and aggregation. Interestingly, we did a report on track-and-trace about ten years ago, and while it seemed to cool off for a while, we’re seeing it rise again—so it’s a trend worth watching. Material and ingredient testing and verification, along with packaging claims, were also mentioned as ongoing challenges.
Automation in pharma is a clear goal. Adoption is increasing, but it’s still gradual and not universal yet. OEMs told us they are designing equipment to help end users meet regulatory needs, and the areas they hear about most include product testing and packaging claims, along with serialization, integration, and reporting requirements. These continue to be difficult problems for end users, and if you haven’t faced them yet, you likely will.
We asked end users about their top six biggest challenges in pharmaceutical manufacturing, and regulatory challenges rose to the top. We also heard strong emphasis on expanding automation and reducing manual processes. Many companies still rely heavily on manual work, and while automation is clearly the direction they want to go, the transition is slower in pharma than in some other industries.
We also asked OEMs what challenges end users most commonly ask them to help solve. Machine service and maintenance ranked highly, along with expanding automation and reducing manual processes. Other needs included accommodating more packaging format changes and training. One thing that stood out is that regulations were not especially high on the OEM list, which was a surprising disconnect given how central regulations are to end users. You would expect more alignment because regulatory compliance isn’t optional—it’s required.
Finally, we asked what machine features end users are looking for. Increased speed and throughput topped the list, which is consistent across many industries and may also connect to the growth of e-commerce. Automation features remain a major priority. Sanitation is also critical, and we’ve seen the same theme in other sectors: machinery must be easy to use and easy to clean. That includes materials that can handle frequent cleaning without degrading and designs that simplify sanitation. Workforce turnover adds pressure here, because companies often have to train new operators quickly, and they need equipment that’s intuitive and supports consistent cleaning practices. Some sanitation steps can be automated, but many respondents emphasized that certain tasks still require a human, especially in hard-to-reach areas of machinery. End users also expressed interest in monitoring capabilities and predictive maintenance, which mirrors trends we hear in food and beverage as well.
