Discover your next big idea for life sciences at PACK EXPO Las Vegas
Experience a breakthrough in life sciences packaging—explore solutions from 2,300 suppliers spanning all industries, all in one place this September.

Global pharmaceutical contracting revenue predicted to reach $361 Billion in 2016

Packaging segment, worth $6.4 billion this year, should be worth $9.3 billion in 2016, says BCC Research report.

Hp 20020 I Stock Pharma Mfg 000013904542 X Small
This year, global pharmaceutical contracting revenues totaled nearly $218 billion, and by 2016 that will rise to almost $361 billion-at a compound annual growth rate (CAGR) of 10.6%, according to "Contract Pharmaceutical Manufacturing, Research and Packaging: Global Markets," (PHM043D) from BCC Research.

BCC says the global market for pharmaceutical contracting can be broken down into four segments: contract manufacture of over-the-counter (OTC) drugs and nutraceuticals, contract manufacture of bulk and dosage form drugs, contract research, and contract packaging.

The OTC drug and nutraceutical segment accounted for nearly $128 billion in 2011 and is expected to grow at a CAGR of 10.9% to reach nearly $215 billion in 2016.

The bulk and dosage form drug segment held a value of $53.4 billion in 2011 and is expected to increase at a CAGR of 10.1% to reach $86.3 billion in 2016.

The research segment was worth $30.2 billion in 2011 and should be worth $50.5 billion in 2016, a CAGR of 10.8%.

The packaging segment, worth $6.4 billion in 2011, should be worth $9.3 billion in 2016, a CAGR of 7.8%.

According to the BCC report, "The current pharmaceutical industry is highly influenced and aided by contract manufacturers, packagers, and researchers. New state-of-the-art facilities as well as specialized expertise and capabilities have granted contract manufacturers a large share in the pharmaceuticals industry. With increasing competition among generic brands as well as drug patent expirations, pharmaceutical companies are relying increasingly on contract manufacturers to meet consumer demand."

The report continues, "Other reasons why more contract manufacturers are being utilized include rising research-and-development costs, waning patent life, a decrease in overall drug discoveries, and increasing regulatory pressures. The trend in the industry is toward pharmaceutical companies consolidating their functions and focusing on basic or specialized functions while outsourcing the rest of their functions to contract manufacturing companies.

"Since the market for pharmaceutical contract manufacturing, research, and packaging is dependent on the pharmaceutical market, as the pharmaceutical market increases, so does the contract manufacturing market."
Medical Device Innovations Report
Cutting-edge packaging technologies are transforming the medical device sector in PMMI’s “Innovation in Medical Device” report, featuring advanced materials, smart solutions, and evolving regulations. Editors share insights from nearly 300 PACK EXPO booth visits—each product deemed new and truly innovative—alongside video demonstrations of the equipment and materials on display.
Learn More
Medical Device Innovations Report
Researched List: Blister Machines for Life Sciences
Need a blister machine for life sciences packaging? Our curated list features companies serving pharmaceutical, medical device, nutraceutical, and cosmetic industries. Download to access company names, locations, machine specifications, descriptions, and more.
Download Now
Researched List: Blister Machines for Life Sciences