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Pharmaceuticals Packing & Labeling Services in the US Industry Data and Analysis
Demographic and economic factors that have fueled healthcare spending have led to rising sales of prescription and over-the-counter (OTC) pharmaceuticals. At the same time, cost and operational pressures affecting drugmakers have prompted them to seek partnerships and contract services, including packaging and labeling. These factors have driven growth for pharmaceutical packaging and labeling providers, expanding their role in domestic pharmaceutical production. The pharmaceutical industry's dependence on contract packaging and labeling providers has also been driven by a wave of patent losses affecting brand-name prescription drugs and increasingly complex drug development processes, particularly in resource-intensive areas such as cell therapy, rare diseases, and personalized medicine. In total, revenue is expected to expand at a CAGR of 10.2% to an estimated $959.2 million by 2025, with a projected 3.5% increase in 2025.In addition to the sharp rise in spending that fueled double-digit revenue growth for packaging and labeling providers from 2020 to 2022, the pandemic's disruption to the pharmaceutical supply chain has pressured drugmakers to develop more resilient ones. While this requires a multifaceted approach, movements toward onshoring production and outsourcing have already begun to benefit pharmaceutical packaging providers with more opportunities to support domestic drug production. Federal investment directed toward strengthening domestic drug production has helped catalyze these changes, with the Biden administration leveraging its authorities under the Defense Production Act and the second Trump administration ramping up the push for domestic drug manufacturing through an Executive Order.Rapidly evolving trends in the broader pharmaceutical market will help contract packaging and labeling providers gain a more central role in drug production moving forward. Biotechnology producers facing lengthy and expensive development processes will depend on outsourcing the most. While the momentum toward onshoring will be a major opportunity, advances in technology, sustainability measures, regulatory requirements and an aging population will also strengthen the industry. With overall drug spending set to surpass $1.0 trillion for the first time in 2030, industry revenue is projected to grow at a CAGR of 3.3% to an estimated $1.1 billion over the next five years.
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What's included in this industry analysis
IBISWorld's research coverage on the Pharmaceuticals Packing & Labeling Services industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released November 2025.
About this industry
What's this industry report about?
The Pharmaceuticals Packing & Labeling Services industry in the United States operates under the NAICS industry code OD5678. Pharmaceutical packaging and labeling companies specialize in preparing medications and healthcare products for distribution by designing and providing appropriate packaging and labeling solutions. Related terms covered in the Pharmaceuticals Packing & Labeling Services industry in the United States include biologic, outsource, ampoules, small-molecule drug, injectables and drug delivery system.
What's included in this industry?
Products and services covered in Pharmaceuticals Packing & Labeling Services industry in the United States include Packaging services, Labeling services and Other services.
What companies are included in this industry?
The Pharmaceuticals Packing & Labeling Services industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Pharmaceuticals Packing & Labeling Services industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Pharmaceuticals Packing & Labeling Services industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Pharmaceuticals Packing & Labeling Services industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Pharmaceuticals Packing & Labeling Services industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Pharmaceuticals Packing & Labeling Services industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Pharmaceuticals Packing & Labeling Services industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Pharmaceuticals Packing & Labeling Services industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Pharmaceuticals Packing & Labeling Services industry in the United States.
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Frequently Asked Questions
What is the market size of the Pharmaceuticals Packing & Labeling Services industry in the United States in 2026?
The market size of the Pharmaceuticals Packing & Labeling Services industry in the United States is $758.4m in 2026.
How many businesses are there in the Pharmaceuticals Packing & Labeling Services industry in the United States in 2025?
There are 104 businesses in the Pharmaceuticals Packing & Labeling Services industry in the United States, which has grown at a CAGR of 5.4 % between 2020 and 2025.
How may import tariffs affect the Pharmaceuticals Packing & Labeling Services industry in the United States?
The Pharmaceuticals Packing & Labeling Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Pharmaceuticals Packing & Labeling Services industry in the United States?
The Pharmaceuticals Packing & Labeling Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Pharmaceuticals Packing & Labeling Services industry in the United States grown or declined over the past 5 years?
The market size of the Pharmaceuticals Packing & Labeling Services industry in the United States has been growing at a CAGR of 5.2 % between 2020 and 2025.
What is the forecast growth of the Pharmaceuticals Packing & Labeling Services industry in the United States over the next 5 years?
Over the next five years, the Pharmaceuticals Packing & Labeling Services industry in the United States is expected to grow.
What does the Pharmaceuticals Packing & Labeling Services industry in the United States include?
Packaging services and Labeling services are part of the Pharmaceuticals Packing & Labeling Services industry in the United States.
How competitive is the Pharmaceuticals Packing & Labeling Services industry in the United States?
The level of competition is moderate and steady in the Pharmaceuticals Packing & Labeling Services industry in the United States.
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