Pharmaceutical Packaging Market Overview
Pharmaceutical Packaging Market size is estimated to reach a high CAGR of 9.5% during the forecast period 2024-2031.
Pharmaceutical packaging refers to the packaging materials utilized to pack produced pharmaceuticals such as medicines and similar pharmaceutical preparations to prevent contamination and extend their shelf life. Pharmaceutical packaging encompasses all the various forms of packaging ranging within primary, secondary, and tertiary packaging phases. The medication and medicine producer completes primary packaging to surround the pharmaceuticals, while secondary and tertiary packaging further protects the pharmaceutical drugs. Packaging businesses utilize the respective products for distribution and transit to end-users. Pharmaceutical packaging is widely employed by top pharmaceutical companies, and government organizations, among others.
Market Summary
| Metrics | Details |
| Market CAGR | 9.5% |
| Segments Covered | By Type, By Raw Material, By Drug Delivery Mode, By Application, By End User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics and Trends
The worldwide pharmaceutical packaging market is being driven by increased demand for the formulation of various pharmaceutical medications and rising healthcare and pharmaceutical sector spending. Pharmaceutical packaging is used to preserve and protect pharmaceuticals from damage and impact. It is also necessary for brand identification, marketing and promotion, and enabling pharmaceutical goods' specific usage and information. The rising demand for pharmaceutical medications has spurred the pharmaceutical packaging industry due to the global incidence of chronic diseases.
The extensive investments and growth of the pharmaceutical sector
The pharmaceutical industry is one of the fastest developing investment markets globally due to its importance in preserving and extending human life. The market exclusively is driven by the extensive funds received for R&D, as well as rising consumer spending on retail pharmaceutical items due to the increasing number of diseases and growing demand for medications globally. For instance, according to the Organisation for Economic Co-operation and Development (OECD), retail pharmaceutical spending per person averages around US$ 564 across 37 OECD nations worldwide. Further, the IFPMA report points out the fact that the research-based pharmaceutical sector across the globe spent more than US$ 149.8 million per year on comprehensive research and development.
Since, Pharmaceutical packaging is critical in minimizing the impacts of environmental factors such as temperature, moisture among others, on pharmaceutical products to extend their shelf life and to minimize handling damage during distribution, the growth in production and development of the pharmaceutical market supplement and boost the economy of the global pharmaceutical packaging market. As a result, the respective actor could be considered as a major market driver.
The stringent regulations in the pharmaceutical sector
Since pharmaceutical products affect a person's health and even life, in-depth scrutiny is done on those products to ensure consumer safety. As a result, strict packaging compliance standards and regulations exist across the globe, irrespective of the fact that these regulations vary per nation and region.
Since pharmaceutical packaging determines the safety, quality, and shelf life of a pharmaceutical product, the quality of the packaging has to be top-notch. As a result, countries have enacted stringent laws and regulations governing pharmaceutical packaging. For example, the U.S. and UK have various pharmaceutical packaging legal requirements for a pharmaceutical packaging product to export or transport a medicinal composition. The manufacturer must adhere to certification and numerous criteria as per these regulations to manufacture these packaging products.
Nonetheless, since these regulations require manufacturers to spend a hefty sum to ensure they are compliant with these regulations, the respective factor prevents new manufacturers, particularly small-scale manufacturers, from entering the market, thereby constricting the growth potential of the global pharmaceutical packaging market. Therefore, the respective actor should be considered as a major market restraint for the respective market.
COVID-19 Impact Analysis on Pharmaceutical Packaging Market
The pandemic period was a boon in disguise for the pharmaceutical industry, propagating the demand and sales of the sector many folds. Irrespective of the pandemic affecting most markets, the pharmaceutical market grew exponentially along with the global pharmaceutical packaging market since every pharmaceutical product requires a specific, product-oriented packaging product to ensure the safety of the respective product during storage and transit.
To meet the rapidly rising worldwide demand for pharmaceutical and pharmaceutical packaging products in the pandemic and post-pandemic era, all the key pharmaceutical packaging manufacturers are investing in developing new products and manufacturing technologies. For instance, on July 1 2020, Softbox, a prominent global developer of temperature control packaging solutions for the pharmaceutical, cold chain logistics and life science sectors, unveiled Tempcell ECO, a new curbside-recyclable temperature control parcel shipper. Tempcell ECOF is composed entirely of corrugated cardboard and incorporates Softbox Thermaflute's patent-pending plastic-free insulation technology.
The increased sales of pharmaceutical items such as sanitizers, N-95 masks and various medications in the post-pandemic modernity also enhance the market potential of the pharmaceutical packaging market.
Market Segmentation Analysis
The global pharmaceutical packaging is segmented based on type, raw material, drug delivery mode, application, end-user and region.
Based on type, the global pharmaceutical packaging market is segmented into plastic bottles, temperature-controlled packaging, ampoules, vials, prefilled inhalers, blister packs, pouches & strip packs, medication tubes, jars & canisters, cartridges, labels & accessories, caps & closures, medical specialty bags, prefilled syringes and others. The temperature-controlled packaging has the largest market share, owing to the sensitivity of pharmaceutical preparations and the increased need for the safe transit of pharmaceutical preparations from facilities to end-users sites at properly regulated temperatures to avoid damage and contamination. Further, the rising availability of bio-based, sustainable temperature-controlled packaging for pharmaceutical items has also created a significant demand for the industry. For instance, on December 3, 2019, CSafe expanded its cold chain products by launching high-performing AcuTemp Plus Series temperature-controlled packaging for the cell and gene therapy business.
Nonetheless, the plastic bottles, ampoules, vials, prefilled inhalers, blister packs, pouches & strip packs, medication tubes, jars & canisters, cartridges, labels & accessories, caps & closures, medical specialty bags, prefilled syringes segments are also rising at a quicker rate as a result of an increase in demand for pharmaceutical products and an increase in the launch of new sophisticated layer packaging by the major manufacturers. For example, on May 13, 2019, the Italy-based Bormioli Pharma unveiled its first sustainable plastic packaging solutions for the pharmaceutical business.
Market Geographical Share
North America dominates the worldwide pharmaceutical packaging market, accounting for the biggest market share, owing to numerous key pharmaceutical manufacturing businesses, rising incidence of chronic diseases and increased investment by the main players in healthcare. According to the IFPMA, North America accounted for about 48.9 percent of overall pharmaceutical sales, compared to 23.2 percent in Europe and Asia-Pacific. Increasing healthcare spending is also a valid drier that boosts medication and pharmaceutical packaging sales in the North American area. Further, the prescription sales in U.S. also created a massive demand for pharmaceutical packaging in this region, followed by Europe and Asia-Pacific, respectively.
The Asia-Pacific is also growing swiftly in the global pharmaceutical packaging market due to the increase in demand for pharma drugs associated with the population explosion and the region's high number of chronic ailments.
Market Companies and Competitive Landscape
The pharmaceutical packaging market is competitive with the presence of local as well as global companies. Key players contributing to the market growth include McKesson Corporation, CCL Industries, 3M, Gerresheimer AG, WestRock Company, Amcor plc, Berry Global Inc., Mondi, Thermo Fisher Scientific, Robert Bosch GmbH, among others.
The key players are using various growth strategies, such as product launches, acquisitions, and partnerships, to contribute to the worldwide growth of the Pharmaceutical Packaging Market. For instance, on June 11, 2019, Aptar finalized the purchase of two premier pharma services firms, Nanopharm and Gateway Analytical, which advanced client medication development and were valued at around US$50 million.
Berry Global Inc.
Overview: Berry Global Inc manufactures pharmaceutical packaging solutions, tapes and adhesives and protection solutions. The firm was created in 1967 and is based in Evansville, Indiana, U.S. Berry Global Inc is one of the world's top suppliers of innovative rigid, flexible and nonwoven goods to the consumer and industrial end markets. The firm employs over 47,000 people and produced a pro forma net sale of US $12.6 million in 2019 from activities in over 280 sites across six continents.
Product Portfolio: The company has a product portfolio that includes rigid and flexible packaging:
- Pharmacy & Vials: The two-piece design is available in sizes ranging from eight to sixty dram and may be equipped with a child-resistant and snap closure. Its product range comes in clear amber and complies with all USP "light and tight" criteria and CPSC Senior Adult Use regulations.
Key Development:
- Berry Global Group, Inc. plans to invest in a cutting-edge Reicofil R5 asset on October 8, 2020, to increase additional capacity for serving the fast-growing Asia healthcare markets.
- Additionally, on March 4, 2020, Berry Global Group, Inc. invested approximately US$ 30 million to increase the production capacity of ultra-high performance (UHP) machine and hand stretch films required for pharmaceutical purposes in North America's location.
- Finally, on September 21, 2020, Berry Global Group, Inc. partnered with Bhoomi to launch a 100 percent sugarcane-based bottle for their cold-pressed cane water elixir. It 12-ounce HDPE bottle is manufactured in Winchester, Virginia.
