Pharmaceutical Packaging Market: Growing adoption of contract-based manufacturing to improve packaging quality will enhance revenue growth
The global pharmaceutical packaging market size is estimated to be USD 132.0 billion in 2023 and projected to reach USD 269.9 billion in 2028, at a CAGR of 15.4%
Figure: Pharmaceutical Packaging Market, By Product
Pharmaceutical packaging plays a crucial role in maintaining the product shelf life, stability, and integrity during logistics. It mainly consists of primary and secondary packaging equipment, and labeling and sterilization equipment. The main function of primary packaging is to restrict climatic, chemical, or biological hazards that cause deterioration. The rising need for the aseptic filling and the sealing of drug molecules into sterile containers and the increasing demand for parenteral vials and pre-fillable syringes are supporting the growth of the market. Currently, pharmaceutical manufacturers are opting for flexible packaging equipment that can fulfill the requirement of packaging a drug in two to three different formats, thus saving on capital investments. Recent advances show that biopharmaceutical companies, laboratories, and research facilities are now producing smaller amounts of targeted drugs. This has generated a need to manufacture equipment platforms that can handle small batches at larger time intervals. Thus, there is a growing demand for improved packaging equipment for small and multiple batches of pharmaceutical drugs.
Demand for novel packaging, such as automated and integrated packaging lines is growing due to the increase in eye disorders
The transition toward new biopharmaceutical compounds (leading to the production of increasingly complex formulations), the rising incidence of eye disorders, and the increasing development of novel drug delivery systems have increased the demand for liquid packaging. The importance of accuracy and precision in packaging small-volume parenteral and injectable drugs, as well as emerging biological drugs, are contributing to the demand for aseptic liquid packaging equipment. Moreover, technological advances such as isolator technology in the pharmaceutical industry (developed as a concept of the sterile transfer of pharmaceutical products into the packing material in a sterile environment, such as laminar airflow) are further supporting the market. Syrup packaging, eye/ear drop packaging, and aerosol packaging are witnessing high growth due to the growing population of gediatric patients and increasing prevalence of chronic diseases. The high demand for the unit dose packaging of solids is expected to support the growth of the blister packaging equipment market. It is also expected to form the base of innovation and product development in the pharmaceutical packaging machinery market for the next few years. Companies such as IMA (Italy) or Romaco Holding (Germany) are constantly improving in the packaging technology for semi solid formulations and marketing highy regulated products.
Innovation in the pharmaceutical packaging and delivery system to boost the market growth
Recent trends in pharmaceutical packaging includes Blow Fill Seal (BFS) technology, prefilled syringes, anti-counterfeit packaging techniques, track and trace technology, colour shifting security inks, and sequential product numbering. Smart packaging is nowadays very popular which not only provide information on quality of product but also on its reception, storage and delivery. Intelligent packaging with QR (Quick Response) codes, Near-Field Communication (NFC) using smartphones and apps, Radio Frequency Identification (RFID), packaging built-in sensor have also entered into the market. Packaging, by utilizing various technical approaches, is advancing constantly for providing enhanced patient compliance and better security of the product. Plasma impulse chemical vapor deposition (PICVD) coating technology, snap-off ampoules, unit dose vials, two-in-one prefilled vial design, prefilled syringes, and child-resistant packs are all examples of pharmaceutical packaging innovation that will directly drive market growth.
Pharmaceutical Packaging Market – Value Chain:
The value chain of the pharmaceutical packaging market begins at raw material supplier stage followed by research and development (R&D), equipment manufacturing and assembly, quality assurance, marketing, and end-user industries.
Figure: Pharmaceutical Packaging Market: Value Chain Analysis
Source: Annual Reports, SEC Filings, Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
Continuous research to integrate quality systems and risk management approaches into the existing packaging programs is the core focus of established companies. This would allow the industry experts to adopt modern and innovative manufacturing technologies. Favourable government regulations has boosted the market growth in the North America region. Growth in the European market is majorly driven by the high pharmaceutical production, increasing demand for flexible packaging equipment by major pharmaceutical manufacturers, and the rising focus on product diversification by companies, which is driving the demand for innovative packaging equipment. Regulatory changes are also compelling pharmaceutical manufacturers to replace their older equipment with new equipment to adhere to the changing standards. The increasing offshoring of pharmaceutical manufacturing to emerging markets in China and India and the growing generics market are two of the major factors driving the growth of the pharmaceutical packaging equipment market in the Asia Pacific.
The market is led by players focusing on introducing newer equipments and technologies in the market. Leading companies in the market are Robert Bosch GmbH (Syntegon Technology GmbH) (Germany), IMA S.p.A. (Italy), and Körber AG (Germany), which together account for a share of 30-35%. Players such as Coesia S.p.A (Italy), Marchesini Group S.p.A (Italy), Bausch+Ströbel Maschinefabrik Ilshofen GmbH+Co. KG (Germany), Romaco Group (Germany), Uhlmann Group (Germany), Maquinaria Industries Dara, SL (US), MULTIVAC Group (Germany). These companies have established their geographic presence across the globe through continuous innovation and development of newer technologies and collaboration or acquisitions. For instance, in October 2021, Marchesini Group (Italy) acquired Dott. Bonapace (Milan) to enhance its product portfolio in the capsules and suppositories segment. Other industry leader Kober AG, in February 2021, expanded its production area for handling and packaging solution in the region of North America.