Global pharmaceutical packaging market is projected to touch $104,882 million by 2022 from $68,749 million in 2015, growing at a CAGR of 6.27% from 2016 to 2022. With humongous investments in Research and Development, innovations in packing materials, burgeoning growth in generic market and heightened trend of contract packaging will spur the growth in this segment in the coming years.
Growth in demand for reusable and eco-friendly packaging is also set to drive the market. The pharmaceutical drug manufacturing firms have started to adopt eco-friendly pharmaceutical packages to abide by the stringent environmental norms.
Also, these technological advancements in pharmaceutical packaging solutions offer a gamut of innovative and advanced applications to the pharmaceutical and biopharmaceutical industries in order to improve their packaging standards. Due to the rising awareness about innumerable diseases, increase in self-medication and the burgeoning growth of over the counter drug, the impact of these drivers are likely to show an upward tick.
With the advancement in technology and eco-friendly packaging, the cost of pharmaceutical packaging is likely to come down as the advanced nano-enabled packaging is set to have a positive impact on this market as well. Pharmaceuticals packaging market is segmented based on product type and geography. The product type consists of plastic bottles, parenteral containers, blister packaging, specialty bags, closures, labels, and more. Geographically, it is analyzed across North America, Europe, Asia-Pacific and LAMEA.
Increase in healthcare investments and medicinal advancements are key factors that will trigger the growth of pharmaceutical packaging market. In LAMEA, the market is anticipated to grow at a CAGR of 7.14% between 2016 and 2022.
The advanced manufacturing processes used to develop pharmaceutical packages play a key role in the growth of the global pharmaceutical packaging market. Advanced manufacturing processes, including green packaging technologies, use environment-friendly materials to develop pharmaceutical packages, which inflict minimal harm to the environment.
The designs of these biodegradable and eco-friendly packaging materials are replacing the existing conventional packaging materials. The raw materials used for eco-friendly packaging include paper, cardboard, and corn starch. The use of biodegradable materials supports sustainability of all stages of pharmaceutical product lifecycle; thus, pharmaceutical manufacturers increase the demand for sustainable packaging.
The price volatility of raw materials used in pharmaceutical packaging restrains the growth of the market. The raw material and packaging costs have increased significantly in the last few years, and it is also expected that the prices will increase overall along with changes in ecological measures.
Porter’s Five Forces Analysis
The factors that hamper the bargaining power of the suppliers is due to the fact that there are several big players controlling the sizeable proportion of market share. Therefore, it is imperative for the suppliers to introduce a slew of innovative products, as the customers look for increased customised features.
What is more, the switching cost in this case is low. Corporate buyers of pharmaceutical packaging companies are knowledgeable and aware about the packaging features and their competitors’ offerings, thus increasing the bargaining power of the buyers. There are limited substitutes available in the pharmaceutical packaging market which offers similar products and solutions.
Customers still look for the traditional packages due to their low cost. Therefore, the threat of substitutes is minimal now. Stringent government regulations towards the environment, labelling requirements, and erratic prices of medicines and raw materials are major factors that limit the new entrants to invest in this market. Owing to the presence of many players in the market, there is intense competition within the suppliers to increase their market share. In such a competitive environment, the entities will target to minimise the profitability of competitors.
In the pharmaceutical packaging key market segmentation, the product type segment consist of parenteral containers, plastic bottles, blister packing, closures, speciality bags, labels and others (cartons, fibre drums and pills box).
The geographical segment includes North America, the US, Mexico, Canada, Europe, Germany, the UK, Italy, France, Rest of Europe, Asia-Pacific, Japan, China, India, South Korea, Rest of Asia-Pacific, LAMEA, Latin America, Middle East and Africa.
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