Emerging Technologies Driving Efficiency in the Pharmaceutical Packaging Market

Emerging Technologies Driving Efficiency in the Pharmaceutical Packaging Market

The Pharmaceutical Packaging Market is estimated to be valued at US$ 264.21 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Flexible packaging is preferred due to advantages like lightweight, cost-effectiveness and capability of extending shelf life of pharmaceutical products.

Market Overview:
Pharmaceutical packaging products include caps and closures, labels, medical packaging accessories, and pre-fillable syringes. Pharmaceutical packaging offers tamper-proof seals, barrier protection from external elements such as moisture and oxygen, and identification and dosage administration aids. These properties enable protection of medication potency and integrity during storage, transportation, and handling.

Market key trends:
Flexible packaging provides consumer convenience in packaging pharmaceuticals owing to advantages like lightweight, cost-effectiveness and capability to extend shelf life of products. Flexible packaging is preferred over rigid packaging for its barrier protection properties against moisture and oxygen. Pharmaceutical manufacturers widely use flexible packaging such as blister packs, pouches, and bags with specialized coatings offering oxygen and moisture barrier. The materials commonly utilized for flexible pharmaceutical packaging are plastic films, paper, and aluminum foil that can be easily printed on and offers high barrier protection. Flexible packaging reduces distribution costs to retail pharmacies and hospitals and also provides visibility of pharmaceutical drug along with convenient packaging and dosages for patients.

Porter's Analysis

1. Threat of new entrants: The threat of new entrants is moderate due to high technological requirements and regulatory compliance in pharmaceutical packaging. Additionally, the presence of some key players makes it difficult for new companies.

2. Bargaining power of buyers: The bargaining power of buyers is moderate due to the involvement of various stakeholders like pharma manufacturers and suppliers. Buyers can switch between suppliers based on price and quality.

3. Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for raw materials like plastic resins and glass. However, suppliers hold some power in terms of complying with stringent quality standards.

4. Threat of new substitutes: The threat of substitutes is low as there are limited substitutes for pharmaceutical packaging. Regulatory standards favor traditional packaging over substitutes.

5. Competitive rivalry: Strong rivalry exists between existing players to gain market share.

SWOT Analysis

1. Strength: Pharmaceutical packaging has strong growth opportunities due to rising healthcare expenditure and increasing generic and biologic drug production. Demand for tamper-evident and convenient packaging also drives the market.

2. Weakness: High costs associated with complying with stringent regulations. Dependency on petroleum-based raw materials exposes the market to price volatility.

3. Opportunity: Growing focus on anti-counterfeiting packaging techniques presents new opportunities. Emerging markets in Asia and Latin America offer high growth potential.

4. Threats: Unfavorable changes in environmental policies can impact production. Strict medical waste disposal norms increase compliance costs.

Key Takeaways

The global Pharmaceutical Packaging Market is expected to witness high growth, exhibiting CAGR of 9.5% over the forecast period, due to increasing healthcare expenditure across major economies.

Regional analysis
North America dominates the pharmaceutical packaging market with the largest share. However, Asia Pacific is expected to witness fastest growth rate over the forecast period. Increasing generic drug production in India and China is driving the demand. Countries like Japan and South Korea are also sizable markets.

Key players related content
Key players operating in the pharmaceutical packaging market are Amcor Limited, Berry Plastics Corporation, MeadWestvaco Corporation, Becton Dickinson and Company, Owens-Illinois Inc., West Pharmaceuticals Services Inc., Schott Pharmaceuticals Services Inc., RPC Group Plc and Graphic Packaging International Inc.