The pharmaceutical packaging market involves the packaging of various pharmaceutical products such as capsules and tablets, parenteral containers, blister packaging, closures and others. Packaging adds functionality, protection and aesthetic value to pharmaceutical products while also differentiating brands. The pharmaceutical packaging helps extend the shelf life of drugs, protect them from moisture and light and prevents microbial growth.
The global 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.
Market Opportunity:
The growth of the pharmaceutical packaging market offers high growth opportunities for pharmaceutical packaging market. pharmaceutical packaging is a service that involves outsourcing of packaging operations to third-party providers. Pharmaceutical companies are increasingly relying on contract packagers to handle varied packaging requirements for their products. This is helping pharmaceutical companies reduce capital investments, focus resources on core areas of development and ensure packaging compliances. The contract packagers offer technical expertise, flexibility and economies of scale in packaging which is driving several pharmaceutical manufacturers to utilize their services. The rise in generic drugs market further supports outsourcing of packaging to contract service providers. The growth in pharmaceutical packaging is expected to drive significant demand for pharmaceutical packaging over the forecast period.
Porter’s Analysis
- Threat of new entrants: The pharmaceutical packaging market requires high initial investments in machinery, manufacturing facilities and R&D which acts as a barrier for new players. Regulations of the pharmaceutical industry also poses challenges for new entrants.
- Bargaining power of buyers: Buyers have moderate bargaining power due to the importance of pharmaceutical products and packaging for patient medication and safety. However, the presence of many players limits the buyer power.
- Bargaining power of suppliers: The packaging material and machinery suppliers have moderate bargaining power due to the availability of substitute materials and global supply chains.
- Threat of new substitutes: Threat of substitutes is low as pharmaceutical packaging needs to meet strict quality and regulatory standards. No alternative ensures the same level of product protection and information transfer as packaging.
- Competitive rivalry: The market is highly competitive due to the presence of many global and local players. Intense competition keeps pricing pressures and drives innovation in materials, machineries and sustainable solutions.
SWOT Analysis
- Strength: The market has immense growth opportunities due to rising healthcare expenditure, increasing generics market and ambitious expansion plans of pharmaceutical companies. Customized solutions help strengthen customer relationships.
- Weakness: Complex global regulations increase cost of compliance. Raw material price volatility impacts profitability.
- Opportunity: Emerging markets offer lucrative prospects. Improving living standards boost healthcare spending. Advances in packaging technologies open doors for value-added offerings.
- Threats: Economic slowdowns can negatively impact sales. Stringent environmental norms curb certain material usages.
Key Takeaways
The global Pharmaceutical Packaging Market is expected to witness high growth due to the rising healthcare spending worldwide and increasing demands of pharmaceutical products across regions. The global 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.
Asia Pacific region dominated the global market in terms of size in 2023 owing to high population densities, rapidly improving healthcare infrastructure and rising living standards in countries like India and China. The Indian pharmaceutical packaging market is anticipated to grow at the fastest rate over the forecast period 2023-2030. The Indian pharmaceutical packaging market is poised to exhibit strong double digit growth through the forecast period supported by increasing domestic pharmaceutical production and exports from India. North America and Western Europe markets are mature yet steadily growing, while Latin America, Middle East and Africa offer lucrative prospects for future market expansions.
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. These key players are focused on expanding their geographical footprint and enhancing their product portfolio through frequent product innovation. Their emphasis on sustainable products and solutions will also help strengthen their position in the highly competitive pharmaceutical packaging industry.
Comments
0 comment