The Global Pharmaceutical Packaging Market was valued at USD 108.29 Billion in 2022 and is projected to reach USD 225.65 Billion by 2030, registering a CAGR of 9.48% for the forecast period 2023-2030.
Market Definition
Pharmaceutical Packaging is defined as food and beverage items that are produced by organic farming standards. These items include fruits, vegetables, Vegetable products, and grains. The primary drivers of the industry's growth are the government's focus on expanding the production of Pharmaceutical Packaging and consumers' growing health consciousness. Companies are expanding their market share by launching a number of innovative products in the packed foods Material, in response to the growing global demand for Pharmaceutical Packaging. Rising customer income levels, improvements in living standards, and increasing urbanization will all contribute to the growth of the global market for Pharmaceutical Packaging’s. The demand for Pharmaceutical Packaging is rising as a result of growing environmental concerns about the use of hazardous chemicals in farming and agriculture and its negative effects on consumer health. A number of significant factors are driving consumers worldwide to adopt a healthier diet, including the rise in the prevalence of chronic diseases like cancer, diabetes, and cardiovascular diseases; the burden of infectious diseases is increasing; healthcare costs are rising; and there is a growing trend of health consciousness. Factors like increased product innovation, mergers and acquisitions to meet demand, and sophisticated manufacturing techniques to create environmentally friendly and sustainable packaging solutions are also included. The market for pharmaceutical packaging is also expanding due to the use of innovative packaging, rising generic drug sales, the serialized tracking and tracing of drugs, the rapidly expanding drug delivery market, and an increase in research and development.
Market Size:
- 2022: USD 108.29 Billion
- 2030: USD 225.65 Billion
- CAGR (2023-2030): 9.48%
Pharmaceutical Packaging Market Dynamics
Drivers Propelling the Demand for Pharmaceutical Packaging include
Growth of the Pharmaceutical Sector in Developing Nations : Developing nations, which are frequently defined by quick industrialization and economic expansion, are seeing a rise in their capacity for producing pharmaceuticals. The manufacturing of active pharmaceutical ingredients (APIs) and generic drugs is increasingly concentrated in these nations. The demand for packaging materials and solutions to guarantee the safe storage and transportation of pharmaceuticals rises in tandem with their increased production. The disease profiles of developing nations are changing, with a rise in the prevalence of infectious diseases, chronic illnesses, and lifestyle-related health problems. This increases the need for a wider variety of pharmaceutical products, such as biologics, specialty drugs, and vaccines. To satisfy different storage and administration requirements, these varied pharmaceutical products call for different packaging solutions. In developing nations, the pharmaceutical sector is growing both domestically and internationally. A large number of these nations are starting to become important exporters of pharmaceuticals to international markets. Pharmaceutical companies require packaging solutions that meet global quality and regulatory standards in order to compete on the global stage. This has led to a demand for advanced packaging technologies. The pharmaceutical industry is expanding quickly, mostly in developed nations like the United States, Germany, and the United Kingdom and in developing nations like Brazil, India, and China. The population is growing, technological advancements are happening more frequently, people are becoming more aware of healthcare issues, advanced manufacturing techniques are being adopted, public healthcare systems are spending more money, and new laws are being put into place to stop the spread of infectious diseases, overall, this factor fueling the growth of pharmaceutical packaging market.
For instance, in February 2023, according to IQVIA, The Pharma Industry registered 7% growth at the MAT level whereas the Chronic therapies outperformed Acute therapies in 2022. Chronic therapies displayed growth of 9% driven by growth from the Cardiac, Anti-diabetes, Neuro, and Respiratory segments.
An increase in the demand for blister packaging and drug delivery devices : The pharmaceutical sector is expanding its offerings beyond conventional oral drugs. Drug delivery tools like transdermal patches, auto-injectors, prefilled syringes, and inhalers are becoming more and more popular. Accurate dosage enhanced patient adherence, and more efficient drug delivery techniques are provided by these devices. Biologics and specialty drugs have seen tremendous growth in both development and use. Certain medications frequently need specific delivery systems, like injectable devices, in order to keep them stable and guarantee precise dosage. The increasing prevalence of biologics necessitates the use of compatible delivery and packaging systems. The rising prevalence of autoimmune disorders and chronic diseases like diabetes makes regular medication administration necessary. In order to manage chronic conditions, drug delivery devices like wearable infusion pumps and insulin pens are essential. The need for related delivery devices rises with the prevalence of these diseases. Unit dose packaging is perfectly suited for blister packaging because of its distinct compartments or blisters. This is particularly crucial for drugs that need to be taken exactly as prescribed and shouldn't be exposed to light, moisture, or air. Blister packs with a single dose improve medication adherence and safety. Suitable for both over-the-counter and prescription drugs, blister packaging frequently includes tamper-evident and child-resistant features to ensure the integrity of the medication and prevent unauthorized access.
For instance, in October 2022, Nemera, it is a world leader in the design development, and manufacturing of drug delivery device solutions for the pharmaceutical, biotechnology, and generic industries announced a partnership with Zollner Electronic AG, one of the largest electronic manufacturing services provided the world.
Recent Developments
In July 2022, Gerresheimer AG, a leading global provider of healthcare & beauty and drug delivery systems for pharma, biotech, and cosmetics, and Stevanato Group S.p.A., a global provider of drug containment, drug delivery and diagnostic solutions to the pharmaceutical, biotechnology and life sciences industries announce that they have jointly developed a high-end Ready-To-Use (RTU) solution platform with an initial focus on vials, based on Stevanato Group’s market-leading EZ-fill technology.
In April 2022, Amcor, a global leader in developing and producing responsible packaging solutions, today announced the addition of new, more sustainable High Shield laminates to its pharmaceutical packaging portfolio. The new low-carbon, recycle-ready packaging options deliver on two fronts, providing the high barrier and performance requirements needed for the industry while supporting pharmaceutical companies’ recyclability agendas.
Restraint
Complexity of Drug Formulation : The market for pharmaceutical packaging is severely constrained by the rising cost of materials. Packaging manufacturers are facing more and more challenges as raw material prices rise as a result of disruptions in the supply chain, increased demand, and fluctuating currency values. Pharmaceutical companies are forced to deal with increased packaging costs as a result of these elevated costs that trickle down the manufacturing chain. Packaging supplies for the pharmaceutical industry must meet strict quality and safety requirements. Growing prices for materials like plastics, glass, and aluminum can have a significant effect on profit margins. The balance between quality and cost-effectiveness may prove difficult for manufacturers, which could compromise the integrity of the packaging. Complex drug formulations are more vulnerable to issues with packaging, including product leaks, contamination, and drug-material interactions. This may raise the possibility of expensive product recalls that harm pharmaceutical companies' reputations. It can be difficult to scale up the production of complex drug formulations because consistent and high-quality product packaging necessitates close supervision. This may result in higher production costs and delays in the release of new medications. The expertise needed to develop and produce packaging solutions for intricate drug formulations is scarce. This may make it challenging for pharmaceutical companies to partner with the best companies and may cause product development to be delayed, due to this factor, hindering the growth of the pharmaceutical packaging market.
For instance, in August 2022, according to Sustainable Plastics, Prices for recycled polyolefin are rising as a result of strong demand and increased base material costs. Prices for R-LDPE, R-HDPE, and R-PP copolymer increased by USD 60–70/tons, USD 40–60/tons, and USD 70/ton, respectively, last month.
Challenges
Increase in Fake Pharmaceuticals to Limit Market Expansion : Pharmaceutical counterfeits are imitation medications that may be tainted and have fictitious or absent active ingredients. In addition to being illegal, these fake pharmaceuticals are dangerous for your health. The rise in counterfeit pharmaceuticals is a result of third-shift packaging, in which contract manufacturers produce more secret drugs to sell to counterfeiters in an attempt to increase profits. As a result, the market share of pharmaceutical packaging will be limited by the rise in fake medications.
Opportunities
Growing need for the primary pharmaceutical packaging : Personalized medicine, specialty drugs, biologics, and other novel medications are all being developed by the pharmaceutical industry. For each of these products to remain stable, avoid contamination, and guarantee accurate dosing, specific primary packaging solutions are frequently needed. Pharmaceutical companies will look for specialized primary packaging options as drug development moves forward, which will present opportunities for packaging manufacturers. Pharmaceutical packaging is subject to strict regulatory requirements that guarantee patient safety, product integrity, and labeling standards compliance. Updates and enhancements to primary packaging materials and designs are frequently required in response to regulatory changes. There is a growing market for companies that can offer packaging solutions that comply with regulations. Medication adherence and patient-centered care are receiving more and more attention. In order to ensure treatment compliance and patient satisfaction, primary packaging is essential. Easy-to-open, dispense, and use packaging is highly desired, particularly for elderly or physically challenged patients. In this market, manufacturers who can provide creative, patient-friendly primary packaging designs will have an advantage.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 108.29 Billion |
| Market Forecast in 2030 | USD 225.65 Billion |
| Compound Annual Growth Rate (CAGR) | 9.48 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Material, By Product, By End-Use & By Region |
| By Material |
|
| By Product |
|
| By Region |
|
| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Pharmaceutical Packaging Market
The pharmaceutical Packaging market is segmented by material, product, end-use, and region.
By Material
The Plastics & Polymers segment held the largest market share in 2022 : By Material is sub segmented into plastics & polymers, paper & paperboard, glass, aluminum foil, others. The plastics and polymers segment accounted for the highest market share in the global pharmaceutical packaging market for 2022. The most important raw material utilized in the creation of pharmaceutical product packaging is plastic & polymers. The primary materials used in this packaging are plastics, including polyethylene terephthalate (PET), polyvinyl chloride (PVC), polycarbonate (PC), high-impact polystyrene (HIPS), polypropylene (PP), and high-density polyethylene (HDPE). Plastics are an excellent packaging material for pharmaceutical preparations and are responsible for driving the size of the worldwide pharmaceutical packaging market because they are inexpensive, easy to mold into any shape or size, and have protective qualities. These polymers shield pharmaceuticals from physical harm and contamination. It is used in bottles, blister packs, jars and canisters, closures, and overwraps.
On the other hand, the paper and paperboard segment has a significant market share over the forecast period, pharmaceutical products are primarily packaged in secondary and tertiary packaging materials made of paper and paperboard. Paper and paperboard are affordable, widely available, highly printable, and sustainable, making them attractive secondary and tertiary packaging options. Because paper-based materials are less expensive than aluminum lidding, they are frequently used as blister pack lidding. Several of the top producers of paper-based packaging are International Paper and WestRock Company.
By Product
The primary segment was the leading segment in 2022:
By product, which is divided into primary, secondary, and tertiary. The primary segment accounted for the largest share 70% in the global pharmaceutical packaging market for 2022. When primary packaging, like bottles, tubes, or blister packs, comes into direct contact with the medication, it envelops the medication and keeps it clean. Furthermore, it frequently has to do with dosing and distributing medication contents. In order to help the elderly population with medication dosage, packaging companies are concentrating on developing easy-to-open closures and incorporating dispensing systems that deliver the right dose at the right time.
On the other hand, the secondary segment is anticipated to expand over the forecast period, Secondary pharmaceutical packaging is a layer of covering or package that sits on top of other pharmaceutical packages to store them collectively and shield them from outside influences. Secondary packaging serves two main purposes logistics, where grouping multiple products together facilitates handling, and branding and display, which are essential to the product's marketing plan.
By End-Use
The Pharma Manufacturing segment was the leading segment in 2022 : By End-Use, which is divided into pharma manufacturing, contract packaging, retail pharmacy, and institutional pharmacy. The Pharma Manufacturing segment accounted for the largest share of the global pharmaceutical packaging market in 2022. Pharma manufacturing companies create a variety of drugs and medicines, each with specific qualities and packaging needs. The need for a range of packaging options, such as vials, ampoules, bottles, blister packs, and cartons, is fueled by this diversity. Pharma manufacturing businesses must adhere to stringent quality control and packaging regulations. This is due to the fact that the packaging may have an impact on the drug product's safety, effectiveness, and stability. Pharma manufacturing companies are therefore prepared to spend more for superior packaging solutions. Good Manufacturing Practices (GMP) and Good Packaging Practices (GPP) are two of the many regulations that pharmaceutical manufacturing companies have to abide by. These rules guarantee that pharmaceutical packaging satisfies all relevant standards and is safe and efficient.
Contract Packaging segment is anticipated to register rapid growth in forecast period, pharmaceutical industry players have augmented their outsourcing of packaging activities in order to economize on costs and time. To ensure effective packaging, manufacturers hire specialized and highly competent contractors to handle packaging operations rather than investing in product packaging. It is anticipated that this will increase demand for contract manufacturing.
Regional Analysis
Asia Pacific occupied the largest market share in 2022 : Asia Pacific has the largest revenue market share 40% in 2022, The Asia Pacific market is being driven by rising government initiatives in the emerging pharmaceutical market, rising contract manufacturing activities, an aging population, and rising healthcare spending. The main markets in this area are South Korea, Japan, Australia, China, and India. China and India are making significant investments in their respective healthcare sectors, which will help the quickly expanding pharmaceutical market. Moreover, rising urbanization, shifting lifestyles, and expanding technological developments in the healthcare sector in nations like Singapore, China, Malaysia, Thailand, and others are some of the factors propelling the pharmaceutical packaging industry's growth.
On the other hand, North America accounted for the significant share over the forecast period, wherein the largest end-use segment in the region was pharmaceutical manufacturing, which includes internal production. Over the course of the forecast period, the numerous pharmaceutical plastic bottle manufacturers in the nation, including AptarGroup Inc., Gerresheimer AG, Amcor Ltd., and Berry Plastics Group, Inc., are expected to positively influence the demand for pharmaceutical plastic bottles.
List of the prominent players in the Pharmaceutical Packaging Market:
- Amcor plc
- Becton
- Dickinson, and Company
- AptarGroup, Inc.
- Drug Plastics Group
- Gerresheimer AG
- Schott AG
- Owens Illinois, Inc.
- West Pharmaceutical Services, Inc.
- Berry Global, Inc.
- WestRock Company
- SGD Pharma
- International Paper
- Comar, LLC
- CCL Industries, Inc.
- Vetter Pharma International
Segmentation Analysis of the Pharmaceutical Packaging Market
By Material
- Plastics & Polymers
- Paper & Paperboard
- Glass
- Aluminum Foil
- Others
- PrimarSecondary
- Tertiary
- Pharma Manufacturing
- Contract Packaging
- Retail Pharmacy
- Institutional Pharmacy
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Pharmaceutical Packaging Market:
The COVID-19 pandemic had a negative impact on the medical field. The healthcare industry's decline in functioning was caused by a number of factors, including a shortage of essential drugs, manpower, infrastructure, disruptions in the supply chain, and lack of preparation. The procedures were not strong enough to manage such disruptions in the infrastructure, labor, supply chain, and other areas. The pandemic was crippling China, a significant importer of pharmaceutical formulations, medical equipment, and supplies for the healthcare supply chain. This led to a loss of stability in the pharmaceutical and healthcare industries. The global medical supply chain is still unbalanced, but it is beginning to stabilize in accordance with the new normal. In light of the current circumstances, pharmaceutical companies are also evaluating and upgrading their operational capabilities. Packaging activities were deemed crucial during the pandemic. In order to meet the growing demand for blister packs, vials, prefilled syringes, containers, bottles, and cartridges, pharmaceutical packaging companies have boosted their output. The increase in demand for Covid-related medications and vaccines was the primary cause of this. Long-term market growth would also be facilitated by smart packaging, sterile packaging, patient-focused packaging, cleanroom expansion, and pharmaceutical packaging for biologics.
