April 13, 2024

The Global Pharmaceutical Packaging Market is thriving on Increased Healthcare Spending

The pharmaceutical packaging market involves the production and enhancement of packaging for pharmaceutical products such as capsules, pills, creams and ointments and injectable drugs. Pharmaceutical packaging provides protection from moisture, air and ensures drug efficacy and stability during storage and transportation. It involves various packaging formats including plastic bottles, blister packs, bottles, vials, pre-filled syringes and ampoules. Pharmaceutical packaging protects the product from contamination and prevents damage to expensive drugs. The pharmaceutical packaging industry is driven by the growing demand for efficient and sustainable drug delivery systems and increased healthcare spending globally.

The Global Pharmaceutical Packaging Market is estimated to be valued at US$ 264.21 Bn in 2024 and is expected to exhibit a CAGR of 9.5% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Pharmaceutical Packaging 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 focusing on expanding their production capacities and capabilities to cater to the growing demand.

The rising healthcare expenditure and increasing incidence of chronic diseases around the world have fueled the demand for pharmaceutical products, driving the need for sophisticated and efficient packaging solutions. Pharmaceutical companies are actively investing in advanced packaging to improve drug stability, safety and patient convenience.

The pharmaceutical packaging market companies are expanding their global footprint by establishing manufacturing facilities in emerging drug markets to cater to the demand from Latin America, Asia Pacific and Middle East countries. Rapid growth in the pharmaceutical sector and changes in regulatory framework necessitating stringent packaging standards will boost the pharmaceutical packaging market size during the forecast period.

Market key trends

Sustainable and green packaging is one of the major trends being followed by pharmaceutical packaging companies. They are increasingly adopting eco-friendly materials like recycled plastics, paper and bioplastics for primary and secondary packaging to reduce environmental footprint. Lightweighting of pharmaceutical packaging using innovations like recyclable glass and high-barrier plastic films help lower shipment cost and carbon emissions. Advanced printing technologies like digital printing enable on-demand customizable labeling and track and trace solutions for supply chain transparency. Growing demand for self-administrable and user-friendly drug delivery such as pre-filled syringes and auto-injectors are also driving the need for specialized packaging formats.

Porter’s Analysis

  • Threat of new entrants: New players need to invest heavily in R&D and machinery.
  • Bargaining power of buyers: Buyers have moderate power due to the existence of many players and availability of substitutes.
  • Bargaining power of suppliers: Suppliers of raw materials have low bargaining power due to the availability of alternative sources.
  • Threat of new substitutes: New substitutes need to meet strict regulations so threat is moderate.
  • Competitive rivalry: Competition is intense as players compete on pricing and innovation.

Geographical Regions

North America is currently holding the largest market share in terms of value, primarily driven by the U.S. where pharmaceutical companies are investing heavily in R&D for new drug development.

Asia Pacific region is expected to be the fastest growing market during the forecast period owing to rising pharmaceutical production in countries like India and China coupled with growing medical tourism in Southeast Asian countries.