The global blister packaging market is expected to advance at 7.4% CAGR from 2020 to 2025 as demand grows for unit-dose packaging, short-cycle medication, and a monitored dosage system to improve patient adherence. PVC has been the traditional choice in blister packaging for a very long time as it offers low prices and strong durability while maximizing product visibility at the same time. PVC pricing had been stagnant for some time before 2020 and it was generally readily available. However, during the Covid-19 pandemic, the housing market started to gain traction and the construction market continues to buy more PVC, hence the price has increased drastically, making it hard to procure PVC for blister packaging. Moreover, recent economic and environmental policy changes compel some brands to think and find a PVC alternative for their blister packaging. Polyethylene terephthalate (PET) and recycled polyethylene terephthalate (RPET) are the two major strong alternatives to the traditional PVC blister. It is majorly used in soda bottles and is known for its strong durability and transparency. PET and RPET are most preferable for brands with high sustainability goals as they can be easily recycled.
One of the leaders in the packaging industry, Amcor has already started working on developing alternatives for PVC in blister packaging. In April 2021, the company announced the customer trials of the world’s first recyclable polyethylene-based thermoform blister packaging named AmSky. It reduces carbon footprint by 70% compared to PVC and other alternatives. PVC makes packaging recycling more difficult or contaminates other materials if consumers attempt to recycle them. Therefore, Amcor’s solution eliminates PVC from the packaging by using a mono-material Polyethylene thermoform blister and lidding film.
Blister Packaging Industry Procurement Intelligence report, by Grand View Research, deep dives into the following insights from the industry:
- Increasing demand for pharmaceuticals and consumer goods is fueling the growth of the blister packaging market – The shift from plastic containers to blisters in North America to enhance patient compliance for the growing old-age population is expected to propel market growth. Europe, Middle East, and Africa (EMEA) is expected to register the highest CAGR of more than 8% and reach USD 10.31 billion by 2024.
- Fragmented nature of the blister packaging industry, with high number of suppliers present in different regions, has an arresting effect on bargaining power of suppliers. – With low entry barriers for new entrants, due to low manufacturing and operating costs, the blister packaging industry features a highly fragmented competitive landscape. Moreover, established industry participants are engaging into new product development, M&A, and strategic partnerships to enhance their regional presence and cater to the heightened demand.
- Suppliers opt for a full-service outsourcing engagement model – Suppliers widely prefer approved provider operating models to reduce risks and improve the potential for value creation. As such, suppliers are expected to move from offering generic services to proprietary services in the future.
Blister Packaging Industry Cost Intelligence – Key Components:
Grand View Research has identified the following key cost components for availing blister packaging:
- Raw Materials
- Forming Film
- Lidding Material
- Heat Seal Coating
- Printing Ink
- Others
- Fixed Costs
- Labor
- SG&A
- R&D
- Depreciation
- Interest
- Tax
- Profit
Raw material is the biggest cost component of blister packaging, accounting for more than 60% of the total cost of manufacturing.
Blister Packaging Industry Supplier Intelligence – Capability based ranking & selection criteria with weightage:
Operational Capabilities –
- Years in Service – 15%
- Geographical Service Presence – 35%
- Employee Strength – 15%
- Revenue Generated – 15%
- Key Clients – 12%
- Certifications – 8%
Functional Capabilities –
- Technology Type – 40%
- Thermoforming
- Cold Forming
- Thermo Cold Complex Blistering
- Types of Blister Packaging – 60%
- Thermoformable
- Face Seal
- Trapped
- Full Card Blister
- Clamshell
- Skin Packaging
List of key suppliers in the blister packaging industry:
- Amcor Plc
- DOW
- WestRock Company
- Sonoco Products Company
- Constantia Flexibles
- Klockner Pentaplast Group
- E.I. du Pont de Nemours and Company
- Honeywell International Inc.
- Tekni-Plex
- Display Pack
Addon Services offered by Grand View Research:
- Should Cost Analysis – In the homecare contract manufacturing market procurement intelligence report, we have estimated and forecasted pricing for the key cost components while availing services from contract manufacturers. Raw material cost is the largest cost component of homecare contract manufacturing services. It accounted for more than 75% share in overall manufacturing cost. Among raw materials, chelating agents is the largest cost component with ~24% share followed by surfactants and buffer solution. The price of surfactants is majorly determined by crude oil prices. However, in 2018, surfactants’ prices declined, irrespective of higher crude oil prices. As the demand for personal care and home care products increases, the prices for buffer solutions and others are expected to stabilize over the forecasted period.
- Rate Benchmarking – As chelating agents are the most important cost component for cleaning product manufacturing, the type of chelating agents is one of the most important aspects while analyzing the rate benchmarking of homecare contract manufacturing services. In our research, we have analyzed the rates of citric acid, nitrilotriacetic acid (NTA), and phosphonates. These three are the most common types of chelating agents used to produce cleaning products. By using rate benchmarking analysis, we found that using NTA as chelating agents is 15%-20% cost-efficient than using citric acid and phosphonates as chelating agents. Moreover, due to their toxicity phosphonates are banned in the EU, Canada, and Australia. Hence, using NTS and citric acid is the most preferable chelating agent for homecare contract manufacturers.
- Salary Benchmarking – Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.
- Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
Browse through Grand View Research’s collection of procurement intelligence studies:
- Supply Chain Insurance Market Procurement Intelligence Report –The global supply chain insurance market is valued at USD2.5 billion in 2020 and it is expected to grow at a CAGR of 4% from 2020 to 2025 due to the high adoption of supply chain insurance from medium and large-sized organizations across manufacturing, transportation, and logistics, pharmaceuticals, and food & beverages sectors. High anti-dumping duties imposed by the governments in countries such as China, the US, France, Germany, and India are expected to increase the price of exported supply chain insurance. North America is leading the supply chain insurance market with more than 35% revenue share followed by Europe (~30%) and APAC (~25%).
- Synthetic Fibers Market Procurement Intelligence Report – The global synthetic fibers market size was estimated at USD 59.95 billion in 2020 and is projected to register a 6.6% CAGR during the forecast period. Increasing consumer demand for cost-effective, durable, and easy-to-wash & maintain fabrics is expected to drive the market growth over the forecast period. Owing to the inclusion of unique properties (such as high strength, high elasticity, softness, etc.) synthetic fibers are preferred in various application industries, such as clothing, home furnishing, filtration, automotive, and others.
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