According to a report,”Pharmaceutical Packaging Market Size, Share & Trends Analysis Report By Material (Plastics & Polymers, Paper & Paperboard), By Product (Primary, Secondary), By End Use, And Segment Forecasts, 2019 – 2025″, published by Grand View Research, Inc.,The global pharmaceutical packaging market size is expected to reach USD 158.24 billion by 2025. It is anticipated to register a CAGR of 8.3% during the forecast period. The market is driven by increasing consumption of pharmaceutical packaging materials in emerging economies, most notably in China, Brazil, and India. This is in reaction to increasing government spending on healthcare infrastructure in these countries.
The market has been witnessing significant demand for pharmaceutical packaging in African countries. Though the industry is yet to achieve its full potential in Africa, the region promises considerable growth over the forecast period owing to economic developments in countries such as South Africa and Nigeria. Sub-Saharan Africa, in particular, is expected to bolster the demand for pharmaceutical packaging products throughout the forecast period backed by significant economic development. Emerging economies across the globe have encouraged international players to setup their manufacturing plants on the back of rising pharmaceutical exports in the aforementioned countries.
Another significant factor triggering the demand for pharmaceutical packaging materials is the increasing demand for blister packaging and drug delivery devices. In this respect, the emergence of novel drug delivery systems with unique forms (patches and rings) has necessitated the employment of pharmaceutical packaging materials across the globe. In addition, the market is driven by the increasing demand for blister packaging solutions for the packaging of drug items/products. The employment of blister packaging materials helps extend the shelf life of pharmaceutical products while offering enhanced clarity/transparency in packages.
North America emerged as the largest market for pharmaceutical packaging in 2018, with a revenue of USD 35.11 billion. The region is expected to retain its prominent position over the forecast period and claim a share of 33% by 2025. U.S. has been a leading regional market and has been witnessing exponential growth. Mexico is a major production site for large pharmaceutical companies. The emergence of Mexico as a sourcing destination for domestic companies looking to manufacture and sell complex, especially manufactured products is expected to boost pharmaceutical industry growth in the region. This, in turn, is likely to drive the product demand over the forecast period.
The pharmaceutical packaging market is highly fragmented with both domestic and international players sharing the market space. However, it is led by the players such as Amcor Ltd.; Becton, Dickinson & Company; Aptar Group Inc.; Capsugel Inc.; Gerresheimer AG; Schott AG;Owens Illinois Inc.; West Pharmaceutical Services Inc.; Berry Plastics Group Inc.; Westrock Company; andSGD SA among others. Product innovation, portfolio expansion, and mergers and acquisitions were observed to be some of the most preferred strategies by these players to stay abreast of the competition.
Key Takeaways from the report:
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In terms of material, plastics and polymers held the leading market share of 38% in 2018. Plastics and polymers are being considered as ideal packaging materials by pharmaceutical companies owing to their advantages such as the availability of various types of quality and ease of manufacturing
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In terms of product, primary pharmaceutical packaging is expected register the fastest CAGR of 8.6% over the forecast period. Demand for primary packaging is driven by the increasing consumption of protein-based, biotechnologically manufactured medications, highly viscous or low-dosage drug formulations, and a series of oncologic and ophthalmologic medications
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In terms of end use, contract packaging is expected to register the fastest CAGR of 9.1% over the forecast period. Market players have been focusing on increasing the outsourcing of packaging activities to save on time and various expenses
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Asia Pacific is expected to witness the fastest CAGR of 12.2% over the forecast period. Tremendous growth in population coupled with a steady economic growth in countries such as China, India, and Japan is contributing to the regional growth
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The pharmaceutical packaging market has been witnessing intense rivalry among key participants in terms of product offerings, product innovation, and global presence
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Regional Insights
North America enjoyed the maximum market share of 38.6% in 2018. One of the factors contributing to this is the rise in the manufacturing of child-resistant packaging materials. Furthermore, the increasing production of branded drugs which require a greater input of packaging materials to protect the drug from the external environment is bolstering the regional product demand. The presence of key manufacturers of branded drugs including Johnson & Johnson; Pfizer; Sanofi-Aventis (Sanofi Pasteur); Merck (Schering-Plough Canada Inc.); and GlaxoSmithKline Inc. has also favored the regional growth.
Asia Pacific is expected to expand at the fastest CAGR of 12.2% over the forecast period. The anticipated growth is attributable to the increasing popularity of rigid plastic materials. Growing demand for Polyethylene Terephthalate (PET) and Polyethylene (PE) as the primary plastics for consumer manufacturing is anticipated to fuel the regional market. An increase in the establishment of government regulations for drug safety has boosted the regional market growth. The use of pharmaceutical packaging is essential to keep medicines safe from the external environmental factors and vice-versa in certain cases.
Pharmaceutical Packaging Market Share Insights
Key market players are Amcor Ltd.; West Pharmaceutical Service Inc.; Gerresheimer AG; BD; Schott AG; and Aptar Group. The market is highly fragmented with numerous players operating at both regional and local levels. Other prominent players are Bemis Company; Capsugel; Berry Global; Owens Illinois Inc.; SGD SA; COMAR LLC; and International Paper Company.
The diversification strategy aimed at providing data services along with the current portfolio of products is expected to increase the competition. The production of high value products from materials such as bioplastics and recyclable paper are expected to help companies achieve product differentiation.
Mergers and acquisitions was observed to be one of the key strategies deployed by key players to withstand competition in the market. Companies are trying to achieve product leadership in some categories owing to which merger valuations are expected to increase over the forecast period. Industry participants engage in restructuring to focus on profitable business segments. With an increasing emphasis on sustainability packaging, companies are trying to strike a balance between investing in and maintaining price levels.
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