Pharmaceutical packaging, also known as drug packaging, involves various activities ranging from pharmaceutical production to distribution to the end user. It helps in protecting the drugs and medicines from unfavorable environments such as physical damage, biological contamination and degradation. Improvement in the services of healthcare backed by rapid urbanization, especially in emerging economies have contributed to the growth of pharmaceutical packaging market. The market was valued at US$ 74.57 billion in 2016 and is expected to exhibit a CAGR of 7.76% over the forecast period 2017 to 2025.
On the basis of material, plastics and polymers segment dominated the global pharmaceutical packaging market in 2016 and is expected to retain its dominance throughout the forecast period. Furthermore, paper and paperboard segment is also gaining traction due to the rising demand for eco-friendly and biodegradable packaging material since paper is 100% recyclable, compostable, and biodegradable.
On the basis of product type, plastic bottles segment accounted for the major share in the pharmaceutical packaging market in 2016. However, environmental concerns regarding plastic pollution and adoption of alternative modes of packaging by the manufacturers is expected reduce the demand for plastic bottles in the future.
Key Factors Affecting Market Growth
The major factors propelling the growth of this market at the global level include rising demand for ecofriendly and biodegradable packaging, and increasing demand for pre-fillable syringes since they are associated with various advantages such as reduced drug wastage, convenience, and easy drug administration. Factors hindering the growth of the market include fluctuating prices of the raw materials used for manufacturing pharmaceutical packaging products, increasing sale of counterfeit medicines and rising environmental concerns regarding plastic pollution, due to which the manufacturers are looking to adopt alternative modes of packaging.
North America dominated the pharmaceutical packaging equipment market in 2016, accounting for a market share of over 40% and is expected to retain its position throughout the forecast period. U.S. is the major contributor to the growth of this market and is expected to project a strong growth during the forecast period on account of frequent product launches by the major manufacturers in the field of pharmaceutical packaging. Furthermore, large presence of major manufacturers operating in the pharmaceutical industry such as Pfizer are creating huge opportunities for the manufacturers of pharmaceutical packaging in the country, which in turn is augmenting the growth of this market in North America.
Asia Pacific is projected to be the fastest growing market, witnessing highest CAGR of 10.37% during the forecast period. Rapid penetration of major companies operating in the pharmaceutical industry coupled with rapid penetration of major companies operating in the field of pharmaceutical packaging in the emerging economies such as India, Japan and China. Furthermore, rapid urbanization, improved health care services, rapid adoption of contract packaging in the pharmaceutical industry and the stringent regulations against the counterfeit medicines are expected to fuel the growth of this market in Asia Pacific in the coming years. In 2016, approximately 113 million counterfeit tablets were seized by the World Customs Organization (WCO), out of which 97% were manufactured in India and China. Such incidents are expected to fuel the growth of pharmaceutical packaging market in Asia Pacific.
Global Pharmaceutical Packaging Market Share, By Region, 2016
North America led the pharmaceutical packaging market in 2016 and is expected to retain market dominance throughout the forecast period. However, Asia Pacific is anticipated to exhibit the fastest growth in the pharmaceutical packaging market during the forecast period. Major players operating in the market of pharmaceutical packaging include 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.
Source: Coherent Market Insights