The global pharmaceutical packaging market size was valued at USD 123 billion in 2022 and is expected to hit USD 284.57 billion by 2032, with a compound annual growth rate (CAGR) of 8.8% during the forecast period 2023 to 2032. The U.S. pharmaceutical packaging market was valued at USD 43.1 billion in 2022.
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The U.S. pharmaceutical packaging market size was valued at USD 29.52 billion in 2022 and is estimated to reach around USD 68.30 billion by 2032, growing at a CAGR of 8.80% from 2023 to 2032.
North America led the global market accounting for a value share of around 38% in 2022. The region witnesses significant presence of leading pharmaceutical players in countries that include Canada, the U.S., and Mexico. U.S. registered as the largest pharmaceutical market globally because of developed healthcare infrastructure in the country, high investments in drug development, and high per capita income. In addition, the presence of large number of leading healthcare product manufacturers, such as Johnson & Johnson; Pfizer Inc.; Bristol-Myers Squibb Company; Merck & Co., Inc.; and AbbVie Inc. further expected to contribute prominently towards the growth of the region.
The Asia Pacific projected to witness the fastest growth rate of nearly 12.3% over the forthcoming years. Japan, India, China, and South Korea are some of the prominent markets because of rapidly increasing population along with steady economic growth in the region estimated to propel the packaging demand in the upcoming years. Further, supportive government regulations related to drug safety expected to further boost the growth of the region.
Significant growth in the pharmaceutical industry mostly in the developing economies that include India, China, and Brazil because of rising disposable income, increasing population, and increasing focus on the life expectancy anticipated to be the major driverfor the market growth. In addition, increasing focus of pharmaceutical packaging solution providers on sustainability along with the adoption of recyclable and biodegradable materials is likely to boost the market growth. Moreover, rising preference for convenient packaging types that include auto injectors and prefilled syringes estimated to create immense growth opportunities for the industry players operating in the market.
Increasing demand for patient-oriented drugs and medicines further expected to positively influence the market growth. Some medicines are manufactured using animal, microorganism, plant, or human cells and are commonly prone to contamination as well as are heat sensitive, this in turn estimated to fuel the demand for specific packing solutions leading to the growth in the pharmaceutical packaging market.
| Report Highlights | Details |
| Market Size in 2023 | USD 133.21 Billion |
| Market Size by 2032 | USD 284.57 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 8.8% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Product, Application, Material |
| Regional Scope | North America, APAC, Europe, Latin America, MEAN, Rest of the World |
| Companies Mentioned | Becton, Dickinson and Company, Amcor Plc, AptarGroup, Inc., Gerresheimer AG, Drug Plastics Group, Schott AG, West Pharmaceutical Services Inc., Owens Illinois Inc., Berry Global, Inc, SGD S.A., WestRock Company |
Market Driver: Emphasis on recyclable packaging
Multiple initiatives are being taken by the government and administrations to boost the pace of recyclability. In June 2023, the Cabinet Health of the United States announced the launch of first recycling program for pill bottles. Under the program, consumers/users and even companies can recycle pill bottles. The program aims to eliminate microplastics which is beneficial for human health as well as the environment.
With such initiatives multiple manufacturers are focusing on the development of recyclable packaging for the pharmaceutical industry in order to fulfill the market’s demand. In January 2023, Aptar Pharma launched a high-performance nasal spray for the pharmaceutical industry with recyclable packaging.
Consumers and regulatory bodies are pushing for reduced waste and eco-friendly practices. The shift towards recyclable packaging has led pharmaceutical companies to adopt recyclable solutions. As the demand for such packaging solutions rises, the pharmaceutical industry will focus on the development of environmentally conscious options. Thus, the element acts as a driver for the market.
Market Restraint: Rising prices of raw materials
The escalating cost of materials poses a significant constraint for the pharmaceutical packaging market. As raw material prices surge due to supply chain disruptions, increased demand and fluctuating currency values, packaging manufacturers face mounting challenges. These elevated costs cascade down the production chain, compelling pharmaceutical companies to grapple with higher packaging expenses. The pharmaceutical sector demands packaging materials that adhere to stringent quality and safety standards. Escalating material costs, such as plastics, glass and aluminum can substantially impact profit margins. Manufacturers may find I challenging to balance quality and cost-effectiveness, potentially leading to compromised packaging integrity. Thus, rising prices of raw materials act as a restraint for the market.
Market Opportunity: Development of innovative packaging solutions
In May 2023, a prominent pharmaceutical packaging developer, Bormioli Pharma announced its plan to submit innovative designs for pharmaceutical packaging solutions. The new innovative packaging solutions aim to focus on augmented reality for drug delivery and child-resistant closure systems with biometric recognition.
On the other hand, in 2022, a global leader in sustainable packaging solutions, Huhtamaki announced an innovative packaging solution for the global pharmaceutical industry. The company has launched an innovative push up blister packaging solution with high-performance blister packaging lines. Additionally, the packaging solutions launched by Huhtamaki aim to offer a more sustainable alternative to the traditional packaging.
The development of innovative packaging solutions presents significant opportunities for the market’s growth as these solutions can enhance medication safety, improve patient compliance and address environmental concerns. Features like child-resistant closures, smart packaging and high-performance blister packaging offer improved solutions. These innovations cater to both regulatory and consumer requirements, contributing to the market’s growth.
Market Challenge: Stringent regulations
The pharmaceutical packaging industry faces obstacles with the growing challenge of rising stringent regulations. These regulations, often aimed at ensuring patient safety and product efficacy, have become a stringent restraint for the industry. Pharmaceutical products require packaging that adheres to specific quality standards, tamper resistance, child-resistant closures and clear labeling of ingredients. As regulations evolve and become more rigorous, pharmaceutical companies face increased pressure to comply with complex requirements, leading to higher costs for packaging development, testing and approval.
The grip of stringent regulations can be complicated for the manufacturers that can limit the entry of new players in the market. It can be challenging in terms of time and cost needed for receiving approvals. Thus, the stringent regulations factor acts as a major challenge for the market.
The primary pharmaceutical packaging product segment captured the maximum value share of nearly 76% in 2022 and projected to retain its position over the analysis period. Product advantages that include quality assurance, prevention from contamination, safety during transportation, and enhanced performance are the major factors that anticipated to propel the product demand over the upcoming period.
The primary packaging product segment has been further classified into medication tubes, caps &closures, plastic bottles, blister packs, parenteral containers, pouches, prefillable inhalers, and others. Plastic bottles are the widely used product for packaging various types of medicines and thus emerged as the leader in the primary packaging products.
The secondary product segment projected to witness a CAGR of approximately 7.6% over the forecast period. The secondary packaging refers to a consecutive covering or package that are mostly used for the grouping of pharmaceutical packages. They are largely used for logistics and transportation along with display and branding purposes. This type of packaging is used for protecting drugs as well as the primary packaging.
In 2022, pharmaceutical manufacturing held the largest revenue share of around 49.7% and projected to maintain the same trend over the forthcoming years. Increasing demand for better medical facilities along with rising population projected to impact positively on the market growth. In addition, favorable government initiatives supporting the development of healthcare industry mostly in the developing countries estimated to boost the segment growth over the analysis period.
Drug or medicine manufacturers are significantly outsourcing the pharmaceutical packaging activities for saving their expenses and time both. Increasing preference for outsourcing service rather than investing on the establishment of packaging infrastructure projected to propel the growth of contract packaging segment during the upcoming years.
The global pharmaceutical packaging market is highly fragmented in nature due to the presence of several leading players operating at both local as well as regional levels. Key market players adopt various inorganic growth strategies to gain the competitive advantage in the global market. They also invest prominently in the R&D sector for the product development and enhancement that.
Some of the prominent players in the pharmaceutical packaging market include:
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of product, material, application, and region:
By Product
By Material
By Application
By Regional Outlook
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