Published Date : 25 Apr 2023
As of 2022, the temperature controlled packaging solutions industry had worth of USD 39.59 billion. The industry is expected to experience a CAGR of 18.10%, resulting in estimated revenues of around USD 208.12 billion by the end of 2032.
The temperature controlled packaging solutions industry growth is driven by the growing pharmaceutical industry, increasing demand for fresh and frozen foods, rising technological advancements and the growing prevalence of the COVID-19 pandemic.
The term "temperature controlled packaging," also known as "cold chain packaging," refers to distribution and packing techniques designed specifically to keep products at a constant temperature from the place of production through ultimate distribution. Temperature-controlled packaging options have grown to include packaging that shields products that are kept at room temperature from extremely cold or extremely hot temperatures outside, even though they were originally intended to keep temperature-sensitive goods chilled or frozen in transportation.
Temperature Controlled Packaging Solutions Industry Scope:
| Report Coverage | Details |
| Market Size in 2022 | USD 39.59 Billion |
| Projected Forecast Value in 2032 | USD 208.12 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 18.10% |
| Fastest Growing Region | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Report Highlights:
Regional Snapshot:
North America is expected to dominate the industry during the forecast period. The regional growth is attributed to the strong presence of healthcare and pharmaceutical industries. Due to the existence of some of the largest pharmaceutical corporations in the world, the US holds a dominant share of the global pharmaceutical industry.
The top pharmaceutical companies including Pfizer, Johnson & Johnson, Merck & Co., AbbVie, and Abbott Laboratories, have their headquarters in the US. For instance, according to estimates from the Pharmaceutical Research and Manufacturers Association (PhRMA), American businesses conduct more than half of all pharmaceutical R&D worldwide around USD75 billion. Moreover, it is anticipated that by 2023, Americans will spend between USD 635 and USD 655 billion on pharmaceuticals, according to a study by Pharmaceutical Commerce.
The industry for COVID-19 vaccines, cell and gene therapies, other flu vaccines, and medications has also increased significantly as a result of the COVID-19 epidemic. These vaccines and medicines need to be transported at a constant temperature to maintain their shelf life. For instance, the Moderna COVID vaccine must be kept between -25°C and -15°C in the fridge, and once withdrawn, must be kept between 2 and 8°C. Therefore, maintaining a cold chain during storing of COVID-19 vaccines is crucial. Thus, the growing pharmaceutical industry and the presence of major players in the region are expected to fuel the growth of the industry during the forecast period.
On the other hand, the Asia Pacific is expected to grow at the highest CAGR during the forecast period. The growth in the region is attributed to the increasing expenditure on healthcare infrastructure. For instance, India's state healthcare spending was 2.1% of GDP in 2021–2022, up from 1.8% in 2020–2021 and 1.3% in 2019–20, according to the Economic Survey of 2022.
Furthermore, the growing prevalence of chronic disease in the Asia Pacific is another important factor that propels the industry of temperature controlled packaging because some drugs used to treat chronic disorders are very sensitive that need a constant temperature to preserve. For instance, the International Diabetes Federation (IDF) estimates that approximately 90 million people in South East Asian nations will have diabetes by 2021. According to estimates, this figure will rise to 113 million in 2030 and 152 million in 2045. Thus, these factors support the industry expansion during the forecast period.
Market Dynamics:
Drivers:
Increasing demand from various industries such as pharmaceuticals, food & beverages and others
The demand for temperature-controlled packaging is anticipated to rise over the projection period across a range of sectors, including those that deal with chemicals, food and beverage, medicines, and others. In the pharmaceutical industry, these goods are used to transport drugs at a specific temperature that is required to safeguard against damage.
For instance, the suggested storing temperatures for vaccines are -80°C (dry ice), -60°C, -20°C, and the more typical 2-8°C temperature range. Additionally, these products are employed in the food and beverage industry to extend the shelf life of refrigerated products like meat, pastry, and others. As a result, the growth of the global temperature controlled packaging industry is driven by the rising adoption of temperature controlled packaging in numerous industries.
Restraint:
Volatility in the price of raw materials
Volatility in the price of raw materials as packaging raw materials are polystyrene, polyurethane and others and these are the by-product of crude oil, acting as a major restraint for the growth of the industry during the forecast period. For instance, the US Energy Information Administration projects that the price of Brent crude oil will reach USD 105 per barrel in 2022, up 48% from last year's projection, while the price of WTI crude oil is expected to hit USD 98 per barrel, up 44%.
Opportunities:
COVID-19 vaccines:
The COVID-19 pandemic has increased the demand for cold chain packing techniques at various phases of product development for the COVID-19 vaccine, cell and gene therapies, other flu vaccines, pharmaceutical materials, and more. Additionally, the Pfizer-BioNTech COVID-19 vaccine is an Ultra-Low Temperature vaccine that requires storage at low temperatures to maintain the vaccine's effectiveness and purity. Additionally, the expansion of R&D initiatives worldwide aimed at enhancing packaging and production techniques in biotech and pharmaceutical companies is promoting industry expansion.
Challenges:
Stringent regulations
Any object that needs to be transported must include packaging. It aids in avoiding delivery-related damage. Pharmaceuticals require the highest level of care and protection during transportation due to their delicate nature, their life-saving powers, and their sensitive nature. The possibility of contamination is also present. The Food and Drug Administration (FDA) in the US set rules for the transportation of temperature-sensitive goods. Worldwide shipments of medicinal goods that are temperature-sensitive are subject to restrictions set by the WHO. Thus, this is expected to act as a major challenge for the industry growth over the forecast period.
Recent Developments:
Major Key Players:
Market Segmentation:
By Product
By Application
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