Pharmaceutical Secondary Packaging Market

Pharmaceutical Secondary Packaging Market Outlook

The pharmaceutical secondary packaging market size is estimated to be valued at US$ 41,950 million in 2023 and is projected to be worth US$ 72,010 million by 2033. The revenue from the sales of pharmaceutical secondary packaging is expected to increase at a CAGR of 6.2% over the forecast period. The pharmaceutical industry is witnessing a significant shift towards secondary packaging solutions that can ensure the safety and security of drugs, while also improving patient compliance. As a result, the demand for pharmaceutical secondary packaging is on the rise, and the market is expected to rise in the coming years.

Here are some of the key factors driving the growth of the pharmaceutical secondary packaging market:

• The rise in Unit Dose Packaging:

With the increasing use of unit dose packaging for drugs, there is a growing adoption of pharmaceutical secondary packaging solutions that can ensure accurate dosage and reduce the risk of medication errors.

• Focus on Product Safety and Traceability:

The growing importance of product safety and traceability is driving the sales of pharmaceutical secondary packaging that can protect drugs from contamination and tampering, as well as e-pedigree systems to track and trace the movement of drugs through the supply chain.

• Child-Resistant and Senior-Friendly Packaging:

The growing demand for child-resistant and senior-friendly packaging is driving the growth of the industry as these packaging options are designed to prevent accidental ingestion of drugs by children and older adults.

• Increase in Prescription Drugs:

The rising number of prescription drugs is driving the revenue growth from the sales of pharmaceutical secondary packaging as it helps to ensure the safe and secure storage and transportation of these drugs.

• Growth in Clinical Trials:

As the number of clinical trials increases, there is a growing demand for pharmaceutical secondary packaging that can protect drugs during transportation and storage.

• Emphasis on Patient Compliance:

With the increasing focus on patient compliance, there is a growing adoption of pharmaceutical secondary packaging that can help to ensure that patients take their medication as prescribed.

Prominent Growth Limiting Challenges Faced by Manufacturers in the Industry

• Stringent Regulations: Manufacturers of pharmaceutical secondary packaging are subject to strict regulations, which can make it difficult to bring new products to the industry. This can also increase the time and costs associated with the development of new packaging solutions.
• Quality Control: Ensuring consistent quality control of secondary packaging can be a significant challenge for manufacturers. This is particularly true for packaging solutions that are used in the transportation and storage of drugs, as even small defects can lead to product damage or contamination.
• Cost: The cost of raw materials and production processes can be a key challenge for manufacturers of pharmaceutical secondary packaging. This can make it difficult for manufacturers to compete in the industry, particularly as prices continue to rise.
• Technological Advancements: Keeping up with the latest technologies and innovations in the field of packaging can be challenging for manufacturers. This requires a significant investment in research and development, which can be difficult for smaller manufacturers.
• Sustainability: There is an increasing demand for sustainable packaging solutions, which can be a challenge for manufacturers as it requires new production processes and materials.
• Packaging Automation: With the increasing demand for automation in the packaging process, it can be challenging for manufacturers to integrate new technologies and processes into their production lines.

Pharmaceutical Secondary Packaging Market 2017 to 2022: Historic Sales Compared to Future Outlook

During the period (2017 to 2022), the pharmaceutical secondary packaging industry stood at a value of US$ 28,000 million, expanding at a CAGR of nearly 5.8% during the period.

There are several factors contributing to the growth of the pharmaceutical secondary packaging Industry. One of the main drivers is the increasing demand for pharmaceutical products worldwide. As the global population continues to grow and age, the demand for medication and healthcare products will also increase. This, in turn, is likely to drive the need for more efficient and secure secondary packaging solutions. Overall, the pharmaceutical secondary packaging Industry is expected to experience steady growth during the forecast period.

The sales of pharmaceutical secondary packaging are expected to experience significant growth, with a projected valuation of US$ 72,010 million by 2033, and a CAGR of 6.2% during the forecast period.

Short Term (2022 to 2025): During this period, key factor anticipated to drive the growth of the pharmaceutical secondary packaging Industry includes the growing focus on patient safety and the need for tamper-evident packaging. With the rise of counterfeit drugs, governments and healthcare organizations are placing more emphasis on ensuring the authenticity and safety of drugs. This has led to an increase in the use of tamper-evident packaging, which helps to prevent the counterfeiting of drugs and ensure patient safety.

Medium Term (2025 to 2028): The growing use of technology in the pharmaceutical industry is also driving the growth of the pharmaceutical secondary packaging Industry. The use of automated packaging systems and RFID tags, for example, is increasing in the pharmaceutical industry, as they help to improve the efficiency and accuracy of packaging processes.

Long Term (2028 to 2033): Another factor that might lead to the rising demand for pharmaceutical secondary packaging in the future is the increasing adoption of eCommerce for pharmaceutical products. As more people turn to online platforms to purchase medication, the need for secure and tamper-proof packaging solutions will also increase. eCommerce platforms also demand packaging solutions that can withstand the handling and shipping process of the product, which also drives the demand for more durable and protective secondary packaging options.

As a result, these factors are likely to increase demand for innovative and advanced secondary packaging solutions that can provide the necessary protection and security for pharmaceutical products during eCommerce transactions.

Ismail Sutaria

Principal Consultant

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Category-wise Insights

Segmentation by Material

Rising Demand for Cost-Effective and Sustainable Packaging: Paper and Paperboard Materials

The paper and paperboard segment is projected to offer an incremental opportunity of US$ 21.9 billion by 2033 and is also expected to register an attractive CAGR of 6.6% during the forecast period. The growth in this segment can be attributed to these factors:

• The increasing use of unit dose packaging for drugs has led to a growing demand for secondary packaging that can ensure accurate dosage and reduce the risk of medication errors.
• With the growing importance of product safety and traceability, there is a growing demand for secondary packaging that can protect drugs from contamination and tampering, and paper and paperboard materials are well-suited for this purpose.
• The growing demand for child-resistant and senior-friendly packaging is driving the growth of the market as these packaging options are designed to prevent accidental ingestion of drugs by children and older adults.

On the other hand, the plastic segment is estimated to offer a growth opportunity of US$ 10.5 billion during the forecast period. This segment is projected to hold more than 37.5% share of the global pharmaceutical secondary packaging industry throughout the forecast period. This can be attributed to the durability of plastic as a material, which can withstand the rigors of transportation and storage, making it an attractive option for manufacturers.

Segmentation by Packaging Format

The folding cartons segment is currently leading the market with a share of 25.1%. However, it is anticipated that blister packaging is anticipated take over and witness high growth potential during the forecast period. The blister packaging format is expected to grow with a CAGR of 7.7% in the global pharmaceutical secondary packaging industry. The growth of this segment is driven by several factors such as increased efficiency, improved patient compliance, cost-effectiveness, enhanced safety and security, and growing demand for child-resistant packaging.

Blister packaging is a cost-effective and efficient solution that offers improved patient compliance, enhanced safety and security, and child-resistant feature. Blister packaging allows for the efficient and accurate packaging of a large number of tablets or capsules in a small space. This makes it an ideal solution for manufacturers who need to package large quantities of drugs.

In addition, blister packaging is often used in unit-dose packaging, which can help to improve patient compliance as it makes it easier for patients to keep track of their medication and ensures accurate dosage. Also, blister packaging is relatively cost-effective compared to other forms of secondary packaging, making it a popular option for manufacturers looking to cut costs.

Segmentation by Application

Exploring the Growth Factors of Respiratory Therapy and Oral Application in the Pharmaceutical Secondary Packaging Market

The pharmaceutical secondary packaging industry is witnessing significant growth, driven by the increasing demand for safe and secure packaging solutions that can ensure the safety and security of drugs, while also improving patient compliance. Among the various application types, the pharma/biological drugs segment is the most lucrative, holding an estimated 53.4% of the market share by 2033.

One of the key factors driving the growth of this segment is the increasing use of unit dose packaging for drugs. This packaging format is becoming increasingly popular in the pharmaceutical industry as it helps to ensure accurate dosage and reduces the risk of medication errors. In addition, the growing importance of product safety and traceability is driving the demand for secondary packaging that can protect drugs from contamination and tampering.

Another segment driving growth in the market is the vaccine segment, which is projected to offer an incremental opportunity of US$ 13.0 billion during the forecast period. The segment is expected to grow at a steady CAGR of 7.0% during the forecast period. This is due to the rising number of prescription drugs and the growth in the number of clinical trials, as well as the increasing focus on patient compliance. Furthermore, the growing adoption of e-pedigree systems to track and trace the movement of drugs through the supply chain is also contributing to the growth of the market.

Respiratory therapy is expected to be the most lucrative market for pharmaceutical secondary packaging with a market expansion of 2x by 2033. The growth in this segment can be attributed to the increasing prevalence of respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD), which are driving the demand for respiratory therapy drugs. In addition, the development of new and advanced respiratory therapy drugs is also contributing to the growth of this segment.

The oral application segment is also likely to witness high growth prospects for expansion for the pharmaceutical secondary packaging industry with a CAGR of 6.8%. The growth in this segment can be attributed to the increasing number of prescription drugs and over-the-counter (OTC) drugs that are taken orally. In addition, the growing focus on patient compliance, and the increasing adoption of e-pedigree systems to track and trace the movement of drugs through the supply chain are also driving the growth of the oral application segment.

Regional Insights

United States and Canada Lead Growth in the North American Pharmaceutical Secondary Packaging Market

The United States market is projected to hold more than a 3/4th portion of the North American pharmaceutical secondary packaging industry throughout the forecast period. The United States pharmaceutical secondary packaging industry is anticipated to surpass US$ 14,878.6 million during the forecast period. This is due to the high adoption of advanced packaging technologies and the presence of major players in the region. In addition, the increasing focus on patient compliance and the growing adoption of e-pedigree systems to track and trace the movement of drugs through the supply chain are also contributing to the growth of the market in the United States

In Canada, the market is projected to clock a CAGR of 6.3% during the forecast period, reaching US$ 4,085 million by 2033. This is due to the high adoption of advanced packaging technologies and the presence of major players in the region. In addition, the Canadian government's focus on healthcare and its implementation of strict regulations is also expected to drive market growth.

Germany to Register High Growth in Europe Pharmaceutical Secondary Packaging Market

In Europe, Germany is projected to be 15.3% of Europe's pharmaceutical secondary packaging industry throughout the forecast period. The country is anticipated to offer a total incremental opportunity of US$ 762.8 Mn in the forecast period. Besides, Poland is projected to clock a CAGR of 7.0% during the forecast period, driven by the growing number of prescription drugs and the growth in the number of clinical trials, as well as the increasing focus on patient compliance.

China and India to Turn into Lucrative Markets for Pharmaceutical Secondary Packaging Manufacturers

China's pharmaceutical secondary packaging market is projected to expand by 2.1x times its value during the forecast period. This is driven by increasing government initiatives, such as Healthy China 2020, growing contract-manufacturing activities, and the burgeoning aging population. In addition, India is projected to offer a growth opportunity of US$ 3.3 billion during the forecast period.

The Asia Pacific region is expected to register the fastest CAGR of 12.9% from 2021 to 2030, driven by growing health awareness among consumers in the region, especially in developing countries including China and India, coupled with the rising disposable income levels. This is anticipated to boost the growth of the pharmaceutical industry over the forecast period, augmenting the demand for pharmaceutical packaging.

In conclusion, China and India are leading the way in the pharmaceutical secondary packaging market in the Asia Pacific, with strong growth driven by a growing healthcare sector, increasing government initiatives, and a large population in need of medication. In addition, the growing health awareness among consumers in the region and rising disposable income levels, are also contributing to the growth of the market. Companies and manufacturers of pharmaceutical secondary packaging should consider targeting these countries for potential growth opportunities.

A Deep Dive into the Competitive Landscape of the Pharmaceutical Secondary Packaging Industry

Due to the various players present globally, the global market is competitive. In addition, key players are strengthening their market positions mostly via acquisitions, which is escalating rivalry. Important businesses engage in direct competition to win contracts from big pharmaceutical manufacturers.

Players are concentrating on providing value-added services to draw in more customers. The most popular techniques used by package makers for coloring packing containers are spray painting, UV coating, and metallization. In addition, pharmaceutical secondary packaging manufacturers frequently implement labeling and a variety of covert and overt anti-counterfeit packaging methods, including barcodes, holograms, sealing tapes, and radio frequency-identifying devices.

Key companies are working to increase market penetration by implementing growth strategies including mergers and acquisitions and new product development. For instance, CCC Packaging bought Tri State Distribution, Inc. in June 2019, a producer of retail pharmaceutical packaging solutions.

Overall, the pharmaceutical secondary packaging industry is highly competitive, with companies focusing on product innovation, research and development, and strategic partnerships to expand their market share and strengthen their position in the market.

Recent Developments in the Pharmaceutical Secondary Packaging Industry

• Berry Global Group and Raw Elements USA collaborated to introduce a sustainable tube produced from sugarcane in January 2022.
• The tubes are created from discarded sugarcane, which is transformed into HDPE and LDPE to produce a substance with the same chemical composition as polyethylene derived from fossil fuels.
• The cooperation between Gerresheimer AG and Stevanato Group to create a new ready-to-use solution platform based on the EZ-fill® pre-sterilized platform is announced for July 2022.
• Amcor PLC unveiled the ACT2100 heat seal coating in June 2021 for use with medical-grade DuPont Tyvek2 and paper packaging. This cutting-edge coating technique offers improved performance characteristics for medical applications.
• The joint venture for pharmaceutical packaging that Schott AG and Serum Institute of India announced in August 2021.

Some of the leading players in the market are

• Amcor Plc
• Berry Global, Inc.
• WestRock Company
• Becton, Dickinson, and Company
• Stora Enso Manu
• Sonoco Products Company
• DS Smith Plc
• Graphic Packaging International, LLC
• Mondi Group

Pharmaceutical Secondary Packaging Market by Category

By Application:

• Pharma/ Biological Drug
• Veterinary Medicines
• Vaccine

By Material:

• Paper and Paperboard
• Plastics

By Packaging Format:

• Boxes
• Folding Cartons
• Blisters
• Bags and Pouch
• Trays
• Inserts and Dividers
• Wrapping Films

By End-use:

• Ophthalmic
• Injectable
• Biologics
• Wound Care
• Respiratory
• Therapy
• Oral

By Region:

• North America
• Latin America
• Europe
• South Asia and the Pacific
• East Asia
• Middle East and Africa