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

Industry Insights

The global pharmaceutical packaging market size was estimated at USD 90.97 billion in 2018, and is projected to expand at a CAGR of 8.3% over the forecast period. Emerging economies such as China, India, and Brazil are providing an excellent opportunity for growth to the pharmaceutical industry. These economies exhibit a huge market potential for pharmaceutical packaging. Rising efforts to increase life expectancy coupled with rising disposable income is also expected to provide attractive growth opportunities as companies are struggling with the stagnation of mature markets, expiration of patents, and a rise in regulatory hurdles.

A flux has been noticed in the route towards establishment in the aforementioned economies particularly with regard to their healthcare infrastructure. Thus, the one-size-fits-all approach cannot be adopted for emerging markets. Even among the three main clusters of markets - the BRICMT economies, namely Brazil, Russia, India, China, Mexico, and Turkey and the second-tier countries in Southeast Asia; and Africa- there are local idiosyncrasies that make bespoke approaches to these markets essential.

In 2018, U.S. accounted for a market share of 87.8% in North America. The country is also the largest pharmaceutical market worldwide. Presence of the large health care system in the country, high per capita income, and large investments in drug development are anticipated to bode well for the growth of the pharmaceutical packaging market in the country.

The uncertainty with respect to the U.S. government, which led to a relatively marked reticence among the large pharma customers to place orders in the recent past has led to the slowdown in the pharma sector in the country. However, growing importance of generic drugs and access to better healthcare services in the economy are anticipated to provide opportunities for market growth.

The presence of a large number of manufacturers of plastic bottles in the country such as AptarGroup Inc.; Gerresheimer AG; Amcor Ltd.; and Berry Plastics Group, Inc. is likely to have a positive impact on the demand for plastic bottles in the industry over the forecast period. The demand for plastics and polymers is likely to progress at a CAGR of 9.1% over the forecast period.

Material Insights

In terms of material, the market is segmented into five categories, namely, plastics and polymers, paper and paperboard, glass, aluminum foil, and others. Growing pharmaceutical industry at the global level is likely to generate high demand for suitable packaging materials over the forecast period. Different variants of plastics and polymers high-density polyethylene, polyester, low-density polyethylene, and polyvinyl chloride are being extensively used for the production of packaging solutions.

Polypropylene (PP), a variant of plastics and polymers is being increasingly employed in the packaging industry. PP is considered an economical material as it offers a combination of mechanical, physical, electrical, and thermal characteristics that are not found in any other kind of thermoplastic. When compared to high or low-density polyethylene, PP exhibits a higher working temperature and tensile strength. It also offers a reasonable chemical resistance in corrosive environments. In addition, it provides resistance against degreasing agents, organic solvents, and electrolytic attack. The material is light in weight, has a low moisture absorption rate, and is resistant to staining.

Product Insights

In terms of product, the industry is divided into three sub-sections, namely primary, secondary, and tertiary packaging. Primary segment accounted for the largest market share of 74.9% in 2018 and is expected to retain its pole position over the forecast period.

Plastic bottles, a type/part of primary segment is estimated to witness high consumption over the forecast period owing to increasing use of the product in bulk and prescription dose packaging (of oral ethical drugs) and large-scale packaging of solid-dose oral over-the-counter medicines. Blister packaging is one of the most popular primary solutions owing to its adaptability to unit dose and clinical trial dosage formats with expanded label content, high visibility, and built-in track-and-trace features.

The secondary segment involves all those processes that include covering or packaging the primary packages for the purpose of grouping. The secondary segment is expected to expand in the forthcoming years on the backdrop of growing demand for materials that provide benefits such as prevention from leakage, diffusion, and permeation of the product.

End Use Insights

In terms of end use, the market is divided into five categories, namely pharmaceutical manufacturing, retail pharmacy, contract packaging, institutional pharmacy, and others. Pharmaceutical manufacturing segment held the leading market share of 36.1% in 2018. The segment is expected to retain its prominent position throughout the forecast period.

Rising population coupled with the increasing demand for better healthcare facilities is expected to have a positive impact on the growth of the pharma industry over the forecast period. In addition, the increasing government support toward the development of this industry in developing economies is likely to augment the demand for packaging in the forthcoming years.

Manufacturers prefer outsourcing packaging activities to third-party vendors, which is likely to drive the demand for contract packaging. Market players in the pharma industry have increased the outsourcing of packaging activities to save their expenses and time. Instead of investing in packaging of their products, pharmaceutical manufacturers are outsourcing jobs to specialized and capable contractors. These factors are likely to drive the demand for contract segment over the forecast period.

Rapid economic development in Brazil, Russia, India, China, Mexico, and Turkey has resulted in increased prosperity and improved public health owing to which the demand for pharmaceuticals is on the rise. The trend of contract manufacturing has reduced the price of pharmaceuticals, which, in turn, is, boosting their demand. Such factors are likely to positively affect the market growth over the forecast period.

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.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global pharmaceutical packaging market report based on material, product, end use, and region:

• Material Outlook (Revenue, USD Million, 2014 - 2025)

  • Plastics & Polymers

    • Polypropylene (PP)

    • Polyethylene (PE)

    • Polyethylene terephthalate (PET)

    • Polyvinyl chloride (PVC)

    • Polystyrene (PS)

    • Others

  • Paper & Paperboard

  • Glass

  • Aluminum Foil

  • Others

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Primary Pharmaceutical Packaging

    • Plastic Bottles

    • Caps & Closures

    • Parenteral Containers

    • Blister Packs

    • Prefillable Inhalers

    • Pouches

    • Medication Tubes

    • Others

  • Secondary Pharmaceutical Packaging

    • Prescription Containers

    • Pharmaceutical Packaging Accessories

  • Tertiary Pharmaceutical Packaging

• End Use Outlook (Revenue, USD Million, 2014 - 2025)

  • Pharmaceutical Manufacturing

  • Retail Pharmacy

  • Contract Packaging

  • Institutional Pharmacy

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  •  Europe

    • Germany

    • Italy

    • U.K.

    • Spain

    • France

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Egypt