Pharmaceutical packaging refers to the packages and the packaging processes for pharmaceutical preparations. It involves all of the operations from production through distribution channels to the end consumer.
The pharmaceutical packaging machinery market is segmented by type, by product and by geography. Based on type, market is segregated into blister packaging machinery, strip packaging machinery, filling and capping machinery, cartoning machinery, wrapping machinery, pre-fillable inhalers, tray packaging machinery and others. Based on product type, the market is categorised into solids packaging equipment, semi-solids Packaging equipment, liquids packaging equipment and other packaging types.
Packaging machinery is used in packaging medical products and helps in maintaining the stability of drugs and maintains their shelf life. IMA S.p.A. and Robert Bosch GmbH are the major manufacturers of pharmaceutical packaging equipment. Blister packaging machines, counting machines, tube filling & sealing machines, carton machines, case packaging machines, and labelling machines are the major machinery used in the pharmaceutical packaging market. Thus, the packaging machinery in the pharmaceutical industry is likely to exhibit a notable growth in coming years. In addition, the growing demand for attractive and innovative packaging in the food and cosmetics industry is expected to bolster the demand for packaging machinery.
According to market research agency Markets&Markets, the global pharmaceutical packaging equipment market is estimated to grow at a CAGR of 6.8 per cent from 2017 to 2022 to reach US$ 8.24 Billion approximately by 2022. The growth of the market can be attributed to factors such as cost containment in pharma R&D, growth in funding for generics and biopharmaceutical research, and technological advancements in labelling and serializations solutions. The development of production lines for small batch size and research purposes, growing focus of pharmaceutical manufacturers to cut operational costs, and rising emphasis on labelling and serialization for anti-counterfeiting of drugs are the key trends in the market. However, growing preference for refurbished packaging equipment as a viable alternative to new packaging equipment with high costs is expected to restrain the market growth to a certain extent.
Asia-Pacific accounted for the highest share in the global packaging machinery industry in 2016, and is expected to maintain its dominance, owing to existence of wide array of food & beverage and personal care product manufacturers in the region. The region is anticipated to grow at the highest rate in the near future, owing to high economic growth rate and high demand in emerging markets of China and India. North America and Europe are among the more mature markets for packaging machinery as these are developed regions with the presence of a large number of players operating in the market.
In this fragmented market, the top players struggle to maintain their leadership position. To maintain their market share, many players in this market aim to either diversify their product portfolios or expand their geographic presence. While inorganic expansions have been followed by some companies, a majority of the top players have adopted organic growth approach in the form of number of new product launches. IMA has a diversified product portfolio, which includes a wide range of blister packaging machines, counting machines, tube filling and sealing machines, cartoning machines, case packaging machines, labelling machines, and many other pharmaceutical packaging machines. IMA’s leading position in the market can be attributed to its strong manufacturing and distribution footprint across the world, which enables it to serve customers in more than 70 countries. Recently, the company expanded its business in China through the partial acquisition of Shanghai Tianyan Pharmaceutical Machinery Co. Ltd. Currently, the company is focusing on acquiring key players in the packaging machinery industry, so as to gain new customers and thereby expand its global reach.
The stronghold of Bosch in the packaging equipment market can largely be attributed to its innovative product portfolio in the pharmaceutical packaging equipment segment, including blister packaging machines, sterile filling and sealing machines, case packaging machines, pre-fillable syringe packaging machines and labelling machines, among others. The company has a strong business presence in almost 150 countries all over the globe. The company is continuously growing in the pharmaceutical packaging equipment market, with its new product launches and expansions in the developing economies. During 2010 to 2013, the company has launched 10 new products in order to strengthen its product offerings. At the same time, the company also acquired Eisai Machinery Co. Ltd. to expand its product portfolio and strengthen its global presence. The company’s continuous investment in capacity expansion has made it stronger in terms of production capacity.
The demand for packaging machinery is largely driven by the increasing demand for consumer goods, increasing adoption of automated packaging machines, and development of energy efficient machines. Modern automated packaging machines are used in different stages of packaging and ensure that the stages are completed in minutes rather than hours compared to the older versions. The other key factor driving the global packaging machinery market is the increasing demand for packaging robots from several end-user industries. Packaging machines play a vital role in ensuring the product safety throughout the supply chain.
The key strategies followed by most companies in the global pharmaceutical packaging equipment market are new product launches, expansions, mergers and acquisitions, and partnerships and agreements. Broad research in this market has brought to light that the new product launches strategy is the key strategy followed by top five players, which accounted for 39 per cent of the total strategies during 2010 to 2013. During 2010 to 2013, the growing need for novel drug delivery techniques formed the basis of innovations in the market, when a majority of the leading players launched various automatic and integrated packaging lines, such as blister packaging lines and cartoners, among others. The key players involved in these strategies were Robert Bosch GmbH (Germany), Marchesini Group S.p.A. (Italy), and Uhlmann Group (Germany).
The fastest growing end user industry for the packaging machinery market is the cosmetics industry segment, which is expected to grow at a CAGR of 7.9 per cent and is forecast to reach $3,274 million by 2023. Wrapping machines are the second fastest growing segment in the global packaging machinery industry. The majority of the growth in the market is expected to be witnessed from the emerging regions of Asia-Pacific and Africa. Factors such as increase in demand for fresh food & beverages, home & personal care goods, and pharmaceutical industries; and growth of the retail industry have driven the global wrapping packaging machineries market. However, labelling machines are likely to show a notable growth during the forecast period, owing to a rise in demand for customized packaging and government regulations for providing packaging labels on the products.
The end user industries are increasingly shifting towards sophisticated, integrated, and standardized equipment to comply with environmental standards and reduce packaging waste. The global food & beverage industry is expected to grow at a notable rate over the forecast period. Majority of this demand is expected from emerging countries due to the rise in consumer income, demand for ready-to-eat packaged food, and improvement in living standards. This has increased the demand for packaged food worldwide, which in turn offers lucrative market opportunities for the packaging machinery market. Rapid growth of pharmaceutical industry, growing demand for drug delivery devices & blister packaging and nanotechnology contribute for the market growth. Challenges in emerging markets, increasing overall packaging costs, strict global health rules and environmental & political norms are some of the key factors hampering the market growth. Global demand for primary pharmaceutical containers pose plenty of opportunities for the vendors involved in this market.
(The author is pharmaceutical & healthcare marketer)