Pharmabiz
 

Pharma packaging witnesses major changes

Shyam Sunder B KThursday, December 16, 2010, 08:00 Hrs  [IST]

Packaging is one area which not only helps in creation of wealth, preserving product quality, but also lengthens the shelf life of products. In the recent times, one area of packaging that has witnessed drastic changes is pharmaceutical packaging. Sophisticated drug products, development of new drug diagnostics, stringent government requirements, large growing middle class, liberalization, growth of organized retail and increase in number of prominent players with new emerging markets have increased the demand for pharmaceutical packaging materials worldwide. Packaging design today provides stability and shelf life to the drug and the delivery system, which becomes fundamental to the safety, convenience and compliance of drug use.

Growing market
In India,pharmaceutical packaging today occupies a significant portion of the overall drugs market. Earlier, the requirements of pharmaceutical packaging focused exclusively on preserving the quality of enclosed medication. Now, they are extended to cover such criteria as prevention of product tampering and counterfeiting, assurance of product dispensing accuracy and promotion of patient compliance with product dosage schedules. Therefore we have a variety of packaging available in the pharmaceutical arena which includes glass, pet bottles, strip and blister packs, injectables, ampoules, bulk packs etc.

Due to the unique requirements of pharma products, pharmaceutical companies have to keep in mind the quality of drug at the time of delivery. They have also to look at ways to increase shelf life while designing the packaging for products.

Today the highest demand for packaging and associated equipment comes from food processing industry which is at 50 %, while 25 % comes from the pharmaceutical industry. Beside the US, Western Europe and Japan other countries who are progressing strongly in pharmaceutical packaging are India, China and Brazil. (Source: www.indiapackagingshow.com)

The global pharmaceutical packaging industry studies show that by 2011 pharmaceutical packaging industry is expected to grow by 5.9% per annum and is predicted to reach $34 billion mark within 2011. (Source: www.economywatch.com). While as per the Mckinsey Report, Indian pharma packaging is expected to reach US$ 50 billion by 2015.

Trends & innovations
As drug producing sectors upgrade and diversify, packaging market is also witnessing a rapid growth. Pharma companies now-a-days are responsible and understand the market trends and needs. Also with companies adopting the FMCG model, packaging is no more being neglected in the pharmaceutical sector. The global pharma packaging is witnessing mainly the following trends:
? Sophisticated packaging requirements for new products and bio-tech products: Recently Catalent Pharma announced that henceforth it will offer media-enhanced packaging to its drug maker clients. The packaging contains coding by which consumers can connect via smart phone to product content in addition to what they can already see on a drug's label, printed packaging and inserts. The manufacturing and packaging contractor sees the technology as a way to give clients' products a leg up on crowded retail shelves. This kind of innovative and sophisticated packaging by Catalent aims to better inform and engage consumers.
? Cost-reduction in packaging across the globe: As many products are coming off patents, this in turn translates into is a big emergence in generic and licensed products. One apt example of cost reduction which reflects the innovative capability of the Indian pharma industry is of Jumbo Bangs LTD. This Chennai - based company, after intensive research and development developed bags with corrugated linings. These bags developed for the first time in the country can hold weight from 500 kgs to 2000 kgs. The company embarked on developing this latest packaging keeping in mind some of the manufacturing companies, which had bulk packing requirements. The company had targeted the bulk drug manufacturing companies as their requirements were almost on similar lines as that of the other manufacturing companies. Since the latter were still using drums the company felt that the superior quality bags would ease pressure on the bulk drug companies. In doing so they managed to do away with the large number of drums and replaced them with the polypropylene bags. The new packaging bag had the same stackability however it had an added advantage. It could be folded when not in use which was not possible while using drums. On the pricing front, a drum costs Rs. 120 to Rs. 150. If a company were to go in for 30 drums, taking the price at the minimum, the total cost would be Rs. 3600. The bag manufactured by Jumbo Bags would cost only Rs. 2500.
? Demand for Over The Counter Drugs: Another area which is gaining enough popularity and witnessing a stupendous increase in demand is for OTC drugs. OTC or over-the-counter medicines are those which do not require a doctor’s prescription. Products like food supplements, pain killers, cough syrups, food supplements, oral contraceptives etc are literally flying off the chemist’s shelves. The main reason for this kind of popularity is because of the change in consumer’s attitude, increase in awareness levels and easy accessibility of medicines. Revital – the health supplement drugs from Ranbaxy and Sensodyne (a range of oral care products for sensitive teeth) from GlaxoSmithKline’s are some of the drugs which were turned from prescription drugs to OTC products.
? Increasing importance of packaging amongst ayurvedic brands: Another interesting area which has witnessed a sea change is the ayurvedic drugs/ brands. Ayurvedic companies are now giving more importance to brand identity, packaging etc. For example Himalaya, a company that is known for its wellness products such as Liv-52 and Bonnisan was fighting for shelf space with leading FMCG brands. Since its target audience is mostly the modern consumers who are willing to pay for the products, the brand went for a complete design and packaging makeover in order to appeal the consumers alike. A common look was given to all the products. Attention was also paid on the designs of the bottles.
? Emphasis on enhancing consumer consumption: A major trend that is being witnessed in the pharmaceutical industry is that companies are now looking at innovative ways to enhance consumer experience.

What the future holds?
According to the GBI’s research report, the global pharmaceutical industry is currently witnessing rapid expansion with advances in manufacturing processes, technology innovation and integration, which is the main driving force behind the growth of pharmaceutical packaging industry globally. The growth is likely to be high in emerging economies of India and China, primarily on account of increasing generics and contract manufacturing activities in these countries.

The fastest growth in pharmaceutical packaging market is expected from prefillable syringes and parenteral vials, which will continue to expand as advances in biotechnology result in the introduction of new therapies that must be injected. The increasing demand for biologics will boost the demand for innovative product packaging solutions in the global pharmaceutical packaging market. Also, with more than $120 billion worth of drugs going off-patent in the next five years, generic drug manufacturers will emerge as a major segment driving demand for pharmaceutical packaging.

Nanotechnology, the science of very small materials, is poised to have a big impact in pharmaceutical packaging and will enable it to bring innovative and new generation packaging solutions to market. The increasing demand for drug delivery devices and blister packaging will also give a boost to the pharmaceutical packaging Industry. The global market for nano-enabled packaging for blisters was $941 million in 2008 and is expected to grow to $2.10 billion by 2014.

To conclude, India Pharma Packaging industry has come a long way and is due for more growth. With globalization many MNC’s in the field are setting up their manufacturing bases in India. It will further revolutionise the pharma packaging market in India. Increasing availability of better quality technology and new packaging machines in the country are some of the reasons for this rapid growth. Also the tremendous rise in health awareness amongst people will continue to create more demand for hygienic, tamper resistant and use and throw packaging in the future.

The author is Corporate Manager – Tata Elxsi

 
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