Owing to the low costs and favourable regulatory environment , the pharmaceutical packaging market in developing countries is expected to expand significantly in the next five years. At the same time, the global pharmaceutical packaging market size is expected to reach US $62 billion by 2015,with Asia-Pacific showing the most robust growth.
According to a new study published by market researcher Freedonia , the global demand for pharmaceutical packaging is expected to rise by 5.5 per cent each year. While about 70 per cent of this growth will occur in the developed countries of western Europe, the US and Japan, China’s pharmaceutical manufacturing capabilities will grow rapidly, coupled with government programmes to upgrade the quality of locally produced medicines. Other countries predicted to evolve into fast-growing pharmaceutical markets include India and Brazil.
However it points out that in general annual growth rates for the period 2010-2015 are slightly below those registered from 2005-2010, when the global pharmaceutical packaging market grew at 5.8 per cent. Aside from North America, where the annual growth rate has remained stable over the past 10 years, all other regional markets are expected to see lower growth
in the years leading up to 2015.
Freedonia predicts that North America will remain the largest consumer of pharmaceutical packaging, especially with its drug-producing sector introducing ever more sophisticated therapies with specialised packaging needs. By contrast, western European growth will likely be driven by government standards on unit dose, high barriers and anti-counterfeit packaging, the US researcher asserts. While Japan is expected to remain a large and diverse consumer of pharmaceutical containers and closures, Freedonia expects the island-state to see below-average growth as drug makers increasingly focus on efficient packaging to offset price pressures.
While plastic bottles are predicted to remain the most common oral drug packaging, their annual growth rates probably will remain below average. Nevertheless, this type of packaging will continue to dominate over-the-counter medicines, Freedonia says. Blister packaging is expected to remain the second most common type of pharmaceutical container.
At the same time GBI Research’s report “The Future of the Pharmaceutical Packaging Industry—Emerging Economies Poised to Capitalize on Increasing Demand” sees strong growth in pharmaceutical packaging “in the emerging economies of India and China, primarily on account of increasing generics and contract manufacturing activities in those countries.”
This report forecasts that the global pharmaceutical packaging market will reach a value of $68 billion by 2015, up from $42 billion in 2008. Lower wages, a skilled and plentiful workforce, and state-of-the-art technology have helped emerging countries such as India and China become favourite destinations for packaging companies. The demand for pharmaceutical packaging in the wake of patent expirations in these countries would help them become generic drug manufacturing hubs, it points out.
Due to the rising disposable income, numerous health insurance schemes and intense competition among top pharmaceutical companies in the Asia -Pacific region which has boosted the availability of low cost drugs, pharmaceutical sales are growing at a fast rate in India, China, Malaysia, South Korea and Indonesia. These factors have given a boost to the pharma packaging industry in this region .
According to another study,China will become the region's largest pharmaceutical packaging industry growth promoter with growth rates expected to reach 11.5 per cent . The Chinese government’s investment in health care services will underpin significant growth of the nation’s pharmaceutical sector and bring a wealth of opportunities for western companies. The domestic pharmaceutical industry's implementation of GMP standards on par with the developed countries will give a leg up to the China's pharmaceutical packaging industry.
At the same time India, the third largest producer of pharmaceuticals across the world, is expected to show strong growth because of the expansion of patent pharmaceutical market and the generics market. By 2015, the Indian pharmaceutical industry is expected to reach a value of $20 billion, which will make it one of the world's top 10 pharmaceuticals markets.
Pharmaceutical packaging today occupies a significant portion of the overall drugs market in India . While in the earlier days, 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.
Pharma packaging industry has made huge strides and is poised 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 Indian pharma machinery industry is also witnessing a fast growth. The Indian pharma industry was dominated by imported machines during the sixties and seventies During the 1960s and early 70s, the pharmaceutical industry in India was heavily dependent on imported machines from Europe for its processing and packaging needs. Among the major foreign companies that supplied this machinery were Aeromatic, Fete, Glatt, Hassia, Hofliger & Karg, Kilian, Manesty, Sparkler, Stunk and Zanasi, all very well known for their technological excellence in their respective fields.
The move from being an import-dependent sector to indigenous engineering companies received an impetus due to foreign exchange shortages the country witnessed in the mid-70s.The government imposed heavy import duties and restrictive import licensing policies. which turned out to be a blessing in disguise, because this brought to the fore India's own engineering minds who soon started making pharma machinery at much more cost effective rates.
This proved to be a godsend for the Indian small-scale engineering companies. Thus hundreds of machinery manufacturers mushroomed to cater to the needs of numerous pharmaceutical companies over a period of time.
It is the initiative of these Indian engineer entrepreneurs that has today resulted in Indian pharmaceutical manufacturing costs being much lower than other developing countries. This was made possible by the huge savings on capital investment of plant and machinery, besides the cheap technical manpower costs.
Though in value terms, there are more machines being imported today than exported, in terms of quantity, it is reverse This is because imported machines are more than seven to eight times the value of the Indian machines. We still do not make machines requiring high technology and also lab equipment required for R&D labs, therefore we still need to import these machines.
The main strength of Indian pharma engineering and machinery players is the value for money. Indian machineries are extremely competitive and have a good price – performance ratio. Moreover , Indian pharma machinery manufacturers have not yet got into the culture of strictly adhering to contracts. So they give better after sales service, going beyond the annual maintenance contracts. While Indian players are very flexible for customers in terms of deliveries, contractual terms etc, foreign manufacturers do not give such support to pharma manufacturers.
Pharmaceutical machineries made by India are installed and under operations at FDA-approved manufacturing facilities in the US, Australia, Africa, etc. meeting international standards and parameters to complete satisfaction.
The credit for the high credentials goes to the strict quality standards adopted by pharmaceutical machinery manufacturers in India. This has helped many Indian companies to enter into technical tie-ups joint ventures with American. European and South-east Asian companies for the manufacture of their products in India, which are being marketed in all Asian and CIS countries
Now the machine manufacturers are upgrading themselves by investing in knowledge. Many pharmaceutical machinery manufacturers have begun to visit various countries to and learn about the latest developments in technology to improve their production line. In addition to this, there are other visible trends that further reflect the commitment to excellence of Indian machinery manufacturers.
Machine-makers are increasingly upgrading and moving towards computerisation, using CNC machines and incorporating precision instruments such as VFD, PLC, etc. in their products to get quality output.
Manufacturing units are steadily expanding to meet the rising global demand. More and more firms are opting for ISO approval and CE approval is sought for products. Manufacturers are importing proto type machines and firms are going in for collaborations and technology transfer. Firms are investing in HRD by engaging professionals to meet the challenges of the international market.