The packaging equipment market for pharmaceuticals has witnessed a stable growth rate for the past few years. The market is expected to grow at a CAGR of 6.4 per cent from 2013 to 2018 to reach $6,181 million by 2018.
The overall growth in the global market is largely driven by advancements in the pharmaceutical industry, patent expirations of a number of blockbuster drugs in the coming years, novel packaging technologies that reduce the down time for packaging of pharmaceutical products in order to increase production, innovations in drug delivery systems and personalized drugs, growth in offshoring of pharmaceutical manufacturing, and the increase in demand for packaging equipment market for pharmaceutical from contract packagers.
The market has evolved from traditional packaging systems to modern automated, integrated, and flexible packaging lines to meet patient compliance requirements and anti-counterfeit measures in the market. Safety and quality of packaging have also gained greater importance in pharmaceutical packaging over the years.
The global packaging equipment market for pharmaceutical is highly fragmented and commoditized to an extent. In 2012, the top five players in the market accounted for 44.2 per cent of the market share. With intense market competition, a majority of the top players struggle to maintain their leadership positions. To maintain their market shares, several players in this market aim to either diversify their product portfolios or expand their geographic presence.
Currently, the global market is in a transition phase, wherein blister packets and aseptic pharmaceutical products like prefilled syringes are increasing in demand among pharmaceutical end users. The shift in demand is seen in all product segments from bottle filling and sealing equipment for solid dosages to blister packaging equipment. This is due to the increase in demand for individual doses.
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 are Robert Bosch GmbH (Germany), Marchesini Group S.p.A. (Italy), and Uhlmann Group (Germany).
Earlier a study from The Freedonia Group, Inc, a Cleveland-based industry market research firm had pointed out that the growth in worldwide demand for packaging machinery is expected to climb at a 4.6 percent annual pace through 2017 to $41.8 billion. An improved business climate-which will be reflected in expanding fixed investment spending, manufacturing output, and packaging demand-will drive increases in equipment sales through 2017.
Machines used in the packaging of chemicals, pharmaceuticals, and personal care products will post the fastest sales gains in percentage terms. Purchases of packaged pharmaceuticals and consumer goods -- and associated equipment demand-will be boosted by rising living standards in developing nations. Food manufacturing will remain the largest market for packaging equipment, accounting for about 40 percent of total sales.
Labelling and coding equipment will be the fastest growing major product type in value terms due to the increasing need for pharmaceutical, food, and beverage manufacturers to ensure the safety of their products throughout the supply chain. However, filling and form/fill/seal machines will remain the most widely used type of packaging equipment through 2017, with demand bolstered by their extensive use in the large food processing market.
Developing markets will provide the best growth opportunities for suppliers of packaging equipment through 2017. Demand in the Asia/Pacific region will expand 5.7 per cent annually, led by the sizeable national markets of India and China. China and India together will account for 21 per cent of global packaging machinery demand in that year.
Central and South America will also record a strong sales performance through 2017, though from a much smaller existing market base. Rising personal incomes in these regions will provide the greatest impetus to equipment sales, supported by healthy gains in packaging demand, manufacturing output, and fixed investment spending.
The US is currently the largest national market for packaging equipment. Although it will be surpassed in size by the much more rapidly expanding Chinese market by 2017, the US will continue to account for about one-sixth of the world demand total.
The world pharmaceutical packaging demand is expected to increase 6.4 per cent annually to $90 billion in 2017. Based on the operation of extensive and diverse drug-producing industries, Western Europe, the US and Japan will account for nearly 60 per cent of this, according to a report.
Among individual countries, the US will remain the largest market for pharmaceutical packaging products as its advanced drug-producing sector introduces new sophisticated therapies with specialized packaging needs. Growth in West European demand will reflect upgraded government standards requiring unit dose, high barrier, and security packaging for many types of medication. Based on its broad range of proprietary and generic drug producers, Japan will continue to comprise a large, diverse market for pharmaceutical containers, closures and related accessories. However, the country will provide below average growth opportunities as drug makers pursue greater packaging efficiencies to offset downward pressures on medication prices.
In the meanwhile global demand for primary pharmaceutical containers is likely to increase 6.6 per cent annually to over $57 billion in 2017. The fastest growth is anticipated for prefillable syringes, which will gain applications as advances in biotechnology lead to the introduction of new parenteral therapies. The same trend will also create above average growth in world demand for parenteral vials and ampuls. In spite of increasing competition from alternative containers, plastic bottles will remain the most widely used package globally for oral drugs distributed in bulk and prescription dose volumes to retail and mail order pharmacies.
Plastic bottles will also continue to dominate applications as containers for OTC medicines sold in tablet and capsule quantities of 50 or more. Blister packaging will comprise the second-largest selling group of primary pharmaceutical containers and will generate above average growth in demand based on adaptability to unit dose and clinical trial formats with expanded label content, high visibility, and built-in track and trace features.
Prefillable inhalers will realize above average growth in global demand as the number of chronic asthma, allergy, and migraine patients treated with inhalation drugs rises. By contrast, worldwide consumption of pharmaceutical pouches and medication tubes will expand at a subpar pace as the vast majority of applications remain limited to topical medication packaging. Uses in the packaging of premixed drugs and parenteral nutritional preparations will keep global demand for IV containers increasing at a near average pace through 2017.
Conversely, world consumption of glass pharmaceutical bottles will decrease gradually over the long term as plastic bottles and blister packs continue to capture market share. Strip packs and paper board boxes will be the largest segments among other primary pharmaceutical containers based on adaptability to economical unit dose formats.