However, the recent economic downturn has led pharmaceutical manufacturers to focus on cost savings, and pricing pressures have driven some segments of the packaging market to near-commodity status. Still, as these companies try to drive costs out of their products, they recognize the need for packaging that ensures stability, encourages compliance, promotes safety, and meets regulations.

According to a report by The Freedonia Group Inc. (Cleveland), demand in the United States for pharmaceutical packaging will increase 4.3% per year to reach $5.2 billion in 2006.

Blister packaging is expected to grow the fastest, climbing 6% per year to reach $1 billion. Plastic bottles are projected to grow 4% annually to $905 million, while other primary containers are expected to see 5.4% annual growth to reach $1.6 billion. Secondary containers, which tend to have lower profit margins than primary ones, are projected for a 2.8% annual increase to reach $710 million, while accessories and closures are anticipated to see 4% growth to $905 million.

Blisters, the report states, should see strong growth because of government regulations that will present opportunities in clinical trials, iron supplements, appetite suppressants, and ephedrine- based medications. They are also expec-ted to see growth

in applications in which regimen compliance, visibility, or high-barrier protection are especially needed. Pouches and strip packs are projected for above-average growth because of the increasing popularity of unit-dose applications and the cost savings these formats offer over blisters.

One of the most significant developments in pharmaceutical packaging has been the regulatory focus on unit-dose, bar coded packaging," says Renard Jackson, executive vice president of domestic contract services for Cardinal Health''s packaging services (Philadelphia), formerly PCI Services. "Regulations, hospital group purchasing organizations, and accrediting bodies have been encouraging its use. The industry is poised to make a change to safer packaging that will assist in the reduction of medication errors as well as child safety."

Plastic bottles will continue to account for the largest demand in terms of units, according to Freedonia, because of cost advantages and improved functional properties, though competition from blisters in solid-dose oral applications may mitigate some growth potential.

The market for prefillable inhalers and syringes is also seen as promising. Freedonia projects prefillable inhalers for "the strongest growth in value among all pharmaceutical packaging products" because of increasing opportunities in the asthma and allergy segments, as well as ease of use, dosing accuracy, and design innovations. Prefillable syringes could experience the fastest gains among parenterals because of emergency response time and infection-prevention advantages, as well as labor-saving benefits.

Among secondary packages, paperboard boxes and cartons will see the largest usage because of growth in applications such as nutritional supplements, over-the-counter (OTC) drugs, and alternative medicines. And the fastest growth in shipping containers should be in convertible display cartons, because of visibility advantages.

Freedonia''s closure forecast is a mixed bag. Its report sees healthy growth for dual child-resistant and dispensing closures due to cost, regulatory compliance, and ease-of-use benefits. However, it sees a loss in growth momentum for other sorts of closures because of gains by blisters and other nonreclosable packages.

The report also sees growth opportunities for labels and package inserts as the medical community and consumers insist on more thorough medication instructions. And, among other types of accessories, tamper-evident shrink materials are expected to make the strongest showing, thanks to cost and performance advantages in meeting OTC packaging security needs.

Another Freedonia study examined the worldwide pharmaceutical packaging market, and data from that study reveal trends similar to the U.S. report. The world market is expected to grow 4% per year to reach $18.2 billion in 2005, with China generating the fastest growth opportunities. Strong performances are also expected in the other seven largest drug-producing nations: the United States, Japan, Germany, France, the UK, Italy, and Switzerland.

-- P&MP News