India Pharmaceutical Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

India Pharmaceutical Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The India Pharmaceutical Packaging Market size is estimated at USD 4.73 billion in 2024, and is expected to reach USD 7.18 billion by 2029, growing at a CAGR of 8.72% during the forecast period (2024-2029).

Pharmaceutical packaging uses materials designed to transfer and store pharmaceutical drugs safely. These materials are selected based on the drugs' characteristics, aiming to safeguard, identify, and maintain the integrity of the enclosed product. The packaging process ensures that the drugs are protected from external factors such as contamination, physical damage, and environmental conditions, which could potentially compromise their efficacy and safety. Pharmaceutical packaging is crucial in providing essential information about the drug, including dosage instructions and regulatory compliance details.

Key Highlights

• Pharmaceutical drugs face various hazards, spanning mechanical, chemical, biological, and climatic risks. They are packaged using multiple materials, including plastics, paper, glass, and metal, and tailored to different delivery methods, such as oral, pulmonary, injectable, transdermal, topical, interventional, nasal, and ocular.
• The Indian government has implemented extensive and ongoing reforms to bolster the pharmaceutical sector, unveiling policies to foster Foreign Direct Investment (FDI). As part of the Aatmanirbhar Bharat Abhiyaan initiative, the government has introduced a range of short- and long-term measures to fortify the health system. These include implementing Production-linked Incentive (PLI) schemes specifically designed to enhance domestic pharmaceutical and medical device manufacturing. Moreover, India is actively positioning itself as a destination for spiritual and wellness tourism, leveraging its strengths in Ayurveda and Yoga. These strategic moves are poised to impact the sector under scrutiny significantly.
• The pharmaceutical packaging sector is under increasing scrutiny for its impact on ecosystems and human health, given the escalating environmental concerns. The push for sustainability in the pharmaceutical sector is not just about reducing its carbon footprint but also about safeguarding ecosystems and public health for the long haul, especially in a country like India. The demand for eco-friendly and sustainable pharmaceutical packaging solutions is growing rapidly, driven by the need to address these environmental challenges effectively.
• Moreover, Supplier bargaining power directly impacts pricing and quality, thereby dictating the value chain and, ultimately, the products and services delivered to consumers. As a supplier's power grows, so do the costs of raw materials, subsequently elevating the final product's price tag.
• India's pharmaceutical industry was already a major global player known for its generic drug manufacturing. The increasing demand for pharmaceutical products both domestically and internationally drove the need for diverse and advanced packaging solutions. The development and distribution of COVID-19 vaccines required specialized packaging solutions, including vials, syringes, and cold chain packaging, to ensure safe and effective delivery. According to the Ministry of Health and Family Welfare (India), the Indian state of Utter Pradesh reported the highest number of administered doses of the vaccine against the coronavirus (COVID-19) as of November 13, 2023.

India Pharmaceutical Packaging Market Trends

Plastic Segment to Witness Major Growth

• The healthcare industry in India is witnessing a notable surge in the demand for flexible single-use plastic packaging, driven by a heightened emphasis on hygiene, safety, and convenience. While many sectors are moving away from single-use plastics due to environmental concerns, the healthcare sector is an exception, primarily due to safety and hygiene. This signifies the sector's reliance on single-use plastic packaging and drives the demand for plastic packaging. Plastic is a highly versatile material, including HDPE, PET, PP, and others, and is used in the pharmaceutical industry due to its flexibility, mechanical strength, and stability characteristics.
• The Indian government has implemented extensive and ongoing reforms to bolster the pharmaceutical sector; according to the India Brand Equity Foundation (IBEF), the Indian government spent 2.6% of the country's GDP on healthcare in the financial year 2023. Government healthcare spending is anticipated to be 2.5% of the GDP in the financial year 2025.
• By product type, the bottle segment would contribute significantly to the market's growth in line with the growth of HDPE and PET bottle productions in the country and the emergence of HDPE (High-Density Polyethylene) bottles as the industry standard in the pharmaceutical sector due to their strength, resilience, and chemical resistance, which makes them perfect for safeguarding and storing a variety of medical supplies, supporting the growth of plastic bottle usage in the market.
• The material's intrinsic properties can be further improved through additives, improving performance and properties to act against oxygen, moisture, and UV radiation to the finished product, making plastic packaging a highly preferable type of packaging in the Indian Pharmaceutical industry landscape.

Bottles to be the Fastest Growing Product Segment

• The demand for bottles for liquid pharmaceutical product packaging fuels the demand for glass, plastic, and other material-based bottle packaging. These bottles can be used for more than liquid medicines, solid pills, and gel tablets. They come in various sizes tailored to the specific dosage or product. Available in both glass and plastic, they maintain quality even after opening, provided they are stored as directed.
• The push for accessible, high-quality healthcare, especially for chronic diseases, at affordable rates is fueling the need for sustainable bottle pharmaceutical packaging solutions in India. According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), individuals aged 15 to 64 constituted 68.9% of India's population in 2023. This demographic is projected to account for a share of 67.0% by 2050.
• The production and availability of HDPE-based bottles can support the growth of the bottles segment in the market because bottles ensure that medications remain safe and effective throughout their shelf life, shielding them from contamination and degradation. The demand for safe pharmaceutical packaging continues to grow in India. HDPE bottles are increasingly recognized for their ability to meet the rigorous standards required for storing and protecting medicinal products.
• PET plastic bottles have become the favored choice for pharmaceutical packaging owing to their applications and advantages in offering product protection, visibility, and customization. PET bottles can be environmentally sustainable due to their recyclability, reduced carbon footprint, and resource conservation, supporting their packaging usage in the Indian pharmaceutical industry landscape during the forecast period.

India Pharmaceutical Packaging Industry Overview

The Indian pharmaceutical packaging market is fragmented and is dominated by significant players like Medipack Innovations Private Limited, Packtime Innovations Private Limited, North East Pharma Pack, N S Industries, and A S Packers. These companies leverage strategic collaborative initiatives to increase their market share and profitability. However, with technological advancements and product innovations, mid-size to smaller companies are growing their market presence by securing new contracts and tapping new markets.

• May 2024 - Huhtamaki India's Khopoli Plant achieved the prestigious ISCC (International Sustainability and Carbon Certification). This marks a significant milestone, being the first time any of Huhtamaki India's sites have received the ISCC Plus certification. Notably, it also positions the facility as the fourth in India's flexible packaging manufacturing landscape to secure this recognition.
• February 2024 - SGD Pharma unveiled a new line of type I injectable vials crafted from tubular glass. These vials feature Corning's innovative coating, Velocity Vial, which minimizes frictional resistance, enhancing glass quality and streamlining the fill-and-finish process by up to 50%. This advancement not only cuts the risk of mishaps like tip-overs and breakages but also trims the overall cost of ownership.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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