North America Pharmaceutical Packaging Market - Growth, Trends, Forecasts (2022 - 2027)

North America Pharmaceutical Packaging Market - Growth, Trends, Forecasts (2022 - 2027)

The North America pharmaceutical packaging market is expected to reach a CAGR of 8.3% during the forecast period 2020 - 2025. The growing significance of modern packaging in the pharmaceutical industry has led to brands exploiting the potential of distinctive flexible packaging design to stand out from the rest of their competition and to increase profitability.​

Key Highlights

• Apart from the basic requirement of protecting the drug, the pack also needs to be appealing and distinct enough to promote itself. Thus, the aesthetic appeal of medical packaging further aids in this factor.​
• Blister packs witnessed an increased adoption as they enable improved patient compliance and are easily customized to product design due to the availability of a broad range of materials and multiple configuration options.​
• Moreover, the growing demand for packaging that is tamper-evident has driven the demand for blister packaging, which also comprises features, such as enhanced barrier protection and reduced weight of the packaging.​
• Flexible pharmaceutical packaging products, such as pouches are used to pack medical devices and supplies, diagnostic reagents, and pharmaceutical drugs. ​Government regulations have created new challenges for the pharmaceutical and medical device sectors within the last decade. This has driven packaging manufacturers to change their production processes, to meet the demand for high production speed and ensure flexibility and safety in packaging products, while complying with FDA regulations. ​
• The recent COVID-19 outbreak has provided further impetus to the growth of the fast-growing vaccine industry. For instance, Sanofi is collaborating with the US government to develop a vaccine for the virus. Similarly, GlaxoSmithKline has partnered with the Coalition for Epidemic Preparedness Innovations (CEPI) for a vaccine program. Further various companies are extending their help to support the pharmaceutical manufacturers during a pandemic. For instance, in July 2020, Gerresheimer Group's plants in Europe, America, and Asia, where they are manufactured high-quality standards vials in the pharmaceutical industry has received initial orders for vials for drugs and vaccines against COVID-19.

Key Market TrendsBlister Packaging is Expected to Hold a Significant Share

• Blister packaging is mostly used to provide barrier protection from moisture, gas, light, and temperature and longer shelf life. Blister packaging helps retain product integrity as drugs that are pre-packed in blisters are shielded from adverse conditions. Blister packs are mainly used for packaging pharmaceutical products, such as OTC drugs and medicines (capsules), and small medical devices.
• The growing demand for the pharmaceutical industry is one of the primary drivers of the blister packaging demand in the North American region. The implementation of FDA regulations that require that all prescribed pharmaceuticals that are dispensed in hospitals and nursing homes are to be packaged in unit-dose formats, including barcodes to reduce the dispensing errors, has also increased the sales of blister packs over the past few years.
• In the United States, blister packaging is used for products that are not behind the prescription counter, such as allergy medication or chewing gum. The US retailers and consumers are catching up with the rest of the world when it comes to packaging prescribed medications. The demand for blister packaging is increasing in the country.
• The US pharmaceutical market is among the world’s most important national markets. The United States alone holds over 45% of the global pharmaceutical market. It is expected that almost USD 60 billion is spent annually on pharmaceutical R&D purposes in the country.
• Pharmaceutical companies are stringent about their policies regarding drug safety and effectiveness of drug packaging, and this, in turn, is leading to an increase in pharmaceutical packaging such as blister packs, thereby, driving the market’s growth positively.

United States is Expected to Account for Major Market Share

• The United States dominates the pharmaceutical market, both in consumption and development. According to STAT, prescription drug spending in the nation is considered to add up to USD 600 billion by 2023, up from an estimated USD 500 billion in 2019, which is further expected to drive the market for pharmaceutical packaging in the country.
• The United States dominates the North American market for pharmaceutical packaging, due to the significant presence of global players, like Amcor PLC, Becton, Dickinson, and Company, McKesson Corporation, etc. These companies cater to some of the largest pharmaceutical companies, like Abbott, Pfizer, Roche, and Novartis. These pharma companies provide both domestic and international customers from their North American facilities.
• Moreover, the increasing population under the age group of 0-9 years is estimated to drive the demand for pharmaceutical syrups, which would, in turn, reflect the growth of glass bottles consumption. According to the United States Census Bureau, in the United States, the population under 0-9 years age group was 40.01 million in 2019.
• Furthermore, in United States, the growing aging population, as a result of increased life expectancy rates across regions, is creating the scope for medical device manufacturers and the pharmaceutical sector as a whole, in turn driving the demand for packaging of these products.
• Since the United States is one of the largest consumers of pharmaceutical products and depends on imports for API and finished products, the prolonged periods of lockdown due to the spread of COVID-19 may also negatively affect the US market.
• With the growing demand for glass vials, ampoules and containers in the country, the overseas companies are seeking to seize the expansion opportunity in the country. For example, in August 2019, Arglass Yamamura LLC from Japan announced to invest over USD 123 million to build a manufacturing plant in south Georgia. With this expansion, the company has planned to use its latest glass-forming technology.
• Additionally, as the United States is facing costly pharmaceutical imports from other countries than Canada, the US government authorized a pilot project for wholesalers and pharmacists to import versions of FDA-approved medicines from Canada. On the continuation of this plan, the demand for glass packaging for pharmaceuticals in Canada is expected to rise significantly in the coming years.

Competitive Landscape

The market for North America Pharmaceutical is highly competitive. The market players are benefiting from innovation, primarily due to the presence of semi-differentiated offerings among the players in the region. The compliance strictness has enabled most of the players to offer similar packaging; the difference remained strictly on customization and capacity grounds.

• March 2020 -Pillo Health had announced the automation of multi-dose prescription fulfillment enabled through the company’s patent-pending pharmacy consumable called Pharmacy Auto Load, or PAL. The company proactively facilitates in-home health engagement by managing up to 28 prescription doses, triggering friendly, personalized care plan reminders, dispensing medication properly at the prescribed times, and providing users with fast access to caregivers with a simple voice command and built-in camera.
• Oct 2019 - AptarGroup’s Activ-Blister packaging solution for the oral solid dose drug delivery was approved by the United States Food and Drug Administration (FDA) for HIV prevention medicine. These increasing use cases of blister packs are set to increase further.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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