Pharmaceutical Plastic Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Pharmaceutical Plastic Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The pharmaceutical plastic packaging market was valued at USD 45.07 billion in the previous year and is expected to record a CAGR of 6.17%, reaching USD 65.63 billion by the next five years. The industry’s demand for pharmaceutical plastic packaging has risen significantly due to some features that have led to increased acceptance of plastic in the industry, including moisture resistance, high impact strength and sturdiness compared to glass, tamper-proof, resistance to elongation, low water absorption, transparency, and extended shelf life.

Key Highlights

• The pharmaceutical plastic packaging industry is growing worldwide, creating a need for packaging to treat communicable and non-communicable diseases. Therefore, there is an increasing need for packaging in pharmaceutical manufacturing to protect pharmaceuticals from damage, biological contamination, and external influences.
• Increased demand for pharmaceuticals is associated with technological advancements in the industry and translates directly into demand for bottles, vials, and other packaging solutions. Additionally, rising demand for injectables is driving the growth of plastic packaging in the industry. Strong demand for oncology drugs and other high-potency drugs (such as antibody conjugates and fast-acting steroids) and increasing per capita drug spending are likely to be the key growth drivers.
• Rigid plastic packaging is a type of plastic packaging that is strong and durable compared to flexible packaging. It is typically used for products that require extra protection and need to maintain their shape during the shipping process. Examples include pharmaceutical packaging for drops, inhalers, bottles, prefilled polymer syringes, and ampoules. Plastic packaging is increasing in demand owing to its superior shelf life, lightweight, cost efficiency, and ability to preserve freshness and reduce waste. In addition, it can be easily adapted to different shapes and sizes and tailored to specific brand needs.
• Due to their negative environmental impact, governments and regulatory bodies introduce bans or restrictions on several specific types of plastics used for pharmaceutical packagings, such as single-use plastics or certain non-recycled plastics. Such restrictions limit the alternatives available for pharmaceutical packaging, potentially reducing the demand for plastic packaging products. Handling and recycling medical wastes require additional steps and add to the cost of recycling. The segregation of different polymer-based products is also a challenge due to stringent regulations in handling them.
• The industry had a significant increase in demand during the COVID-19 pandemic. The impact of COVID-19 on the pharmaceutical plastic packaging industry has been mixed, but the surge in demand for medicine and vaccine distribution has driven packaging. However, supply chain disruptions and growing health and safety concerns created unprecedented obstacles for pharmaceutical packaging companies.

Pharmaceutical Plastic Packaging Market Trends

Development of Better and More Advanced Healthcare Infrastructure to Witness Significant Growth

• Infrastructure is a key pillar that supports the fundamental goal of improving standards of care and promoting well-being for all patients while providing a superior healthcare system experience. The healthcare sector has the potential to deliver personalized and integrated experiences to consumers and improve the productivity of healthcare workers. It integrates the customers, suppliers, platforms, and service providers through a standard business model and virtual data backbone for an enhanced and efficient consumer and stakeholder experience to address critical vulnerabilities and inefficiencies.
• Robotic pharmacy and surgery, artificial intelligence (AI), radiosurgery, 3D modeling and technology (such as dental procedures), or stem cell technology, Dubai's latest technology-driven medical innovations, are rapidly paving the way for the future and improving the lives of millions while attracting global investors through cost-effective disease detection and treatment.
• According to Aster DM Healthcare, Dubai is an established medical destination in the region and is at the forefront of the global medical tourism map. It positions itself as a knowledge-based economy that will use AI, data analytics, and IoT in the future. Electronic prescriptions and medical record management, such as ​​E-ICUs, 3D printing, and robotic patient interfaces, are already prevalent.
• Technological advancements such as artificial intelligence (AI), wearables and other mobile technologies, and the Internet of Things offer multiple investment opportunities. Key areas where new opportunities are likely to emerge for medical technology companies include developing tools to facilitate emergency care and improving healthcare infrastructure through technology-enabled optimization. This includes expanding the range of wearable health-tracking devices, developing patient-centric mobile health applications, and enhancing the integration of AI, robotics, and blockchain technology.

Asia-Pacific Expected to Witness Significant Growth

• After China recovered from COVID-19, its pharmaceutical industry expanded quickly, partly because of government spending on drug research and development, rising venture capital investment, and significant regulatory changes that hastened novel medications' approval. The need for plastic packaging solutions is being driven by the fact that many pharmaceutical manufacturers modified their production plans to increase the production of related products in response to the current situation.
• Pharmaceutical plastic packaging businesses in China are expected to have many business opportunities due to the country's robust pharmaceutical sector growth. It is anticipated that the Chinese government's initiatives to quicken the nation's healthcare system reform will also encourage the growth of the pharmaceutical packaging business.
• India, which has 1.4 USD billion inhabitants and is the fifth-largest economy, is the most populous nation. Due to the well-established pharmaceutical industry, rising investments in the sector, the expanding population, increasing health awareness, and rising life expectancy, the market for plastic pharmaceutical packaging solutions in India is likely to grow.
• One of the key drivers of the market is the initiative taken by the Indian government to improve the healthcare sector. The Indian government established the Production Linked Incentive (PLI) scheme to promote home manufacturing and create an Atmanirbhar Bharat (Self-sufficient India). The market for pharmaceutical plastic packaging in India is expanding due to the adoption and observance of regulatory standards for pharmaceutical packaging and guidelines regarding packaging recycling.

Pharmaceutical Plastic Packaging Industry Overview

While the pharmaceutical plastic packaging market is fragmented, established companies focus on innovation and acquisition. Companies are investing a large amount of their resources and money in R&D to innovate new products meeting environmental and government regulations. Some major companies are Gerresheimer AG, Amcor Limited, Berry Plastics Group Inc., Aptar Group Inc., and O. Berk Company LLC.

• April 2023 - UPM Raflatacannounced the expansion of its wash-off portfolio with new paper-label materials that enhance the recycling of PET and HDPE. The label materials have European recyclability certifications from Institut cyclos-HTP for PET and HDPE packaging, and they are part of UPM Raflatac's SmartCircle portfolio.
• January 2023 - Amcor announced the acquisition of Shanghai-based MDK. MDK, a market leader in medical device packaging and a key priority growth area for Amcor, has annual sales of about USD 50 million. Adding MDK will strengthen Amcor's already healthcare platform in the Asia-Pacific region as it continues to emphasize higher growth priority categories.

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