Temperature Controlled Packaging Pharmaceutical Market

Growth In The Pharmaceutical Industry Supplementing Sales To The Significant Extent

The growing demand for packaging in the pharmaceutical industry has aided the growth of temperature-controlled packaging for the pharmaceutical market. Temperature-controlled packaging for pharmaceuticals is designed to maintain the proper temperature of sensitive products. Such packaging solutions are primarily used in the healthcare industry for the transportation and storage of temperature-sensitive products in a controlled temperature environment.

A major focus area of many national and international organizations, such as the World Health Organization (WHO), is the reduction of vaccine wastage. As a part of this, several programs are organized to monitor vaccine wastage at the country level. The objectives of such programs are proper packaging, handling, and transportation of vaccines. Such consciousness triggers the demand for temperature-controlled packaging for pharmaceuticals in the healthcare sector. The growth in medical tourism across the globe is another major reason for the pharmaceutical industry's growth.

In Asia-Pacific, countries such as Thailand are recognized as one of the leading destinations in the world for their growing number of well-equipped hospitals with low cost and high-quality treatment facilities and a wide range of services. The Thai government announced a ten-year strategic plan to be implemented from 2016-to 2025 to turn Thailand into a hub for wellness, medical services, academics, and products.

Adoption Of Smarter Cold Chain Technology

The pharmaceutical manufacturers have identified a greater need for product temperature assured distribution, including material handling. Their drug portfolios have evolved with the development and more complex biotechnology drugs from the traditional small molecule/chemical pharmaceutical products. Such complex biotechnological drugs require a 15 – 25°C range of high-temperature control. The drug manufacturers select an appropriate temperature for packing pharmaceutical products, which protects the shipment for 96 hours. The third-party logistic (3PL) companies ship the products at various temperature conditions, often affecting their quality.

To avoid this, the pharma manufacturers adopt smarter cold chain technology, which helps monitor the temperature based on the product requirements, ensuring product safety and integrity. Leading pharmaceutical companies are developing advanced temperature-controlled supply chains. The new temperature control packaging solutions will enable the manufacturers to maintain the required temperature of the products to retain their life. Hence, the increased use of temperature control packaging in the pharmaceutical industry will lead to the growth of the Temperature-controlled Packaging for Pharmaceutical Market during the forecast period.

Temperature-controlled Packaging for Pharmaceutical Market

The Temperature-controlled Packaging for Pharmaceutical Market, based on region, has been divided into North America, Europe, Asia Pacific, and Rest of the World. North America consists of US and Canada. Europe consists of UK, Germany, France, Italy, Spain, and Rest of Europe. Asia-Pacific consists of China, India, Japan, Sout Korea, Taiwan, Philippines, Indonesia, Thailand, Malaysia, Singapore, Hong Kong, Australia, and Rest Of Asia-Pacific. The rest of the world consists of the Middle East & Africa and South America.

North America accounted for the largest market share in 2023 and is expected to register the highest CAGR during the forecast period. Due to various lifestyle disorders, many patients, and high disposable income levels, North America is likely to be a highly profitable market during the forecast period. Pharmaceutical product safety regulations, as well as a growing geriatric population, may raise regional market demand. The market may benefit from bilateral trade agreements and increased international trade. Active systems have a considerable market in North America. Compared to the passive system, the active system provides the best level of temperature accuracy.

For long-distance shipping, the active system maintains a constant temperature. The system is capable of effectively managing supply chain delays. With the availability of a power source, temperature excursions are less likely. The US Food and Drug Administration (FDA) has set a distribution practice regulation that stipulates that drugs must be supplied at the proper temperatures.

Asia Pacific held the second largest share in the market for global temperature-controlled packaging for pharmaceuticals and is anticipated to ascend at a revenue based CAGR over the forecast period. Because of the surge in infectious diseases and the necessity for cold chain solutions to preserve vaccines, APAC is thought to be tremendously profitable. Leading players operating in the Temperature-controlled Packaging for Pharmaceutical Market can target the highly potential Asian countries to maximize their financial revenues. As the market gets more concentrated, the region is expected to see more acquisitions.

Due to the significant rise in chronic diseases and the increasing number of clinical trials in countries such as China and India, Asia-Pacific is predicted to develop at a higher rate during the projection period. Asia-Pacific has seen technological improvements on the back of its burgeoning population and increasing disease outbreaks.

The European Union (EU) authorities enforced a slew of new criteria for pharmaceutical packaging on fake pharmaceuticals in 2017, and Europe is predicted to grow significantly during the projection period. Anti-counterfeiting technologies, such as overt, covert, and forensic technology, have been applied by EU authorities for pharmaceutical packaging, resulting in pharmaceutical packaging companies in the region continuing to develop packaging methods and procedures. Regional packaging companies are using innovative strategies to improve their current portfolio.

Bormioli Pharma S.p.A., an Italian glass and plastic packaging manufacturer announced in 2019 that it would use a more open, distributed approach to reach more consumers, merging internal R&D projects with start-ups and incubators. The company also announced that it would create a new organizational structure that would combine marketing and innovation functions. Such factors are expected to propel the regional market during the forecast period.

The Rest of World comprises of The Middle East and Africa and South America. The Middle East & Africa market is expected to rise significantly, owing to rising per capita disposable income, rising healthcare awareness, and rising pharmaceutical and drug consumption. Furthermore, the region is characterized by a growing manufacturing capacity and rising investments in the pharmaceutical packaging industry. The increasing pharmaceutical sector in Saudi Arabia is driving the pharmaceutical packaging market in the region. In South Africa, generic pharmaceuticals account for about half of the pharmaceutical market.

This has resulted in a rise in the demand for drug and pharmaceutical packaging in South Africa. During the projected period, such factors are likely to fuel the region’s expansion of the Temperature-Controlled Packaging for Pharmaceutical market. Furthermore, the pharmaceutical sector in South America is expanding at a healthy rate, owing to many people being diagnosed with various ailments. Furthermore, the need for medical and healthcare centers is increasing, as is the consumption of pharmaceuticals. Brazil, Argentina, Chile, and Colombia contribute significantly to the region's total.

Figure 2: Temperature-controlled Packaging for Pharmaceutical Market Size By Region 2023 & 2032 (USD Million)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The global temperature-controlled packaging for the pharmaceutical market is characterized by many regional and local vendors. The regional market is highly competitive, with all the players continually competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.

Sonoco Thermosafe, UNITED PARCEL SERVICE AMERICA, INC, kaneka Corporation, DHL International GmbH, Deutsche Bahn AG and va-Q-tec AG, and few others. Global are the major players in the market, competing in terms of variety of applications and their components, as well as efficiency, reliability, affordability, and advanced technology. The primary focus of the players is to provide advanced products to aid in increasing adoption, which could help strengthen a country's growth. Although global players dominate the market, a few regional and other local players with a limited market share also have a prominent presence.

The major players focus on strengthening their global presence through mergers & acquisitions of local and regional players. These players are expected to expand their presence during the forecast period. Therefore, vendors must develop new technologies to stay at par with emerging technology trends that could affect the competitiveness of their product lines in the market.