Why The Pharma Packaging Market Will Keep On Growing

Photo by Kelli McClintock on Unsplash

Pharma packaging is a fast growing and most fascinating market sector. A global market valued at $107bn in 2020 is predicted to grow by 9.4% each year up to 2028.

It’s not just market growth that makes pharma packaging such an exciting opportunity. It's also how the packaging industry is adapting to changes in the healthcare sector. 

So what’s driving growth and innovation? And how can packaging providers benefit from these trends?

Demographics and Lifestyle Changes

Across much of the world the average age of the population is going up. The World Health Organization (WHO) estimates that between 2015 and 2050 the proportion of over 60s on the planet will nearly double from 12% to 22%. It’s not exactly news that older people tend to have multiple and chronic health conditions that need regular medication.

Among the younger population, changes in lifestyle and the Covid-19 pandemic mean that more people have enduring health conditions. Allergies and asthma are also on the increase around the world, which is most likely linked to lifestyle and environmental factors.  

The market for vitamins and food supplements is also growing as people become more aware of health and immunity issues.

Finally, rising living standards in developing countries mean that more people will have routine access to healthcare services, medical insurance and medications.

Pharma Packaging and Brand Identity

In developing nations, retail pharmacies are rapidly gaining market penetration. These businesses play a vital role in expanding healthcare services. They’re also eager to improve their brand identity and recognition - pharma packaging helps them do this. 

Polybags and paper pouches are tertiary packaging products commonly used by retail pharmacies in markets such as India, Brazil and China. These are important brand-building opportunities. Packaging contractors are also likely to find opportunities to operate further up the value chain by offering branded primary and secondary packaging options for generic medications.

But it’s not just about numbers. The technical demands placed on pharma packaging are changing as medication becomes more targeted and personalised. Alternative, non-oral, medication delivery methods have become more widespread. 

Parenteral (non-oral) delivery of medication offers precise dosing and is becoming more common. This is driving growth for primary containers such as sterile vials, ampules, and prefilled syringes, and secondary packaging that can, for example, be used to deliver concise instructions for self-administration.

More Sustainable Pharma Packaging

Reducing the environmental impact of packaging is high on the agenda for pharmaceutical manufacturers, distributors and retailers. More sustainable materials such as bioplastics and biodegradable plastics will be more common.

Growth is happening at both the high and low-volume ends of the pharma packaging market. The expansion of generic and out-of-patent drug retailing drives the need for cost-effective high volume packaging. Meanwhile, custom and smart packaging solutions will become commonplace as manufacturers produce new targeted medications in smaller batches. 

Pharma is Looking for Packaging Specialists

Packaging is essentially a non-core business for pharmaceutical manufacturers. While they need smarter, customised pharma packaging solutions they are more likely to outsource these developments to specialist packaging contractors. 

Companies that specialize in 3D printing and small batch personalised packaging will probably find interesting partnership opportunities. Partnership working will support innovation and cost-efficiency while also ensuring that packaging maintains strict compliance with safety and hygiene regulations in different markets.

Consumer Confidence

Counterfeiting is a major concern in the pharmaceutical industry, particularly for the growing number of over-the-counter medications bought online. 

This is another opportunity for packaging providers who can offer serialization along with traceable and tamper-proof products. These are likely to become requirements in more markets in the coming years and are effective ways to improve consumer confidence.

Pharma packaging is a boom industry offering multiple opportunities for profitable growth for forward-thinking suppliers. Few sectors offer better prospects for long-term profitable business growth.