Market Trends of Asia Pacific Pharmaceutical Packaging Industry
Glass Packaging is Expected to Witness Significant Growth
- Glass packaging is widely considered the leading choice for pharmaceutical products in the packaging industry. Its popularity stems from its sustainable nature, inertness, impermeability, recyclability, and ability to be reused without compromising quality. The COVID-19 pandemic further fueled the demand for glass packaging as the need for medication significantly increased. With the approval and distribution of new drugs and vaccines by pharmaceutical manufacturers in various countries, the use of glass packaging is expected to continue expanding.
- Glass packaging is primarily provided as the main packaging option for pharmaceutical products and is one of the top choices in the pharmaceutical industry. This is mainly because it offers several advantages, including sustainability, inertness, impermeability, recyclability without any compromise in quality, and reusability. Glass containers have become widely utilized in the pharmaceutical sector as one of the primary packaging materials. As the prevalence of chronic diseases increases and the production of COVID-19 vaccine doses continues to rise, there is an anticipated surge in the demand for primary packaging, specifically glass containers.
- The increasing prevalence of chronic diseases in the APAC region is a major factor driving the expansion of the pharmaceutical packaging market. Conditions such as diabetes, cardiovascular diseases, cancer, and respiratory ailments necessitate continuous medication. As a result, there is a rising need for diverse pharmaceutical packaging solutions to securely store, safeguard, and distribute these medications with optimal efficiency. As per the World Health Organization (WHO), the rise in noncommunicable diseases is contributing to the escalating burden of chronic illnesses in the region, especially in the SEA region.
- The primary packaging glass solutions manufacturer, Stoelzle, unveiled their latest eco-friendly PharmaCos line at the CPHI Barcelona trade show in November 2023. This new line of packaging solutions boasts a high percentage of recycled glass (73% in amber glass and 38% in flint glass) and lightweight bottle design. Additionally, the new line is produced in a pharmaceutical-grade facility to meet the strict standards of the healthcare industry. Such significant innovations by the vendors are expected to drive the market's growth.
- Bormioli Pharma states that currently, various recycled glass products are available specifically designed for type II and type III glass. These products utilize materials sourced from an external supply chain that is certified for pharmaceutical use. Through chemical and mechanical processing, the recycled materials can be transformed into glass powder, which serves as the foundation for the new production cycle. Simultaneously, Bormioli Pharma is actively involved in projects aimed at developing low-emission furnaces. These furnaces incorporate innovative technologies and industrial processes that minimize their environmental footprint.
- Moreover, the market for glass packaging techniques in countries like Japan will be driven by the increasing investments made by pharmaceutical vendors to enhance pharmaceutical production. A notable example is Takeda's announcement in March 2023, stating its plan to invest approximately JPY 100 billion (USD 0.75 billion) in constructing a new manufacturing facility for plasma-derived therapies (PDTs) in Osaka, Japan. This investment represents Takeda's largest-ever expansion of manufacturing capacity in Japan. The upcoming state-of-the-art facility, expected to be operational by 2030, will be the largest of its kind in the country and will significantly increase Takeda's plasma manufacturing capacity.
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India is Expected to Witness Significant Growth
- India is expected to be one of the fastest-growing regions in the pharmaceutical packaging market. The pharmaceutical packaging sector has witnessed significant growth in recent years, driven by innovations and the rise of new treatments. The onset of the COVID-19 pandemic underscored the importance of efficient product packaging and distribution. As a result, there's a growing emphasis on accelerating both manufacturing and distribution processes, including packaging. Consequently, packaging firms are under mounting pressure to innovate swiftly, meeting the demand for faster operations.
- India is anticipated to emerge as a key player in the pharmaceutical sector, especially in the production of generic drugs and cost-effective medication. The country plays a vital role as a primary provider of generic medicines to numerous advanced nations. The rising output and international distribution of generic drugs are significant factors driving the expansion of the Indian pharmaceutical packaging industry. Additionally, the surge in chronic illnesses and the rise in investments in drug manufacturing operations will lead to a substantial increase in demand within the market.
- The region is anticipated to experience a notable increase in demand for plastic packaging types. The surge in the need for medical supplies and medications has propelled the expansion of plastic pharma packaging in India. Numerous companies are making substantial investments in this technology to enhance the region's market potential. For instance, in March 2023, Spanish packaging company Inden Pharma intended to broaden its operations in India through a partnership with Austria-based ALPLApharma, which specializes in plastic packaging for pharmaceuticals. These noteworthy advancements are projected to stimulate growth in the market.
- InvestIndia reports that India is the largest global provider of generic medicines, making up 20% of the global supply by volume. Additionally, India is the top producer of vaccines worldwide. Outside of the United States, India has the highest number of pharmaceutical plants that comply with the standards set by the US Food and Drug Administration (US FDA). With over 3,000 pharmaceutical companies and more than 10,500 manufacturing facilities, India possesses a robust network and a highly skilled workforce in the pharmaceutical industry. Moreover, India fulfills approximately 60% of the global demand for vaccines and is a major supplier of DPT, BCG, and Measles vaccines. These extensive capabilities in pharmaceutical manufacturing will undoubtedly stimulate the packaging business market in the region.
- Moreover, InvestIndia states that the Indian pharmaceutical industry experienced an average growth rate of 9.47% from FY18 to FY22, reaching USD 42.34 Billion, mainly due to increased exports and a growing domestic market. Forecasts suggest that the pharma sector is expected to reach a value of USD 65 billion in 2024 and USD 120 billion in 2030. To ensure sustained growth, the government has implemented various initiatives to promote research and innovation. As part of its vision for 2047, the government aims to establish India as a global leader in producing affordable, innovative, and high-quality pharmaceuticals and medical devices, in line with the principle of Vasudhaiva Kutumbakam. Such significant developments will provide market opportunities in the packaging sector.
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