Emmanuel OchayiThe global pharmaceutical packaging market is set to surge by $48.88 billion from 2022 to 2027, riding on the coattails of a compound annual growth rate (CAGR) of 8.44% during the forecast period.
These numbers have been driven by a surge in research and development (R&D) investment within the pharmaceutical sector, surging global pharmaceutical sales, and a demand for user-friendly packaging solutions, according to a research report by Technavio.
Experts cite an increase in R&D spending in the pharmaceutical industry as a force behind this upward trajectory. “Pharmaceutical companies are pouring in substantial resources into research and development, earmarking a hefty 15%-20% of their revenue for innovation,” says John Smith, a pharmaceutical industry analyst at Technavio. This fervent investment has sparked innovation and propelled the sector forward.
The demand for pharmaceutical products, including drugs, vaccines, and more, is pushing pharmaceutical packaging companies to expand their manufacturing operations to meet the burgeoning needs of the industry. Convenience is king, and companies are adapting to this paradigm shift by optimizing their production facilities.
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One of the insights from the research report is the market growth expected in the rigid plastic segment during the forecast period (2023-2027). This growth is fueled by the surge in over-the-counter drug sales, projected to reach $6 billion in India by the end of the year. The heightened demand for over-the-counter drugs correlates with an increased requirement for rigid pharmaceutical plastic packaging.
Moreover, in terms of products, plastic bottles reign supreme, commanding the lion’s share of the market. The allure of plastic bottles is their ability to eliminate the need for additional packaging layers and ensure the safety of pharmaceutical products throughout the entire supply chain. They are popular for packaging syrups, ophthalmic solutions, and nasal medicines, further driving the demand for pharmaceutical packaging using this material.
In the regional arena, North America is expected to play a role, contributing 31% to the global market’s growth during the forecast period. The United States, in particular, is a major player in the North American pharmaceutical packaging market. The country’s growth is underpinned by surging healthcare spending, an aging population, and an uptick in the value of pharmaceutical exports.
This new landscape in the pharmaceutical packaging market is driven by a confluence of factors, but the pivotal catalyst remains the surge in R&D investments, bolstering an industry set to revolutionize healthcare.
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