Vaccine Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The vaccine packaging market is expected to register a CAGR of 10.62% during the forecast period. Due to the COVID-19 pandemic, demand for vaccines and packaging for these vaccines skyrocketed. Market players have been expanding their production capacities to meet the surge in demand.

Key Highlights

• One of the main factors fueling the market's expansion is the rising incidence of various viral infections and immunological disorders in different parts of the world. The need for effective vaccine packaging facilities has significantly increased with the appearance of the coronavirus disease (COVID-19). Additionally, growing consumer awareness of the importance of early detection and prevention of infectious diseases has increased the demand for protective vaccines and is contributing to the market's growth.
• Healthcare spending by people and governments has been increasing, which is beneficial for the vaccine packaging market growth. For instance, according to China’s National Health Commission, the total size of the Chinese healthcare industry is anticipated to reach CNY 16 trillion (USD 2.39 trillion) by 2030.
• According to the Chinese Center for Disease Control and Prevention of the Institute for Health Metrics and Evaluation, China reached a health “tipping point,” with chronic conditions replacing infectious diseases as the leading causes of early deaths in the nation of 1.4 billion people.​ Such huge investments have anticipated the drive of the market.
• Leading vaccine manufacturers are preparing to establish adequate production facilities for future pandemics. These developments are fueling the market growth in the long term. For instance, in April 2022, Sanofi, a pharmaceutical company, announced to spend EUR 900 million (USD 618.55 million) to build two new Evolutive Vaccine Facilities (EVFs) in France and Singapore.

Vaccine Packaging Market Trends

Emphasis on Immunization Campaigns by Governments

• Countries such as India, China, and the United States, as well as European countries, were fast to produce and acquire COVID-19 vaccines owing to government efforts. Moreover, countries across the world undertook widespread vaccine distribution programs to limit the COVID-19 virus spread.
• These initiatives were successful in a number of countries which resulted in acquiring and administering a large number of vaccines by respective country governments. For instance, as of July 2022, nearly 2 billion COVID-19 vaccinations were administered by the Indian government.
• Apart from COVID-19, governments worldwide are also targeting other diseases, such as monkeypox and polio. Several countries witnessed the spread of the monkeypox virus in 2022. Numerous estimates place the number of confirmed cases of monkeypox at over 47,600 worldwide as of August 2022, with over 17,000 cases reported in the United States.
• Governments are rolling out the vaccine supply chains for diseases like monkeypox as well. For instance, in August 2022, according to the United States government announcement, the country will contribute about USD 11 million to help Bavarian Nordic package its BAVA.CO Jynneos monkeypox vaccine at a United States-based manufacturing facility.
• Moreover, funding for these immunization campaigns has been increasing. For instance, the United States government has been working to eradicate polio for many years as a partner in the Global Polio Eradication Initiative and as a supporter of efforts made by developing nations. Polio funding by the United States increased from USD 134 million in FY 2009 to USD 253 million in FY 2022.

Asia-Pacific is Expected to Grow with the Highest CAGR

• The glass packaging manufacturers and suppliers are focusing on shifting their base to China, India, and Brazil as a result of increasing opportunities offered by the pharmaceutical industry in these countries, including vaccine packaging.
• Against the backdrop of the growth trend in the region's vaccine packaging sector and the COVID-19 pandemic, market players are wanted to commit to securing the supply of pharma glass.
• For instance, SCHOTT has been investing nearly EUR 70 million in the expansion of its Indian tubing site in Jambusar, Gujarat. The increase of more than 30% in the facility’s overall Indian production capacity follows the commitment to support the government’s vision of India becoming a global pharmaceutical hub. Similarly, in an Indo-German joint venture between specialty glass makers Schott AG and Kaisha, the company anticipated selling nearly 380 million vials for COVID-19 vaccines in 2021-2022.
• China has pledged to make its COVID-19 vaccines a global public good since the COVID-19 outbreak. Chinese officials have repeatedly stated that China is carrying out this commitment by exporting and donating its COVID-19 vaccines to as many nations as possible.
• Moreover, vaccine manufacturers are expanding their facilities across various Southeast and East Asian countries to better manage the supply flow. For instance, in February 2022, Moderna, a COVID-19 vaccine producer, announced its expansion in Hong Kong, Singapore, Taiwan, and Malaysia to serve Asian markets better. These developments are helping the vaccine packaging market grow in the region.

Vaccine Packaging Market Competitor Analysis

The vaccine packaging market is highly competitive due to the strong presence of major players worldwide. The market is moderately considerably concentrated owing to the strict requirements for quality of packaging as well as the presence of large market players in the industry. Major market players are adopting strategies like product innovation, mergers and acquisitions, and expansion to expand their reach and increase their production capabilities.

• July 2022: Gerresheimer, a manufacturer of injection vials for vaccines, announced to increase the glass vial production at its Wertheim, Germany, facility as well as at two additional locations in China and the United States. To increase vial capacity by 150 million per year, the company has planned to invest in production in Wertheim.
• March 2022: The Biomedical Advanced Research and Development Authority (BARDA) agreed to fund Stevanato Group up to USD 95 million through an agreement that was entered into by OMPI of America Inc., a subsidiary of Stevanato Group. Stevanato Group will increase its intended manufacturing capacity in Fishers, Indiana, for both standard and EZ-Fill vials, as per the agreement.

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