Asia-Pacific Pharmaceutical Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Asia Pacific Pharmaceutical Market is expected to grow at a CAGR of 8.4% during the forcasted period of 2021 to 2026. The rapidly growing pharmaceutical industry across the world has been boosting the growth of Pharma packaging. The demand for pharmaceutical packaging is majorly emerging from densely populated economies, such as India, Brazil, and China. The increasing pharmaceutical production in these countries has been further boosting the demand.

Key Highlights

• The emergence of the COVID-19 pandemic has significantly impacted the market due to disruptions in the supply chain owing to extended factory closures and delayed production.
• Factors such as sustainable packaging, durable, recyclable, and the growing inclination of various end-users such as hospitals and drug manufacturers are expected to drive the use of the glass material during the forecast period.
• Supply chain disruptions resulted in increased prices of pharmaceutical key ingredients, which is expected to increase the costs of various product types. This could harm the packaging industry in the short term.
• Initiatives taken by the government body will create more opportunities for the market. For instance, In October 2020, the Australian government announced an AUD 1.3 billion Modern Manufacturing Initiative (MMI) and the National Manufacturing Priorities. The MMI will drive lasting change for Australian packaging manufacturers.
• Furthermore, AGI glaspac's pharma segment, which contributes 30-32% of glass packaging in the Indian pharma packaging industry, has been facing hampered production, affected supplies, and increased stock. So far, the company has been working partially with limited raw materials, like sand and soda ash, the key input raw materials for glass packaging.

Key Market Trends

Glass Packaging is Expected to Witness Significant Growth

• The Region is witnessing an increased demand for Glass packaging, and it is the most common material used in pharmaceutical packaging. Because of its characteristics that allow for easy sanitation and transparency of the substance it holds.
• Moreover, the rapidly increasing demand for injectable pharmaceuticals is also significantly driving the growth of glass-based products in the pharmaceutical sector. The market for oncology and other high-potency drugs such as steroids, antibody conjugates, and IV fluids that require quick onset of action is also expected to be a key growth driver.
• The introduction of stringent laws to enhance the quality and integrity of domestically manufactured drugs has led to an increase in the usage of glass for pharmaceutical packaging solutions. Also, the rising demand for sterile medical packaging products from the industry would further drive the market's growth over the forecast period.
• In December 2020, pharmaceutical and healthcare products packaging supplier Gerresheimer opened a second production site in India. The new plant is expected to increase the production capacity to meet the growing demand from the country’s pharma sector. The plant also supports the company’s vial production of tubular glass for pharmaceutical, diagnostic applications, and ampoules.
• Additionally, there is an increasing recycling glass cost in the market, and many companies have expanded their production capacities and manufacturing capabilities due to the COVID-19 pandemic.

India is Expected to Witness Significant Growth

• The pharmaceutical Industry in India has evolved considerably, owing to various factors that include the growth in regulatory norms and focus on population health management and invention. In addition, the increase in the demand for over-the-counter medicines and a more informed customer base are also driving the growth of the market in India.
• Also, with the increasing growth in the Indian pharma market, there is a driving demand for plastic and glass packaging. For instance, According to the Indian Economic Survey 2021, the pharmaceutical market is expected to grow by 3 times in the next decade. The country’s pharmaceutical market is projected at USD 41 billion in 2021 and will reach USD 65 billion by 2024 and will further expand to reach around USD 120-130 billion by 2030.
• Furthermore, Country Pharmaceuticals exports driving demand for various packaging materials. For instance, According to IBEF, the Indian pharmaceutical sector supplies more than 50% of the global demand for various vaccines, around 40% of the generic demand for the United States, and 25% of medicines to the United Kingdom.
• The country’s Pharma Vision 2020, launched by the government department of pharmaceuticals, was primarily aimed to make the country a central hub for end-to-end drug discovery. The country’s drugs and pharmaceuticals sector has also received cumulative FDI inflows worth USD 17.75 billion in 2020, further driving the pharmaceutical packaging demand.
• Additionally, in November 2020, SCHOTT AG, one of the prominent players operating in the pharmaceutical glass manufacturing industry, inaugurated a new melting tank in its Gujarat facility with an approximate EUR 25 million investment. The company also stated the new tank would increase the plant’s production capacity by around 10,000 tonnes to reach an annual capacity of 40000 metric tons. This new melting furnace was constructed within one year to enable a 25% increase in the facility’s overall production capacity, primarily to support the pharmaceutical industry facing a massive demand surge for pharma packaging products.

Competitive Landscape

The Asia Pacific Pharmaceutical Packaging Market is moderately competitive, with a considerable number of regional and global players. The companies in the market are increasing their market share by launching new products and also by expanding production units.

• April 2021 - Nipro introduced the CURACASE needle, which comes in a small hard-plastic packaging that takes up less space in secondary packaging. The design allows working with feeders and automated pick-and-place systems3. Furthermore, each unit pack is sealed with a color-coded label that allows a vision system to identify the product in real-time.
• June 2021 - Amcor launched the ACT2100 heat seal coating for medical-grade DuPont Tyvek2 and paper packaging. This next-generation coating technology improves healthcare applications' performance and will be manufactured in numerous locations around the world.

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