The global pharmaceutical packaging equipment market is poised to grow at a CAGR of around 6.9% from 2015 to 2020. The rising need for novel and flexible packaging equipment, the growth of the generic market, and rising offshoring of manufacturing in the pharmaceutical industry are the major factors driving the growth of the pharmaceutical packaging equipment market.
The pharmaceutical and biotechnology industry is witnessing rapid growth due to the rising focus on the development of biopharmaceuticals and injectable therapeutics. Currently, the major therapy areas under focus include oncology, respiratory, anti-virals, autoimmune, and immuno-suppressants. These drugs have increased the requirement of containers with higher hydrolytic resistance, pH stability, and leachables, thereby increasing the demand for better and innovative pharmaceutical packaging.
Patent expirations of small molecular drugs and biologics will open up the market for their generic counterparts, resulting in an upsurge in the volume of drugs sold across the globe. By the end of 2016, when patents for a number of prescription products expire in mature markets such as the U.S., the U.K., and other European countries, the overall sales of these drugs is likely to be abridged by more than USD 100 billion. However, in actual terms, the sales volume of these drugs will increase, mainly driven by the growth in sales of their generic counterparts. This will further increase the demand for pharmaceutical packaging, which will drive the growth of the pharmaceutical packaging equipment market.
The pharmaceutical packaging equipment market is also witnessing growth due to the offshoring of pharmaceutical equipment manufacturing to the emerging Asia-Pacific region. Through this, manufacturers can take advantage of low-cost manufacturing, along with several financial benefits in terms of attractive tax rates and lenient regulatory guidelines for manufacturing. At the same time, offshore manufacturing also helps pharmaceutical manufacturers ensure enhanced delivery to local healthcare markets and meet local requirements. High-growth markets in the APAC region such as India and China are the most sought-after places for low-cost manufacturing of pharmaceutical products. This is also one of the major factors driving the growth of the global pharmaceutical packaging equipment market.