Safety of pharmaceutical preparations highly depends on the quality of their packaging. Pharmaceutical packaging keeps these preparations free from contamination, maintain their effectiveness, and enhance their shelf life. The packaging methods, systems and equipment in the market have evolved with the developments in the pharmaceutical market. From traditional packaging systems, the pharmaceutical packaging equipment market is now producing high-tech, flexible, automated, and integrated packaging lines. These products are designed to meet the rising demand and for advanced packaging systems. Steady demand and research and development activities in the market are helping the industry to sail at steady rate.
Trends and Drivers in the Equipment Industry
The global pharmaceutical packaging equipment market has witnessed stable growth for the last few years or so. Advancements and rise in demand in the pharmaceutical industry is responsible for giving directions to the packaging equipment industry. Other drivers for the market include novel packaging technologies, patent expiration, innovative drug delivery systems, increasing demand, and rise of offshore markets for pharmaceutical manufacturing. As a result of all these factors, the equipment industry for pharmaceutical packaging has successfully achieved steady growth rate.
Consistent demand in the industry and expiration of patents for various blockbuster drugs is also crucial drivers for the pharmaceutical packaging equipment market. In current market scenario, growing concerns about healthcare costs are creating pressure over the pharmaceutical manufacturers. They are taking more efforts in maintenance and improvement of the existing profit margins. These attempts are also responsible for the increasing innovations and applications of advanced equipment in the industry. Majority of manufacturers are also shifting focus towards high-growth markets of emerging regions.
Emerging markets like BRICS countries (Brazil, Russia, India, China and South Africa) are witnessing heavy investments in the pharmaceutical packaging equipment market. Higher fragmentation and commoditization of the industry is also influencing the overall market conditions. At present, the global market is in its transition phase, which is expected to witness steady compound annual growth rate. According to the market research reports, the industry is set to grow at an anticipated CAGR of over 6% from 2013 to 2018.
At the estimated compound annual growth rate, the pharmaceutical packaging equipment market is anticipated to reach $6,181 million by 2018. Shift in demand and investment from established players is actually an essential aspect that shows growth pattern in the developing regions. While North America and Europe are currently stable, emerging regions like Asia Pacific, Middle East, Africa, and Latin America are expected to witness strongest growth due to the aforementioned regions.