Biopharma products such as blood components, vaccines, tissues, cells, stem cells, and infectious substances, require safe packaging to endure cold temperatures of the storage containers used to transport them. Safe packaging ensures the safety, sterility, and viability of the biopharma products and specimen inside. Metal, glass, or plastic can be used for biopharma packaging. The growth of the pharmaceutical industry is expected to drive the spending on pharma packaging. The SpendEdge procurement market intelligence report on global biopharma cold chain packaging market estimates the R&D expenditure of the pharmaceutical industry to increase by 3% on an average every year. For the purpose of such research, drugs and clinical supplies require stable cold temperatures, which, in turn, drives the demand for biopharma cold chain logistics.
Largest market for biopharma packaging
North America is the largest market in terms of consumption of pharma packaging, accounting for a market share of about 30% in 2017. Also, the market is expected to grow at a CAGR of 8.32% during the forecast period. This is mainly because all the major biopharma cold chain packaging companies are present in this region. The region also consists of the largest CROs and pharmaceutical markets across the globe, which are the major end-user industries for the category. Additionally, the market growth has been spurred due to an increase in government R&D spending for drug discovery and therapeutics.
Fastest growing market
In 2017, APAC accounted for 22% of the global market and is estimated to be the fastest growing biopharma cold chain packaging market. Experts have estimated that the market would grow at a CAGR of 10.2% by 2022. This rapid growth can be attributed to the preference for outsourcing bio pharma cold chain logistics activities in this region. This drastically reduces the cost of raw materials in this region, further reducing the cost.
The supply market overview
The supply market for pharma packaging is highly consolidated with major suppliers such as UPS, Allergan, BD, and Amcor dominating the market. Additionally, they are looking to increase their global presence by outsourcing their biopharma cold chain logistics function to offshore regions. Apart from cost containment, they are also looking to improve packaging quality by incorporating latest technology such as using temperature data loggers with wireless communication systems to enable effective monitoring and maintain storage temperatures. To increase their customer base and global coverage, major suppliers from North America and Europe have been increasingly resorting to building offshore facilities in these regions. Suppliers are also focusing on outsourcing their packaging requirements to regional contract packaging organizations.
Since the bio pharma packaging market deals with delicate products with health implications, companies operating in this market need to have a comprehensive understanding of regulatory hurdles. To receive marketing permits and successfully release products in the market, the packaging solutions are required to undergo initial tests and obtain specific quality certifications from regulatory agencies regarding their safety, performance, and efficiency. The FDA also states that it is the manufacturer’s responsibility to prove the packaging material’s safety and to get approvals before using it for any pharmaceutical product.
Prominent market player
UPS is one of the global leaders in logistics and offers a broad range of solutions, including packaging and freight. The company also provides biopharma cold chain logistics solutions for pharmaceutical companies. Apart from UPS, DowDuPont, Allergan, and AMCOR are also some of the prominent service providers in the pharma packaging market.
Read more about the procurement overview of the biopharma cold chain packaging market along with procurement challenges, supply market insights, pricing models, and regulatory issues in SpendEdge’s upcoming report on the global biopharma cold chain packaging market.