Pharmaceutical Packaging Equipment Market

The global pharmaceutical packaging equipment market was estimated to be worth $8.9 billion in 2023 and is projected to reach $12.4 billion by 2028, growing at a CAGR of 7.0%. Key factors driving market growth include the rapid expansion of the generic and biopharmaceutical markets, increased sales of OTC drugs, demand for flexible and integrated packaging equipment, offshore manufacturing in the pharmaceutical industry, and stringent regulations against counterfeiting. However, market growth may be constrained by the high costs of packaging equipment and the preference for refurbished machinery. Opportunities lie in increasing pharmaceutical R&D investments. The Asia Pacific region is expected to experience the highest growth due to its expanding scientific base and pharmaceutical manufacturing capabilities. Key players in the market include Syntegon Technology GmbH, Vanguard Pharmaceutical Machinery, OPTIMA Packaging Group, and ACG Worldwide, among others.

Attractive Opportunities in the Pharmaceutical Packaging Equipment Market

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Pharmaceutical Packaging Equipment Market Dynamics

Driver: Increase in offshore pharmaceutical manufacturing

Global pharmaceutical sales are anticipated to exceed USD 1.4 trillion by 2026, according to a survey. It is anticipated that new markets outside of North America and Europe would considerably contribute to this expansion. This is motivating pharmaceutical companies to relocate their manufacturing facilities in new areas with rapid economic growth. By doing this, manufacturers can profit from low-cost manufacturing as well as a number of financial advantages, including as favorable tax rates and lax manufacturing regulations. Additionally, pharmaceutical producers benefit from offshore manufacturing by having improved patient input, enhanced distribution to local healthcare markets, and enhanced ability to satisfy local criteria.

The most sought-after regions for the low cost manufacturing of pharmaceutical items are those in the Asia Pacific region with high growth markets, such as India and China. South Africa, Germany, Brazil, Russia, Nigeria, and South Africa are among the other significant locations. In the near future, about two-thirds of top pharmaceutical manufacturers anticipate an increase in FDA-approved pharmaceutical manufacturing facilities in high growth emerging markets throughout the Asia Pacific and Latin America. This is according to a survey conducted by the association for packaging and Processing Technologies (PMMI).

Restraint: Growing preference for refurbished equipment

As time is a consideration, refurbished machinery is a practical substitute for new instruments for manufacturers. This is especially true in low-cost manufacturing areas around the Asia Pacific, where regulatory standards are very lax. Refurbished equipment can reduce capital expenditures needed to set up a new manufacturing line by saving between 40 and 50 percent of the costs associated with buying new machinery. Additionally, manufacturers can get updated or renewed versions of their current items, obviating the need to buy a new one.

Opportunity: Increasing pharmaceutical R&D investments

Pharmaceutical sales have increased as a result of an aging population, an increase in chronic illnesses, and an increase in infectious infections. Pharmaceutical manufacturers are conducting more research and clinical trials, which is helping to improve productivity in the drug manufacturing sector. The expansion of medication production has been influenced by the expanding global demand for drugs. As a result, the industry has been driven by an increase in drug manufacturing and packaging.

The COVID-19 pandemic outbreak has heightened pharmaceutical and biopharmaceutical companies' attention to the development of efficient medicines and vaccines against viral illnesses. Establishing efficient workflows and processes to decrease the time and costs associated with medication and vaccine development has become more important in this situation. This, in turn, is favoring the growth of the pharmaceutical packaging equipment market

Challenge: Growth in personalized and precision medicine supply chain

Precision and personalized medicine have significantly changed the medical alternatives available to patients, creating new commercial prospects for the life sciences sector. Sensitive cancer and psychiatric drugs can now be made available for wider distribution and new markets thanks to artificial intelligence (AI) and machine learning (ML) technologies. Pharmaceutical production is typically carried out in 1000L vessels in huge batches with large volumes, which is a rather straightforward process. These new personalised medicines simply cannot be produced on the scale, with the speed, dependability, and traceability that are crucial for therapeutic efficacy and safety. These therapies are frequently exponentially more complex than traditional pharmaceuticals.   Complex process controls are among the issues with continuous manufacturing. To respond appropriately to changes in one production variable while the system is still in operation, decision-makers must be able to see all production variables as an integrated and interdependent system. The company's quality assurance procedure will also change as a result of this. Therefore, the development of this market over the projection period is likely to be constrained by complex packaging and risk associated with shipping, time, and temperature maintenance for the packaging industry.

Pharmaceutical Packaging Equipment Market Ecosystem

The labeling and serialization equipment holds the largest CAGR in pharmaceutical packaging equipment industry by product, in the forecast period

The labelling and serialization equipment segment accounted for the largest CAGR of the pharmaceutical packaging equipment market. Since pharmaceutical & biopharmaceutical products help to maintain and restore the health of humans and other living organisms, pharmaceutical drug safety is subject to several regulatory guidelines with strict quality requirements and standards imposed by respective government bodies. Considering these requirements, pharmaceutical products need to be processed and packaged in a completely sterile environment. These factors are supporting the growth of this segment.

Asia Pacific accounted for the largest CAGR of the global Pharmaceutical packaging equipment industry, by region in the forecast period.

Growth in the Asia Pacific market accounted for the largest CAGR of the global Pharmaceutical packaging equipment market., by region in the forecast period. A number of factors, such as the growing Asian scientific base and capability, growth in the Asian pharmaceutical markets & pharmaceutical manufacturing capabilities, large patient pool, growing requirement for brand enhancement, differentiation in this highly competitive market, growing need for the development of new packaging materials, increasing awareness among customers, and the growing adoption of new regulatory guidelines are contributing to the growth of the pharmaceutical packaging equipment market in the APAC region.

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Key players in the Pharmaceutical packaging equipment Market: Syntegon Technology GmbH (Germany), Vanguard Pharmaceutical Machinery, Inc. (US), OPTIMA Packaging Group (Germany), ACG Worldwide (India), Trustar Pharma Pack Equipment, Co. Ltd. (China), MG2 s.r.l. (Italy), Busch Machinery (US), Inline Filling Systems (US), Duke Technologies (India), ARPAC LLC (US), ACIC Pharmaceuticals Inc. (Canada), Harro Höfliger Verpackungsmaschinen GmbH (Germany), IMA S.p.A. (Italy), Körber AG (Germany), Coesia S.p.A (Italy), Marchesini Group S.p.A (Italy), Bausch+Ströbel Maschinefabrik Ilshofen GmbH+Co. KG (Germany), Romaco Group (Germany), Uhlmann Group (Germany), Maquinaria Industries Dara, SL (US), MULTIVAC Group (Germany), Accutek Pharmaceutical Equipment Companies, Inc. (US), AST, Inc. (US), Trucking Technology Limited (China), and NJM Packaging (US).

Scope of the Pharmaceutical Packaging Equipment Industry:

The research report categorizes the pharmaceutical packaging equipment market to forecast revenue and analyze trends in each of the following submarkets:

By Product

• Primary packaging equipment
• Secondary packaging equipment
• Labeling and serialization equipment

By Formulation

• Liquid packaging equipment
• Solid packaging equipment
• Semi-solid packaging equipment
• Other Product packaging equipment

By Automation

• Automatic
• Sem-Automatic
• Manual

By End User

• Pharmaceutical Contract Manufacturing Companies
• Pharmaceutical Manufacturing Companies

By Region

• North America North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (ROLATM)
• Middle East & Africa

Recent Developments of Pharmaceutical Packaging Equipment Industry

• In July 2023, Industria Macchine Automatiche S.P.A. (Italy) acquired Phoenix Italia S.r.l. (Milano). IMA completed the acquisition of 60% of Phoenix Italia S.r.l. and 100% of its subsidiary Phoenix Tech S.r.l., both companies based in Bareggio (Milano), from its sole shareholder Phoenix Group Holding S.r.l..
• In July 2023, IMA completed the purchase of 70% of Mespic S.r.l., and 100% of its Illinois-based subsidiary Mespic North America Corporation, from its sole shareholder Holding FGLG S.r.l..
• In August 2022, SEA Vision Group and Marchesini Group launched the following solutions: the INTEGRA 720V complete robotized blister line, the BL-A525 CW high-speed labeler, and the complete Track & Trace software solution developed by SEA Vision. This is a solution for primary pack serialization and aggregation, comprising a complete range of technologies to print, inspect and pack serialized blisters and perform aggregation with cartons, all integrated in a 4.0 environment.
• In July 2021. Syntegon Technology GmbH (Germany) and Huhtamaki Group (Finland) collaborated. This collaboration led to the paper-based tablet packaging solution for the pharmaceutical and healthcare industries.
• In March 2021, Syntegon expanded portfolio for the production of parenteral pharmaceuticals. The company has launched the new SVP Essential, a cost-efficient version of its proven Pharmatec SVP process systems for the production of small-volume liquid pharmaceuticals.

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