Market Trends of Cold Chain Packaging Industry
This section covers the major market trends shaping the Cold Chain Packaging Market according to our research experts:
Growth in Pharmaceutical Sector to Augment the Cold Chain Packaging Market
- According to Almac Pharma Services, the pipeline of biological drugs in development is becoming more temperature-sensitive, resulting in an increase in the storage of bulk drug substances at frozen temperatures (-40 to -70 °C). The company adds that labeling, packing, and distributing cell and gene therapy products often requires products to be stored and processed at ultra-low temperatures (-20 to -80 °C), with the products only being defrosted immediately before use.
- The high-value pharmaceutical products are mostly shipped via the cold chain across the entire distribution network worldwide. Thus, pharmaceutical growth is anticipated to propel the cold chain packaging market. According to International Trade Center, the value of exports of pharmaceutical products from the United Kingdom to the European Union show that in that year, Belgium was the EU member with the largest export value of such British goods, amounting to almost 2.43 billion British pounds. The significant export value represents that the packaging conditions may choose cold chain packaging to adapt to dynamic conditions such as temperature, mode of transportation,etc.
- Moreover, the cold chain packaging market is directly influenced by the continuous growth in demand for cold storage medicinal products used in the healthcare industry. Regionally, the cold chain packaging market is dominated by Europe and North America region. This is due to the high number of biopharmaceuticals imports & exports in the countries in Europe and North America. These regions are also the innovators for the improvement in shipping and warehousing of pharmaceutical products.
- Further, the market is witnessing an effect due to government regulations regarding the use of materials in cold chain packaging. There is also a strong demand for more sustainable designs, including re-use programs, to reduce the carbon footprint. The interest in temperature-controlled packaging is also impacted by changing regulations and standards. For instance, ISTA's (International Safe Transit Association) temperature profiles were altered within the past five years. Such changes are anticipated to affect the market.
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Europe to Hold the Largest Market Share
- Europe occupies the major share in the cold chain packaging market. The market is expected to grow significantly in the forecast period owing to continuous growth in demand for cold storage medicinal products used in the healthcare industry.
- Many companies have focused on investments and research and development activities on creating innovative cold chain packaging technologies to stay ahead of the competition. For instance, in May 2022, Essentra Packaging collaborated with AMD to create a new generation of Time Temperature Indicators (TTIs), a smart packaging technology for the pharmaceutical industry. The collaboration by the United Kingdom-based companies aims to provide future packaging solutions that are relevant and improve patient safety by combining the strengths of AMD and Essentra Packaging.
- Additionally, European businesses are creating advancements in enhancing pharmaceutical packaging and storage by implementing cold chain solutions. For instance, in July 2022, the Netherlands' Sharp plant in Heerenveen increased the range of healthcare service offerings. Sharp is a prominent player in contract packaging and clinical supply services. Labeling and secondary packaging services have been added to the site to accommodate open and randomized clinical trials, enhancing the clinical storage and distribution capabilities already there. Already finished are the initial packaging and labeling procedures. Sharp can now provide a full range of clinical services out of the facility, including secondary packaging between temperatures of -80°C and -80°C, storage between 2 and 8°C, and on dry ice as QP release for clinical trial materials. The website's customers can get help with regulatory issues to release and distribute items in Europe.
- Furthermore, many European-based businesses are engaged in corporate growth to broaden their reach internationally due to the growing number of pharmaceutical and life sciences enterprises across the continent. For instance, in February 2022, the life sciences and healthcare (LSHC) sector of the Deutsche Post DHL Group's logistics company, DHL Supply Chain, announced that it would invest more than USD 400 million this year to expand its pharmaceutical and medical device distribution network footprint by 27 percent or nearly 3 million additional square feet. The new buildings will have complete licensing, temperature-controlled space that satisfies pharmaceutical storage needs, and integrated solutions that can handle the packing and managed transportation.
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