Latin America Pharmaceutical Packaging Market - Growth Trends, Forecasts (2020 - 2025)
Latin America Pharmaceutical Packaging Market is segmented by Packaging Material (Plastics, Paper and paperboard, Glass, Metal), Product (Blister Packs, Plastic Bottles, Containers, Closures, Prefillable Syringes, Vials and Ampoules, Closures, Containers), and Country.
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The Latin American Pharmaceuitical Market has market is expected to register a CAGR of 6.80% during the forecast period (2020 - 2025). Pharmaceutical packaging are basically packaging products that are made using compatible materials, for transfer and storage of drug. Based on the nature of the drug, packaging products are chosen from a range of material types and product types, to provide protection, identification, and ensure the integrity of the enclosed drug product.
Latin America is emerging as the major market for the pharmaceutical packaging industry with high growth economies and rapid urbanization. The increasing number of elderly people is also one of the factors augmenting the trend as they require constant medical attention. With the overall pharmaceutical manufacturing gaining traction, packaging vendors have the opportunity totap the vast potential of this region.
Increased foreign investment, growth in local manufacturing, and rising product development are strengthening the regional packaging industry. Brazil, Argentina, Mexico, and Colombia are expected to be some of the significant markets for pharmaceutical packaging over the forecast period.
The growing drugs consumption in the region and low manufacturing cost, due to supportive government policies, are also motivating many foreign nations, especially India, the United States, and Europe, to increase their investment in the region. For instance, Alkem Laboratories is branching out into Latin America, helping the firm to generate USD 259 million in consolidated revenues from international markets.
Also, the increasing regional pharmaceutical production will also motivate many local vendors to invest in the pharmaceutical packaging market. With the substantial growth of domestic pharmaceutical manufacturing, many foreign packaging firms are also entering or expanding their scope in the region.
Furthermore, the spread of COVID-19 negatively impacted the market due to disruptions in supply chain, as a result of extended factory closures. Logistically, it has been difficult for bottles, blister packaging, prefillable syringes, vials, and ampoules manufacturers to provide to pharma companies.
Scope of the report
The pharmaceutical packaging market report studies different types of products, such as Blister Packs Plastic Bottles Prefillable Syringes Vials and Ampuls Closures Containers Other Products, among others. Plastic and glass, among others, are some of the materials used for the packaging of pharmaceutical products.
Paper and Paperboard
Vials and Ampuls
Rest of Latin America
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Key Market Trends
Increasing Domestic Pharmaceuticals Production
The growth of the pharmaceutical industry on a global level has also induced the demand for aseptic packaging among regional pharmaceutical companies. For instance, in May 2018, Gerresheimer expanded its production of pharmaceutical plastic packaging in Brazil by opening a new production plant focusing on aseptic packaging.
In February 2019, ACG Group, the global end-to-end manufacturing solutions provider, strengthened its presence in Brazil with the opening of a new capsules manufacturing plant in the country with an investment of USD 94 million. This is the company's second manufacturing facility in the region, following the acquisition of Nova Nordeplast in 2017.
Further, Brazil’s pharmaceutical market is now sixth in the world, which witnessed a growth rate of 9% in 2018. Also, with the growing pharmaceutical equipment imports, the Brazilian pharmaceutical market is expected to reach USD 28.9 billion in 2021. Several packaging companies identify Brazil as one of the most promising pharmaceutical markets in the world.
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Colombia is Expected to Witness Significant Growth
From basic raw materials to the final product, there is a vast majority of domestic components in glass production in Colombia. The country’s National Planning Department (DNP) estimates that imported components do not exceed 16% in glass production and 19% in the mirror and fiberglass production chain. This provides an opportunity for glass packaging vendors to innovate.
Several companies have identified Colombia as a regional production and distribution hub for pharmaceutical products. The country’s domestic consumer market and comprehensive healthcare system, along with health clusters and established clinical research companies make Colombia an attractive, high-quality investment destination.
In Colombia, many prominent projects, that started in 2018 in the medicinal and botanical sub-sector are also increasing the country's pharmaceutical production. For instance, Cronos Group is planning to establish manufacturing and cultivation operations for medicinal cannabis in the country. MYM Nutraceuticals has also announced a joint venture agreement to set up jointly owned manufacturing operations in the country.
In January 2020, Flora Growth Corp. announced to enter into a letter of intent (“LOI”) with Latin Canada Pharma Inc.to acquire a 100% equity interest in Grupo Farmaceutico Cronomed S.A.S. Cronomed currently sells its products in Colombia to large distribution network of pharmacies. In 2020, Cronomed plans on expanding its distribution to large supermarket chains, online outlets, and to the Colombian government.
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The pharmaceutical packaging market is fragmented, established companies are focusing on innovation and acquisition. Companies invest a large amount of their resources and money in R & D to innovate new products, meeting with the environment, and government compliance. Digital mass serialization is becoming a popular solution to combat counterfeiting. Some of the recent developments in the market are -
April 2019 - SCHOTT invested BRL 50 million in its pharmaceutical tubing production in Rio de Janeiro, as part of its global growth strategy. As the demand in pharmaceutical industries increases, SCHOTT is contributing to manufacture 100% inspection of glass tubing to detect possible defects.