Market Trends of US Pharmaceutical Contract Packaging Industry
This section covers the major market trends shaping the US Pharmaceutical Contract Packaging Market according to our research experts:
Increasing Outsourcing Volumes by Major Pharmaceutical Companies
- With cost containment a priority, especially in the era of the COVID-19 pandemic and the threat of other previously unimagined business disruptions, the race to contract packaging of life-saving drugs for trusted service providers is accelerating.
- Also, the development and manufacturing of medications is a capital-intensive business. With margins shrinking for generics, manufacturers are reducing the scale of their investments within this category. Outsourcing the packaging mechanism enables companies to work with packaging experts while reducing the packaging expenses of the drugs.
- Owing to the increasing demand in the market, in October 2021, Tjoapack, a Netherlands-based contract packaging organization serving the pharmaceutical industry, acquired US-based Pharma Packaging Solutions ("PPS"), a leading healthcare packaging services business based in Clinton, TN. Tjoapack's acquisition of PPS creates an opportunity to build a new global leader in contract packaging and supply chain services for the pharmaceutical market. The acquisition supports Tjoapack's growth strategy and is indicative of our commitment to customers
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Blister Packs to Hold the Highest Market Share
- Blister packaging is mostly used to provide barrier protection from moisture, gas, light, and temperature and longer shelf life. Blister packaging helps retain product integrity as drugs that are pre-packed in blisters are shielded from adverse conditions. Blister packs are mainly used for packaging pharmaceutical products, such as OTC drugs and medicines (capsules), and small medical devices.
- The growing demand for the pharmaceutical industry is one of the primary drivers of the blister packaging demand in the North American region. The implementation of FDA regulations that require that all prescribed pharmaceuticals that are dispensed in hospitals and nursing homes are to be packaged in unit-dose formats, including barcodes to reduce dispensing errors, has also increased the sales of blister packs over the past few years.
- In the United States, blister packaging is used for products that are not behind the prescription counter, such as allergy medication or chewing gum. The US retailers and consumers are catching up with the rest of the world when it comes to packaging prescribed medications. The demand for blister packaging is increasing in the country.
- The US pharmaceutical market is among the world's most important national markets. The United States alone holds over 45% of the global pharmaceutical market. It is expected that almost USD 60 billion is spent annually on pharmaceutical R&D purposes in the country.
- Pharmaceutical companies are stringent about their policies regarding drug safety and effectiveness of drug packaging, and this, in turn, is leading to an increase in pharmaceutical packaging such as blister packs, thereby, driving the market's growth positively.
