A growing middle class, the patent cliff, and the next generation of blockbuster drugs.
The complex, innovative, and ever-changing pharmaceutical industry is projected to grow to $1.4 trillion globally by 2020, reaching 4.5 trillion doses of medicines.1 Packaging plays a crucial role in the industry, ensuring the safe distribution, identification, and tracking of all pharmaceuticals. Growth in pharmaceutical packaging—of course tied to trends in the pharmaceutical industry as a whole—will surpass $100 billion globally by 2019.2 The 2015 State of the Industry Report from PMMI, “The Association for Packaging and Processing Technologies,” describes several important trends in the pharmaceutical industry and predicts the impact those trends will have on the use of packaging.
Growth in the pharmaceutical sector is not uniform across the globe; developing regions, such as Asia/Pacific, Central America, and South America, will be the fastest-growing.2 Growth, as with most industries, is tied to economic development. As the middle class rises in developing regions, more people are able to afford access to drugs, in turn driving growth in packaging and packaging equipment for pharmaceuticals. Additionally, many global pharmaceutical companies have outsourced production to countries with lower labor costs, further stimulating growth in those emerging markets.
Still, developed economies—such as the United States—are likely to see benefits from an increase in demand from developing regions as well. This is supported by the findings of PMMI’s report, where U.S. pharmaceutical packaging machinery shipments are projected to grow the fastest among all packaging sectors through 2019. Trade plays a huge role in the pharmaceutical industry, with billions of dollars worth of pharmaceuticals being shipped across national borders each year. The nature of pharmaceutical products generally makes shipping relatively straightforward and inexpensive—as opposed to shipping more fragile, perishable or volatile products.
The Patent Cliff
The pharmaceutical industry includes a small number of large multinational corporations. These well-known firms fund the significant capital investment that must be made in research and development before any returns are seen. However, the pharmaceutical industry is becoming increasingly competitive as the patents for several blockbuster drugs expire and generics enter the market. While this has hurt total revenue for the industry, it has increased the number of products entering the market and therefore increased the different types and amounts of packaging being utilized.
The Product Pipeline
To combat the patent pipeline going dry, the pharmaceutical industry has focused efforts on the next generation of blockbuster drugs in their product pipeline. In fact, the US Food and Drug Administration (FDA) approved 41 novel new drugs in 2014, representing the highest number in the past 18 years and the second highest on record. New drug launches are soon to follow and are expected to bolster growth in packaging and packaging machinery.
Keeping Up With the Latest
The pharmaceutical industry is one of the fastest changing markets in the world, as it is also typically one of the most open to adopting new processes and technologies. To keep up with the most recent trends, pharmaceutical manufacturers can turn to resources from PMMI. Professionals can find a host of reports covering the latest on the industry, including the 2015 State of the Industry report, at pmmi.org/research. PMMI also hosts Pharma EXPO 2016 (November 6-9; McCormick Place, Chicago, Illinois), co-located with PACK EXPO International. The co-located shows will serve as the largest resource for packaging and processing innovation in North America and will provide a space where pharmaceutical manufacturers can network with experts, peers, and suppliers. The shows combined will bring together over 2,300 suppliers to showcase a wide range of processing and packaging solutions to 50,000 attendees in 1.2 million net square feet of exhibit space.
- Global Medicines Use in 2020: Outlook and Implications. IMS Institute. Web. 1 Dec. 2015.
- World Pharmaceutical Packaging – Demand and Sales Forecasts, Market Share, Market Size, Market Leaders. Freedonia. Web. 1 Dec. 2015.
PMMI, The Association for Packaging and Processing Technologies, represents the voice of more than 700 North American manufacturers of equipment, components, and materials for processing and packaging. We work to advance a variety of industries by connecting consumer goods companies with manufacturing solutions through the world class PACK EXPO portfolio of trade shows, leading trade media and a wide range of resources to empower our members. The PACK EXPO trade shows unite the world of processing and packaging to advance the industries they serve: PACK EXPO International, PACK EXPO Las Vegas, Pharma EXPO, PACK EXPO East, EXPO PACK México, EXPO PACK Guadalajara and ProFood Tech, launching in April 2017. PMMI Media Group connects manufacturers to the latest solutions, trends and innovations in processing and packaging year-round through brands including Packaging World, Automation World, Healthcare Packaging, Contract Packaging and Packaging + Processing OEM. PMMI Business Drivers assist members in pursuing operational excellence through workforce development initiatives, deliver actionable business intelligence on economic, market and industry trends to support members’ growth strategies, and actively connect the supply chain throughout the year. Learn more at PACKEXPO.com, PMMIMediaGroup.com, and PMMI.org.
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Filed Under: Drug Discovery