According to Future Market Insights (FMI), the demand for pharmaceutical caps and closures is expected to rise considerably, enabling the market to surpass US$ 2.27 Bn in valuation by the end of 2021.
Continuous advancements in research and development for drug supplements is a key factor speeding up packaging innovations. Advanced technologies used in packaging primarily focus on ensuring stability of drugs during storage, shipment, and delivery.
In the coming years, the rising cases of chronic disease will support the expansion of the market. The role of smart packaging for medication is increasing to offer greater precision of administered medication, which directly affects patient compliance. This will influence the adoption of cost-effective yet advanced packaging solutions among manufacturers.
The pharmaceutical caps and closures market will therefore register adoption of digital manufacturing. This technology offers high quality caps and closure, with minimal time and cost requirements.
Focus on reducing product damage by user has encouraged inventors to introduce multi-dose delivery caps. The product’s user can remove fluid from the vial by interfacing a needle to the cap. The smart cap ensures that leftover fluid is clean.
In the past few years, environmental awareness among consumers has increased the need for sustainable packaging. In pharmaceutical packaging, the primary concern is product stability.
The demand for reducing the risk of cross contamination of product drives the use of biodegradable material in caps and closures. Also, waste product management is a key concern. Environmentally-friendly material produce lesser waste and are also recyclable.
Despite this, plastics remain the preferred material for manufacturing caps and closures. Plastic use in the market is expected to rise at 6.4% as producers aim for greater flexibility.
Key Takeaways from Pharmaceutical caps and closures Services Market Study
- Despite restricted growth amid COVID-19, the demand for pharmaceutical caps and closures is expected to rise at nearly 5% CAGR in 2021.
- Increasing focus on light weight packaging is driving a transition towards resin-based packaging material.
- The U.K. and Germany are leading markets in Europe, accounting for more than 26% and 17% of the Europe market respectively in 2021
- The U.S. will account for a dominant share of 89% in the North America market through the forecast period.
- China is the largest and fastest growing market in East Asia, exhibiting 8% CAGR through 2031.
“Increasing demand for smart and safe packaging solutions for pharmaceuticals, besides favorable reimbursement policies will offer lucrative growth opportunities for pharmaceutical caps and closure manufacturers through the assessment period in 2031,” says the FMI analyst.
Increase in Funding for Research Activities Offers Growth Opportunities
Leading manufacturers in the pharmaceutical caps and closures market are strengthening their market position through collaboration with various other organizations. Governments in developed and developing countries are actively taking initiatives to encourage research pharmaceutical packaging products.
For instance, Voltaren “No Mess” applicator from GSK Consumer Health was co-developed with Neopac and Nypro Healthcare.
Big drug producers are expected to benefit from the globalization of labor forces, that is, employment of skilled local labor at cheaper rates to derive larger cost savings. Furthermore, this will create room for research and development (R&D) investments.
As per data from EFPIA and PhRMA, annual pharmaceutical (R&D) expenditures increased at 2.5% p.a. in Europe as compared to 3.3% p.a. in the U.S. over the latest measurable period 2016-2020. This will also create opportunities for the expansion of the market.
Who is winning?
The global market is set to expand due to the rising prevalence of chronic diseases. Leading organizations within the market are set to focus on research and development to offer an early and precise diagnosis of the ailment, besides offering effective patient care.
Some of the leading players in the pharmaceutical caps and closures market include but are not limited to Berry Global Inc., Amcor Plc, Aptar Inc., Closure Systems International Inc., O.Berk Company LLC, Bericap GmbH and Co KG, UNITED CAPS, CL Smith Company, Georg MENSHEN GmbH & Co. KG, WestRock Company, West Pharmaceutical Services Inc., Drug Plastics and Glass Co Inc., Gerresheimer AG, DWK Life Sciences GmbH, Parekhplast India Limited, and Parshva Exim Limited.