The India pharmaceutical packaging market is expected to grow at a CAGR of 5% over the forecast period 2020 to 2025. The growing population, rising health awareness, increasing life expectancy can be attributed to the growth of the pharmaceuticals packaging industry. Moreover, growing awareness of environmental issues due to traditional packaging material and the adoption of new regulatory standards for packaging recycling is also driving the pharmaceutical packaging industry in India.
- India is the second most populated country with 1.34 billion people and is the third-largest economy. Despite significant improvements in healthcare in the past years, the number of chronic disease cases is surging at a rapid pace. According to the WHO report, over 20% of the country's population suffers from at least one of the non-communicable diseases or chronic diseases, such as cancer, heart ailments, respiratory diseases, and diabetes, that are estimated to cost India USD 6.2 trillion during the period 2012-2030. Moreover, it reflected that India lost USD 237 billion from 2005 to 2015 due to diabetes, heart disease, and stroke. To prevent economic burden in the coming years, most of the pharmaceutical companies are researching and developing a novel vaccine that would drive the growth of the pharmaceutical packaging market in India.
- Further, the Indian government is providing free health coverage to the poor people with the help of national programs as every year, more than six crore people are pushed into poverty because of medical expenses. For instance, Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) is a scheme of the National Health Policy that aims to provide free health coverage to the bottom 40% poor and vulnerable population. It was launched in September 2018, and till February 2020, more than 12 crore e-cards have been generated, and over 86 lakh people have taken benefit under the scheme. As now more people can opt the medical assistance, the manufacturing of drugs is expected to augment the packaging industry in the future.
Key Market Trends
Indian Pharmaceutical Exports is Expected to Hold Significant Market
- India is the third-largest pharmaceuticals in terms of volume and thirteenth most significant in terms of value as it has a large raw material base and availability of a skilled workforce. According to the India Brand Equity Foundation, India's pharmaceutical export stood at USD 19.13 billion in 2018-2019, reached USD 13.69 billion in 2019-2020 (till January 2020) and is expected to grow by 30% to reach USD 20 billion by the end of 2020.
- The country has one of the lowest manufacturing costs in the world, more economical than that of the USA and almost half of Europe, it is the largest supplier of generic medicines in the world (20% to 22%of global export volume). It has fueled the research and development of efficient packing solutions for the pharmaceutical sector that substantially prevents contamination, provides drug safety, and convenience of delivery and handling.
- Moreover, India imports 70% of APIs from China and to safeguard the country, on March 3rd, 2020, India has restricted the export of 26 active pharmaceutical ingredients (API) and medicines due to the impact of coronavirus COVID-19 in China, that accounts 10% of all exports from the country. This has caused a panic in European countries as 26% of the European formulations are controlled by Indian APIs. But the Indian government has partly lifted the restriction to export for two drugs, hydroxychloroquine (HCQ), an anti-malarial drug considered suitable for the treatment of COVID-19, and paracetamol. This has again increased the demand for better pharmaceutical secondary and tertiary packaging market in India.
Plastic Packaging Will Experience Significant Growth
- Plastic bottles used for pharma packaging are made of a variety of plastic such as polyvinyl chloride, polyethylene, polypropylene, and polystyrene. It is a clear, strong, and lightweight plastic that is also used for storing and selling packaged products across the industry, such as drinking water, carbonated soft drinks, and soda, etc. They are mostly used as primary and secondary packaging material.
- Pharmaceutical companies are relying more on packaging and labeling as media to promote and protect their products in the increasing counterfeit market and to meet the new safety regulations. Plastics packaging has gained popularity due to its properties such as barrier against moisture, high dimensional stability, high impact strength, resistance to strain, low water absorption, transparency, resistance to heat and flame, etc.
- Polyvinyl chloride and PVDC (polyvinylidene chloride) are mostly used in pharmaceuticals as primary packaging materials that protect the pharmaceutical products against oxygen and odor, moisture, water vapor transmission, contamination, and bacteria. It makes both PVC and PVDC the material of choice for blister packaging. PVC is the third most widely produced synthetic plastic polymer used across the globe as it has excellent organoleptic properties, which means it does not affect the taste of the packaged food or medicine. PVC mono films protect against contamination by helping to prevent the spread of germs during manufacture, distribution, and display and are sunlight and UV rays resistant.
The India pharmaceutical packaging market is fragmented and is dominated by a few major players like West Pharmaceutical Packaging India Pvt. Ltd., Huhtamaki PPL Ltd, SGD Pharma India Ltd, Amcor Flexibles India Pvt Ltd, and Uflex Limited. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
- January 2020 - Huhtamaki PPL Ltd had completed the acquisition of Mohan Mutha Polytech Private limited's flexible packaging business. The acquisition would allow Huhtamaki to speed up its growth in India by improving its capacity to serve customers in South India.
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