FMI’ Analyst view: “Innovative Packaging for Lifesaving Solutions: Plastic Healthcare’s Eco-Advancements”
The plastic healthcare packaging market is estimated to be valued at US$ 24,768.7 million in 2023 to reach an expected valuation of US$ 40,306.8 million by 2033. The demand for plastic healthcare packaging is projected to record a CAGR of 5% during the forecast period.
The healthcare industry is rapidly growing, and with it, the demand for high-quality packaging solutions. Plastic healthcare packaging is increasingly being preferred by manufacturers due to its durability, affordability, and versatility. The rise in demand for medical supplies and medicines has boosted the growth of the plastic healthcare packaging market.
Manufacturers are focusing on developing innovative packaging solutions to meet the diverse needs of their customers. They are experimenting with various shapes, colors, and designs to attract consumers and improve product visibility. Packaging solutions with advanced features, such as tamper-evident seals and child-resistant closures, are becoming popular among consumers.
Rising Demand for Child-Resistant Packaging
As the global population ages, the demand for medication and other healthcare products is increasing, leading to a growing demand for child-resistant packaging. This is especially important for products that pose a risk to children, such as medications and medical devices. Plastic healthcare packaging manufacturers are investing in new technologies to develop child-resistant packaging that is safe, durable, and easy to use.
Technological advancements in packaging design are helping to improve the functionality and safety of plastic healthcare packaging. For example, smart packaging solutions can improve product shelf life, reduce waste, and help consumers make informed purchasing decisions. In addition, advanced packaging design technologies are enabling manufacturers to produce lightweight, cost-effective, and easy-to-use packaging solutions that meet the needs of the healthcare industry.
Challenges Faced by the Plastic Healthcare Packaging Manufacturers
Despite the growth of the plastic healthcare packaging market, several challenges remain that players must overcome to continue their success. One of the major challenges is the increasing pressure from environmental groups and consumers for more sustainable packaging solutions. Plastic packaging has a significant environmental impact, and as consumers become more environmentally conscious, the demand for more sustainable packaging options is increasing.
Another challenge faced by players in the plastic healthcare packaging market is the need for specialized materials and designs to accommodate the specific requirements of different healthcare products. The materials used in healthcare packaging must be safe, effective, and meet strict regulatory standards. This requires a high level of expertise and investment, which can be a barrier to entry into the market for some players.
Companies are looking for ways to minimize packaging waste and increase efficiency, which is putting pressure on players to improve their operations and reduce the impact of their packaging on the environment. Companies must find ways to balance these concerns with the need to protect and preserve their healthcare products, making it a challenging market to navigate.
Why is the United States Estimated to be a Highly Lucrative Plastic Healthcare Packaging Market?
The United States plastic healthcare packaging industry was estimated to be worth US$ 4,648.1 million in 2022. The United States is currently the most attractive market, according to FMI. The United States is estimated to hold a market share of 19.5% in North America and is estimated to have a year-on-year growth rate of 5% in 2023.
The United States remains one of the leading manufacturers of pharmaceutical drugs, directly increasing the demand for safe and high-quality healthcare packaging.
According to the Organization for Economic Co-operation and Development (OECD), the United States is globally the country with the highest per capita healthcare spending, totaling US$ 10,966 Mn in the year 2019. The United States also spends more per person on health care and medicines than any other country.
Why is the Demand for Plastic Healthcare Packaging Increasing across China?
China plastic healthcare packaging industry is anticipated to rise at a CAGR of 8.8% during the forecast period. The China plastic healthcare packaging industry is estimated to be worth US$ 3,125.7 million in 2022. As per PlasticsEurope, a European trade association, world plastic production was nearly 368 million tons in 2019 and China accounted for more than 1/3rd of the volume share.
Amid the COVID pandemic, the government in China has boosted the production of plastic healthcare packaging solutions. The availability of plastic raw materials is propelling growth opportunities for the key players of the target market.
China is one of Asia’s largest contributors to the production of healthcare products. The enormous market continues to grow rapidly driven by economic growth, expenditure, and an aging population owing to investments in basic health treatments. The country is projected to grow rapidly due to the low cost of raw materials and labor charges.
Why are Market Players Willing to Invest in India?
India plastic healthcare packaging industry was worth US$ 1,794.4 million in 2022. Increasing government initiatives and awareness regarding personal health and hygiene are key factors supporting demand. The country is expected to witness prominent growth of 8.6% during the assessment period.
According to FMI, the Indian market is growing steadily due to the presence of several small-and-large scale companies that are ready to widen their reach for the production of plastic healthcare packaging.
This growth is attributable to economic development, low cost of labor, and deployment. Many key players are looking to invest in multiple profit-earning opportunities in the emerging economies of India and China.
Why are Manufacturers Eyeing Germany to consolidate their Market Position?
In 2022, Germany accounted for a 4.6% share of the global plastic healthcare packaging industry. The German plastic healthcare packaging industry is estimated to be worth US$ 1,083.9 million in 2022.
The Federal Statistical Office of Germany has reported that healthcare spending rose by 4% in 2018 from 2017 in Germany. In 2018, the country’s healthcare expenditure accounted for 11.7% of the GDP. Moreover, the country’s projected healthcare spending exceeds US$ 505 Bn in 2020, creating a conducive environment for the expansion of the plastic healthcare packaging industry.
Demand for plastic healthcare packaging in Germany is expected to rise at nearly 3.8% CAGR over the forecast period. Germany is well known for its technology-driven industry and its developments in the healthcare sector owing to the stringent government rules and initiatives. The rise in several factories of medical devices and high consumer attractiveness towards healthcare is anticipated to cover over 4.6% of the Europe market by the year 2033.
Companies operating in the plastic healthcare packaging industry are aiming for strategic collaborations and partnerships with other manufacturers to expand their product portfolio, in addition to investing in capacity expansions.
· In April 2021, Amcor plc launched a recyclable polyethylene-based thermoform blister packaging format. It is intended to meet the high standards of regulated pharmaceutical packaging that creates a sustainable alternative.
· In January 2021, Gerresheimer planned to build a second production plant near Mumbai, India to meet plastic healthcare packaging requirements worldwide. The product portfolio includes plastic containers, plastic ampoules, plastic bottles, and more in a variety of designs.
· In December 2020, Airnov Healthcare Packaging introduced OXYNOV. The packaging products are applicable for high protective barrier bottles required for pharmaceutical, nutraceutical, and probiotic products.