Here is the guide to entrepreneurs and other investors planning to foray into the pharmaceutical contract packaging market.
FREMONT, CA: Environment is of significant concern when it comes to packaging solutions in the pharmaceutical industry. This growing demand for sustainable packaging drives market growth. The plastic films and plastic material derived from petroleum feedstock are the packaging materials usually used by pharmaceutical manufacturers. As years pass by, their adverse effects on the environment have driven the vendors to provide eco-friendly packaging to their consumers. According to MarketWatch, it is predicted that the pharmaceutical contract packaging market will register a CAGR of over 17% by 2023, including all the major technologies that are currently being implemented in the global pharmaceutical contract packaging industry. Market values are based on the end-user who may be public companies or private individuals, including commercial, military, and others from where they receive work orders based on the manufacturing of pharmaceutical contract packaging systems.
To face the increased demand for contract packaging, many pharmaceutical companies have started investing in R&D to be successful in their businesses in the long term. In this regard, pharmaceutical manufacturers are expected to bring more pharmaceutical products in the market. Thus, factors such as the rising R&D spending in the pharmaceutical industry and the growing demand for sustainable packaging will provide considerable growth opportunities to pharmaceutical contract packaging manufacturers. Further, by adopting contract packaging, the pharmaceutical manufacturers can reduce their capital expenditure and operating cost associated with the purchase of packaging machinery, space for setting up packaging units, and labor costs for the same.
The risk of counterfeit is growing in the supply chain of pharmaceutical products such that he counterfeit of pharmaceutical products can be a potential threat to consumers' lives. It can also financially affect pharmaceutical vendors and contract packaging vendors. Besides, the after-effects of counterfeit drugs can adversely affect the reputation of the brand.
The pharmaceutical contract packaging market is fragmented, and with the presence of several companies, including FedEx, TricorBraun, and Sharp, the competition appears to be quite intense. Many companies have realized that taking advantage of the still-emerging pharmaceutical markets is an effective method of cutting down expenses.
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