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Increasing Production Capacities With Expectation of a Surge in Pharmaceutical Packaging Demand
The global pharmaceutical packaging industry is rapidly evolving market. The current scenario in the global pharmaceutical packaging market is dominated by number of major players that include Amcor Ltd. (Australia), Rexam PLC (U.K.), Gerresheimer AG (Germany), MeadWestvaco Corporation (U.S.), Schott AG (Germany), and so on. Most of these companies are leaders in the production of plastic and glass pharmaceutical packaging along with other products. These companies are focused on investment to establish new production facilities and capacity expansion of pharmaceutical packaging to achieve economies of scale, product innovation, and expansion in order to capture and improve market share.
Market players are concentrating on increasing their production capacities, with expectation of a surge in pharmaceutical packaging demand from pharmaceutical industry; especially, from Asia and South America. Companies are focusing their investments to set up new facilities mainly in BRIC countries (i.e. Brazil, Russia, India, and China) and increasing global presence through acquisition of the local regional players to address the growing demand in emerging markets.
In the recent past, expansions have dominated the strategies adopted by pharmaceutical packaging players globally. The major market players have invested large amounts in emerging countries to enter and enhance their market position through capacity expansion and new plant establishment. For instance, Klockner Pentaplast Group (Germany) under its expansion growth strategy has invested approximately $60.0 million (€45.6 million) at Cotia, Brazil and Suzhou, China.
Acquisition is the second most preferred strategy among the pharmaceutical packaging market players. The strategy emphasized the fact that leading players have acquired local pharmaceutical packaging manufacturers in different geographies in order to obtain competitive advantage through portfolio synergies. A number of players who have strong presence in one market not necessarily have the same presence in the other geographies, such as Gerresheimer AG (Germany), which has very strong presence in European and North American market but not that good in the emerging markets such as BRIC region. In order to enhance its market share in the emerging markets, Gerresheimer adopted acquisition as a strategy. In 2012, it acquired Triveni (India), a pharmaceutical plastic packaging manufacturer to increase its presence in India.
Further, the companies have also been focusing on new technologies for new product launches to meet the modern emerging needs. In the period 2010 to 2013, new product launches contributed 19% in global pharmaceutical packaging market strategies. The leading market players interestingly invested in their R&D facilities to develop new products to meet their customers’ needs. In developed countries, the demand for child resistant packaging, senior friendly packaging, and self-medication at home is continuously growing drug delivery market. In order to meet these demands, the market players such as Aptar Pharma (U.S.), RPC Formatec (U.K.), Becton, Dickinson and MeadWestvaco Corp (U.S.) introduced new products at regular interval of time in recent past. These new launches have helped the companies to increase their market share in global pharmaceutical packaging market.
The market leaders have adopted different strategies for the developed and developing countries. In developed countries, the demand for advanced drug delivery systems such as prefilled syringes continues to grow further; whereas, in developing countries the traditional drug delivery systems such as blister packs and bottles has shown positive response. The strategy of the market players is focused on developing technology, expanding production capacities and acquisition of local players in new geographies through investment. However, there are different challenges associated with each of these markets. While most of these markets are the countries with diversified cultures, languages, and lifestyles; these are also battling with adversities such as poverty in certain regions, lack of proper infrastructure, low literacy rate, unorganized healthcare systems. This is a major challenge for the pharmaceutical industry as there cannot be a single solution to fit all while approaching this emerging business.
Pharmaceutical Packaging Market by Packaging Type (Plastic bottles, Blister packs, Caps & Closures, Ampoules, Vials and Others) Raw Material (Plastics, Paper & Paperboard, Glass, Aluminum foils), and Drug Delivery Type – Global Trends & Forecast to 2018
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