Pharmaceutical Packaging Equipment Market Expected to Reach $15.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Pharmaceutical Packaging Equipment Market," The pharmaceutical packaging equipment market size was valued at $7.6 billion in 2022, and is estimated to reach $15.2 billion by 2032, growing at a CAGR of 7.1% from 2023 to 2032.

Pharmaceutical packaging equipment is machinery used to enclose and protect products by encasing them in a container for sale, distribution, shipping, storage, and usage. It completes a process that is an essential part of marketing and presents the proper image and design of a product.

The pharmaceutical packaging equipment market trends that drive the growth of the market are advancements in pharmaceutical packaging equipment instruments and the rise in the adoption of packaging equipment in the pharmaceutical industry, and contract manufacturing industry. In addition, regulatory bodies worldwide impose strict guidelines and quality standards for pharmaceutical packaging to ensure product safety, integrity, and compliance. Manufacturers invest in advanced packaging equipment to meet these regulatory requirements, which drive growth during the pharmaceutical packaging equipment market forecast.

Further, patient safety is a top priority in the pharmaceutical industry. Packaging equipment ensures proper dosing, tamper-evident features, and contamination control contributes to enhanced patient safety, which further contributes to the growth of the market. Moreover, the globalization of pharmaceutical manufacturing has led to increased competition and the need for cost-effective, efficient packaging solutions. Thus, the increase in investment by companies in advanced equipment to remain competitive in the global market further fuels the growth during the pharmaceutical packaging equipment market analysis. 

Furthermore, the increase in the adoption of strategies by key players such as product launches, partnerships, and acquisitions to expand their product portfolio further drives the pharmaceutical packaging equipment market size. For instance, in July 2023, IMA completed the closing for the acquisition of 60% of Phoenix Italia S.r.l. and 100% of its subsidiary Phoenix Tech S.r.l. Phoenix Italia specializes in the production of print & apply label applicators and modular labelers for self-adhesive labels for secondary and end-of-line packaging. In addition, in November 2021, Syntegon entered a strategic partnership with Bayer for the development of new continuous manufacturing processes for oral solid dosage (OSD) forms. Moreover, in March 2021, Syntegon expanded its portfolio to produce parenteral pharmaceuticals.

Further, technological advancements, such as automation, robotics, and smart packaging solutions, drive the adoption of new and more efficient pharmaceutical packaging equipment. Automation improves production efficiency, reduces errors, and increases overall output.

By machine type, the market is segregated into filling machines, form, fill and seal machines, cartoning machines, palletizing machines, labeling machines, and others. The filling machines segment accounted for largest pharmaceutical packaging equipment market share in terms of revenue in 2022. This is attributed to technological advancements in filling equipment that contribute to improved efficiency, flexibility, and adaptability. Innovations such as smart sensors, data analytics, and real-time monitoring enhance the overall performance of filling machines.

On the other hand, the others segment is expected to register the fastest CAGR during the forecast period. This is attributed to the rising concern about counterfeit drugs in the pharmaceutical supply chain. Serialization helps in authenticating products, reducing the risk of counterfeit medicines, and protecting patients from substandard or falsified drugs.

On the basis of formulation type, the pharmaceutical packaging equipment industry is classified into liquid packaging equipment, solid packaging equipment, semi-solid packaging equipment, and others. The liquid packaging equipment segment accounted for the largest pharmaceutical packaging equipment market share in terms of revenue in 2022, owing to an increase in demand for liquid packaging equipment as liquid pharmaceuticals are often sensitive to external factors, such as light, oxygen, and temperature. Liquid packaging equipment that ensures the quality and integrity of pharmaceutical products by minimizing contamination and maintaining product stability is essential.

However, the semi-solid packaging equipment segment is expected to register fastest CAGR during the forecast period, owing to an increase in the manufacturing of a variety of semi-solid formulations, such as creams, ointments, and gels, to address different medical conditions, which increases the demand for packaging equipment which adaptable to handle the diverse characteristics of these formulations.

Based on automation systems, the market is segmented into manual packaging equipment, semi-automatic packaging equipment, and automatic packaging equipment. The semi-automatic packaging equipment segment accounted for largest share in terms of revenue in 2022 owing to cost-effectiveness of the semi-automatic machines that offers a balance between automation and flexibility.

However, the automatic segment is projected to manifest the highest CAGR from 2023 to 2032. This is attributed to the various advantages of automation packaging equipment such as efficiency, consistent product quality, cost effectiveness, enhanced productivity, and flexibility.

Based on end user, the pharmaceutical packaging equipment industry is segmented into pharmaceutical companies, and contract manufacturing companies. The pharmaceutical companies segment accounted for largest share in 2022, owing to rise in investment in packaging equipment by pharmaceutical companies to prioritize product safety, regulatory compliance, patient adherence, brand differentiation, cost efficiency, innovation, sustainability, and counterfeiting prevention. 

However, the contract manufacturing companies segment is anticipated to register fastest CAGR during the forecast period. This is attributed to the increase in adoption of packaging equipment that incorporates modern technologies, such as automation, robotics, and smart packaging features by contract manufacturing companies further drive the growth of the market.

Region wise, Asia-Pacific dominated the global pharmaceutical packaging equipment market in terms of revenue in 2022 and is expected to register the fastest CAGR during the forecast period. This is attributed to the rise in healthcare expenditure, coupled with government initiatives to improve healthcare facilities by increase in medication manufacturing, has augmented the adoption of pharmaceutical packaging equipment in the region.

In addition, the rise in prevalence of chronic diseases in the Asia-Pacific region, such as cancer, cardiovascular disorders, and diabetes, necessitates advanced pharmaceutical packaging equipment for packaging of medication for distribution. The growing population and rising healthcare awareness have resulted in increased healthcare spending. This has contributed to the demand for high-quality pharmaceuticals, driving the need for advanced packaging equipment.

Key Findings of the Study

• By machine type, the filling machines segment dominated the pharmaceutical packaging equipment market size in terms of revenue in 2022. However, the others segment is anticipated to register fastest CAGR during the forecast period. 
• By formulation type, the liquid packaging equipment segment accounted for the largest share in terms of revenue in 2022. On the other hand, the semi-solid packaging equipment segment is anticipated to register fastest CAGR during the forecast period. 
• By automation type, the semi-automatic packaging equipment segment accounted for the largest share in terms of revenue in 2022. On the other hand, the automatic packaging equipment segment is anticipated to register fastest CAGR during the forecast period. 
• By end user, the pharmaceutical companies segment dominated the market in terms of revenue in 2022. However, contract manufacturing companies segment is anticipated to register fastest CAGR during the forecast period.
• Region wise, Asia-pacific generated the largest revenue in 2022 and  is anticipated to grow at the fastest CAGR during the forecast period.