LONDON--(BUSINESS WIRE)--The pharmaceutical contract packaging market is expected to grow by USD 7.07 billion during 2020-2024. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. We expect the impact to be significant in the first quarter but gradually lessen in subsequent quarters – with a limited impact on the full-year economic growth.
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Pharmaceutical companies spend a lot of money on R&D focusing on long term business goals. On average, a pharmaceutical company spends around 15%-20% of its revenue on R&D activities. For instance, in 2018, Biogen spent around 16%-17% of its revenue on R&D and F. Hoffmann La Roche spent about 19.49% of its revenue in R&D. The growing expenditure on R&D is increasing the demand for pharmaceutical contract packaging. Contract packaging helps pharmaceutical companies reduce their capital expenditure and operating costs associated with the purchase of packaging machinery, space for setting up packaging units, and labor costs. Also, it allows pharmaceutical companies to concentrate more on their core competencies. Therefore, the rising R&D spending in the pharmaceutical industry is expected to drive the growth of the global pharmaceutical contract market.
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As per Technavio, the opportunities due to patent expiration of drugs will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other significant trends and market drivers that will influence market growth over 2020-2024.
Pharmaceutical Contract Packaging Market: Opportunities Due to Patent Expiration Of Drugs
The pharmaceutical industry is expected to witness a significant number of patent expiration during the forecast period. This will result in the production of low-cost generic medicines of original branded drugs. This in turn, will compel pharmaceutical manufacturers to increase their investment in R&D activities to create new and innovative drugs, thereby fueling the demand for pharmaceutical contract packaging.
“Adoption of organic and inorganic growth strategies by vendors and the growing demand for sustainable packaging will further boost market growth during the forecast period,” says a senior analyst at Technavio.
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Pharmaceutical Contract Packaging Market: Segmentation Analysis
This market research report segments the pharmaceutical contract packaging market by Packaging (Plastic bottles, Blister packs, Pouches, Parenteral containers, and Pre-filled syringes) and Geography (North America, APAC, Europe, MEA, and South America).
The North America region led the pharmaceutical contract packaging market in 2019, followed by APAC, Europe, MEA, and South America respectively. During the forecast period, the North American region is expected to register the highest incremental growth due to factors such as increasing healthcare spending and rising aging population.
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Some of the key topics covered in the report include:
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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