By Paul Dupont, Director, Business Development, Ropack
The expanding global pharmaceutical industry projects a 4%-6% annual growth and forecasts that it will reach a value of $1T by 2014. The figures are impressive, yet they place significant pressure on pharmas to bring to market innovative drugs and novel drug delivery systems in order to be part of the growth. Faced with that pressure, many pharmas are streamlining their supply chain to focus on their core competencies and bring products to market faster. As a result, many pharmas are outsourcing non-central components, and more than half of them have budgeted to increase outsourcing in 2012.
The pharmaceutical packaging industry, as a provider of contract services, is not surprisingly experiencing a corresponding market growth. As with the pharma industry, packagers are challenged to grow through innovation, by providing formats which satisfy pharma's expectation of enhanced drug integrity, safety and stability while delivering the convenience demanded by today's consumer.
Valued at $47B in 2010, the global pharmaceutical packaging market is forecast to increase even more rapidly than the pharmaceutical market, at a compound annual growth rate (CAGR) of 7.3%, reaching $78B by 2017. Such growth is a clear indicator of the significant role pharmaceutical packaging will play in the pharmaceutical industry's quest for growth through innovation. Beyond that, pharmas look to packagers to improve bottom lines and brand distinction.