Pharmaceutical Cold Chain Packaging Market

2021 Analysis and Review: Pharmaceutical Cold Chain Packaging Market by Product - Small Boxes, Pallets, and Large Sized Pallet Containers for 2021-2031

Pharmaceutical Cold Chain Packaging Market Snapshot

Newly released data by Future Market Insights (FMI) projects the global pharmaceutical cold chain packaging market to register a CAGR of ~15%, to reach US$ 46.9 Bn by 2031.

As per the report, polymer will emerge as the top-choice for packaging material and it is expected to account for over 62.1% of the global market share in 2021. It also is expected to attract an incremental opportunity of US$ 22.3 Bn through 2031.

The demand in the U.S. is expected to increase at a robust CAGR of 12.3%, sealing the country’s dominance in the North America pharmaceutical cold chain packaging market.

Key Points Covered in the Pharmaceutical Cold Chain Packaging Market Survey

  • Market Estimates and Forecast 2015-2031
  • Key Drivers and Restraints Impacting Market Growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Pharmaceutical Cold Chain Packaging Market and How to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Pharmaceutical Cold Chain Packaging Market Outlook Compared to 2021-2031 Forecast

Future Market Insights has pegged the global pharmaceutical cold chain packaging market to expand at an impressive CAGR of 14.9% during 2021-2031, compared to 12.5% in 2015-2020. Growth registered in the market can be attributed to the increasing investment towards improved packaging solution to reduce the risk of loss or damage during shipment and transportation.

Pan American Health Organization lists the appropriate cold chain storage temperature for packaging of vaccines. Increasing adoption of cold chain packaging in healthcare, clinical research, vaccine packaging, and biopharma industry is shaping the market growth.

With sudden outbreak of COVID-19, the demand for pharmaceutical cold chain packaging increased and it will continue to rise through the forecast period. Technological advancements and focus towards improving the performance of packaging formats are expected to further shape the market dynamics over the forecast period.

How is Increasing Vaccine Packaging Affecting the Growth of Pharmaceutical Cold Chain Packaging Market?

Due to outbreak of COVID-19 extensive investment in clinical research was observed across the globe during FQ-20. After the roll out of COVID-19 antidote in 2021, demand in the pharmaceutical cold chain packaging market has remarkably increased.

According to the United States International Trade Commission, mRNA based formulas should be stored at 80 °C. Almost 5% to 20% of the vaccines are lost during transportation. To avoid this, focus on efficient packaging and storage has increased, which is expected to create opportunities for pharmaceutical cold chain packaging market expansion.

How is Increasing Adoption of Vacuum Insulated Panels Propelling the Market Growth?

Rising demand for better handling of temperature sensitive pharmaceutical products has resulted in increased research for advanced cold chain packaging insulation solutions such as VIP (vacuum insulated panels).

According to Sofrigam, vacuum insulated panels can provide packaging support of 7 to 10 days, or even 2 to 3 times more than many insulation materials.

VIP-based insulation offers various advantages compared to polyurethane and expanded polystyrene insulated shippers. Shippers implementing VIP are comparatively smaller and lighter in weight, reduces refrigerant requirement, provide wide temperature range, and consecutively reduces distribution costs.

Due to this wide-array of benefits, key players are increasing the adoption of VIP in cold chain packaging.

How will Technological Advancements Affect Pharmaceutical Cold Chain Packaging Market?

Real-time tracking, radio frequency identification (RFID) tagging, and adoption of cutting edge technologies are creating opportunities for market growth. Adoption of advanced technology such as internet of thinking (IoT), block-chain, advanced analytics, and integrated customer applications in pharmaceutical cold chain packaging is reshaping the market dynamics.

Cloud-based data management applications for better decision making, adhering to the regulatory norms and transparency are slowly becoming the new normal in the cold chain. Integration of digitalization and penetration of e-commerce platforms are further fueling the market growth.

Why are Manufacturers Shifting to Paper as Key Material in Pharmaceutical Cold Chain Packaging?

There is increasing pressure on pharmaceutical cold chain packaging producers to offer more sustainable solutions. Several attempts are made by packaging manufacturers to shift from polymer to eco-friendlier alternatives.

Several authorities and government bodies are compelling manufacturers to reduce their carbon footprint and move towards a sustainable packaging solutions. This is encouraging the adoption of paper in pharmaceutical cold chain packaging.

How is Outsourcing Shaping the Pharmaceutical Cold Chain Packaging Market?

Leading pharmaceutical and healthcare manufacturers are outsourcing their logistics and distribution functions. A majority of manufacturers are opting for raw material sourcing, distribution, freight, warehousing, shipping and logistics function to be outsourced to a vendor.

Hence, adoption of 3PL or third party logistics has increased among the pharmaceutical companies. Adoption of 3PL reduces shipping costs and results in distribution of revenue and maintains a simpler supply chain.

Many other third-parties such as insurance providers, logistics providers, wholesalers/distributors, and control agencies are involved in the pharmaceutical cold chain packaging market. Outsourcing is slowly bringing a revolution in the pharmaceutical cold chain packaging market. Thereby, boosting market growth.

What is the Impact of COVID-19 on the Pharmaceutical Cold Chain Packaging Market?

Following the outbreak of COVID-19 in the first quarter of 2020, demand for surgical kits, diagnostic products, and blood products skyrocketed. Although, restricted air travel and ground transportation negatively impacted the market, thanks to the roll out of COVID-19 vaccines, demand for injectable increased around the world.

With increasing demand across Germany, India, China, and the U.S., pharmaceutical cold chain packaging market is rapidly recovering and is expected to witness high growth through 2031.

Country-Wise Insights

Why is the U.S. Dominating the Pharmaceutical Cold Chain Packaging Market?

The U.S. is home to many leading pharmaceutical and healthcare organizations. It is also one of the leading markets for temperature-sensitive healthcare products, vaccine packaging and clinical research materials.

The U.S. also provides supportive business environment for growth with minimum market barriers. Due to the presence of leading pharmaceutical companies across the country, the pharmaceutical cold chain market is expected to witness boost during the forecast period.

Besides this, technological advancements and innovation in the field of cold chain packaging will aid the market growth. According to the U.S. International Trade Administration, a significant change was observed in pharmaceutical cold chain packaging market in recent years when the shipment mode was changed from air transportation to sea modes. The sole reason behind this transition was temperature difference that led to deterioration of pharmaceutical products.

This change is anticipated to influence the market growth across the country. As per Future Market Insights, the U.S. pharmaceutical cold chain packaging market is poised to expand at an exceptional CAGR of over 11.2% through 2031.

Why is Germany Considered a Highly Lucrative Market for Pharmaceutical Cold China Packaging?

According to Germany Trade and Invest (GTAI), Germany is the largest pharmaceutical market in Europe with 12.5% of total revenue invested in R&D in 2018. With increasing investment in research and development activities, Germany has emerged as a key producer of cutting-edge innovative products.

As per FMI, Germany accounts for the largest share in the Europe cold chain packaging market. Sales of pharmaceutical cold chain packaging market across Germany are expected to rise at nearly 10.9% CAGR during the forecast period.

Germany also represents Europe’s most populous country. With access to skilled labor and technological advancements in the country, the market is expected to witness impressive growth.

Why is India Considered a Lucrative Market in South Asia?

As per Future Market Insights, India is expected to be the most lucrative market across South Asia. Exhibiting growth at over 14.7% CAGR, India’s pharmaceutical cold chain packaging market will witness high growth during the projection period.

Despite the outbreak of COVID-19, the market for cold chain observed positive growth. Development in the cold chain process and better infrastructure across the country will improve the market growth.

Backed by the favorable government policies for its manufacturing and logistics industry, India is expected to attract leading pharmaceutical manufacturers for its significant gap in the logistics and delivery market.

Government of India is widely promoting cold chain packaging in the country, it has launched various schemes and subsidies for cold chains logistics in the country. Some of it are low interest loans from warehousing infrastructure fund (NABARD), 100% FDI through the automatic approval rule, etc.

Will China Lead the East Asia Pharmaceutical Cold Chain Packaging Market?

China is considered to be the Asian hub for manufacturing and supply-chain. The number of 3PLs or third party logistic companies have rapidly increased over the past five years, giving a boost to pharmaceutical cold chain packaging market.

Investors and pharmaceutical manufacturing companies are constantly eyeing the China market due to its large customer size, low cost of shipping and presence of a large vendor base. Consumer’s preference for better healthcare, safety, and pharmaceutical packaging is helping the cold chain market to improve in the country.

The China’s pharmaceutical cold chain packaging market will exhibit highest growth across East Asia, registering nearly 17.8% CAGR by 2031-end.

Category-Wise Insights

How will Demand for Large Sized Pallet Containers Improve the Sales?

Large sized pallet containers are heavy duty containers and can carry up to 2,000 lbs. of load. Also, these containers can be reused and recycled which makes them a sustainable packaging option. The market for large sized pallet containers is expected to expand at a CAGR of 16.6% during the forecast period.

Large sized pallet containers contributes nearly 55.5% of global revenue in 2021 and is expected to reach US$ 30.0 Bn by 2031.

Why are Manufacturers Preferring Passive Packaging over Active Packaging?

Passive packaging format is expected to reach a market value of US$ 8.0 Bn in 2021 and register growth at over 14.3% CAGR. Its sub segment multi-use or reusable packaging segment is projected to grow by 4.4x during the forecast period.

Adding data loggers to passive packaging helps in better monitoring of goods and will boost the sales of the market. Packaging and logistics sustainability is the primary reason for the growth of segment in the market.

How is Increasing Application in Pharmaceutical Industry Spurring Sales?

In terms of end-use, the market is segmented into diagnostic centers, clinical research organization, blood banks, vaccines packaging industry, pharmaceuticals and other end-use industries.

As per FMI, demand in the pharmaceutical industry is expected to reach over US$ 12.4 Bn in 2031. Demand for pharmaceutical cold chain packaging in vaccine packaging and logistics is expected to increase exponentially due to increasing demand following the outbreak of COVID-19 across the globe.

Which Application will Create Maximum Incremental Opportunity by 2031?

Vaccine packaging segment is expected to generate an opportunity of US$ 16.6 Bn by 2031. Increasing demand for vaccines due to COVID-19 is a major driver for the vaccine packaging market.

Competitive Landscape

Leading manufacturers in the pharmaceutical cold chain packaging market are involved in new product development, partnerships, and investment in advanced technology to reduce packaging prices and improve their market share.

  • In August 2021, Sonoco Thermosafe announced a partnership with Korean Air, one of the largest airline and carrier based in South Korea to lease the newest shipping container temperature controlled Pegasus ULD®.
  • In February 2021, Pelican Products started distributing temperature-controlled cases for COVID-19 vaccine transportation.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2015-2020

Market Analysis

US$ Million for Value, 000’ Units for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Brazil, Mexico, Argentina, Germany, Italy, France, U.K., Spain, BENELUX, Russia, Nordics, Russia, Poland, India, Thailand, Indonesia, Malaysia, China, Japan, South Korea, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa.

Key Segments Covered

Packaging Format,  Product, Material, Application, End Use, and Region

Key Companies Profiled

  • Sonoco ThermoSafe
  • Cold Chain Technologies
  • Sealed Air Corporation
  • Nordic Cold Chain Solutions
  • Cryopak
  • CSafe Global LLC
  • TemperPack Technologies, Inc.
  • Insulated Product Corp.
  • Global Cooling, Inc.
  • Envirotainer AB
  • va-Q-tec AG
  • EMBALL'ISO
  • Softbox Systems
  • Sofrigam SAS
  • DGP Intelsius LLC
  • Tempack Packaging Solutions SL
  • TOWER Cold Chain Solutions
  • Pelican BioThermal LLC
  • Blue Star Limited
  • BIOBASE Group
  • Andores New Energy Co., Ltd.
  • Haier Biomedical Co. Ltd.
  • Tamai Kasei Co., Ltd.
  • Dhruvraj Syndicate
  • Valor Industries
  • KODIAKOOLER
  • WoolCool Ltd.
  • Allwin Roto Plast

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current valuation of the pharmaceutical cold chain packaging market?

    The global pharmaceutical cold chain packaging market is expected to surpass US$ 11.7 Bn in 2021.

  • Which is the primary application of pharmaceutical cold chain packaging?

    Vaccine and diagnostics is expected to hold over 44.1% of the value market share in 2021.

  • Which region is expected to account for maximum share in pharmaceutical cold chain packaging market?

    East Asia is expected to dominate the market, exhibiting growth at an impressive CAGR of 18.6% during the forecast period.

  • Who is the leading end user of pharmaceutical cold chain packaging?

    Vaccine packaging industry is expected to register maximum incremental opportunity in the next ten years.

  • What is the maximum growth rate achieved by active packaging format?

    Active packaging is expected to foresee a peak Y-o-Y growth rate of 16.4% in 2031.

  • What is the demand outlook for pharmaceutical cold chain packaging market?

    The global pharmaceutical cold chain packaging market will exhibit growth at 13.5% in terms of volume.

  • Which country holds the maximum share in the North America pharmaceutical cold chain packaging market?

    The U.S. leads the North America pharmaceutical cold chain packaging market. The U.S. market is estimated reach a valuation of US$ 2.2 Bn in 2021.

  • What is the pharmaceutical cold chain packaging market outlook in China?

    China is expected to create an incremental opportunity of US$ 5.5 Bn during the forecast period.

  • At what rate did the pharmaceutical cold chain packaging market grow in the last five years?

    The pharmaceutical cold chain packaging market exhibited growth at 12.5% CAGR between 2021 and 2031.

  • What is the South Korea and Japan outlook for pharmaceutical cold chain packaging market?

    The demand for pharmaceutical cold chain packaging is expected to rise at 20.6% CAGR and 17.1% CAGR, respectively in Japan and South Korea between 2021 and 2031.

Pharmaceutical Cold Chain Packaging Market by Category

By Packaging Format:

  • Passive Packaging
    • Single Use or One Way Use Packaging
    • Multiple Use or Re-Usable Packaging
  • Active Packaging
    • Reefer Trucks and Containers
    • Active Pallet Containers

By Product:

  • Small Boxes
  • Pallets
    • Single Pallets
    • Double Pallets
  • Large sized Pallet Containers

By Material:

  • Polymer
    • Polyethylene
    • Polypropylene
    • PET
    • EPS
    • Polyurethane
    • Others
  • Metal
  • Paper

By Application:

  • Biologics and Biological Samples
  • Vaccines and Diagnostics
  • Others

By End-Use:

  • Diagnostic Centers
  • Clinical Research Organization
  • Blood Banks
  • Vaccines Packaging Industry
  • Pharmaceuticals
  • Other Healthcare Units

By Region:

  • North America
  • Latin America
  • Europe
  • South Asia
  • East Asia
  • Oceania
  • Middle East and Africa (MEA)

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