Pharmaceutical Closures Trends
Category Intelligence on Pharmaceutical Closures covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Market Outlook on Pharmaceutical Closures
- The global market is expected to grow at the rate of 4–4.5% by volume during 2014–2018. A price increase of about 0.5–1% is expected in the next four years. Therefore, a growth of about 4.5–5% in value is forecasted in the same period. Consumer preference for convenient packaging and easy dispensing are expected to drive the growth in demand
- During 2014–2018, the demand for plastic dispensing closures, lotion pumps, and sprays are all predicted to register a CAGR of about 3.5–4%. Pharma industry accounted for 4–5% of the demand for closures in 2014. However, it is the fastest growing end-user segment, with an estimated CAGR of 6–6.5% between 2013 and 2018
- Generic drugs are usually purchased in the packages of 50 tablets or more; hence, the rapid growth in these drugs would drive the demand for plastic caps in the pharmaceutical industry, particularly in the developed countries
- Pharmaceutical segment is expected to have the highest growth of 6–6.3% CAGR for caps and closures in the near future. This is likely to be driven by the penetration of senior-friendly, child-resistant, and patient-friendly closures from the West to developing regions, like APAC.
Market Overview on Caps and Closures – North America
- The demand is expected to grow at a CAGR of about 3–3.5% during 2014–2018, driven by the increasing demand from the pharmaceutical industry, which is expected to grow at a CAGR of about 5–6% between 2014 and 2018
- Pharmaceutical caps and closures demand was about 130 billion units and is expected to grow at a CAGR of 5–6% from 2014 to 2018
- PP would continue to remain the preferred raw material, accounting for about 92% of the raw materials used in 2014, with HDPE accounting for the remaining 8%
- The industry still uses glass and metals for some of its packaging, but is currently shifting to PET bottles. This would further increase the demand for plastic caps in the industry
Market Drivers and Constraints for Pharmaceutical Caps
Regulatory demands like child-resistant, tamper-evident, and contamination-resistant caps are likely to drive the demand from the pharma industry.
Senior friendly and easy delivery
Evolution of the role of plastic closures in pharma from mere product sealing to providing better product delivery, product application, etc., is likely to drive the innovation significantly in the industry.
Dosage and interactive caps
Caps that dispense a pre-set dosage and those that contain an active ingredient to be dispensed at the time of usage are expected to be the key areas of focus and drive innovations in the next three years.
Intelligent and smart package of drugs
Interactive and smart packaging are likely to gain main stage in the near future.
Plastic caps lack the barrier properties and inertness of glass, which hampers its penetration in many drug segments.
The increasing regulatory pressures on pharmaceutical packaging has considerably increased the cost of packaging, especially in rigid bottles. So, large buyers are passing pricing pressures to the cap makers (in case of small and medium convertors).