Pharmaceutical Processing and Packaging Equipment Market Size & Forecast

The Pharmaceutical Processing and Packaging Equipment Market is expected to reach $28.75 billion by 2031, at a CAGR of 4.2% from 2024 to 2031. The growth of the pharmaceutical processing & packaging equipment market is driven by the growth in the pharmaceutical market, the increasing need to comply with various regulations, the increasing burden of chronic & infectious diseases, the increasing geriatric population, and the increasing demand for flexible manufacturing.

The expansion of domestic manufacturing capacities of pharmaceuticals in various countries such as China, India, Malaysia, Indonesia, and UAE and the increase in the pharma R&D spending offer growth opportunities for the pharmaceutical processing and packaging market.

Pharmaceutical Processing and Packaging Equipment Market Growth Drivers

Growth in the Pharmaceutical Market

The rise in the aging population is expected to increase the burden of chronic diseases, leading to the demand for pharmaceuticals. The population aged 60 and above is likely to increase from 1 billion in 2020 to 2.1 billion by 2050. The rise in geriatric population and the subsequently growing prevalence of chronic diseases is expected to increase the demand for pharmaceuticals, leading to the growth of the market.

The expiration of pharmaceutical patents leads to the launch of new generic drugs globally. Humira by C.H. Boehringer Sohn AG & CO. KG. (Germany), Januvia & Janumet by Merck & Co., Inc. (U.S.), Victoza by Novo Nordisk (Denmark), etc. are some of the drugs with patent expirations in 2022 and 2023. The rise in the R&D of pharmaceuticals is further contributing to the market's growth. According to the IFPMA, pharmaceutical R&D investments globally have increased significantly. Thus, rising R&D investments and patent expirations of some drugs in recent years are driving the adoption of pharmaceutical processing and packaging equipment.

Rising Demand for Flexible Manufacturing

Recent pharmaceutical trends support the development of specialized products for small groups of patients. Regulatory agencies support this trend by expediting drug approvals. Further, the increasing focus of pharmaceutical companies on cost control coupled with unpredictable demand for pharmaceuticals has created a need for more agile and flexible pharmaceutical manufacturing facilities. The emergence of continuous manufacturing and single-use technologies has supported the development of flexible manufacturing facilities, allowing for innovation in pharmaceutical processing and packaging.

The overall pressure on pharmaceutical companies due to the high prices and limited functionality of pharmaceutical manufacturing equipment can positively impact the demand for pharmaceutical packaging and processing equipment used in flexible manufacturing.

Click here to: Get Free Sample Pages of this Report

Pharmaceutical Processing and Packaging Equipment Market Trends

Contract Manufacturing

Pharmaceutical companies face challenges such as controlling manufacturing costs and navigating stringent regulatory approval processes. The high consumption of small molecules for treating different diseases, the emergence of advanced technologies in the manufacture of finished dosage formulations, patent expirations of small molecules, and the rising demand for generics support the growth of contract manufacturing in the pharmaceutical sector. Small pharmaceutical companies also lack well-equipped infrastructure, advanced technologies, and high containment capabilities to produce pharmaceuticals, due to which they prefer outsourcing manufacturing operations to keep initial investments low.

As manufacturing processes are becoming increasingly complex and stringent regulations are being imposed, pharmaceutical companies are developing long-term contracts with CMOs. Pricing pressures in the pharmaceutical industry have driven pharmaceutical CMOs to establish operations in India, China, Singapore, South Korea, and Malaysia. Thus, the pricing pressures prevalent in the pharmaceutical industry and growing pharmaceutical production are expected to increase the focus on contract manufacturing.

Integration of Advanced Technologies

The integration of advanced technologies, including collaborative robots, artificial intelligence, RPA, and IoT, is a major trend in the market. These technologies are revolutionizing processing and packaging processes, offering unprecedented efficiency, precision, and adaptability. Collaborative robots (also known as Cobots) are designed to work alongside human operators. Cobots are more compact and versatile than traditional industrial robots and help enhance automation capabilities while maintaining a safe and collaborative environment.

These robots excel in tasks that require dexterity and precision, such as picking and placing items into packaging. Artificial intelligence and machine learning are being integrated into packaging equipment solutions to optimize processes, monitor quality, and predict maintenance needs.

Pharmaceutical Processing and Packaging Equipment Market Opportunities

Emerging Pharmaceutical Manufacturing Hotspots

Various countries around the world are considering producing pharmaceutical products locally as a key strategy. In addition to enabling high-quality production, it also offers economic benefits to the countries where the products are manufactured. Additionally, the COVID-19 pandemic has disrupted the global pharmaceutical supply chain as the national lockdowns imposed in major pharmaceutical-producing countries such as China restricted the supply of APIs.

Continued economic growth and demographic and epidemiological shifts in developing countries such as India, China, and Southeast Asian countries have led to the expansion of public insurance schemes, further improving access to therapies, including pharmaceuticals. Thus, the growing access to healthcare in developing countries is driving the demand for pharmaceutical processing and packaging equipment.

Pharmaceutical Processing and Packaging Equipment Market Analysis: Key Findings

By Formulation: In 2024, the Oral Formulations Segment to Dominate the Pharmaceutical Processing and Primary Packaging Equipment Market

Based on formulation, the pharmaceutical processing & primary packaging equipment market is segmented into oral formulations, parenteral formulations, topical formulations, and other formulations. In 2024, the oral formulations segment is expected to account for the largest share of 50.8% of the pharmaceutical processing & packaging equipment market. Oral formulations do not require skilled personnel for the administration of the drugs. The administration is less painful and is more convenient and cost-effective, owing to which the preference for oral formulations is higher. Oral formulations include oral sold dosages and oral liquid dosages.

However, the parenteral formulations segment is projected to witness the highest growth rate of 4.3% during the forecast period of 2024–2031. Parenteral administration is the second most common method of drug delivery, following oral solids and liquids. In recent years, parenteral drugs have accounted for approximately 40% of new molecular entities approved annually by the U.S. Food and Drug Administration. Thus, the increasing usage of parenteral formulations, along with a rising number of approvals, is driving the market growth.

By Product Type: In 2024, Cartoning Equipment Segment to Dominate the Pharmaceutical Secondary Packaging Equipment Market

Based on product type, the pharmaceutical secondary packaging equipment market is segmented into cartoning equipment, wrapping equipment, carton labeling and serialization equipment, and other equipment, which includes checkweigher, pneumatic robotic pick and place, packaging conveyor lines, and others. In 2024, the cartoning equipment segment is expected to account for the largest share of the pharmaceutical secondary packaging equipment market. Cartons are considered ideal secondary packaging in terms of product handling. Cartoning equipment is used to pack the primarily packaged pharmaceuticals to provide an extra level of protection. It helps protect the products during shipment in a cost-effective & efficient way, thus increasing the adoption.

By Product Type: In 2024 Case Packaging Equipment Segment to Dominate the End-of-line Packaging Equipment Market

Based on product type, the global end-of-line packaging equipment market is segmented into case packaging equipment, palletizing and de-palletizing equipment, and other equipment. In 2024, the case packaging equipment segment is expected to account for the largest share of 52.5% of the end-of-line packaging equipment market. Case packaging equipment is used in end-of-line packaging for casing the cartons in a series. The need for faster packaging equipment to meet the growing demand for pharmaceuticals is driving the demand for case packaging equipment. With the advent of serialization, case packaging also helps manufacturers effectively trace the drugs across the supply chain. The rising trade of pharmaceutical products is contributing to the largest share of the segment.

Geographical Analysis

North America to Dominate the Market

In 2024, North America is expected to account for the largest share of 35.9% of the pharmaceutical processing & packaging equipment market. The largest share of the region is attributed to the increased healthcare spending on drugs and initiatives by public organizations to increase domestic manufacturing and R&D on drugs in the region. Additionally, the increasing demand for generic drugs across the region is increasing the demand for processing and packaging equipment. According to the American Society of Health-System Pharmacists, prescription drug spending in the U.S. amounted to USD 633.5 billion in 2023, compared to USD 535.3 billion in 2020.

Moreover, the market in Asia-Pacific is slated to register the highest growth rate of 5.0% during the forecast period. The high volume of production and consumption of pharmaceuticals in Asia-Pacific countries, growing demand for generics, booming contract manufacturing industry, and favorable government policies aimed at boosting the domestic production of pharmaceuticals are likely to enhance the demand for pharmaceutical processing and packaging equipment. To decrease the dependence on imports for pharmaceutical products, the countries in Asia-Pacific have increased the domestic manufacturing of pharmaceuticals. For instance, the Made in China initiative taken by the Chinese government also emphasizes increasing domestic manufacturing. Such initiatives are expected to drive market growth in Asia-Pacific.

Pharmaceutical Processing & Packaging Equipment Market: Key Companies

The report includes a competitive landscape based on an extensive assessment of the key strategic developments that market participants adopted over the past three years (2020–2024). The market players profiled in the pharmaceutical processing and packaging equipment market report are ACIC Pharmaceuticals Inc. (Canada), Bausch+Ströbel (Germany), IDEX Corporation (U.S.), JEKSON VISION (India), Kevin Process Technologies Pvt. Ltd. (India), KIKUSUI SEISAKUSHO LTD. (Japan), Korber AG (Germany), KORSCH AG (Germany), M.A.R. Macchine Automatiche Riempitrici S.p.A(Italy), MAQUINARIA INDUSTRIAL DARA, SL (Spain), Marchesini Group S.p.A. (Italy), OPTEL GROUP (Canada), OPTIMA packaging group GmbH (Germany), Syntegon Technology GmbH (Germany), Wenzhou Trustar Machinery Technology Co., Ltd (China), Sainty Co (China), ACG (India), ANTARES VISION S.p.A. (Italy), BREVETTI CEA S.P.A (Italy), Cadmach Machinery Co. Pvt. Ltd (India), CAM Packaging IT (Italy), Coesia S.p.A (Italy), Fette Compacting (Germany), Freund Corporation (Japan), GEA GROUP (Germany), Glatt GmbH (Germany), LINXIS GROUP (France), Harro Höfliger Verpackungsmaschinen GmbH (Germany), I.M.A INDUSTRIA MACCHINE AUTOMATICHE S.P.A (Italy), Uhlmann Pac-Systeme GmbH & Co. KG (Germany), Truking Technology Limited (China), and Tecnomaco Italia SRL (Italy).

Pharmaceutical Processing & Packaging Equipment Market Overview: Latest Developments from Key Industry Players

• In February 2023, Volpak S.A.U. (Spain) launched the Enflex PHS Series for the production of stick-packs for the pharmaceutical & healthcare sectors.
• In July 2023, I.M.A INDUSTRIA MACCHINE AUTOMATICHE S.P.A (Italy) acquired 70% of Mespic S.r.l (Italy). Mespic S.r.l develops, manufactures, and sells tailor-made machines, from conveyors to wrapping machines for end-of-line use. The acquisition is expected to increase IMA's product portfolio.
• In September 2022, Ranpak Holdings Corp. (U.S.) launched Cut’it! EVO, an automated packaging solution. The equipment can be integrated into a typical end-of-line setup in a packing operation. It reduces operational costs, scales up packaging, and enhances sustainability.

Pharmaceutical Processing & Packaging Equipment Market Research Summary:

Key questions answered in the pharmaceutical processing & packaging equipment market report: