Pharmaceutical Logistics Adopting Passive Temperature Controlled Packaging Solutions
The increasing usage of cutting-edge technology in the pharmaceutical sector offers opportunities for the global temperature-controlled packaging market to flourish. The majority of high-value pharmaceutical products are delivered via the cold chain across the entire global distribution network. As a result, pharmaceutical expansion is expected to drive the temperature-controlled packaging industry. According to the International Trade Centre, the value of pharmaceutical products exported by the United Kingdom to the European Union in that year showed that Belgium was the EU member with the highest export value, amounting to nearly US$ 2.93 billion. According to the Centres for Medicare & Medicaid Services (CMS) in the United States, NHE grew 4.1% to US$4.5 trillion in 2022, or US$13,493 per person, and accounted for 17.3% of Gross Domestic Product (GDP). Medicare spending grew 5.9% to US$944.3 billion in 2022, or 21 percent of total NHE.
However, disruptions in the cold supply chain of temperature-sensitive medications are causing significant vaccination wastage. The World Health Organization (WHO) estimates that lyophilised vaccinations account for 50% of the annual global vaccine wastage, while liquid vaccines account for 25%. Temperature-sensitive vaccinations must be kept at a consistent temperature of 2°C to -8°C to maintain their effectiveness. Some recent market advancements include the development of a specialised and reusable ultra-low temperature shipper. As a result, such factors have increased the temperature-controlled packaging for pharmaceutical market CAGR globally in recent years.
However, disruptions in the cold supply chain of temperature-sensitive medications are causing significant vaccination wastage. The World Health Organization (WHO) estimates that lyophilised vaccinations account for 50% of the annual global vaccine wastage, while liquid vaccines account for 25%. Temperature-sensitive vaccinations must be kept at a consistent temperature of 2°C to -8°C to maintain their effectiveness. Some recent market advancements include the development of a specialised and reusable ultra-low temperature shipper. As a result, such factors have increased the temperature-controlled packaging for pharmaceutical market CAGR globally in recent years.
Rising Demand for Fresh & Frozen Foods as Well as Additional Government Support Boost Industry Expansion
Temperature-controlled packaging solutions are essential to the expansion of global trade in perishable goods as well as the global availability of food and health supplies. Consumer demand for perishable food items is increasing, international trade is growing due to the trade liberalisation and the organised food retail business is expanding. According to the Food and Agricultural Organization, 1.3 billion tons of food are wasted globally each year, accounting for contribution from every country, every societal group and every stage in the supply chain. The use of temperature-controlled packaging by various governments not only demonstrates the relevance of the packaging, but it also helps to expand the market. Under the Government of India's scheme for integrated cold chain and value addition infrastructure, an interested investor may get a grant or subsidy of 35% to 50% of the project cost depending on previously established cost parameters. For example, FDA Regulation 21 CFR 211.150 "Distribution procedures" states that these products must be supplied at proper temperatures and under appropriate conditions. In addition, with the rise of e-commerce, insulated packaging is expected to see strong demand with smaller e-commerce and food delivery formats among meal kits and other perishable food and beverage items.
Recent Trends in Temperature Controlled Packaging Market:
- Increased demand for pharmaceutical temperature-controlled packaging due to rising drug and vaccine shipments
- Growth in e-commerce drives innovations in insulated packaging solutions for temperature-sensitive goods
- Increased focus on reducing packaging costs while maintaining high performance and reliability standards
- Emergence of smart packaging with integrated sensors for precise temperature control and data logging
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Crude Oil Price Volatility & Stringent Regulations on the Shipment of Temperature Sensitive Products are Limiting Industry Expansion
Government laws limiting the usage of materials in cold chain packaging are having an impact on the industry. To lower the carbon footprint, there is also a great need for more sustainable designs, such as re-use programmes. Changing regulations and standards can have an influence on the interest in temperature-controlled packaging. For instance, ISTA's (International Safe Transit Association) temperature profiles have changed in the last five years. Such changes are expected to have an impact on the market. Temperature-controlled packaging is typically made from a variety of raw materials, such as polystyrene and polyurethane. The cost of raw materials used to construct temperature-controlled packaging is consequently impacted by fluctuations in the price of crude oil.
Additionally, as a result of the fluctuation in crude oil prices, the price of temperature-controlled packaging rises, forming a substantial barrier to market expansion. Furthermore, failures in temperature monitoring systems can lead to significant product spoilage, compromising quality and safety. Such malfunctions not only jeopardize the integrity of temperature-sensitive goods but also erode consumer confidence. When these systems fail to maintain optimal conditions, the resultant spoilage can damage reputations, lead to financial losses, and undermine trust in the reliability of temperature-controlled packaging solutions. Ensuring robust, reliable monitoring systems is crucial to maintaining product standards and consumer trust.
Additionally, as a result of the fluctuation in crude oil prices, the price of temperature-controlled packaging rises, forming a substantial barrier to market expansion. Furthermore, failures in temperature monitoring systems can lead to significant product spoilage, compromising quality and safety. Such malfunctions not only jeopardize the integrity of temperature-sensitive goods but also erode consumer confidence. When these systems fail to maintain optimal conditions, the resultant spoilage can damage reputations, lead to financial losses, and undermine trust in the reliability of temperature-controlled packaging solutions. Ensuring robust, reliable monitoring systems is crucial to maintaining product standards and consumer trust.
Innovative Product Development by Key Players Uplifts the Market Development
The rising complexity of worldwide supply chains and the necessity for improved product integrity are pushing the need for innovation in temperature-controlled packaging systems. Sophisticated packaging solutions maintain precise temperature control, minimize spoilage, and adhere to strict regulatory requirements. Innovative systems are essential for the growth of industries such as pharmaceuticals and perishable goods, ensuring product quality and safety, increasing efficiency, and reducing environmental harm. In this industry, advanced technology assists businesses in remaining competitive and adaptable to market demands. For instance, in April 2024, Tower Cold Chain, a provider of passive temperature-controlled containers, introduced the KTEvolution 12, offering a new standard in small parcel solutions for pharmaceutical products, with a unique plate design. In addition, in November 2022, Sonoco ThermoSafe, a Sonoco subsidiary, and LATAM Cargo, an international cargo airline based in Santiago, Chile, are announced a global leasing agreement for the innovative Pegasus ULD® temperature-controlled bulk shipping container. The agreement provides pharmaceutical freight forwarders with direct access to Pegasus ULD® containers from LATAM Cargo.
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North America's Expanding Healthcare and Pharmaceutical Sectors Drive Market Expansion
North America dominated the global market for temperature-controlled packaging and is anticipated to continue to dominate the market during the entire forecast period. The region's development is due to rising demand for frozen food and the advent of online retailing platforms, particularly in countries like the United States and Canada. According to the American Frozen Food Institute (AFFI), frozen food sales increased over 8.6% to US$ 74billion in 2023. Furthermore, rising demand from the healthcare and pharmaceutical industries is one of the primary reasons driving the region's temperature-controlled packaging market. Due to the presence of large corporations such as Abbott, Pfizer, Johnson & Johnson, and others, the United States dominates the pharmaceutical sector in the region.
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The report provides a detailed overview of the temperature-controlled packaging market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for temperature-controlled packaging market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the temperature-controlled packaging market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the temperature-controlled packaging market. Some key country and region included in the temperature-controlled packaging market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Thailand, Vietnam, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Algeria, Israel, Iran, Iraq, Kenya, Ethiopia, Rest of MEA |
Temperature Controlled Packaging Market Research Report Covers In-depth Analysis on:
- Temperature controlled packaging market detailed segments and segment-wise market breakdown
- Temperature controlled packaging market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in temperature-controlled packaging industry)
- Current, historical and forthcoming 10 years market valuation in terms of temperature-controlled packaging market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Temperature controlled packaging market demand analysis
- Temperature controlled packaging market pricing analysis over forecast period (by key segment and by region)
- Temperature controlled packaging market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in temperature-controlled packaging market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in temperature-controlled packaging market
- Temperature controlled packaging market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on temperature-controlled packaging market forecast by countries
- Mergers and acquisitions in temperature-controlled packaging market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key drivers of growth in temperature-controlled packaging market?
Key drivers include the increasing demand for pharmaceuticals and biologics, the growth in e-commerce for perishable goods and the rising consumer expectations for product quality and safety.
What are the major challenges faced by temperature-controlled packaging market?
Challenges include high costs of temperature-controlled solutions, the complexity of managing supply chains and regulatory compliance issues related to maintaining precise temperature controls.
What are the current trends in temperature-controlled packaging market?
Current trends include a shift towards sustainable and eco-friendly packaging solutions, increased use of active and intelligent packaging technologies and the expansion of the market due to global e-commerce growth.
What is the forecast for temperature-controlled packaging market over the next decade?
The market is expected to experience significant growth driven by advancements in technology, increasing demand for temperature-sensitive products and a heightened focus on supply chain optimization and sustainability.
