TEMPERATURE CONTROLLED PACKAGING SOLUTIONS MARKET ANALYSIS

Temperature controlled packaging solutions can be defined as advanced packaging solutions, which are designed for regulating and controlling the temperature of heat-sensitive products such as vaccine, fresh fruits etc. They act as a cover for protecting products from damages and spoilage. Temperature-controlled packaging solutions have applications across various end-use industries such as healthcare, food & beverage, chemicals, and others. Temperature controlled packaging solutions are predominantly used in the healthcare, food & beverages, and chemical industries for transportation and storage of temperature sensitive products in a controlled temperature environments. Stringent regulations regarding goods distribution practices of perishable pharmaceutical and food products have led to the wide scale adoption of temperature controlled packaging solutions. For instance, Food & Drug Administration (US), Regulation 21 CFR 211.150 “Distribution procedures” states that these products must be shipped within appropriate temperatures and under appropriate conditions in accordance with requirements and appropriate manual, electromechanical, or electronic temperature and humidity recording equipment, devices, and/or logs shall be utilized to document proper storage of prescription drugs   A large segment of bio-pharma and bio-similar products require temperature assured packaging (TAP), in order to maintain the efficacy of the product. In the food & beverages (F&B) industry, perishable food products particularly meat, fish, dairy products, specialized foods, and others require strict temperature control to maintain the product quality. An insulated container, coupled with coolants or a refrigerated truck is widely incorporated for inter/intra city transportation of these products.

The global temperature controlled packaging solutions market was valued at US$ 8,771.8 Mn in 2020 and is expected to reach US$ 17,882.7 Mn by 2028, exhibiting a CAGR of 9.3% during the forecast period.

Drivers:

Growing pharmaceutical industry, technological advancements in reusable packaging, and increasing use of temperature control packaging solutions in transport of medicines, clinical trial distribution products, donor organs, and blood transfers are expected to drive the growth of the global temperature controlled packaging solutions market. For instance, according to the Indian Brand Equity Foundation’s (IBEF) report, in 2017, the pharmaceutical industry in India was valued at US$ 33 billion. According to the same source, in 2019, exports of pharmaceuticals from India reached US$ 19.14 billion from US$ 17.27 billion in 2018.

The vaccine storage requirements range from -80°C (dry ice) to -60°C, -20°C, and the more usual 2-8°C temperature. The World Health Organization recommends inclusion of a temperature monitor with each shipment for recording the temperature of the vaccine at each point. Electronic temperature monitors will alert the shipper in real or near-real-time if intervention is needed, and the country receiving the shipment will be able to determine whether to accept the package. All these factors are expected to drive growth of the global temperature controlled packaging solutions market.

Figure 1. Global Temperature Controlled Packaging Solutions Market Revenue Share (%), By Region, 2020

Among regions, North America held a dominant position in the global temperature controlled packaging solutions market in 2020, accounting for 32.61% market share, in terms of revenue, followed by Europe and Asia Pacific. Being the largest pharmaceuticals and biologics research hub, North America  exports bio-pharma and bio-similar products across all geographies. Due to rapid increasing demand of R&D in biotechnology and biologics sector and increasing demand for perishable and frozen food products in the region is expected to grow temperature controlled packaging solutions market at an exponential rate during the forecast period.

Market Restraints

High investment and maintenance costs associated with temperature controlled packaging solutions is estimated to hamper the market growth during the forecast period. The purchase price of the temperature controlled packaging containers and its components is very high. Therefore, end users such as pharmaceutical companies and food & beverage companies are analyzing costs associated with leasing and purchasing before they deploy a technology.

When the companies are shipping on low frequencies, they tend to lease the temperature controlled packaging containers on lower monthly costs, instead of purchasing containers at a high cost. This helps the company in reducing the initial investment costs. The companies also have to bear cost associated with inbound transportation of packaging and outbound transportation cost.

Market Trends

The temperature-sensitive pharmaceutical products such as vaccines are driving the need of more efficient temperature-controlling packaging. Furthermore, technologies such as temperature-controlling packaging is likely to pave the way for efficient and profitable sensitive drugs and supply chain of vaccines. The disruptions in the cold supply chain of temperature-sensitive drugs is leading to global vaccine wastage. According to the World Health Organization (WHO), lyophilised vaccines accounts for 50% of the annual global vaccine wastage, and liquid vaccines accounts for 25% of the wastage. Temperature-sensitive vaccines need to be stored at a constant temperature of 2°C-8°C to safeguard their effectiveness. Stable temperature should be maintained from the laboratory to the point of administration in order to ensure that the vaccines do not pose any health risk to patients.

In order to reduce product wastage, temperature-controlled packaging technology has been refined and advanced. An advancement such as moulded technical insulation foams, among other technologies, are expected to pave the way for efficient and profitable sensitive drugs and vaccine supply chains. Moreover, the World Health Organization (WHO) and United Nations Children's Fund (UNICEF) have established standards and product waste control guidelines.

Figure 2. Global Temperature Controlled Packaging Solutions Market Revenue Share (%), By End-Use, 2020

Among end-use, Food & beverages segment held dominant position and generated a revenue of US$ 4,464.1 Mn, in terms of value in 2020 and is expected to generate a revenue of US$ 9,311.51 Mn by 2028, exhibiting a CAGR of 8.24% The increasing population is expected to drive demand for food & beverages, and in turn facilitate demand for temperature controlled packaging solutions from the food & beverages industry during the forecast period.

Global Temperature Controlled Packaging Solutions Market - Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 outbreak in December 2019, the disease has spread to more than 100 countries across the globe and the World Health Organization has declared it a public health emergency. According to the World Health Organization’s report, the manifestation of coronavirus disease (COVID-19) has resulted in over 38 million infected individuals worldwide, as of October 2020. In order to perform COVID-19 tests, transporting of test kits and samples to approved labs requires use of temperature controlled packaging solutions. If the temperature is compromised at any point of time, the samples and test kits would be spoilt. Diagnosis is of utmost importance for reducing the incidence and mortality rate of COVID-19. As a result, regulatory bodies across the globe are collaborating with diagnostics manufacturers to increase the production and supply of diagnostic products such as test kits for Coronavirus. On April 24, 2020, the World Health Organization (WHO) launched the global collaboration ‘Access to COVID-19 Tools Accelerator’ to speed up the development and production of COVID-19 diagnostics and therapeutics products, globally. These measures are expected to drive growth of the global temperature controlled packaging solutions market.

Competitive Section

Major players operating in the global temperature controlled packaging solutions market include Envirotainer AB, Intelsius, Pelican Biothermal LLC, Sofrigam, Softbox Systems Limited, Tempack, Packaging Solutions, S.L., Entropy Solutions, Honeywell International Inc., Outlast Technologies LLC, and Pluss Advanced Technologies Pvt. Ltd.