Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Temperature Controlled Packaging Solutions Market 2017–2027
Temperature-controlled packaging solutions are intended to maintain the proper temperature of the heat-sensitive products as it is an act as a protective cover to protect the products from damages and spoilage. Temperature-controlled packaging solutions are mainly used across healthcare, food & beverages and chemical industries for transporting and storing of temperature-sensitive products at maintained a temperature environment. It is has been successfully adopted across the healthcare industry due to strict regulation regarding product distribution practices and in food &beverage industry. It is used to package the perishable products especially meat, dairy products, fish, and specialized foods in order to maintain the quality of the product. Furthermore, it is also used to transport specialty chemicals that are unstable and hazardous in nature.
The global temperature controlled packaging market is projected to reach around US$ 17.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 9.1% during the forecast period (2019-2027).
Expanding global supply chain is one of the major factors accelerating the market growth of temperature-controlled packaging solutions. Increasing shipping of pharmaceutical products over the longer distance which requires optimal handling of temperature during the longer duration is raising the demand for temperature-controlled packaging solutions. Growing clinical trials logistics, which requires temperature-controlled solutions is further expected to foster market growth over the forecast period.
Growing Good Distribution Practices (GDP’s) and regulations is stimulating the market growth of temperature-controlled packaging solutions. Pharmaceutical and drug monitoring authorities are implementing strict legislation for distribution and handling of pharmaceutical products especially in North America and Europe. According to the Coherent Market Insights analysis, as of 2015, a prominent share of temperature-sensitive pharmaceutical products are being shipped in or to Europe, North America, which account for over 60% of consumption.
On basis of the region, North America dominated the global temperature controlled packaging market in 2018, accounting for 31.4% share in terms of value, followed by Europe and Asia Pacific.
Figure 1. Global Temperature Controlled Packaging Market, Revenue Share (%), By Region, 2018
High costs of the temperature-controlled pharmaceutical packaging is expected to hinder the market growth of temperature controlled packaging solutions. These advanced technologies such as vacuum insulated panels are expensive as compared with conventional PUR and EPS shippers are expected to hamper the market growth of temperature controlled pharmaceutical packaging over the forecast period.
Increasing adoption of rental packaging solution is expected to restrict the market growth of temperature-controlled packaging solutions. For instance, in January 2016, Pelican Biothermal, a leader in temperature-controlled packaging solutions catering to the healthcare industry started offering on-demand 12-day standard rentals for its passive Credo Xtreme shippers. Hence, the rising adoption of rental packaging solution is expected to hinder the market growth.
The growing demand for medications and production in India is expected to offer immense growth opportunities to the market of temperature controlled packaging solutions. According to the India Brand Equity Foundation, the pharmaceutical sector in India was valued at US$ 33 billion in 2017. India’s domestic pharmaceutical market turnover reached Rs 1, 29,015 crore (US$ 18.12 billion) in 2018, growing 9.4 per cent year-on-year (in Rs) from Rs 1, 16,389 crore (US$ 17.87 billion) in 2017.
Shifting preferences towards ocean freight from airfreight transportation among pharma manufacturer is projected to stimulate the market growth of temperature-controlled pharmaceutical packaging is projected to augment the market growth. Transportation of products through the ocean requires considerable different temperature-controlled packaging solutions and this expected to provide lucrative growth opportunity manufacturers of temperature controlled packaging solutions to launch innovative solutions.
Figure 2. Global Temperature Controlled Packaging Market– Opportunity Analysis
Continuous product innovation in the market is a trend and this is expected to foster the market growth of temperature-controlled pharmaceutical packaging over the forecast period. For instance, in November 2019, CSafe announced that it has expanded its passive packaging portfolio with the launch of the new AcuTemp Plus Series to address the cold chain needs of commercial pharma, clinical trials, and cell and gene therapies.
The rising trend of adopting smart strategies such as mergers and acquisitions by major players in order to expand their presence is expected to accelerate the market growth of temperature-controlled packaging solutions. For instance, in August 2017, Great Point Partners (“GPP”) today announced that Softbox Systems (“Softbox”) a GPP II Portfolio company has acquired Tempack Packaging Solutions (“Tempack”) based on Barcelona, Spain. Tempack focuses on the development and manufacturing of packaging solutions for the transportation of high value temperature-sensitive pharmaceutical products.
Key players operating in global temperature controlled packaging solutions are Sonoco Products Company, Cold Chain Technologies, Pelican Biothermal, Snyder Industries Inc., Saeplast, Cropak, Sofrigram SA Ltd., Inmark Packaging, VA-Q-tec AG, ACH Foam Technologies, LLC, Tempack, FedEx Corporation, and DHL International GmbH
Figure 3. Global Temperature Controlled Packaging Market, Revenue Share (%), By Application, in 2018
On the basis of application in 2018, the chilled segment has accounted the largest market share of 50.4% in terms of value, followed by frozen and ambient respectively.
Few Recent Developments
Sonoco Products Company
- In March 2016, Sonoco launched an easy-to-open quad-seal flexible bag, using cross-seal technology
- In September 2016, Sonoco Thermosafe acquired the assets and operations of Laminar Medica in the United Kingdom and the Czech Republic, from Clinimed (Holdings) Limited
- In Feb 2016, Sonoco Thermosafe launched a bulk TCPS to optimize air shipments. This new pallet shipper incorporated technologies such as interlocking L-shaped panels, and offer solutions for 2° to 8°C, 15° to 25°C and frozen temperature range
- In March 2015, Sonoco Thermosafe launched a reusable insulated container with 440 liters capacity for storage and distribution of perishable pharma products and ice.