The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
Vaccine Storage & Packaging Market Growth & Trends
The global vaccine storage and packaging market size is expected to reach USD 43.3 billion by 2027, expanding at a CAGR of 10.0%, according to a new report by Grand View Research, Inc. Technological advancement in the storage and packaging for medicines, rising government support for research activities and clinical trials, and the growing prevalence of infectious disease are anticipated to drive the market over the forecast period. In addition, increasing government focus on immunization programs, increasing R&D expenditure in biotechnological industries for medical research, and the rising number of pharma retailers are expected to boost the growth of the market. For instance, there are only about 40.0% wards in Nigeria that are equipped with active cold chain equipment. The government of Nigeria is installing at least one functional cold chain equipment in each ward in collaboration with UNICEF, WHO, and CHAI.
Furthermore, most of the biopharmaceutical companies and healthcare institutions are increasingly investing in the development of vaccines. This, in turn, is expected to drive the market over the forecast period. For instance, Innovate UK announced about ?66.0 million investment to build and establish a U.K. National Vaccines Manufacturing Innovation Centre in 2018. However, factors such as the availability of refurbished products and stringent regulations are expected to restrain the growth of the market over the forecast period.
Moreover, the COVID-19 outbreak is expected to increase the demand for efficient storage and packaging equipment in the healthcare industry. Most of the global pharmaceutical and biopharmaceutical companies are researching to find a potential vaccine against SARS-CoV-2, the virus causing the COVID-19 pandemic. The National Institutes of Health (NIH) has partnered with more than 18 biopharmaceutical companies for the development of vaccines against SARS-CoV-2. With the need for global distribution of the approved medicine, high pressure is expected to be built on the cold-chain logistics industry, thus showcasing an opportunity of collaborative efforts among players, leading to industry growth.
In addition, rising awareness about early disease diagnosis and prevention and increasing incidence of infectious diseases has stimulated demand for protective medicines, hence further driving the market. Several efforts undertaken by healthcare organizations such as UNICEF have increased the adoption of protective medicines over the years. UNICEF supply division and Pan American Health Organization (PAHO) revolving fund allow the procurement of medicines at lower prices for various countries. Annually, UNICEF and PAHO procure vaccines for more than 100 countries, which, in turn, is impacting the adoption rate. Thus, capturing market share by means of public contracts is a routine activity of this industry and provides a sustained revenue flow for companies working with government agencies.
An increase in the implementation of the vaccination program by the different governments is one of the major drivers for the market. Increasing vaccination programs have initiated the utilization of public hospitals, clinics, and vaccination centers that has escalated the demand for efficient storage units for the medicines.
Vaccine Storage & Packaging Market Report Highlights
- By function, the storage segment held the largest market share in 2019 owing to the high cost involved in maintaining the potency of vaccines
- The storage services segment held the largest market share of over 90.0% in 2019 owing to the increasing demand for vaccine storage services in the industry
- The packaging segment by the material is sub-segmented into vaccine bags, vials, and ampoules, corrugated boxes, and others. The vaccine bags, vials, and ampoules segment held the largest segment in 2019
- The packaging segment by packaging level is sub-segmented into the primary, secondary, and tertiary segments. The primary segment held the largest revenue share in 2019 owing to the higher cost of the primary packaging in the industry
- Europe is anticipated to dominate the market over the forecast period owing to the increasing investments by government and non-government organizations for vaccine development and the high prevalence of infectious diseases within the region.