Global Isothermal Packaging Market - 2023-2030

Overview

Global Isothermal Packaging Market reached US$ 3.9 billion in 2022 and is expected to reach US$ 5.9 billion by 2030, growing with a CAGR of 5.3% during the forecast period 2023-2030.

The isothermal packaging market is significantly growing as with the growing pharmaceutical industry and the sector remains a significant driver, also isothermal packaging has found applications in various sectors, including the food and beverage industry, catering, artisanal food production, gastronomy, bakery, pastry shops and e-commerce operations. Moreover, isothermal packaging contributes to major aspect of food safety and quality assurance.

Further, manufacturers are investing in research and development to create high-tech and innovative isothermal packaging solutions. Moreover, Gel and phase change material (PCM)-based thermal stabilizers are being incorporated into isothermal packaging solutions. The materials help maintain stable temperatures within the desired range for extended periods, enhancing the efficiency of temperature control during transportation.

North America holds the largest share in the isothermal packaging market, United States and Canada, has a major share of the global pharmaceutical market. To maintain the safety and efficacy of pharmaceuticals, temperature range management plays a crucial role. Isothermal packaging plays a critical role in safeguarding these temperature-sensitive pharmaceuticals during transportation and storage. As per European Federation of Pharmaceutical Industries and Associations (EFPIA) report, in 2021, North America accounted for approximately 49.1% of world pharmaceutical sales. It dominance in pharmaceutical sales naturally translates into a higher demand for isothermal packaging solutions.

Dynamics

Rapid Growth of Isothermal Packaging in Pharmaceutical Industry

The isothermal packaging industry is seeing a significant growth with growing pharmaceutical industry; the pharmaceutical industry is seen as one of the fastest-developing investment markets globally which is primarily due to its major role in preserving and extending APIs. The industry's commitment to R&D is a major driving force. According to data from The International Federation of Pharmaceutical Manufacturers & Associations, the research based pharmaceutical sector globally spend over US$ 149.8 million per year on significant research and development.

The pharmaceutical industry is experiencing growth in consumer spending on retail pharmaceutical items. It growth is attributed to the rising number of diseases and the growing demand for medications on a global scale. For instance, the Organisation for Economic Co-operation and Development reports that retail pharmaceutical spending per person averages around US$ 564 across 37 OECD nations globally. It significant spending demonstrates the need for isothermal packaging in the pharma sector.

Innovations and Advancements

Innovations and advancements are essential for meeting the evolving needs of industries like pharmaceuticals, food and logistics. Innovations in isothermal packaging involve the use of advanced thermal performance simulations. The simulations are conducted in controlled environments that closely mimic real-world conditions, providing objective data on how packaging performs under various temperature scenarios.

Companies engaged in isothermal packaging are increasingly focusing on designing and developing customized solutions. Cascades, a leader in sustainable packaging, has introduced an innovative isothermal packaging technology called "northbox XTEND." This technology represents a significant advancement in the field of packaging. The northbox XTEND utilizes a composition that creates a moisture barrier, enhancing the insulation properties of the meal box. Its improvement is crucial for keeping food fresh during extended transit times and in regions with higher temperatures. It reduces the reliance on traditional ice packs or cooling methods, making it more efficient.

Recycling Challenges

The isothermal packaging can see a substantial issue with its recycling concerns, particularly when made from materials like expanded polystyrene (EPS), faces challenges related to recyclability. EPS, including styrofoam, is not biodegradable which makes it as not naturally break down or decompose over time. It characteristic makes it a concern for environmental sustainability as it can persist in the environment for extended periods.

EPS takes a long time to decompose, with estimates suggesting it can take up to 500 years. During this extended decomposition period, EPS can leach chemicals into the surrounding environment, potentially causing harm and pollution. Despite the large production volume of EPS (15 million metric tons annually), less than 1% of it is recycled. The low recycling rate is primarily due to the challenges mentioned above, including limited recycling facilities and the cost associated with recycling.

Segment Analysis

The global isothermal packaging market is segmented based on material, type, application and region.

Isothermal packaging's vital role in the growing pharmaceutical sector

The pharmaceutical sector holds the largest share in the isothermal packaging industry. The pharmaceutical cold chain logistics sector has been expanding rapidly, driven by the need to transport temperature-sensitive products globally. Isothermal packaging is a fundamental component of cold chain logistics, ensuring that pharmaceuticals maintain their required temperature during transit.

Pharmaceuticals, including vaccines, biologics and various medications, are majorly highly sensitive to temperature fluctuations which requires proper packaging solutions. The pharmaceutical sector is one of the largest industries globally and the industry has been consistently growing. The pharmaceutical sector is anticipated to reach US$ 1.5 trillion by 2023 and this substantial market size translates into a substantial demand for isothermal packaging solutions.

Geographical Penetration

North America Dominates Isothermal Packaging Market Amid Booming Pharmaceutical Industry

North America is expected to hold the largest share with 1/4 of the isothermal packaging market, driven by the growing pharmaceutical industry in the region. As per the CPHI online report, U.S. holds for 41% of spending in the global pharmaceutical sector. The demand for isothermal packaging in the pharmaceutical industry is growing with use in the transportation and storage of temperature-sensitive medications and vaccines. With growing pharmaceutical sector there is a higher demand for isothermal packaging.

Furthermore, USA is home to many leading pharmaceutical and biopharmaceutical companies, as well as drug developers. The companies continuously invest in research and development leading to the launch of new, specialized medications and vaccines that require specialized temperature-controlled packaging. The need for maintaining the integrity of products throughout the entire cold chain, from manufacturing to distribution, is driving the adoption of advanced isothermal packaging technologies.

Competitive Landscape

The major global players in the market include: Tecnisample, Sonoco ThermoSafe, Pelican BioThermal, Cryopak, Sofrigam, Tempack, Insulated Products Corp, NV Logistics, Isovation and Emballages LM.

COVID-19 Impact Analysis:

The COVID-19 pandemic had a significant impact on the isothermal packaging market, particularly in the industry of pharmaceutical and medical packaging. The development and distribution of COVID-19 vaccines became a global priority. Isothermal packaging played a crucial role in maintaining the required temperature conditions for storing and transporting vaccines. The urgent need for vaccine distribution accelerated the demand for high-quality isothermal packaging solutions.

Packaging solutions for medical products, including vaccines, incorporated tamper-evident and anti-counterfeit features to ensure product integrity and safety. The features were crucial for identifying compromised products and maintaining trust in the supply chain. Furthermore, to effectively respond to the healthcare industry's needs during the pandemic, some packaging companies established specialized business units focused on pharmaceutical and medical packaging. The units centralized expertise and project management, enabling faster response times and better coordination of global projects.

Russia-Ukraine War Impact

The Russia-Ukraine war made a significant impact on the isothermal packaging industry. The conflict has disrupted supply chains for packaging materials and components, creating shortages and increased costs. Many companies reliant on Ukrainian materials have faced challenges in sourcing essential packaging inputs.

The conflict has led to a surge in commodity prices, including aluminum and paper, which are essential materials for packaging. Rising material costs have affected the overall cost of producing packaging materials and products. Moreover, the scarcity and higher costs of raw materials may drive the packaging industry toward increased recycling. The inability to secure raw material supplies, such as aluminum and paper, could incentivize greater reliance on recycled materials.

By Material

• Polystyrene
• Polyurethane
• Polyethylene
• Polyethylene Terephthalate
• Other

By Type

• Containers
• Boxes
• Bags
• Other

By Application

• Pharmaceuticals
• Food & Beverages
• Chemicals
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In June 2022, Nippon Express, a leading Japanese logistics company, made a significant announcement regarding its new transport service using environment-friendly isothermal packaging. The company collaborated with EMBALL'ISO, a French company known for its expertise in vaccine transport. Nippon Express became the first Japanese logistics company to initiate this collaboration and launch an international air freight service using EMBALL'ISO's environmentally friendly isothermal packaging.
• In April 2022, Isovation, a company based in Avignon, Vaucluse, demonstrated its expertise in isothermal packaging for transporting heat-sensitive products. Isovation specializes in autonomous isothermal packaging and cold chain solutions and introducing the first foldable and flat-pack insulated packaging to the market. It innovative packaging is designed to transport items that require precise temperature control, particularly in the health and agri-food sectors.
• In February 2022, Cascades Inc., a Quebec-based packaging producer, has made significant strides in the isothermal packaging market. The company has introduced advanced technology, known as Northbox Xtend, to its line of meal boxes. It technology creates a moisture barrier that enhances insulation rigidity, allowing the boxes to keep food fresh during extended transit times and in regions with higher temperatures, reducing the need for excess ice. The meal boxes are also environmentally friendly, as they are made from recycled cardboard and have been determined to be recyclable by external testing, meeting the standards of the How2Recycle labeling system in both United States and Canada.

Why Purchase the Report?

• To visualize the global isothermal packaging market segmentation based on material, type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of isothermal packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global isothermal packaging market report would provide approximately 61 tables, 61 figures and 201 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies