Frost: Advancements in Related Markets Drive Growth of N. American Medical Device Packaging
October 23, 2007 // Published as a news service by IHS
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An increased demand for surgical and implant devices is driving the medical device packaging market.
According to Frost & Sullivan, continuous technological advancements in the medical device market, coupled with an aging population, provide generous growth opportunities in the medical device packaging market.
Recent analysis from Frost & Sullivan of the North American medical device packaging market found earned revenues of $569 million in 2006, with estimates to reach $918.8 million in 2013.
"The demand for implants is anticipated to encourage the use of rigid packaging materials, such as trays, which is likely to boost the revenues of rigid packagers," said Frost & Sullivan research analyst Urmila Kishore.
"The medical device packaging industry is directly dependent on the medical device industry. According to a recent study, the medical device market is expected to grow by approximately 11% from 2005 to 2011 due to growing aging population and increased awareness of diseases."
Analysts said packaging forms an integrated and vital component in the medical device market, as it maintains sterility and provides effective protection to the product. The North American medical device packaging market is experiencing steady growth with a rise in demand for medical devices in the health care sector, coupled with greater focus on R&D to provide innovative, customized and cost-effective packaging solutions to their customers.
Reduced cost is one of the major challenges faced by the health care market. Market participants, such as device manufacturers, are finding it difficult to maintain profitability amidst the increased raw material, transportation and production costs.
Analysts said this forces device manufacturers to demand packaging manufacturers to supply products at lower costs. To meet this requirement, packaging manufacturers need to develop new packaging materials and packages that deliver optimum performance at a reduced cost.
"Other challenges faced by North American medical device packaging companies include coping with emerging trends in the medical device market," said Kishore. "For example, the introduction of combinational drug delivery devices is posing [a] major challenge to packagers to come up with new innovative packaging that suit the products."
The success of a company primarily depends on technological investments, as well as the provision of good service and technical support to customers. Analysts said it is necessary for packaging companies to have consistent product innovation featured with excellent customer service facilities.
Source: Frost & Sullivan.