Temperature Controlled Packaging Solutions Market - Forecast(2023 - 2028)

Temperature Controlled Packaging Solutions Market Overview

Temperature Controlled Packaging Solutions Market size is forecast to reach US$17.5 billion by 2026, after growing at a CAGR of 10.3% during 2021-2026. The reason behind this is the need to transport medicines vaccines to combat the pandemic. Temperature controlled packaging also known as cold chain technology refers to packaging and distribution methods specifically engineered to keep products at a constant temperature from production through final distribution. While initially established to keep temperature-sensitive goods refrigerated or frozen in transit, temperature-controlled packaging solutions have expanded to encompass packaging that protects room temperature products from extreme external temperatures. Temperature controlled packaging solutions are ideal for the strict demands of shipping food, medicine, and temperature-sensitive materials. Temperature controlled packaging protects foods, beverages, pharmaceutical products, and other sensitive or perishable items from temperature deviations that can render them unsafe or ineffective. Some of the most common materials used to create temperature controlled packaging include insulation materials, phase change materials and heating elements. Temperature-controlled packaging solutions come in various types, each of which is designed to provide protection for specific cold chain applications. These include insulated shippers, insulated containers, gel packs, tapes, films, etc. Given the current situation, the healthcare and pharmaceutical industry is the major driver for the Temperature Controlled Packaging Solutions Market during the forecast period.

COVID-19 Impact

The Covid-19 pandemic has fundamentally changed the way of life. Its effects have been felt across every industry. The packaging for the food and beverage industry has also not been spared. Before the pandemic consumers preferred brands with reusable food packaging as it helped them to decrease their carbon footprint. This trend was overturned due to Covid-19 as the pandemic drove demand for single-use packaging that was easy to dispose of, this was because consumers had become afraid that the packaging may be contaminated with the virus and could infect them. The food and beverage industries were greatly impacted by the pandemic which led to packaging shortages. There were aluminium shortages from the closing of recycling operations and flavoring shortages affected some beverage companies. Due to lockdowns and social distancing policy, many workers were absent. The UK Poultry Industry, along with the British Poultry Council (BPC) reported a 10% decrease in throughput because of a shortage of workers across farming and processing. Hence, this impacted the Temperature Controlled Packaging Solutions Market to a certain extent.

Report Coverage

The report: “Temperature Controlled Packaging Solutions Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Temperature Controlled Packaging Solutions Market.

By Type: Active Packaging, and Passive Packaging.
By Product: Insulated Shippers, Insulated Containers, Protective Packaging, Refrigerants and Others.
By Usage Type: Single-Use Packaging, and Reusable Packaging.
By Temperature Control Medium: Insulating Materials (Styrofoam, Textiles and Plastics), Phase Change Materials (Dry Ice, Liquid Nitrogen, Gel Packs), and Others.
By Application: Healthcare & Pharmaceuticals (Vaccines, Tissues, Insulin, Medicines, Blood, Diagnostic Reagents, Medical Samples and Others), Food and Beverages (Produce-Frozen Vegetables and Frozen Fruits, Meat-Chicken, Lamb, Beef, Fish & Seafood, Cold Cuts (Sausages, Bacon and Others) and Others, Dairy- Cheese, Milk, Ice-Cream, Yoghurt, Cream and Others, Frozen Food, Confectionery & Bakery-Chocolates, Candy, Cakes, Bread and Others, Wine, and Others), Cosmetics and Personal Care (Make Up- Eyeliner, Mascara, Lipsticks, and Others, Soaps, Shampoo, Perfume and Others), Chemicals and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• North America dominates the Temperature Controlled Packaging Solutions Market, owing to the well-established healthcare and pharmaceutical industry in the region. Out of the top 10 pharmaceutical companies in the world, 5 are headquartered in the US.
• Cold chain technology is of critical importance to ensure proper temperature control in the safe storage and transport of the essential vaccines especially for the COVID-19 vaccines.
• Many pharmaceutical products must be maintained at room, refrigerated, frozen, or deep-freeze temperatures. Preventing temperature excursions during distribution depends on maintaining the product within the required temperature range for the time it is in transit. Hence, temperature controlled packaging plays a vital role in the pharmaceutical industry.
• The major opportunity for this market is high research spending and focus on sustainability. Increasing investment in research and development activities and the adoption of information technology within the industry will create growth opportunities.

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Temperature Controlled Packaging Solutions Market Segment Analysis – By Type

The passive packaging segment held the largest share of more than 55% in the Temperature Controlled Packaging Solutions Market in 2020. There are two types of packaging solutions- active and passive. Active packaging solution requires an external power source (electric plug or battery) during the use to ensure constant temperatures whereas passive/static packaging solution is lined with eutectic plates or a phase change material which represents the energy source. Combined with an insulating material, they create a microclimate with the required temperature range. As active packaging relies on the availability of electricity, something which is not so simple particularly in developing countries, this type of packaging is not used for air transport. On the other hand, passive packaging is the least expensive and most used solution in air transport. Therefore, passive packaging is widely used and is set to dominate the Temperature Controlled Packaging Solutions Market during the forecast period.

Temperature Controlled Packaging Solutions Market Segment Analysis – By Product

The insulated shippers segment held the largest share of more than 24% in the Temperature Controlled Packaging Solutions Market in 2020. Insulated shippers are lightweight, reusable, recyclable, and economical. Insulated shippers, also known as thermal shippers, include reflective bubble mailers, insulated pallet liners, insulated pallet covers, expanded polystyrene (EPS) coolers, etc. The latest offerings are insulated shippers constructed completely from renewable materials, cotton- and plant-based sustainable shippers. Insulated containers also occupy a significant market share. Insulated containers maintain a warm and dry internal environment making them the best shipping containers for long-haul transportation. They are insulated from inside, ensuring the environment during storage time and remain active and balanced until the container is opened. However, insulated shippers are mainly used as a packaging material, as they ensure safe transportation of various temperature-sensitive products. These are suitable for carrying a temperature-sensitive payload of volume ranging from 4 litres to 100 litres. They help in maintaining the temperature of payload duration for about 48 hours to 120 hours. Hence, this makes these shippers suitable for pharmaceuticals products. As a result, the demand for insulated shippers contributes to the increased growth of the Temperature Controlled Packaging Solutions Market.

Temperature Controlled Packaging Solutions Market Segment Analysis – By Usage Type

The reusable packaging segment is expected to grow at a CAGR of 11.6% during the forecast period from 2021-2026. This is because this packaging solution can be reused more than 100 times and can be offered ready for use. Increased demand for reusable containers due to lower environmental impact also help companies to become more sustainable. A study of the pharmaceutical industry by Precedence Research estimates reusable packaging constitutes 74% of the pharmaceutical market, and demand for it is growing faster than for single-use packaging. This demand for reusables is due to the additional protections pharmaceutical products need with more robust packaging and stronger temperature control. There is a focus on green initiatives to minimize the environmental impact.  Hence, the reusable packaging segment is forecasted to dominate the Temperature Controlled Packaging Solutions Market.

Temperature Controlled Packaging Solutions Market Segment Analysis – By Temperature Control Medium

The phase change materials segment held the largest share of more than 45% in the Temperature Controlled Packaging Solutions Market in 2020. Phase Change Materials (PCM) provide precise temperature control for thermal packaging solutions. These PCMs store thermal energy as latent heat to provide temperature control for long durations during the shipping and storage of biological, pharmaceutical, medicinal, and life science products. Temperature controlled packaging solutions are carefully selected for the optimal system and temperature control medium, including dry ice, liquid nitrogen, gel packs and other PCM to ship pharmaceutical products, blood, biologics and tissue samples. Out of these, gel packs occupy a significant market share. Gel packs contain gel material that can be pre-frozen to act as synthesized ice at zero degrees Celsius while remaining colder for longer, and being totally re-usable. Gel packs can maintain shipping temperatures in the ‘chilled products’ range at between 2 and 8°C. There are various kinds of gel packs- polymer ice packs, semi-rigid foam bricks, no-sweat gel packs and drain safe packs.  Specialty gel packs, based on phase changing materials, can maintain lower temperatures and are also considered benign for air transport. Different products require maintaining specific temperature levels to ensure their integrity throughout the logistics chain. For the pharmaceutical industry, the temperature range of 2 to 8°C is often specified for cold chain shipping, Hence, gel packs are widely used.

Temperature Controlled Packaging Solutions Market Segment Analysis – By Application

The food and beverages segment held the largest share in the Temperature Controlled Packaging Solutions Market in 2020 and is growing at a CAGR of 12.2% during 2021-2026. Temperature controlled packaging solutions provide a way to maintain a product’s temperature in situations where other methods, such as temperature controlled warehousing or transportation, are unavailable. Food distributors and supermarkets are often tasked with transporting or storing several food items with varying temperature requirements in the same vehicle or warehouse. Temperature controlled packaging provides a way to keep individual products at different temperatures within a shared space. According to the European Cold Storage and Logistics Association (ECSLA), 60% of food products need to be kept cold. Thus, the food & beverage industry is another major consumer of temperature controlled packaging. According to a new study by grocery e-commerce specialist Mercatus and research firm Incisiv Projects, in 2020, US online grocery was 10.2%, or about $106 billion, up from 3.4%, or $34.54 billion in 2019. The rising popularity of frozen meals and grocery delivery services has further increased the demand for high-quality packaging solutions that can protect the integrity of perishable food products until they reach the final consumer. Therefore, with rising online grocery shopping, the demand for temperature controlled packaging solutions also increases thereby driving the market over the forecast period.

Temperature Controlled Packaging Solutions Market Segment Analysis – By Geography

North America held the largest share in the Temperature Controlled Packaging Solutions Market in 2020 up to 42%. This is mainly attributed to the healthcare and pharmaceutical industries.  The US has a dominant share of the global pharmaceutical market due to the presence of some of the biggest pharma companies worldwide. From the top 10 pharma companies in the world 5 of them are headquartered in the US- Pfizer, Johnson & Johnson, Merck & Co., AbbVie and Abbott Laboratories. According to the Pharmaceutical Research and Manufacturers Association (PhRMA), U.S. firms conduct over half the world's R&D in pharmaceuticals (US$75 billion). According to a report by Pharmaceutical Commerce, it is projected that by 2023, Americans would spend between US$635 and US$655 billion on medicine. Due to the COVID-19 pandemic, the demand for the COVID-19 vaccines, cell and gene therapies, other flu vaccines, and medicines have increased significantly. The demand for the shipment of vaccines across the globe is expected to increase, enhancing the market for temperature-controlled packaging. Three of the current COVID vaccines, Janssen (Johnson & Johnson), Pfizer-BioNTech (Pfizer) and Moderna (Moderna Inc.) are manufactured in the US. All the vaccines to prevent COVID-19 have specific storage requirements. For instance, the Moderna COVID vaccine has to be stored in a freezer between -25°C to -15°C and once removed from the freezer has to be stored between 2 to 8°C. Hence, cold chain storage is of utmost importance for COVID-19 vaccines. Thus, with the flourishing pharmaceutical industry, there will be an upsurge in the demand for vaccines, medicines, and other temperature sensitive materials which is anticipated to drive the Temperature Controlled Packaging Solutions Market in this region.

Temperature Controlled Packaging Solutions Market – Drivers

• COVID-19 Vaccines

The COVID-19 pandemic is one of the worst outbreaks that humanity has ever experienced. It has caused 4.2 million deaths worldwide to date, according to the World Health Organization (WHO). Hence, developing a vaccine was of utmost importance to try and avert more deaths. In December 2020, the first mass vaccination began. According to the WHO, access to safe and effective vaccines is critical to end the COVID-19 pandemic. COVID-19 vaccines may impact the types of vaccine storage units and temperature monitoring devices that are used to maintain the cold chain, including the use of ultra-cold storage. Temperature ranges for COVID-19 vaccines may also differ from those for other vaccines. Failure to store and handle vaccines properly can reduce vaccine potency, resulting in inadequate immune responses in patients and poor protection against the disease. A cold chain is a temperature controlled supply chain that includes all vaccine-related equipment and procedures. The cold chain begins with the cold storage unit at the manufacturing plant, extends to the transport and delivery of the vaccine and correct storage at the provider facility, and ends with the administration of the vaccine to the patient. The Pfizer-BioNTech vaccine is an ultra-low temperature vaccine that needs to be stored between -80°C to -60°C. So, Pfizer has specially designed temperature-controlled thermal/insulated shippers utilizing dry ice to maintain recommended storage temperature conditions of -70°C±10°C for up to 10 days unopened. The Pfizer thermal shippers, in which doses will arrive, can be used as temporary storage units by refilling with dry ice every five days for up to 30 days of storage. Hence, cold chain technology plays a major role in the transport of COVID-19 vaccines acts as a key driver of the Temperature Controlled Packaging Solutions Market during the forecast period.    

• Sustainability

Due to growing concern about environmental pollution, global governments adopt strict regulations to minimize the impact. For instance, the European Union imposed a regulation for the recovery of post-consumer waste. The packaging waste, particularly from the cold chain, is due to companies adapting outdated and cheapest solutions for delivery. The government and other public organizations focus on reducing carbon footprint in the cold chain and creating sustainable networks. To combat this, there have been recent developments such as constructing insulated shippers completely using renewable materials, such as cotton- and plant-based sustainable shippers to provide an effective and eco-friendly option for shipping temperature-sensitive items without contributing to the depletion of natural resources. For instance, PLA (Polylactic Acid) is produced under controlled conditions using renewable sources such as corn starch or sugarcane. PLA is an innovative bioplastic that has thermal insulating properties and is eco-friendly. These packaging products can be fully degraded into carbon dioxide and water after composting, without any environmental pollution. PLA temperature controlled packaging is important for the food companies that need well-insulated, renewable packaging to be able to keep perishable food items cool or frozen during transit. According to the 2020 Biopharma Cold Chain Logistics Sustainability Survey by Pelican BioThermal, the pharma industry is increasing its pace to prioritize sustainability in business and operational strategies. Nearly half of all respondents prefer to say that they always factor sustainability into cold-chain purchasing decisions and 53% indicate that it’s very important to choose cold-chain packaging options that advance their organization’s sustainability profile. According to the survey, attributes that address sustainability needs include recyclability, weight reduction, and energy-efficient designs. Reusable packaging is used in this industry to make it more sustainable. Thus, this growing interest in sustainability also acts as a driver.

Temperature Controlled Packaging Solutions Market – Challenges

• Stringent Regulations

Packaging is an essential part of any product that needs transporting. It helps to prevent damage during delivery. Due to the sensitive nature of drug and health products, their life-saving capabilities, pharmaceuticals need the utmost care and cover during transit. There is also the risk of contamination. In the US the Food and Drug Administration (FDA) regulated the shipment of temperature sensitive products. The WHO imposes regulations on the shipment of temperature-sensitive pharmaceutical products across the globe. Since the vaccine is the only way to prevent COVID-19, the WHO has stringent regulations about its transport and storage. The purpose of the vaccine cold chain is to maintain product quality from the time of manufacture until the point of administration by ensuring that vaccines are stored and transported within WHO-recommended temperature ranges. The International Air Transport Association’s (IATA) Temperature Control Regulations (TCR) addresses temperature management issues identified by the industry. It has a Standard Acceptance Checklist to inform airlines and ground-handling agents of the minimum checks to execute in temperature sensitive healthcare shipments. This ensures that the process meets all the requirements established by the TCR. Since July 2013, this checklist is a requisite for the transportation of time and temperature sensitive healthcare shipments. Such factors can be challenging for the Temperature Controlled Packaging Solutions Market.

Temperature Controlled Packaging Solutions Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Temperature Controlled Packaging Solutions Market. Temperature Controlled Packaging Solutions Market top companies are:

1. Cold Chain Technologies
2. Pelican BioThermal LLC
3. Sonoco Thermosafe
4. Softbox Systems
5. Sofrigam SA
6. Intelsius
7. Nordic Cold Chain Solutions
8. Tempack
9. Cryopack
10. Va-Q-Tec AG
11. Envirotainer AB.

Acquisitions/Technology Launches

• In August 2020, Sonoco, one of the largest global diversified packaging companies, today announced the acquisition of Can Packaging, a privately owned designer and manufacturer of sustainable paper packaging and related manufacturing equipment, based in France, for approximately US$49 million.
• In February 2020, Pelican BioThermal LLC announced the acquisition of NanoCool LLC. The company is involved in the production of temperature-controlled packaging systems.

Relevant Reports

 Food Packaging Technology and Equipment Market- Forecast (2020 - 2025)

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 Cold Chain Market- Forecast (2021 - 2026)

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