The State of the Packaging Industry: Today and Tomorrow
- The State of the Packaging Industry: Today and Tomorrow
The State of the Packaging Industry: Today and TomorrowThu Dec 12, 2013
As 2013 comes to an end and 2014 is just around the corner, now is a good time to take a look back at the changes that have occurred in packaging, as well as a look ahead at the future. It’s a fascinating, ever-changing industry, and looking at those changes and potential opportunities is important for everyone involved.
When you take a look at the contract packaging or outsourcing base, you’ll see it has changed drastically over the past five years. So much is now driven by the regulatory environment, as the government is consistently pushing packagers to take responsibility for the supply chain and properly manage all resources, even when the packagers are not manufacturing the drugs and products.
With that have come to a lot of financial changes and challenges for the packagers, as they might not have the monetary resources to run their business while staying on top of all of the regulatory requirements. They are spending much of their economic resources on research & development and the future growth of their businesses, making it difficult to balance that with regulatory compliance.
Specific changes over the last five years include GDUFA (Generic Drug User Fee Amendments), the generic drug federal tax that anyone packaging for generic drugs has to pay; in 2012, it was $175,000 per facility, in 2013 it became $220,152 per facility. This is one of the biggest changes and challenges.
How will this affect the future? Many predict that the year ahead will see fewer contract packagers, while there will be companies that are focused on and staffed for these purposes, with the right individuals to assure future success.
As for the current and future state of contract packaging, it seems more and more customers are relying on their contract packager to offer design and engineering in addition to packaging, which will allow packagers (those who are ready to take this on) to add to the users’ experience, build a barrier to entry, and offer an area of difference as compared to their competitors. The truly successful packagers of tomorrow will embrace and benefit from this.
As a successful contract packager with our finger on the pulse of the industry and significant experience in all aspects of design, engineering, and packaging, we look forward to the future and seeing what unfolds. We thank you for your loyalty and look forward to working with you all in 2014 and beyond.
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