Vietnam Pharmaceutical Packaging Market Outlook to 2030

Vietnam Pharmaceutical Packaging Market Overview

• Vietnam Pharmaceutical Packaging Market was valued at USD 600 million, growing steadily due to the rising demand for healthcare products and increasing production capabilities in the country. The growth is driven primarily by the rising population and a higher incidence of chronic diseases, which necessitates increased production of medications.
• Some of the major players in the market include Amcor, Huhtamaki, Sonoco, Gerresheimer, and Nipro. These companies are investing in technological advancements such as smart packaging, which is becoming increasingly popular in Vietnam. Their ability to maintain strong supply chains and partnerships with local and regional manufacturers allows them to maintain their foothold in the market.
• In 2024, Nipro Medical Corporation announced its agreement with the North Carolina state government to acquire a site for a new medical device manufacturing facility in Pitt County. This facility aims to enhance local production capabilities to meet the increasing demand for medical devices in the U.S. and neighboring countries.
• Hanoi and Ho Chi Minh City are the dominant cities in the Vietnam pharmaceutical packaging market due to their large populations, better healthcare infrastructure, and proximity to industrial zones. Both cities host a number of major pharmaceutical companies and production facilities, as well as serving as distribution hubs for regional and global markets.

Vietnam Pharmaceutical Packaging Market Segmentation

By Product Type: The market is segmented by product type into bottles, blisters, ampoules, and pouches. In 2023, blister packaging dominated the product type segment due to its effectiveness in protecting medicines from environmental factors such as moisture and oxygen, extending the shelf life of pharmaceutical products. This type of packaging is especially preferred for tablet and capsule medications, which are commonly used for chronic diseases in the country.

By Material Type: The market is also segmented by material type into plastic, glass, aluminum, and paper. In 2023, plastic emerged as the dominant material with the highest market share. Its low cost, durability, and lightweight nature make it the preferred choice for pharmaceutical packaging manufacturers. Moreover, plastic is widely used for manufacturing blister packs, bottles, and pouches, catering to the large demand for affordable packaging solutions.

By Region: The market is segmented into Northern, Central, and Southern regions. In 2023, the Southern region held the largest market share due to its strategic location as a hub for manufacturing and export. This region benefits from better infrastructure, access to skilled labor, and close proximity to international ports, making it an attractive location for pharmaceutical companies and packaging manufacturers.

Vietnam Pharmaceutical Packaging Market Competitive Landscape

• Amcor: In 2023, Amcor acquired Phoenix Flexibles, a company based in Gujarat, India, which specializes in flexible packaging for personal care, home care, and food products. This acquisition is seen as a move to strengthen Amcor's presence in the Asian market, which includes Vietnam, where the pharmaceutical packaging sector is experiencing significant growth due to increasing healthcare demands and technological advancements.
• Huhtamaki: In 2022, Huhtamaki has launched a new aluminum-free blister pack, known as the Push Tab, which is a first in the healthcare packaging sector. This innovation utilizes monomaterial PET, enhancing recyclability while meeting stringent safety standards. The Push Tab is designed to operate on existing packaging lines, facilitating a transition towards more sustainable practices in pharmaceutical packaging without requiring additional investment from customers.

Vietnam Pharmaceutical Packaging Industry Analysis

Growth Drivers:

• Rising Demand for Chronic Disease Medications: Cardiovascular diseases (CVD) accounts for 31% of deaths in Vietnam. Strokes alone result in 200,000 new cases annually, with approximately 50% of these cases being fatal. This surge in chronic diseases directly impacts the pharmaceutical packaging market, as the production of medications, particularly in tablet and blister packaging formats, has increased to meet the demand for long-term treatments.
• Expansion of Pharmaceutical Manufacturing Facilities: The Vietnamese governments strategy to boost local pharmaceutical production by increasing investment in manufacturing facilities has driven the need for pharmaceutical packaging. The Vietnamese government approved the National Strategy for the Development of the Pharmaceutical Industry through 2030, with a vision extending to 2045. This strategy aims for Vietnam to meet 80% of its domestic pharmaceutical demand and account for 70% of the market value of pharmaceuticals by the end of the decade.
• Increased Foreign Direct Investment (FDI) in the Pharmaceutical Sector: Currently, the total FDI in Vietnam's pharmaceutical sector is estimated at approximately $5.5 billion across 341 projects. This inflow of capital has spurred the growth of local pharmaceutical production capabilities, increasing the demand for specialized packaging. As foreign companies establish production lines in Vietnam, the need for high-quality packaging materials also rises, fueling the growth of this market.

Challenges:

• Stringent Regulatory Requirements: Vietnams pharmaceutical packaging industry is subject to stringent regulations imposed by the Ministry of Health. New guidelines were introduced to ensure that packaging meets international standards for drug safety and efficacy, requiring companies to upgrade their production processes. Compliance with these new rules has become a significant challenge, especially for smaller players who lack the financial resources to invest in new technology and machinery.
• Environmental Concerns and Sustainability Pressures: With growing environmental awareness, the Vietnamese government has set strict targets to reduce plastic waste, impacting the pharmaceutical packaging sector. The high cost of transitioning to sustainable materials like biodegradable plastics or recycled packaging poses a challenge for many companies in the sector.

Government Initiatives:

• Pharma Industry Development Strategy: In 2023, Vietnam developed a strategic plan to develop its pharmaceutical industry by 2030, aiming to ensure affordable access to medicines, produce 80% of domestic drug demand locally, and achieve WHO certification for regulatory agencies. The strategy emphasizes R&D, technology transfer, and improving management capacity. This strategic framework supports the packaging industry by incentivizing local manufacturers to adopt new technologies and align with international packaging standards.
• Circular Economy Action Plan: In 2022, Vietnam has indeed established a Circular Economy Action Plan, primarily encapsulated in Decision 687, which was ratified in July 2022. This decision marks a significant shift from a linear economic model towards a circular economy aimed at sustainable development. Packaging companies are incentivized to invest in sustainable materials, and the government provides subsidies to offset the cost of this transition.

Vietnam Pharmaceutical Packaging Future Market Outlook

Vietnam Pharmaceutical Packaging Market is expected to see sustained growth over the next five years, driven by increasing investments in pharmaceutical production, expanding healthcare infrastructure, and government-led initiatives aimed at modernizing the industry.

Future Trends

• Adoption of Smart Packaging Solutions: In the coming years, the pharmaceutical packaging market in Vietnam is expected to witness the adoption of smart packaging technologies, including RFID tags and temperature-sensitive labels. These innovations will enable better tracking of pharmaceuticals throughout the supply chain, ensuring that medicines are stored and transported under optimal conditions. As Vietnams pharmaceutical industry expands, such solutions will become increasingly important for maintaining product integrity.
• Focus on Eco-Friendly Materials: Eco-friendly and sustainable packaging materials will dominate the Vietnam pharmaceutical packaging market. Companies will increasingly shift from traditional plastics to biodegradable or recycled materials in response to both government regulations and consumer demand for sustainable packaging solutions. This trend will be particularly strong for single-use plastic products, as Vietnam continues its efforts to reduce plastic waste.