Temperature Controlled Packaging Solutions Market - Trends and Forecasts Up to 2026

Date: 17 May 2021

The global TCP market size is estimated to be USD 34.4 billion in 2021 and is projected to reach USD 80.1 billion by 2026, at a CAGR of 18.4 % between 2021 and 2026. The TCP market is driven by healthcare sector during the forecast period.  North America is dominating region in healthcare sector with increase in demand from the US.

COVID-19 impact on the global TCP market

In 2020, the TCP market grew by 4% in terms of value, compared to 2019, amid the COVID-19 pandemic.  The demand for temperature-sensitive packaging increased for the distribution of COVID-19 vaccines across the globe. The companies developed their packaging system for shipping vaccines, test kits, and other critical medicines. The temperature-controlled packaging is susceptible to product damage due to temperature excursion. The product's efficacy gets compromised with temperature deviation. COVID-19 accelerated trends in the temperature-controlled packaging solution market.  The vaccine manufacturing companies collaborated with temperature-controlled packaging providers to develop customized products for the shipment of vaccines.

Driver: Growth in Biopharmaceuticals due to COVID-19

Vaccines and cell therapies transportation requires a lower temperature for shipping. In 2020, due to the COVID-19 pandemic, the demand for the COVID-19 vaccine, cell and gene therapies, other flu vaccines have increased significantly. According to Our World in Data, as of April 2020, about only 5% of the overall population have received at least one dose of COVID-19 vaccines. The demand for the shipment of vaccines across the globe is expected to increase, enhancing the market for temperature-controlled packaging. The COVID-19 vaccine developed by Pfizer – BioNTech is an Ultra-Low Temperature vaccine that requires to be stored at low temperature to maintain the quality and efficiency of the vaccine. The company collaborated with Softbox Systems Ltd. to develop reusable Ultra-Low Temperature (ULT) shippers that can store vaccines for up to 30 days. Apart from Pfizer, other biopharmaceutical companies collaborated with thermal packaging solution providers to ship their temperature-sensitive products worldwide.

Restraints: Stringent regulation on shipment of temperature sensitive products

One of the risks involving in the supply of pharmaceutical products includes contamination. US Food and Drug Administration (FDA) has the authority to regulate the shipment of products. Regulation such as 21 CFR 211.150 talks about distribution procedures of temperature-sensitive products. World Health Organization (WHO) imposed regulations on the shipment of temperature-sensitive pharmaceutical products across the globe. These regulations come under Good Distribution Practices (GDP) Regulations. To maintain the efficiency of the product, regulation focuses on identifying & minimizing risks. Managing active and passive shipments for road and air transport for various cold chain points also came in the WHO regulations.
Standard tests are conducted to validate the ability of the packaging system to maintain the temperature range. According to International Air Transport Association (IATA), Temperature Control Regulations (TCR) contain all information and requirement (Government regulations, Carrier regulations, packaging, and other) before shipping a temperature-sensitive product. The International Safe Transit Association (ISTA) set standards for global package transportation. The ISTA test standards for temperature-sensitive shipping include 7D,20, 7E, and 3A.

Opportunity: Adoption of digitization in TCP market will help the companies to cut operational cost and decrease manual checks

The cold chain carries temperature sensitive payload. These payloads are at risk of damage and loss due to temperature excursion during shipment. Temperature-sensitive products are primarily from the biopharmaceutical industry and are of high importance. The industry encounters a loss of about USD 35 billion yearly due to failures in temperature-controlled logistics. The shipment of COVID-19 vaccines and other products such as cell and gene therapies has increased amid the COVID-19 pandemic in 20

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