Growing biopharmaceutical business and requirement of temperature control shipment in this sector
The temperature-controlled shipment of new drugs and medicines in the biopharmaceuticals industry is a growing segment of the supply chain. As pharmaceutical industries are increasingly stressing remote temperature and pressure monitoring, the importance of EPS coolers is growing rapidly in the shipping industry to retain their service quality in North America, which helps the EPS cooler market grow gradually.
According to Pelican BioThermal, US-based logistics solution provider, the temperature-controlled products of the global pharmaceuticals industry are surging ahead. Sales volume for these environmentally sensitive products is growing at twice the rate of the industry overall, with USD 318 billion in global sales in 2018, which has accounted for over 27% of total sales volume.
This high growth also brings increasing demand for specialized, temperature-controlled shipping and logistics services to safely and cost-effectively distribute high-value, high-sensitivity medicines. It is expected that by 2022, 30 of the 50 top global biopharma products will need cold chain handling. Fueled by exponential demand, biopharma cold chain logistics increased to USD 15 billion in 2018 according to Pelican bio thermal and is expected to have over 12.5% growth rate.
As many of the biopharma industries belong to the USA, the EPS coolers market is also expected to register a higher growth rate in the forecast period.
According to the IQVIA Institute for Human Data Science, the biopharma industry loses roughly USD 35 billion annually due to failure in temperature-controlled logistics from lost products, clinical trial loss, replacement costs, wasted logistics costs, and the costs of root-cause analysis. To overcome the losses, EPS cooler products are increasingly being innovated by packaging industries, which is expected to help the market of EPS.
The industry insiders state that the entire pharma industry has started a substantial shift away from chemically-derived products, biologics, and biosimilars. Many analysts predict that the majority of new drugs that will be introduced in the next five to 10 years will be extremely sensitive biologics or biosimilars. Such a scenario is highly favorable to the North American EPS cooler market, as it is one of the leading regions in terms of research & development of biopharmaceutical products.
According to healthcare analysts, the number of precision medicine drugs such as gene-based therapies (e.g. CAR-T cell therapies), blood-derived treatments, and other customized treatments developed for particular patients or patient sets, is estimated to increase by 69 percent in the next five years. These products are produced in few batches, with an increased rate of time and temperature limitations, and frequently involve the two-way transportation of highly sensitive biological material.
The high requirement of protection of these perishable products in times of storage and transportation is driving the North American EPS coolers market.
Growing Demand for Temperature Controlled Shipment worldwide
The essential nature of temperature-controlled shipment of various products, mainly related to biopharmaceuticals and perishable foods, drives the EPS coolers market in North America.
A continuous storage and shipment process is necessary for making sure the product’s quality is sustained throughout. Mainly EPS cooler is used to prevent microbial and metabolic deterioration caused by temperature excursions.
At present, all of the coolers and insulated shippers available at Cooler Warehouse are made from expanded polystyrene material. The molecular structure of EPS foam makes it a suitable material for different types of manufacturing applications.
Polystyrene foam products, generally known as Styrofoam, are extensively used as single-use consumer goods. For instance, three million tons of polystyrene are produced in the USA each year, mainly used to make packaging materials and food service items such as foam cups, cartons, and other containers to maintain the temperature.
Several advantageous qualities of Styrofoam have resulted in its widespread use in these applications, such as low cost, its lightweight nature and insulation properties, and durability.
According to the Sonoco Thermosafe product family, over the previous five years, the industry has shifted from very few packages needing temperature control beyond refrigerated or frozen temperature shipping to a continuous increase in demand for controlled room temperature. This has certainly affected the EPS coolers market positively due to the growing application in the logistic and shipping industry.
The essential nature of temperature-controlled shipment of various products, mainly related to biopharmaceuticals and perishable foods, is driving the EPS coolers market in North America.
The regulatory attention toward the healthcare industry is increasing exponentially as the volume and value of temperature-sensitive biopharma products increases, which can be seen from the recent temperature control requirement of Covid-19 vaccine transportation.
Global regulatory organizations are putting increasing pressure to make sure ship-to-label necessities are met and need proof that products have been placed within the approved temperature range during transport. All these requirements also strengthened the demand for EPS coolers in the packaging and shipping industry of North America.
In North America, in terms of the food industry, EPS is generally used for food containers by restaurants for takeout and takeaway because of its thermal insulation and moisture-resistant properties. They are mainly used to maintain the temperature of foods for preservation purposes without the need for any energy source.
The historical popularity of EPS in the USA is a function of its positive characteristics comprising resistance to heat, enabling warm food and beverages to remain warm and cold food to remain cold. Additionally, it is waterproof, sturdy, flexible, and is also inert. Thus it is nonreactive with the contents. These properties made it popular among frequent travelers, restaurants, and last-mile delivery services.
Retail prices of compostable coffee cups were 37 percent higher compared to EPS and large-hinged compostable food containers were 58% higher in the USA. Additionally, the cost of EPS substitutes normally is 85% higher. All these factors help in the market growth
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