Vaccine Storage Equipment Market Size, Share & Trends Analysis Report By Product Type (Starch-Based Plastic, Cellulose-Based Plastics, Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Others), By Applications (Food, Beverage, Pharmaceutical, Personal/Homecare, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global vaccine storage equipment market size was valued at USD 1,333 million in 2022. It is estimated to reach USD 3,950 million by 2031, growing at a CAGR of 12.83% during the forecast period (2023–2031).

The efficacy and efficiency of vaccines can be lost if they are exposed to temperatures outside the recommended range because they are delicate biological compounds. Protecting individuals and communities from diseases that can be prevented by vaccination depends heavily on the equipment used to store vaccines. The term "vaccine storage and packaging" refers to various laboratory tools and apparatus used to protect, transport, and store vaccines. Refrigerators and freezers that store vaccine vials, ampoules, and corrugated boxes are some of the frequently used vaccine storage tools. In cold chain facilities that control and maintain the desired internal temperature to ensure the safe transportation of the product, the vaccines are packaged and stored in individual containers and bundled together in cold boxes and carriers. They are therefore used in various ways in hospitals, pharmacies, labs, and other healthcare facilities.

Highlights

• Starch-based plastic dominates the product type segment
• Food dominates the application segment
• Europe is the highest shareholder in the global market

Market Dynamics

Global vaccine storage equipment market drivers

Economic incentives by various governments

Governments worldwide offer financial assistance with economic incentives to private vaccine storage equipment businesses. Due to the high cost of manufacturing vaccine storage equipment, businesses are encouraged to invest in developing cutting-edge and environmentally friendly goods through financial incentives like tax credits, grants, infrastructure assistance, no-interest financing, free land, and tax reductions. In 2019, the Thai Government allowed companies to claim deductions of up to 1.25 times for expenses if they buy vaccine storage equipment between January 2019 and Dec 31, 2021. These tax measures were expected to attract 10% of existing plastics entrepreneurs to change production to bio-plastics.

Similarly, the Kenyan government also plans to grant tax breaks to promote the production of alternative packaging made of plastic. Besides, by assisting with incentives, the government will also receive investment returns from environmental and economic impacts. This, in turn, will act as a positive factor driving the growth of the vaccine storage equipment industry.

Enforcement of environment protection rules

Several governments worldwide have become increasingly concerned about packaging waste and resource use in recent years. The growing environmental concerns due to the increasing waste accumulation and plastic pollution has led to the implementation of rules and regulation to protect the environment and create sustainability in the environment. These laws are reducing packaging waste and resources more efficiently.

Furthermore, the government ban on non-biodegradable packaging materials such as pouches and sachets is favoring the growth of packaging materials such as biodegradable plastics in the market. In the U.S., government organizations such as the Environmental Protection Agency, the U.S. Federal Trade Commission, and European, the U.S. Regulation of Solid Waste Disposal, and several others have imposed regulations for reducing plastic packaging waste. This regulation has increased the demand for packaging systems that provides enormous commercial and environmental potential, which in turn, boosts the growth of the vaccine storage equipment market.

Global vaccine storage equipment market restraint

High cost of vaccine storage equipment compared to traditional plastic packaging products

Vaccine storage equipment materials are made from renewable raw materials and petrochemicals with biodegradable additives that enhance biodegradation. However, the price of the raw materials and production methods required for the vaccine storage equipment is high. This adds to the additional cost of the product and makes it expensive. Biodegradable bags made from corn or potato starches can cost as much as ten times as traditional plastic bags. Furthermore, the cost of research and development still makes up for a share of investment in vaccine storage equipment and impacts material and product prices. Therefore, the production of biodegradable plastics requires more investment, thereby restraining market growth.

Global vaccine storage equipment market opportunities

Global corporations adopting eco-friendly packaging due to changing consumer trends

Consumer demand for greener products and reduced packaging has also increased. Research from the Center for Sustainable Business (CIB) has found that consumers are purchasing more sustainability-marketed products and are making efforts to reduce their plastic footprint due to the growing awareness regarding the harmful environmental effects of plastic. They are also paying more attention to their purchasing decisions regarding packaging, and many are changing their shopping habits.

Further, due to these changing consumer trends worldwide, several brands and global corporations are also switching to eco-friendly packaging. For instance, McDonald's claims that by 2025, 100% of its guest packaging will be made from sustainable, recycled, or approved sources. Therefore, businesses will increasingly look to innovators in the vaccine storage equipment sector that create feasible, affordable, and scalable packaging alternatives to conventional materials, which will develop profitable opportunities for the players operating in the vaccine storage equipment category over the forecast years.

Regional Analysis

Based on region, the global vaccine storage equipment market is bifurcated into North America, Europe, Asia-Pacific, and RoW.

Europe dominates the global market

Europe is the most significant shareholder in the global vaccine storage equipment market and is projected to grow at a CAGR of 13.06% over the forecast period. The transition to a low-carbon and circular economy, better governmental backing for the bioeconomy, and raised consumer awareness of sustainable products and packaging are driving the growth of the vaccine storage equipment market in Europe. As a result of the European Union's goal to lower the region's overall consumption of thin plastic bags by around 80% compared to consumption levels in 2010, the market for biodegradable plastics is estimated to expand dramatically over the following years. There is a noticeable increase in the demand for biodegradable plastics from traditional end-user industries, including packaging, agriculture, and textile. Particularly in European countries, the usage of biodegradable polymers is growing in other specialized areas, such as medical implants and medication delivery systems. These developments are contributing to the market's expansion overall. In addition, factors such as high disposable income, ease of availability, improvement in living standards, wide variety, and presence of local and international players in the market are driving the beverages industry in the region.

North America is anticipated to grow at a CAGR of 12.76% over the forecast period. The vaccine storage equipment market in the North American region is witnessing remarkable growth owing to the increasing environmental concerns regarding plastic usage that drive the use of biodegradable plastic alternatives. Invasive species that disrupt environments can travel on floating plastic garbage that can withstand thousands of years in the water. The market for vaccine storage equipment is expanding as a result of the cause, as mentioned earlier. With an increasing demand for vaccine storage equipment from food chains, such as McDonald's, who are planning to use 100% sustainable packaging by 2025, manufacturers are choosing to use these opportunities to build customer trust by proactively addressing environmental issues rather than resisting change. Moreover, it also creates an immense opportunity for vaccine storage equipment manufacturers to penetrate and garner a higher market share. Further, the presence of several significant market players in the North American region holds a considerable share of the market and favors the growth of the vaccine storage equipment market.

The Asia-Pacific region is predicted to experience the fastest growth in the equipment market for vaccine storage. Consumers are increasingly shifting towards biodegradable plastics due to surging environment-related regulations and government initiatives to promote growing awareness. The region's market is expanding due to more and more restrictions on conventional plastics. As most Asian-Pacific countries, such as China, India, Bangladesh, and others, are environmentally concerned, companies are shifting to the use of biodegradable plastics, which, in turn, helps them gain a higher consumer market share. Consequently, there is growth in the Asia Pacific vaccine storage equipment market. The market for vaccine storage equipment is growing in China owing to rising concerns from consumers over the impact plastic products have on the environment. However, the Indian vaccine storage equipment market is still in its nascent stage, with the presence of few numbers of players in the market. Nevertheless, with increasing pollution-related, people are becoming aware of the importance of using environmentally friendly products. This, in turn, boosts the vaccine storage equipment market growth.

The RoW comprises the Middle East and Africa and South America region. The government initiatives for creating awareness regarding biodegradable plastic bolstered the demand for vaccine storage equipment in the South American region. On the other hand, the Egyptian market is anticipated to expand at a stable pace in the Middle East and African market throughout the forecasted period owing to the increasing awareness among the population regarding the associated benefits of vaccine storage equipment solutions. Vaccine storage equipment solutions are used across various industries such as food and beverages, retail, and healthcare across the Gulf Cooperation Council countries, driving the growth of the vaccine storage equipment market in the Middle East and Africa region.

Segmental Analysis

The global vaccine storage equipment market is divided by product type and application.

Based on product type, the global market is bifurcated into starch-based plastic, cellulose-based plastics, polylactic acid (PLA), polyhydroxyalkanoates (PHA), and others. 

The starch-based plastic segment owns the highest market share and is estimated to grow at a CAGR of 12.88% during the forecast period. Starch-based plastic is the most widely used bioplastic; it is a natural polymer that can be incorporated into various materials. Starch-based plastics can be used in various applications. Their demand as a packaging material is increasing since they can be fused with several petroleum-based biopolymers or polymers to create unique composite materials. These composite materials can then be extruded or molded per the industry's needs. Overall, starch-based bioplastics are more cost-effective than alternative bioplastics. They are helpful for various biological applications because they have qualities like tensile strength and heat tolerance that other bioplastics do not.

Furthermore, starch-based composites can also incorporate recycled plastics. On the other hand, starch-based plastic can reduce traditional resins' carbon footprint by replacing petroleum-based polymers with natural ones. The highly degradable nature of this plastic makes it more demanding in regions where environmental safety regulations are strictly followed.

Cellulose is the world's most common natural biopolymer. Cellulose bioplastics are manufactured using cellulose or derivatives of cellulose. Due to its mechanical qualities, gas permeability, and water resistance due to being less hydrophilic than starch, cellulose film packaging material is being used more and more as pouches or bags in end-use industries, including personal care and food & beverage. Furthermore, cellulose bioplastic-based films are gaining popularity owing to their easy availability and abundance in nature. Packaging businesses focus on material improvements to meet a broader scope of packaging needs. The growth of cellulose-based plastic in the packaging industry can be primarily attributed to the rising indiscriminate use and disposal of plastic items such as bags, bottles, boxes, and more.

Based on application, the global market is segmented into food, beverage, pharmaceutical, personal/homecare, and others. 

The food segment is the highest contributor to the market and is anticipated to grow at a CAGR of 12.90% throughout the forecast period. Nowadays, while purchasing food products, consumers look into food safety, cost, food quality, and problems relating to sustainability and the environment. Thus, such changes in demand for food packaging by consumers are having a negative impact on the usage of conventionally-used packaging materials. Hence, developing vaccine storage equipment material for adequate food packaging has created extensive interest owing to their ability to minimize and substitute conventional, non-biodegradable plastic. Simultaneously, food manufacturers need packaging materials to be food grade, maintain or increase product shelf-life stability and safety and utilize minimal packaging values. The decrease or replacement of alternate biodegradable plastic materials would ensure improvement in total operating costs while minimizing waste streams.

Pharmaceutical packaging materials are the collection of different components surrounding the pharmaceutical product from production until its use. The packaging of pharmaceutical products plays a vital role in the maintenance of quality. Plastic packaging materials constitute about 20 percent of the weight of the overall packaging. However, plastic packaging is signaled as the chief environmental culprit and has led to innovative ways of making vaccine storage equipment. Previously, plastics were formed from petrochemicals but have resulted in an ecological crisis owing to their non-recyclability property. Hence, polymers isolated from natural sources, such as plant-derived polysaccharides, produce plastics. In addition, the use of vaccine storage equipment material in pharmaceuticals reduces the bulk of packaging, reducing the quantity of packaging waste, increasing shipping efficiency, and supporting eco-friendly marketing campaigns.

Recent Developments

• November 2022- A technology license deal between Voltas Limited and Vestfrost Solutions will result in the development, production, sale, and service of medical refrigeration and vaccine storage equipment. Voltas Limited will produce vaccine storage equipment, such as ice-lined refrigerators, vaccine freezers, and ultra-low temperature freezers, for the Indian market. 

• November 2022- The Japan International Cooperation Agency (JICA) formally sent cold chain and logistical equipment worth P80 million to aid in deploying COVID-19 vaccinatons throughout the Philippines. This includes two service trucks, two refrigerated vans, and 600 units of biothermal packaging, which are reusable, ice-free vaccine storage containers.