Leave Your Message
Porter's Five Forces Model Analysis of Oral Dissolving Film Market

Blog

News Categories

    SEND YOUR INQUIRY

    Featured News

    Porter's Five Forces Model Analysis of Oral Dissolving Film Market

    2024-12-03
    Oral Dissolving Film-3

    1. Competition among existing competitors in the industry

    1.1 Maturity of Oral Dissolving Film Market

    1.1.1 Existing Enterprises in the Market

    Large enterprises: The main players in Europe and America are mostly global pharmaceutical giants, dominating the European and American markets. These companies usually have sufficient production lines and strong market influence. In the oral thin film market, some companies are leveraging their advantages in drug research and production to expand their research and commercialization efforts in the oral thin film market. Pfizer, which focuses on developing psychotropic and pain relieving drugs, Novartis, which develops oral dissolving fim for chronic disease management, and GlaxoSmithKline (GSK), which mainly launches pediatric medication and nutritional supplements.

    Small and medium-sized enterprises: In addition to large companies, some small and medium-sized enterprises focus on the research and production of oral disintegrating film technology, and the number is gradually increasing. These companies are mostly focused on niche markets such as psychotropic drugs, vitamin supplements, or functional foods, and they all have strong innovation capabilities.

    1.1.2 Analysis of Existing Enterprise Strength

    Technical capability: The leading companies in the market have invested heavily in the research and production technology of oral thin film products, enabling them to possess advanced patented technology and a strong R&D team. This is also why they are not only able to quickly launch new products, but also optimize production efficiency. For emerging enterprises and small and medium-sized enterprises, technological innovation and product differentiation are the key to their successful entry into the oral thin film market and occupying a place.

    Market share and influence: Large pharmaceutical companies, with their deep accumulation and extensive market network in the pharmaceutical industry, have a huge market share and influence. They maintain their leadership position through strategies such as brand advantage, market promotion, and channel control. For small and medium-sized enterprises that focus on niche markets, although they are relatively small in scale, the existence of their strongly differentiated products enables them to have strong competitiveness in specific fields.

    1.1 Differentiation of existing oral thin film products

    1.1.1 Drugs in different fields

    By leveraging the uniqueness of the target audience for oral dissolving films, drug oral dissolving film formulations can produce differentiated products for different drug segments, such as psychiatric drugs for anxiety disorders, depression, and other mental illnesses; Antiallergic drugs used to treat acute allergic reactions; Pain management needs, such as painkillers for migraines and postoperative pain. Produce products with differentiated competitiveness based on the different drug ingredients required by patients.

    1.1.2 Vitamins and Nutritional Supplements

    Oral dissolving films have shown significant differentiation in the vitamin and nutritional supplement market, especially for children and the elderly. Many vitamin supplement products have improved the acceptance and compliance of children and the elderly by adjusting different flavors. For example, oral soluble film products of vitamin D and vitamin B12.

    1.2.3Medication Compliance and User Experience

    The differences in taste and dissolution rate result in different user experiences for oral dissolving films with the same effect. The dosage, taste, and dissolution rate of oral dissolving film can be specifically controlled according to the patient's needs. Children's medications often require sweet or fruity flavors, while adult medications require a neutral or milder taste.

    1.2 Competitive strategy in the oral soluble film market

    The competitive strategy in the oral soluble film market mainly focuses on three aspects: price competition, brand influence, and technological innovation. Different market participants have adopted diversified strategies to occupy advantageous positions in this rapidly growing market.

    (1) Price competition

    Many small and medium-sized enterprises strive to enter the market at more competitive prices by producing at low costs and optimizing their supply chains. Large enterprises rely on large-scale production to reduce unit costs and maintain price advantages. Enterprises should flexibly price based on market demand and consumer purchasing power in different regions.

    (2) Influence

    Well known brands can gain market advantages through long-term accumulated reputation. Small and medium-sized enterprises can establish a professional brand image by focusing on specific areas, such as psychotropic drugs. But both require excellent user experience and stable product quality to enhance brand loyalty.

    (3) Technological innovation

    Continuous investment in research and development by enterprises to optimize the formula, dissolution rate, and efficacy of oral dissolving films is the key to maintaining market competitiveness. Focus on developing new oral soluble film, such as antipsychotic drugs, anti allergic drugs, etc., to meet market demand; Provide personalized oral dissolving film products for specific patient groups, such as children and the elderly. It can bring a broader market for enterprises.

    Threats from Potential Entrants

    2.1 Entry barriers

    2.0.1 Technical Requirements

    The production of oral dissolving films requires highly precise techniques, including uniformity control of the film, rapid dissolution, drug stability, etc. This requires enterprises to possess advanced production equipment and technical expertise in order to ensure product quality and consistency.

    2.1.2 Capital Requirements

    Establishing a oral dissolving film production line requires large-scale capital investment, especially in purchasing advanced production equipment and automation systems. In addition to initial capital, continuous equipment maintenance and upgrades, raw material procurement, and the funds required for large-scale production also constitute barriers to entry.

    2.0.2 Research and Development Costs

    Developing new oral dissolving film products not only requires R&D investment, but also technical talents in drug formulation, efficacy testing, and patient experience improvement. The product needs to undergo rigorous clinical trials, which not only increases time costs but also significantly increases research and development expenses.

    2.2 Regulatory and Approval Barriers

    2.2.1 Strict international regulations

    FDA approval (USA): Oral dissolving film products must undergo strict FDA review to ensure their safety, effectiveness, and quality. This involves clinical trial data, production process validation, and continuous quality monitoring.

    EMA approval (Europe): The European Medicines Agency (EMA) requires oral coated products to comply with European drug regulations, covering the manufacturing, distribution, labeling, and efficacy evaluation of drugs, ensuring their safe use within the European Union.

    2.2.2 Regional regulatory differences

    Different countries have different standards: In addition to the European and American markets, oral dissolving film products also need to meet their own drug regulatory requirements in different regions (such as Asia, the Middle East, and Latin America), including different approval processes, quality standards, and labeling requirements, which increases the complexity of market access.

    2.2.3 High compliance costs

    Enterprises need to invest a lot of time and funds to meet regulatory requirements, conduct clinical trials, prepare application documents, track regulations, and respond to compliance reviews. Greatly increased the time and cost of market entry.

    3. Threat of substitutes

    3.1 Competition with traditional dosage forms

    The size of the pharmaceutical market is relatively fixed, and when oral thin film formulations gain market share, the market share of traditional dosage forms will decrease, which inevitably leads to competition.

    3.1.1 Solid preparations

    Traditional solid preparations, such as tablets and capsules, are the most common dosage forms of drugs, with broad market awareness and long-term usage habits, especially in the low-priced generic drug market with strong competitiveness. The technology of producing tablets and capsules simultaneously is relatively mature, with low production costs and obvious price advantages, which will create price competition pressure for oral dissolving film products.

    3.1.2 Injection

    Injections still have advantages in drug treatments that require rapid onset of action. Although injections are not convenient for daily use, they are still an irreplaceable prescription in medical settings. Such as emergency drugs or treatments that require direct entry into the bloodstream, especially in scenarios such as hospitals and emergency rooms.

    3.1.3 Usage habits

    Many patients and healthcare professionals have developed a strong adherence and preference for traditional dosage forms, especially in cases where rapid dissolution or special requirements are not required. Tablets and capsules have higher convenience and usability and are more favored by patients.

    3.2 Alternative threats to other innovative dosage forms

    3.2.1 Oral spray

    Similar to oral soluble film, oral spray also provides a convenient way of administration. It does not need water for auxiliary administration and is absorbed by the oral mucosa, which has the advantage of rapid onset. Oral spray is gradually expanding to a variety of drug fields, such as pain relievers, vitamin supplements, etc., especially in children and the elderly market with strong competitiveness. This makes oral spray directly compete with oral dissolving film in some drug scenarios.

    3.2.2 Transdermal Patch

    Transdermal patches can achieve sustained drug release and have significant advantages for diseases that require long-term maintenance of drug concentration, such as chronic pain and smoking cessation treatment. Transdermal patches, like oral dissolving films, have the advantage of non invasiveness, but the long-lasting effect of patches reduces the trouble of frequent medication. This long-lasting characteristic poses a significant threat to the replacement of oral dissolving film, especially in patients who need to maintain stable blood drug concentrations.

    3.2.3 Other innovative dosage forms

    With the continuous development of pharmaceutical technology, there are other innovative drug dosage forms that further change the way drugs are administered and compete with the existing oral dissolving film market, such as Sublingual Tablet, Chewable Tablet and other products. These new dosage forms are designed to improve the efficacy, safety, patient compliance and convenience of drugs.

    4 Suppliers' bargaining power

    4.1 Supplier Concentration

    Oral dissolving film formulations may contain high-quality active pharmaceutical ingredients and special film substrates (such as water-soluble polymer materials). Large suppliers have strong bargaining power over raw material quality and price.

    However, the supplier market for excipients used in oral dissolving film formulations (such as HPMC and other excipients) is relatively fragmented, with a large number and fierce competition. This reduces the bargaining power of individual excipient suppliers, and companies have more options to control costs.

    4.2 Alternative Supplier Selection

    Companies can reduce their reliance on a single supplier by diversifying their supply chain. Despite the high concentration of raw material suppliers, by establishing multiple supplier relationships or finding alternative suppliers in different regions, they can reduce the risk of supply chain disruptions and gain more initiative in price negotiations. By establishing long-term cooperation agreements with suppliers to ensure stable supply and more favorable price conditions, it can also help reduce the impact of raw material shortages or cost increases caused by market fluctuations.

    5 Buyers' Bargaining Power

    5.1 Buyer Concentration

    Due to the particularity of the drug market, buyers are usually large hospitals or chain pharmacies with small quantities and high concentration. These buyers usually have strong bargaining power and can lower the prices of suppliers through large-scale procurement.

    5.2 Sensitivity of buyers to product differentiation

    At present, there is a significant differentiation in the market of oral dissolving film products, such as different flavors, dosage forms, main ingredients, etc. Buyers are relatively less sensitive to price when purchasing, especially when differentiation can significantly improve patient experience, which will weaken buyers' bargaining power.

    5.3 Brand Loyalty

    For well-known brands with a certain market size, building trust and reliability weakens buyers' bargaining power. Consumers often have a high loyalty to big brands, and buyers such as hospitals and pharmacies are more inclined to choose these brands when making purchases. Therefore, suppliers with brand effects can maintain price advantages.

    If the brand influence is not strong or the product awareness is low, the buyer will have more choices, thereby increasing their dominance in price negotiations and forcing suppliers to lower prices to maintain competitiveness. At this time, the buyer's bargaining power is strong.

    6 Conclusion and Suggestions

    6.1 Industry attractiveness

    According to Porter's Five Forces model analysis, the oral soluble film market has strong appeal. At present, the market is still in a stage of rapid growth. Although technological barriers and regulatory restrictions have set high entry barriers for new entrants, this field has enormous potential and is a good choice for enterprises with a certain scale to expand their market.

    Existing enterprises in the market possess strong technological strength and market share, while small and medium-sized enterprises enter the market through differentiated products, forming a diversified competitive landscape. The threat of substitutes is relatively present, but oral soluble film rely on their own advantages to continuously expand market demand. The bargaining power of suppliers and buyers varies due to market concentration and differentiation, forming a relatively balanced market environment.

    6.2 Enterprise Strategic Suggestions

    1. Technological innovation: Focus on research and development investment in oral solublefilm formulation, drug release control, dissolution rate, and other aspects to maintain a leading position in technology.
    2. Differentiated product development: By developing personalized products for different patient groups (such as children, the elderly, and chronic disease patients), we aim to enhance market competitiveness.
    3. Brand building: Enhance brand trust and market awareness, and weaken buyers' bargaining power through brand loyalty.
    4. Supply chain optimization: Establish a diversified supply chain, reduce dependence on a single supplier, ensure supply stability, and control costs.
    5. Global Expansion: Utilize technological and market advantages, actively explore emerging markets, adapt to regulatory requirements in different regions, and seize opportunities for global expansion.

    Let Align help you obtain more information about the oral disintegrating film market

    Align is a professional one-stop service provider for oral disintegrating film production equipment. If you have any questions about oral disintegrating films, whether in the market or production field, please feel free to contact us at any time.

    If you have any technical or equipment questions
    Please feel free to contact us!

    Related Machines

    You May Be Interested