This type of packaging has become very popular, particularly in the Pharmaceutical and Medical Industries. It is inexpensive to form in a wide range of sizes, at high rates of speed, and can accommodate a wide range of product types, and sizes. There are basically 3 types of machines out there. There is the Pre Formed Blister machine, which attaches a preformed rigid clear plastic shell over a product on to a display card.
There is the vacuum formed cavity type, which uses a vacuum to suck heat softened plastic sheet film on to the surfaces of contoured cavity molds below. After the film takes the form of the mold cavities it is cooled products are dropped into the cavities and another sheet of material is brought over the top and sealed into place to finish the package. Many pills and tablets are packaged this way on those push out blister cards.
The last type vacuum forms the blister around the product onto the display card. The display card is placed on a vacuum table. The product to be packaged is then placed on the card. A sheet of heat softened clear plastic is then moved into position the over the product on the card. Then the vacuum is turned on, and the plastic is sucked onto the card and tightly around the product too, creating a tightly formed clear plastic blister that protects the product and holds it to the card as well. The machine you see above works this way. I had to fix the staged timer circuits that automated the event sequences of the sealing process.