The packaging refers to activities that are related to designing, evaluating and producing the container for a product. Packaging is also the process of enclosing or protecting products for storage, distribution, sale, and use. Packaging can be labeled as an organized system of preparing goods for transport, logistics, warehousing, sale, and end use. Packaging is used to keep a product safe from external factors. It also prevents human tampering. Packaging is an important aspect of the logistics supply chain. It contains, protects, preserves, transports, informs and sells. In many countries, the packaging is completely integrated into the industrial, business, government, institutional, and personal use. Population growth and urbanization are increasing trade and, simultaneously, the use of packaging globally.
The growing popularity of lightweight packagings such as paper and plastic is the primary factor driving the growth of the global packaging market. Paper-based packaging is a resourceful and cost-efficient method to transport, protect and preserve a wide range of items. It is engineered to be tough, yet lightweight, and is customizable to meet product- or customer-specific needs. The Federation of Indian Chambers of Commerce & Industry, states that plastic has been the preferred choice of packaging globally and in India due to three crucial benefits; as it increases food safety, quality and shelf life, reduces environmental impact, lightweight in nature, and create innovative packaging options for consumer convenience.
Growth of the global e-commerce market is another aspect contributing to increasing packaging adoption. According to the United Nations Industrial Development Organization, the E-commerce business in India has seen exponential growth over the last decade. This growth is due to many contributory factors, including large increases in the number of internet users, rapid adoption of technology by Indian consumers, innovative business models, new enabling technologies, and alternative payment options offered by E-commerce companies. Moreover, the high growth in E-commerce continues undiminished, with the sector expecting to witness an abrupt surge in revenues in the coming years. The development in online retail sales has encouraged the demand for packaging products for the secure shipment of products.
However, volatility in raw material prices may hinder the growth of the packaging market. Numerous types of raw materials used in the packaging industry, such as wood, plastic, glass, and corrugated paper. The cost of raw material is one of the crucial factors in controlling the end-products cost. Thus, the instability in raw material prices is a key challenge faced by manufacturers operating in the packaging market.
Moreover, focus on sustainable packaging solutions is creating favorable business opportunity for all business verticals in the coming years. For instance, according to Network for Business Innovation and Sustainability, several organizations including the Sustainable Packaging Alliance (SPA) in Australia and the Sustainable Packaging Coalition (SPC) in the United States aim to facilitate continuous improvement in the environmental performance and sustainability of packaging through research, industry engagement and the development of practical tools and strategies for the packaging industry. Additionally, consumer product manufacturers prefer various types of eco-friendly packaging designs and materials for supporting sustainable business operations.
The global packaging market is segmented based on type and geography. On the basis of type, the packaging market is classified into the board, flexible, rigid plastic, glass, and metal. Among which, flexible packaging is a growing trend in the entire packaging industry. Flexible packaging is extensively used in applications in the food and beverage, pharmaceutical, and retail industries. In addition, the easy molding proficiency of flexible plastic makes it a favored material for the customization of the packaging of products as per the customer specifications. The growth in the pouch packaging market by food and lubricant packaging due to the low cost and lightweight is driving the demand for flexible packaging solutions.
According to the World Packaging Organization, Asia-Pacific is the fastest-growing market in the global packaging market. Further, India and China are the fastest-growing national markets for consumer flexible packaging industry. Furthermore, geographical coverage has been offered for each of the major regions including North America, Europe, Asia-Pacific, and Rest of the World. Asia-Pacific is expected to attain the fastest CAGR over the forecast period owing to the growing urbanization, investment in housing and construction, the development of retail chains and the burgeoning healthcare and cosmetics sectors are driving packaging demand in emerging economies such as China and India.
Key Market Players and Competitive Analysis
The research report also helps to recognize the comprehensive profiles of the key players in the market and an in-depth view of the competitive landscape worldwide. Few of the include Amcor Limited, Ball, Bemis Company, Inc., Berry Global Inc., DS Smith, International Paper, Mondi, Owens-Illinois, Sealed Air, Smurfit Kappa, and Sonoco Products Company. Other noticeable players include Allied Glass, AptarGroup, Ardagh Group, Can-Pack Group, CCL, CKS Packaging, DuPont, Evergreen Packaging, Excel Packaging, Genpak, Gerresheimer, Stora Enso, and Westkey Graphics among others.
Prominent players are adopting product launch, partnerships/collaborations, agreements, investments, and acquisitions as their marketing strategies to sustain in the intense competition and improve their product portfolio. For instance, on April 09, 2019 Amcor announced a business deal with Latin American company âLettiâ to design clear PET bottles for customers in Latin America. Dairy companies are increasingly using clear polyethylene terephthalate (PET) bottles that provide durability and let consumers see dairy products before they purchase them.
In addition, on December 12, 2018, Amcor opened a new home care packaging site in India. Amcorâs resourceful new factory in Bharuch, Gujarat started operations after an official ceremonial event in October with executives from both companies. The move comes from the growing demand for Unileverâs laundry products in India that has created a need for quality packaging, which Amcor is expected satisfy with a new manufacturing plant dedicated to the prerequisites of the global consumer-goods giant.
Scope of the Global Packaging Market
- Rigid Plastic
- North America
- Rest of Europe
- Rest of APAC
- Rest of the World
- South America
- Middle East