Packaging is the outer covering of an item to protect it from damage and environmental factors. With the changing consumption trends and increasing health consciousness among consumers, the demand for biodegradable and compostable packaging solutions is expected to increase in the coming years.
The products that come with packaging are often fragile and need protection while they are transported, stored, handled, and sold. This is why so many manufacturers have started using packaging to safely package their products to increase sales. Packaging plays a key role in increasing product visibility and brand recognition.
The global packaging market has seen steady growth over the past few years, thanks to the increase in the demand for safe and secure packaging solutions. The increasing number of mergers and acquisitions in the sector over the past few years has also helped drive growth.
However, this growth has not been uniform across regions or countries. Some parts of the market are growing at a faster pace than others. In this packaging review, we look at some of the major trends driving growth in this industry as well as some of its challenges.
Plastics in the Packaging Market
The global packaging market is projected to grow at a CAGR of 5.3% from 2016 to 2021. This market is expected to reach USD 5.29 billion by 2021. The rising geriatric population coupled with increasing health consciousness among consumers along with the changing lifestyle of these consumers are the key growth factors for this market.
The growing prevalence of diseases like diabetes and obesity coupled with the increasing awareness of product security are other factors driving the demand for safe and secure packaging solutions in the market. The growing food & beverage industry and increasing demand for pharmaceuticals and personal care products are the major factors driving the demand for plastics in the packaging market.
The plastics in the packaging market are further segmented based on product types, end-user industries, and geography. By product type, the market is segmented into flexible packaging, rigid packaging, and others. By end-user industries, the market is segmented into food & beverage, pharmaceuticals, and others.
Geographically, the market is segmented into five regions, namely, APAC, Europe, North America, Middle East & Africa, and South America.
Bioplastics in the Market
The demand for biodegradable polymers has increased in recent years, owing to their advantages such as higher moisture absorption, ability to be composted, and lower ecological impact than conventional polymers. Bioplastics have emerged as the next-generation packaging material and are a highly promising market due to the rising demand for biodegradable packaging solutions.
The biodegradable plastics market is expected to grow at a CAGR of over 6% from 2016 to 2021, expanding at a rate of more than 30% from 2016 to 2021. Bioplastics, also known as bio-based or biodegradable polymers, are derived from renewable resources such as corn starch or sugarcane by using microbes to break down the starch or sugar to produce renewable biopolymers. These biopolymers are then used to produce packaging materials with high biodegradability.
Edible Packaging
The edible packaging market is projected to grow at a CAGR of 6% from 2016 to 2021. The demand for edible packaging is increasing in many parts of the world, primarily in Europe and APAC. In recent years, several innovations in packaging technologies have emerged to satisfy the demand for safe and portable packaging solutions, particularly in the food and pharmaceutical industries.
These innovations include high-density polyethene packaging, food-grade paper packaging, and oxygen barrier films. Innovations in the food and beverage industry, rising consumer spending on healthcare, and growing demand for energy-efficient packaging are some of the key growth factors for the market. The edible packaging market is further segmented based on product types, end-user industries, and geography.
By product types, the market is segmented into food packaging, beverage packaging, and others. By end-user industries, the market is segmented into food & beverages, pharmaceuticals, and others. By geography, the market is segmented into seven regions, namely, North America, Europe, APAC, Middle East & Africa, Americas, and South Africa.
Wrap and Film
The demand for durable wrappings is expected to rise at a CAGS of 6% from 2016 to 2021, driven by the rising demand for packaging products across the value chain, rising health consciousness among consumers, and the increasing spending on recreation and tourism among other factors. The wrap and film market is expected to be valued at USD 5.27 billion in 2021, growing at a CAGS of 6% from 2016 to 2021.
Wrap and film are used to package various products and are available in various forms such as paper, plastic, and film. Paper wrap and film are mostly used for food products and beverages while the plastic wrap is mainly used for dry products.
In terms of end use, the paper wrap and film market is mainly driven by the food & beverage and healthcare industry. The healthcare industry is mostly driven by the rising demand for non-food products such as unpackaged medicines and personal care products.
Paper and board packaging
The global paper and board packaging market are expected to grow at a CAGS of 6% from 2016 to 2021. The paper and board packaging market are driven by rising demand for food packaging, beverages, and cleaning products in developed economies such as Europe and the Americas.
In addition, the demand for paper and board packaging is also driven by the growing e-commerce industry and the rise in consumer spending on lifestyle products. Paper and board packaging are used to store and protect products made from paper, board, and other similar materials.
Paper and board packaging also protect products from moisture, dirt, and contaminants such as dust, sand, and water. The paper and board packaging market are segmented based on product types, end-user industries, and geography. The paper and board packaging market are further segmented based on product types, end-user industries, and geography.
Other Packaging Materials
The demand for other packaging materials is expected to grow at a CAGS of 5% from 2016 to 2021, which is driven by the growing demand for packaging products across the value chain, rising health consciousness among consumers, and increasing spending on lifestyle products. The other packaging market is valued at USD 2.8 billion in 2016 and is expected to reach USD 3.6 billion by 2021 at a CAGS of 5%.
In recent years, several advancements in materials such as hybrid composite, laminated films, and thermoset resins have been witnessed in the packaging market. These materials are expected to play a key role in the growth of the other packaging market.
Hybrid composite materials are expected to be the fastest-growing segment in the market during the forecast period. The thermoset and hybrid resin materials are expected to be the most widely used materials among the rest of the other packaging materials market.
Key Challenges for the Growth of the Packaging Market
The packaging market is expected to experience significant growth during the forecast period. However, the market will face several challenges in the coming years. These include rising raw material prices, increasing environmental pollution, increasing wages in the manufacturing industry, and a lack of skilled workforce among others.
Rising raw material prices and increasing environmental pollution are expected to hurt the growth of the packaging market. Rising wages in the manufacturing industry and a lack of skilled workforce are also expected to be major challenges for the growth of the market.
Benefits of Using Packaging Technology
With the changing consumption trends and increasing health consciousness among consumers, the demand for biodegradable and compostable packaging solutions is expected to increase in the coming years. Packaged food and beverage products are expected to be the major end users of packaging technologies in the coming years.
In addition, the growing need for safe and secure packaging solutions across various industries, rising health consciousness among consumers, and increasing spending on lifestyle products are some of the major factors driving the growth of the packaging market. The packaging market is expected to be worth USD 5.27 billion by 2021.
Conclusion
With the changing consumption trends and increasing health consciousness among consumers, the demand for biodegradable and compostable packaging solutions is expected to increase in the coming years. Packaged food and beverage products are expected to be the major end users of packaging technologies in the coming years.
The growing need for safe and secure packaging solutions across various industries, rising health consciousness among consumers, and increasing spending on lifestyle products are some of the major factors driving the growth of the packaging market. The packaging market is expected to be worth USD 5.27 billion by 2021.
