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Packaging Products : Global Trends, Facts and Figures
The packaging products markets relate to the need for supplying the material for packing purposes such as storage, shipment, sale, and consumption of goods. The package is an important factor in product protection, marketing to the end customer, and customer satisfaction as a whole. Packaging is a key component, and several products, including food and beverages, pharmaceuticals, and even consumer electronics, are dependent on the market. With growing demand for eco- and user-friendly packaging, the significant changes in the market take place in the form of technological advancements in material, design, and other aspects of packaging. Concerns about the environment and ease of use are leading to the emergence of new packaging concepts and solutions in the packaging products market, highlighting the need to innovate in the brand development process.
In the present scenario, the size of the global packaging products market stands at about $1 trillion, and it is estimated that it will rise further at a cumulative annual growth rate of 5-6 percent in the period between 2025 and 2030, and it is expected to stand at nearly $1.5 trillion by the year 2030. More demand for packaged goods and growth of online retailing, as well as green and sustainable packaging solutions, mainly bolstered the market. Sectors such as food and drinks, healthcare, beauty, and household products extend the market further.
Packaging Products Industry
Overview
The packaging products markets relate to the need for supplying the material for packing purposes such as storage, shipment, sale, and consumption of goods. The package is an important factor in product protection, marketing to the end customer, and customer satisfaction as a whole. Packaging is a key component, and several products, including food and beverages, pharmaceuticals, and even consumer electronics, are dependent on the market. With growing demand for eco- and user-friendly packaging, the significant changes in the market take place in the form of technological advancements in material, design, and other aspects of packaging. Concerns about the environment and ease of use are leading to the emergence of new packaging concepts and solutions in the packaging products market, highlighting the need to innovate in the brand development process.
In the present scenario, the size of the global packaging products market stands at about $1 trillion, and it is estimated that it will rise further at a cumulative annual growth rate of 5-6 percent in the period between 2025 and 2030, and it is expected to stand at nearly $1.5 trillion by the year 2030. More demand for packaged goods and growth of online retailing, as well as green and sustainable packaging solutions, mainly bolstered the market. Sectors such as food and drinks, healthcare, beauty, and household products extend the market further.
Types & Definition
The word 'packaging products industry' is used in a broad context to refer to the industries and business activities involved in the fabrication and usage of various types of materials and containers to enclose and protect products for the purposes of storage, handling, transportation, and selling. It includes primary packaging, which is the case in which the product is in contact with; secondary packaging, when multiple products are combined; and tertiary packaging to protect bulk shipment of products. It covers several categories of materials, including plastics, paperboards, glass, metals, and, more recently, biodegradable and recyclable materials.
1. The packaging products industry is vast, and the classification of the different packaging products available out there varies accordingly. For instance, we can group packaging products based on their structure, function, and application area. Major types include:
2. Plastic Packaging: The most common flexible packaging type is plastic, which is simple to mold, light in weight, and inexpensive to produce. It involves producing containers and bottles, wraps, bags, and films.
3. Paper & Paperboard Packaging: Paperboard and paper packaging involves the use of boxes, cartons, and flexible packaging, such as wraps and pouches, which are mostly seen in consumer goods, foods, and beverages. A growing market for eco-friendly packaging options has also fueled the growth potential for this segment.
4. Glass Packaging: Used mainly for upscale products, especially for beverages, cosmetics, and medications, glass is one of the most typical products to bear a high value appeal along with its usefulness in preserving the quality of contents within.
5. Metal Packaging: Utilized primarily in the food and drink industry for items such as cans and aluminum bottles, metal packaging is rigid and protective, providing resealable barriers and long-lasting utility to items.
6. Flexible packaging primarily consists of pouches, sachets, and wraps that enable storage in less favorable conditions or for more affordable products. It has been more common in the recent past, especially in the packaging of food and drinks, as opposed to rigid metallic or plastic cases.
7. Eco-Friendly Packaging: Leaving packaging waste in the environment has become a more important issue facing businesses; therefore, eco-friendly packaging contains biodegradable as well as recyclable packaging materials, having the potential to be reused. Some of the critical trends are plant-based plastics, one big pack—several small portions, and such packaging that utilizes waste households as cuckoo cartons.
8. Protective Packaging: The primary goal of this type of packaging is to properly encase the product for both transportation and storage. Examples of such packaging are bubble wraps, air cushions, and foam inserts, which are most prevalent in ecommerce and electronics settings.
9. Advanced Packaging: Devices that utilize smart elements comprise enhanced packaging. This is particularly popular amongst food and pharmaceuticals, where such packaging includes RFID tags, QR codes, and tracking capability.
Industry Trends
1. Environmental friendliness is becoming a priority as the use of plastic is being phased out, leading to a shift towards biodegradable, recyclable, and renewable materials. Governments and consumers are exerting significant pressure on brands and companies to prioritize environmental sustainability.
2. Use of Smart Maintenance Packaging: Packaging that incorporates technology (IoT-enabled sensors and NFC) is helpful for consumers, manufacturers, and the rest of the supply chain for different reasons.
3. E-Commerce Spurring Growth in Movement of Packaging Solutions: Online shopping has been on the rise, with already existing retail stores having online stores, and this further adds to the demand for packaging supply products innovation, especially product protection, convenience shippers here, and sustainability.
4. Rising sixth level: Environmental reasons push the consumer towards packaging materials made of paper and board rather than plastic in many consumer-based markets, examples of which are the packaging of food and drinks.
5. Automation in the Packaging Industry: Growth in the industry is also possible due to the adoption of robotics and automation-based solutions in packaging, whereby this allows for faster and more effective production, as well as assembly of packages, specifically in industries such as food and beverage, consumer electronics, pharmaceuticals, etc.
6. Health-Conscious Packaging: It is understandable that more and more sectors, such as food or pharmaceuticals, seek more hygiene-oriented and easy-to-use tamper-proof (child-resistant or operating-friendly) packages more than ever.
Facts & Insights
Eco-Friendly Packaging and Sustainability: More and more brands, as well as customers, are choosing sustainable packaging options. Consumers and brands are becoming increasingly aware of the importance of using recyclable, biodegradable, and reusable materials to meet sustainability targets and reduce plastic waste.
Packaging innovations due to e-commerce: E-commerce has made life easier for women, leading to enhancements in packaging, with most companies striving to provide users with an eco-friendly shipping experience. Additionally, companies use custom-sized packages to reduce waste.
Simple Packaging Design: Minimalism has become a norm in package design, thereby concentrating their efforts into developing packaging designs that are simple, beautiful yet useful, and kind on the environment and the self-explanatory label.
Intelligent Equipment Communicating Packaging: Inventions in the use of QR bar codes and payments that use NFC and RFI have revolutionized packaging with the responsibility of giving consumers a lot of product information and even improving supply chain effectiveness.
Regarding Hygiene and Safety in Packages: Overcoming the unprecedented levels of global pandemics during COVID-19 increased the role of package innovations in controlling contamination and enhancing sanitation, especially in sectors such as food and drinks or even pharmaceuticals.
Advent of Suitable Packages: Some companies have gone as far as designing packages for their customers in order to promote the sales of their products, hence the increased need for personalized packages, which is very common in cosmetics, gifts, foods, and spices.
Market Segment
Material:
1. Polymer
2. Board and paper.
3. Glass
4. Metal
5. Wood
6. Degradable Materials
End-use Industry Application:
1. Foods and beverages
2. Pharmaceuticals and healthcare
3. Consumer Products
4. Online retailing
5. Electronic Equipment
6. Motor vehicles
7. Manufacturing
Classification of Packaging:
1. Primary or Contact Packaging (touching the product directly)
2. Secondary or display packaging (wrapping up and displaying the product)
3. Tertiary or distribution packaging (transportation of products in bulk).
Division by Use Coordinator/Final user:
1. Trade
2. Drugs
3. Beauty Therapy
4. Edibles
5. Cars
6. Online Shopping
Geographical Division:
1. United States and Canada
2. European Countries
3. Countries of Asia, Australia, and Oceania
4. South America
5. Middle Eastern and African Territories
Industry Leader
1. Amcor: As one of the world’s leading packaging companies, Amcor sets itself apart by creating sustainable packaging and providing varied products in the food, drinks, pharmaceuticals, and consumer goods markets.
2. Tetra Pak: Specializing in liquid food processing and packaging innovations, Tetra Pak helps meet the needs of environmentally conscious consumers by providing sustainable products.
3. Sealed Air: This company is a specialist in this field and is renowned for the Bubble Wrap and other solutions for protecting goods in transit.
4. Smurfit Kappa: Known as a leading producer of corrugated packaging, Smurfit Kappa is focused on delivering level-proof, paper-based packaging to industries including food, beverages, and online sales.
5. Ball Corporation: This company is focused on creating and providing metal containers, specifically within the beer sector, in line with the industry’s sustainability and recycling objectives.
6. Berry Global: Berry Global is a leading facility in the populous manufacturer of plastic films, packaging, and solutions for sectors such as food, medical care, and commercial products.