Packaging Solutions Market Research: 2031
The Global Packaging Solutions Market Size was valued at $1 trillion in 2021, and is projected to reach $1.6 trillion by 2031, growing at a CAGR of 4.3% from 2022 to 2031. Packaging solutions include various types of packaging mediums made to provide a protective covering to the product so that it is protected during material handling, storage, and transportation. In addition, it provides important information regarding its contents and other required information.
Market Dynamics
The global market for packaging solutions is anticipated to experience significant growth due to a rise in packaging requirements in the food, beverage, and cosmetics & personal care product industries. For instance, in March 2022, Nestle, one of the largest manufacturers of packaged beverages and food in the world announced a $675 million commitment to build a new beverage facility in Glendale, Arizona, in the U.S. This facility will produce premium packaged beverages to meet rise in customer demand for its packaged goods.
Furthermore, most of cosmetic products are packaged in jars, bottles, or tubes; thus, rising demand for cosmetics is positively affecting the packaging solutions market. For instance, in October 2022, Albea, the leading manufacturer of beauty and personal care packaging in the world, introduced the first squeezable paper-based bottle and these types of innovative packaging. Further, the necessity of packaging in different industries such as FMCG has increased the demand for various types of packaging solutions. For instance, in April 2022, Smurfit Kappa Group PLC, which is a leading manufacturer of packaging products worldwide, introduced a new packaging solution for detergent pods and capsules.
The child-proof Top Lock Box offers a secure, economical, and environment-friendly replacement for the typical plastic laundry box and is completely a plastic-free packaging alternative. It was created by the Forest Stewardship Council (FSC) certified paper-based materials that are renewable, recyclable, and biodegradable as well. These strategies are essential for the packaging solutions industry because packaging provides a variety of value to the product by protecting it and/or enhancing its appearance. Thus, driving the growth of the packaging solutions market. Additionally, growth in packaging solutions market also positively affects related markets such as packaging design market, packaging machine market, and others.
However, factors such as fluctuating cost of raw materials and government regulations against non-ecofriendly packaging are anticipated to restrain the packaging solutions market growth. Moreover, a large number of firms that are constantly improving the current packaging solutions dominate the market for packaging solutions. For instance, in April 2022, Mondi Group, which is a leading producer of packaging and paper products introduced a new packaging solution for the food industry by launching two new recyclable packaging products, a paper-based tray and a semi-rigid plastic tray at Anuga FoodTec in Cologne, Germany.
There was a decline in demand for packaging solutions in 2020 due to lockdowns imposed by several governments. This was a result of reduced demand from various businesses. The COVID-19 pandemic had halted production of a number of products for packaging end-users owing to extended lockdowns in various major countries. This substantially slowed the market for packaging solutions during the pandemic. The market for packaging solutions was previously witnessing strong demand from large manufacturing nations such as the U.S., Germany, Italy, the UK, and China.
However, this demand was halted by the spread of the coronavirus. Contrarily, after the introduction of vaccines, the number of infections witnessed a decline. Now, in the beginning of 2023, the market has gained traction, and demand for packaging solutions has increased. However, the number of COVID-19 cases in China, has increased spontaneously, which is negatively affecting the market growth.
Segmental Overview
The packaging solutions market is segmented on the basis of material, packaging type, end-user industry and region. By material, it is divided into paper & paperboard, plastic, metal, glass and others. By packaging type, it is categorized into new and recycled. By end-user industry it is classified into food & beverages, healthcare, personal care, industrial and other consumer goods. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Material:
The packaging solutions market is divided into paper & paperboard, plastic, metal, glass and others. In 2021, the plastic segment dominated the packaging solutions market, in terms of revenue, and is expected to maintain this trend during the forecast period. Paper & paperboard packaging ranges from thin tissues to thick boards, including paper bags, cartons, corrugated boxes, paper-based tubes, composite containers, fiber drums, and molded pulp containers. Plastic packaging is durable, resilient, and has good barrier qualities to withstand contamination and moisture.
The packing materials made of plastic are strong while being lightweight. As a result, consumers and employees working in the distribution chain can easily lift and handle products that are packaged in plastic. Aluminum, coated plates, and stainless-steel plates are the three main types of metallic materials for use in food packaging applications. There are several benefits of using metal packaging, including the aspect that it increases product value and protects the product from outside and is also more convenient to transport. The industry has a wide range of packaging material alternatives for various applications, which is anticipated to boost the market for packaging solutions.
By Packaging Type:
The packaging solutions market is classified into new and recycled. The recycled segment is expected to grow at the highest CAGR during the forecast period. However, the new segment accounted for a major packaging solutions market share in terms of revenue in 2021. The new type of packaging is made from virgin materials such as paper pulp extracted from trees, metal extracted from ores, and others. Moreover, the recycled segment includes packaging manufactured from recycled materials such as recycled glass, metal, cardboard, paper, and some plastics.
Moreover, there is a rise in the demand for recycled packaging. For instance, in March 2022, Unilever, which is leading manufacturer of personal care products worldwide are switching to recycled food packaging, its all-Hellmann’s plastics bottles and jars in the U.S. and Canada are made from 100% recycled and recyclable plastic. The manufacturers of packaging have been encouraged to adopt recycled packaging materials for different products, which in turn boosts market growth in the future.
By End-User Industry:
The packaging solutions market is categorized into food & beverages, healthcare, personal care, industrial and other consumer goods. Food and beverage packaging includes both alcoholic and non-alcoholic beverages as well as a variety of food products. It also includes nutritional information about the product being packaged while providing the consumer with all other essential information. The food and beverages industry uses different kinds of packaging solutions such as bags, boxes, cans, cartons, flexible packaging, pallets, trays, wrappers and PET bottles, can and HDPE bottles.
Healthcare products can be packaged in various ways, which are categorized as primary, secondary, and tertiary. The substance that covers and protects the pharmaceutical product is known as primary medication packaging, while secondary and tertiary packaging offer extra external security. The most common types of healthcare packaging are vials, bottles, blister packs, sachets, syringes and ampoules. The packaging of various products such as cosmetics, skin care, hair care, and oral care products is included in the category of personal care packaging.
Most of the packaging for these personal care products is made of glass, plastic, metal, paper, shrink wrap, and ribbons. The purpose of industrial packaging is to both store and protect industrial goods. It is frequently custom-made or specially designed to fit in certain goods, that are utilized on a large-scale industrial level. There is a wide range of industrial packaging available to fulfill various specifications such as packaging for smaller, larger, hazardous, temperature sensitive, and other types of goods. The segment for other consumer goods comprises of different types of packaging for various products, including white goods, electronic gadgets, clothing, and other products.
By Region:
The packaging solutions market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is expected to dominate the market throughout the forecast period. LAMEA is projected to experience high growth during the forecast period owing to expansion of the packaging industry in the region. The U.S. packaging industry has been growing for a while, and the introduction of eco-friendly packaging has fostered the business growth. Moreover, most consumers are now aware of the alternatives to plastic packaging that are offered in the market, such as corrugated or fiber-based packaging.
For instance, in June 2021, WestRock Company, a leading manufacturer of corrugated packaging solutions launched a product named EverGrow which is a fiber-based packaging collection, and this product provides innovative substitutes to single-use plastic packaging for fruit and vegetables. In Europe, major manufacturers are introducing new advanced technologies to the packaging industry. For instance, in April 2022, Mondi Group introduced new packaging solutions for the food industry by introducing two new recyclable packaging products, a paper-based tray and a semi-rigid plastic tray at Anuga FoodTec in Cologne, Germany.
Thus, developments in food and beverages industries around the world boost the growth of the packaging solutions market in Germany. India's population is currently at an all-time high, which makes investments in paper packaging viable. Therefore, India's packaging sector is anticipated to expand. Whether an item is FMCG or pharmaceutical, packaging is essential to ensure that it reaches its consumers safely. The food and beverage segment is exhibiting high demand for flexible packaging in Latin America. For instance, in September 2022, Smurfit Kappa Group PLC acquired a packaging plant that is in Saquarema, Rio de Janeiro, Brazil. This acquisition will strengthen its presence in the Latin American region and will also improve the production capabilities of the company. Thus, such factors are expected to positively affect the packaging solutions market overview in Latin America during the forecast period.
Competition Analysis
Competitive analysis and profiles of the major players in the packaging solutions market, such as Amcor PLC, Ball Corporation, Crown Holdings, Inc., DS Smith Plc, International Paper Company, Mondi Group, Sealed Air Corporation, Silgan Holdings Inc., Smurfit Kappa Group PLC and WestRock Company are provided in this report.
Some examples of product launches in the market
In February 2021, Smurfit Kappa Group PLC launched a new packaging system for its sustainable TopClip product, a paper-based replacement for plastic shrink wrap that bundles beverage multi-packs. This product ensures that it is suitable for beverage companies of all sizes and will also broaden the portfolio of Smurfit Kappa's end-to-end solutions for TopClip.
Acquisitions in the market
In August 2022, Amcor PLC acquired a world class flexible packaging plant located in Czech Republic. The site's strategic location significantly improves Amcor's capacity to meet increasing consumer demand across its flexible packaging network in Europe. Moreover, in February 2022, Sealed Air Corporation acquired Foxpak Flexibles Ltd., which is privately-owned Irish packaging solutions company, pioneered the development of digital printing on flexible packaging.
Business Expansion in the market
In March 2022, Crown Holdings, Inc. expanding its business by building a new beverage can facility in Peterborough, United Kingdom. This expansion will strengthen its presence in the Europe region.
Key Benefits For Stakeholders
The report provides an extensive analysis of the current and emerging global packaging solutions market trends and dynamics.
In-depth market global packaging solutions market analysis is conducted by constructing market estimations for key market segments between 2021 and 2031.
Extensive analysis of packaging solutions market is conducted by following key product positioning and monitoring of top competitors within the market framework.
A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
Packaging solutions market forecast analysis from 2022 to 2031 is included in the report.
The key players within packaging solutions market are profiled in this report and their strategies are analysed thoroughly, which help understand the competitive outlook of packaging solutions industry.
Packaging Solutions Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 1.6 trillion |
 Growth Rate | CAGR of 4.3% |
 Forecast period | 2021 - 2031 |
 Report Pages | 327 |
 By Material |
|
 By Packaging type |
|
 By End-user industry |
|
 By Region |
|
 Key Market Players | DS Smith Plc, Amcor PLC, Smurfit Kappa Group PLC, Ball Corporation, WestRock Company, International Paper Company, Silgan Holdings Inc., Mondi Group, Sealed Air Corporation, Crown Holdings, Inc. |
Analyst Review
The packaging solutions market has witnessed significant growth in the past few years, owing to a surge in major end-user industries such as food & beverages, personal care product industries, and pharmaceutical industries. The growth in end-user industries is largely attributed to rise in global population and rise in their disposable income. In addition, surge in demand for sustainable packaging is driving the growth of paper-based and metal-based packaging. However, relatively lower cost of plastic, and its strength and flexibility, are driving growth of plastic packaging solutions.
Contrarily, strict regulations regarding environment deteriorating packaging solutions are expected to restrain the market growth. However, this is expected to have a positive impact on the recycled packaging, as governments across the world are encouraging the adoption of recycling of packaging such as metal, paper, and some types of plastic.
Moreover, various developments in the packaging solutions industry, such as the launch of new and innovative packaging solutions and geographical expansion are expected to provide lucrative opportunities for the packaging solutions market growth.
Rising demands for packaging in food & beverages and cosmetics & personal care products industries, and growth in trade and e-commerce sector are few of the upcoming trends of packaging solutions market in the world.
Application of packaging in food and beverages market is on of packaging solutions market leading applications.
Asia-Pacific was the largest regional market for packaging solutions in 2021.
The global packaging solutions market was valued at $1,013.8 billion in 2021.
Amcor PLC, Ball Corporation, Crown Holdings, Inc., DS Smith Plc, International Paper Company, Mondi Group, Sealed Air Corporation, Silgan Holdings Inc., Smurfit Kappa Group PLC and WestRock Company are provided in the report.
The company profile has been selected on factors such as geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
By material, the plastic segment dominated the packaging solutions market, in terms of revenue in 2021.
The global packaging solutions market is projected to reach $1,559.0 billion by 2031.
Loading Table Of Content...
Loading Research Methodology...
