 "Packaged food image via Shutterstock")
The global packaging market is expected to show a steady growth and reach a global revenue of around $ 1 trillion by 2021, as per the latest report from DecisionDatabases. Packaging has become an integral part of a products lifecycle and has outgrown its traditional usage limited to protection. Sustainability, environmental concerns and the demand to keep the product quality high has brought a major shift in the packaging industry making it smart and active.
Internet of Things (IoT), nano technology, biotechnology, bio-based plastics and many such technological and product innovations have propelled the growth of global packaging market.
Among the various material used in packaging, the paper & paperboard is estimated to be the largest market owing to its multiple applications in different sectors such as food and beverages, pharmaceuticals and cosmetics among many others. Companies in this industry are exploring the emerging markets by opening technological centres to understand the regional needs.
Moreover the developed markets are also been explored for more sustainable, hygienic, fresh and healthy product range. Also the growing e-commerce and online retailing fuelling growth the growth of paper board packaging market. Flexible packaging is anticipated to grow in the food and beverage industry by improving the barrier layers and more non-reactive packaging.
World rigid packaging market is also expected to show an upward trend with companies opting for green packaging solutions. Recently, McDonald’s announced to source 100-percent of its fibre-based packaging requirement from recycled or certified sources by the end of 2020. Similar is the move by Coco-Cola which aims to commercially actualise its ‘100 percent bio-based PlantBottle’ dream by the 2020.
Food and beverages packaging industry is estimated to be the largest market in terms of application. The market expected to grow owing to the rising demand for packed foods, frozen foods, packed beverages etc. High awareness and concerns over the state of packaged food and beverages has boosted the growth of foods and beverages packaging market. “Innovations in digital printing, technological advancement in smart and active packaging has brought major shift in the product range available in the market. Pharmaceuticals market will also witness an augmented growth with growing lifestyle diseases and strict government rules for packaging of medicines,” said DecisionDatabases in the report.
Asia Pacific region is expected to be the fastest growing market as all developing countries fall into this region such as India, China, Japan and Korea. Developing countries lead this market owing to its economic development, open market, improvement in standard of living, industrialisation etc. North America is estimated to be the largest market with growing demand for packed and frozen foods. The demand for packaging is based on different trends adopted in different regions. In emerging economies investment in housing and construction, growing retail outlets and demand in cosmetics sectors are factors that have fuelled the growth of this market. In developed countries the trends of smaller households, smaller and convenient packaging and growing men population attracted towards beauty and health products are factors that have powered the growth of this market.
According to the report, strict government regulations over packaging of chemical products and concern for biodegradability for packaging are factors that would restrain the growth of this market. Recent regulation on the cigarette packaging- making it simpler and standardised has been facing appeals to be overturned by the tobacco manufacturers. The law is made with an intention to reduce the consumer base of this market and is effective from May 20, 2016.
Acquisitions and mergers are also prominent in the industry. Recently, Mondi group announced and completed the acquisition of Simet SA corrugated plant situated in Poland (produces flexo printing packaging). This is Mondi’s sixth box plant in Poland and is anticipated to improve its market position. The company signed another agreement to acquire KSP Co and related interests (KSP) in December 2015 which is a flexible packaging company. This will again strengthen the company’s market position by assisting in serving the customers of US and Asia.
New product launch is an important marketing strategy adopted by companies in this sector. To maintain their competitive position and increase their market share it is very essential for companies to come up with attractive packaging.
