Grand View Research04.13.20
The global plastic packaging market size was estimated at $234.14 billion in 2019, exhibiting a revenue-based CAGR of 4% over the forecast period. Growing packaged food and beverage industry owing to changing lifestyle and increasing penetration of organizing retail is principally expanding the product application scope.
Plastic offer transparent, tougher, flexible and rigid, lightweight, and versatile form of packaging owing to which key industries such as food and beverage, personal care, and industrial majorly prefer plastic packages over its counterparts. Furthermore, the product can survive in extreme environments and does not degrade in hot or cold temperatures, thus preserving the integrity of food and beverages, cosmetics, and other products. Moreover, low cost, convenience, and excellent printability make it a lucrative packaging solution amongst other forms of packaging.
Food and beverage are one of the fastest-growing industries globally, owing to the changing lifestyles, and consumer preference for eating on-the-go, ready-to-eat, frozen foods, and processed foods. The growth of the food industry in developing economies of Asia Pacific is expected to drive the demand for plastic packaging globally.
The primary functions of packaging are to offer protection to the products, inform consumers about its features, enable its transportation over long distances, and storage. The growing use of rigid HDPE, and PC plastic canisters, bottles, and tanks, as opposed to wraps and films and bags for industrial packaging applications, is expected to have a positive impact on the market growth. Furthermore, the increasing introduction of innovative packaging solutions such as active, modified atmosphere, edible, and bioplastic packaging is also expected to open newer avenues in the coming years.
The emergence of e-commerce has further expanded the application scope of plastic packaging. E-commerce companies majorly prefer lightweight and flexible packaging, as it accounts for less cost during transportation. Rising penetration of e-commerce, especially in developing countries such as India and China is likely to fuel the demand over the forecast period.
However, rising fluctuating prices of crude oil, which is the principal raw material for plastic packaging, has been considerably affecting the profit margin of manufacturers and thus hindering the market growth. Besides, the growing ban on single-use plastic packaging across the world and rising sustainable awareness among consumers is also likely to act as market restraint over the forecast period.
On the basis of type, the market has been segmented into rigid and flexible. The rigid segment is expected to witness steady growth over the forecast period on account of its increasing usage in industrial applications. The use of rigid plastic bottles and canisters for packing, storage, and transportation of chemicals and gaseous Products is expected to drive segment growth over the next few years.
Plastic is being increasingly used for flexible packaging solutions owing to easy disposal, lightweight, and consumer convenience. The flexible segment was valued at $154.6 billion in 2019 and is expected to witness significant growth over the forecast period. This growth can be attributed to a rapidly increasing demand for flexible packing solutions in food and beverage, personal care, and household care applications.
Flexible packaging offers higher convenience to consumers and also occupies lower retail space thereby emerging as a popular packaging type. Furthermore, flexible packages also assist in reducing food wastage. For instance, fruits packaged in flexible packaging lowers the ripening effect and thereby extend the shelf life. Therefore, fresh produce manufacturer is majorly opting for the flexible packaging across the globe.
On the basis of product, the plastic packaging market has been segmented into bottles, plastic, wraps and films, bags, pouches, and others. These products cater to the requirements of various end-use industries, including food and beverages, personal care, household care, consumer electronics, construction, and chemicals. Bottles formed the largest segment in 2019 in terms of revenue, followed by bags and wraps and films.
Plastic bags are the most widely used packaging solutions by various end-use verticals; however, the product segment is expected to witness slow growth owing to rising environmental concerns regarding the usage and disposal of such bags. Several environmental threats concerning their disposal in deep water bodies are likely to hamper segment growth in the coming years.
Wraps and films are expected to be the fastest-growing product segment in the plastic packaging market. The segment is expected to witness significant growth over the next few years owing to the increasing use of protective wraps and films for packaged foods, frozen foods, and ready-to-eat food applications.
On the basis of application, the market has been segmented into food and beverages, industrial packaging, and personal and household care. The food and beverages segment accounted for a revenue share of over 51.1% in 2019 and is expected to witness substantial growth during the forecast period. Growing demand for packaged foods owing to change in consumer lifestyle has driven segment growth in recent years and the trend is expected to continue over the forecast period. In addition, the growth of the beverages industry, led by product categories such as liquor and energy drinks, has resulted in increased demand.
To prevent waterborne diseases consumers are increasingly preferring packaged water bottles across the world. In addition, single-serve consumer packaging has been witnessing significant growth from the past few years owing to its convenience. Therefore, the rising consumption of packed bottles coupled with the growing demand for single-serve packaging is likely to expand food and beverage application segment further.
The personal and household care application segment is expected to witness a CAGR of over 4.6% in terms of revenue over the forecast period, in terms of revenue. Personal care packaging includes that of products such as cosmetics and toiletries. This industry has witnessed tremendous growth over the past few years owing to rising consumer awareness toward grooming and hygiene. Growing awareness about health and wellness in developing countries is also expected to play a key role in segment growth over the forecast period.
As of 2019, Asia Pacific dominated the global market, in terms of revenue, with a share of just over 44.6%. Rapidly-growing end-use industries in key economies, such as China, India, Vietnam, South Korea, and Thailand are expected to drive the regional demand over the forecast period.
China dominated the Asia Pacific market in terms of both demand and production. The presence of a large consumer base and expanding food and beverages, personal care, automotive, consumer electronics, and construction industries in the country are anticipated to act as key drivers for the growth of the market over the forecast period.
Changing lifestyles and consumer preferences in terms of food are expected to propel the growth of the food and beverages industry in North America, most notably for products that are ready-to-eat, thus influencing demand in the region. In addition, the introduction of new products by end-use vendors is expected to further positively impact demand in North America.