Packaging is a system for corralling and protecting a product from damage. It plays a vital role in the safe storage and hygienic handling of a product. Moreover, it also provides protection from environmental factors such as dust, moisture, and wind. Apart from safeguarding the product, packaging also helps in marketing the product to customers. Elegant packaging design with various color schemes and designs has an impact on consumer demand as it can sway the preference of customers. Aesthetically appealing packaging is meant to reflect the quality of the product and hence serves both brand promotion and advertising purposes. Packaging is of two types, rigid and flexible. Flexible packaging is any package whose shape can be readily changed. Examples of flexible packaging include bags and pouches. Rigid packaging includes boxes, trays, cans, bottles, and pots and is the dominant market segment.
The packaging materials that are used commonly include plastic, metal, brick cartons, paper, cardboard, and glass. These materials are used in the various end-use industries depending on packaging requirements. For instance, aluminum and tin are used to store food & beverages in cans owing to corrosion resistant properties of these metals which ensure that the product is not contaminated. Similarly, alcohol is typically stored and sold in glass bottles as they look visually appealing and have a longer shelf life than plastic bottles.
The end users of packaging materials include food beverages, electronics, pharmaceuticals, personal care, textile, consumer goods, and chemical processing. The largest end user of packaging materials is the food and beverages industry owing to increasing demand for packaged food in emerging economies. Pharmaceutical companies rely on packaging in order to protect and promote their products, meet regulations, and increase patient compliance. Especially, the use of plastic is preferred due to high dimensional stability, moisture barrier, strain resistance, low water absorption, and resistance to heat.
Plastic is the most used packaging material. It is also lightweight, strong and cheap to procure in the current market. Plastic packaging materials are manufactured from petroleum and its derivatives, and are used in various end user industries. Polyethylene terephthalate (PET) is used as primary feedstock in the manufacture of plastic bottles which finds large application in food & beverages, pharmaceuticals and cosmetics industries due to its high durability, light weight, low cost and recyclability. However, stringent government regulations imposed on the petroleum and chemicals industry due to emissions of CO2 and greenhouse gases, and fluctuation of crude oil prices are the factors that expected to hinder the growth of the global plastic packaging market. However, plastics are non-biodegradable and end up in landfills. Therefore, a shift towards sustainable packaging materials such as paper, paperboard, cardboard, metal and glass has been observed in the recent past. Utilization of sustainable packaging in increasing due to growing environmental awareness among the populace.
Opportunities
The growing disposable income, increasing consumer preference for packaged goods, and the expanding retail industry, especially in Asia Pacific and Latin America, are factors that are favouring growth of this industry. For instance, according to the India Brand Equity Foundation (is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India), the retail market in India is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015.
Also, increasing awareness regarding food contamination has intensified the packaging market growth. Asia Pacific is the largest and fastest growing market. The advent of online shopping and consumption of cosmetics has resulted in a booming market in countries such as India, China, and Indonesia. Moreover, the “Make in India” campaign by the Indian government is expected to have a positive impact on the growth of the packaging industry in India. North America is a leading market for paper packaging. The industry in North America recycles up to 70% of its used paper, according to the U.S. Forest and Paper Association. In Europe, the European Paper Recycling Council aims to achieve 74% recycling in the European Union. The paper packaging industry in North America and Europe is expected to serve as a model for emerging markets.
Challenges
The environmental concerns regarding plastic packaging are expected to hamper growth of the packaging industry to some extent. Moreover, the preferred substitute to plastic is paper which, although recyclable, involves logging of forest areas. This has resulted in stringent packaging regulations. Constantly fluctuating oil price is also affecting the market growth. Also, leaching of chemicals from packaging into the product is a major concern. Cases of toxic packaging have been observed in China which has affected consumer demand.
Regulatory Scenario
Stringent government regulations and time consuming approval process before launching commercially, has led manufacturers to obtain approvals prior to distribution. For instance;
Published Date : May 2022
PET stands for polyethylene terephthalate, which is a thermoplastic organic compound used to make plastic bottles. Bottles made from polyethylene terephthalate (PET) plastic material are gaining traction globally, owing to various advantages offered by PET bottles suc... View more
Published Date : Jul 2022
ESD (Electrostatic Discharge) bags such as anti-static bags, metallized bags, and conductive bags are used for storing electronic component, which are prone to damaged caused by electrostatic discharge (ESD). It is made from plastics such as ... View more
Published Date : Nov 2023
Anti-static packaging materials are used for storing electronic component, which are prone to damaged caused by Electrostatic Discharge (ESD). Anti-static bags are made from plastic such as ... View more
Published Date : Dec 2022
Loose fill packaging is important for safe shipping of packaged goods, as they fill empty spaces in the box and prevent products from moving during transportation. There are various types of loose fill packaging material available in the market including biodegradable... View more
Published Date : Sep 2018
Loose fill packaging is important for safe shipping of packaged goods, as they fill empty spaces in the box and prevents products from damaging during transportation. There are various types of biodegradable loose fill packaging material available in the global market... View more
Published Date : Nov 2023
Packaging plays an important role in preserving the quality of food products by protecting them from environmental, chemical, and physical damages. Packaging saves the product from various damages such as breakage, providing barriers to oxygen, moisture and other gase... View more
Published Date : Nov 2023
A cosmetic tube is a soft container that can be squeezed and utilized for the packing of thick liquids such as creams, lotions, ointment, and toothpaste. It is a hollow structure, both ends of which are treated differently during the manufacturing process. A tube has ... View more
Published Date : Jul 2022
The e-commerce packaging market is bolstered by increasing e-commerce sales around the world. E-commerce has transformed retail sector and it is gaining significant market share in place of conventional retail channels such as hypermarkets, supermarkets, and convenien... View more
Published Date : Dec 2022
A bioplastic is a biodegradable group of polymers that are manufactured using renewable-based sources. Conventional plastics is hazardous due to the impact on the environment and their heavy reliance on the oil and gas industry for raw materials such as naphtha. Conve... View more
Published Date : Dec 2022
Sachet packaging is the flat four- or three-layer pack, which is made of various materials such as paper, plastic, and aluminum. Sachet packaging requires less packaging material and less storage space thereby, r... View more
Published Date : Dec 2022
Lip care products offer protection and nourishment to the lips against dust, harmful sun rays, and drying effects caused due to wind and cold. These products are composed of paraffin, beeswax, camphor, flavors, ... View more
Published Date : Mar 2023
The honeycomb packaging market is expected to reach US$ 25.6 billion by 2030, which is US$ 14 billion in 2022, registering a CAGR of 7.84% during the forecast period of 2023 to 2030. Demand for honeycomb packaging is attributable to the rising amount of damage and was... View more
Published Date : Nov 2023
Medical packaging has the primary function to protect packaged medical or pharmaceutical products. Different types of medical components have resulted in developing various types of medical packaging, ranging from preformed packaging to customizable packaging. Medical... View more
Published Date : Apr 2023
The fresh meat packaging market is projected to reach around US$ 2,818 Mn by the end of 2030, in terms of revenue, growing at a CAGR of 3.54% during the forecast period (2023-2030). Fresh meat requires highly advanced packaging solutions to maintain the color and qual... View more
Published Date : Nov 2023
Corrugated box consist of a layer of cardboard know as fluting, which is kept between two thin outer layers of the cardboard. It is available in various sizes and shapes extensively used for the packaging of various goods such as electronic items, and pharmaceutical p... View more
Published Date : Oct 2017
Global Pharmaceutical Packaging Market – Insights Pharmaceutical packaging, also known as drug packaging, involves activities from pharmaceutical production to distribution to the end user, through the ... View more
Published Date : Apr 2023
Global industrial packaging market was valued at US$ 68,677.9 Million in 2022, exhibiting a CAGR of 5.42%, in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 104,758.5... View more
Published Date : Dec 2019
Definition of Market/Industry: Anti-counterfeit pharmaceutical packaging is an approach of preventing false presentation of pharmaceutical drugs in terms of label and its identity. Anti-counterfeit pharmaceutical p... View more
Published Date : Aug 2022
Rigid packaging is done by using paper, corrugated or paperboard materials, plastic, metals, and glass materials. Packaging are basically made into the shape of a box, can, tray, or case. Rigid packaging offers high stiffness, impact strength, and excellent barrier pr... View more
Published Date : Nov 2023
Phone packaging essential to ensure protection against external damage and harm. Considering the high prices of mobile phones and its fragility, a secured packaging is a priority for transporting them from manufacturing locations to the retail stores. Packaging protec... View more