Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Global Customized Tea Packaging Market – Insights
Packaging of food items play an important role in increasing the shelf life of packaged food products by preserving the food items from external environment such as changes in climatic conditions or microbial contaminations. Various novel packaging solutions are used to attract consumer base as well as to provide sustainable packaging solutions such as active, smart, interactive, and intelligent packaging technologies. Customized packaging is a type of packaging where overall packaging or printing on the packet is personalized as per the requirements of the customer.
Among packaging types, flexible packaging segment in customized tea packaging market is expected to possess significant market share during the forecast period, owing to ease of packaging tea powder in pouches and bags with custom requirements. According to ‘Flexible Packaging Industry Overview’ published by Flexible Packaging Association, the flexible packaging industry had US$ 31.1 billion of sales in the U.S. in 2015. Moreover, flexible packaging uses fewer natural resources, less energy in manufacturing, and creates fewer greenhouse gas emissions. Therefore, such advantages offered by flexible packaging are expected to boost demand of the segment during the forecast period.
Among packaging materials, polymers & plastics are preferred packaging materials globally, for various fast-moving consumer goods (FMCG) products. According to report of ‘Plastic Packaging –the sustainable and smarter choice’, published in 2015, by Federation of Indian Chambers of Commerce & Industry (FICCI), around 83% of packaged food items were sold with plastic packaging in India, (69% in China), and (62% in the U.S.) in 2014. Various properties of plastic, enable it to deliver superior performance compared with alternative packaging materials such as glass, paper, and metals. Plastics are easily molded into any desirable shapes and sizes that resulted in packaging innovation and creation of consumer friendly packaging, which is expected to increase its demand in the customized tea packaging market.
However, owing to problems associated with disposal of plastic, various government authorities are focusing to ban plastic use. The National Green Tribunal (NGT) is considering to impose a ban in order to restrict the use of plastics for packaging of all non-essential items in FMCG sector. Therefore, as conventional plastic are non-biodegradable, other sustainable packaging options such as bio-degradable plastics are expected to drive demand during the forecast period.
The global customized tea packaging market was valued at US$ 1.96 billion in 2017, and is expected to register a CAGR of 3.1% in terms of revenue, over the forecast period (2018 – 2026), to reach US$ 2.52 billion by 2026.
Figure 1. Global Customized Tea Packaging Market Share, By Region, 2017
Source: Coherent Market Insights, 2017-18
Asia Pacific is expected to be the fastest growing region in customized tea packaging market, owing to increasing consumer preference towards packaged food items. According to India Brand Equity Foundation Report on Agriculture and Allied Industries, published in June 2018, packaged food industry in India is expected to cross US$ 65 billion by 2020.
Figure 2. Global Customized Tea Packaging Market Share, By Packaging Material, 2017
Source: Coherent Market Insights, 2017-18
Players operating in the global customized tea packaging market are adopting various growth strategies such as mergers and acquisitions to cater to increasing demand for customized tea packaging. For instance, in November 2018, Montagu Private Equity firm, announced its plans to acquire the Flexographic packaging division of the Eastman Kodak Company, which is a leading provider of graphics solutions for global packaging printing. Kodak’s Flexo business unit is one of the world’s leading providers of imaging technologies for the graphics customization of printed packaging materials.
Major players operating in the global customized tea packaging market include Solaris Tea, Blue Ridge Tea & Herb Company Ltd., Clipper Tea Co., THE CUSTOM PACKAGING, Roastar, SWISS PACK PVT LTD, Salazar Packaging, Inc., Pacific Bag, Custom Co-Pak, LYNNPAK PACKAGING LTD., and Scholle IPN.