Plastics are organic compounds with high molecular weight, which consist of a large range of synthetic organic compounds which can be molded into various shapes due to malleability. Packaging is a technology which involves enclosing and protecting various types of products for storage, distribution, sale, and use. Plastic packaging materials are prepared from petroleum and its derivatives, which find wide application areas in various end-use industries. Polyethylene terephthalate (PET) is used as the primary feedstock in the manufacturing of plastic bottles which find a large application in the food & beverages, pharmaceuticals, and cosmetics industries, due to their high durability, lightweight, low cost, and recyclability properties. These factors help boost the plastic packaging market growth. For instance, in 2019, according to the World Wildlife Fund report, the plastics industry manufactured as much plastic as all the preceding years combined. The production of virgin plastic also increased 200-fold since 1950 and had grown at a rate of 4% a year since 2000.
The global plastic packaging market is expected to surpass US$ 559.12 Bn by the end of 2028, in terms of revenue, and exhibit a CAGR of 5.30% during the forecast period (2021 to 2028).
Plastic packaging is driving the development of cutting-edge packaging solutions that protect fragile goods, are low in cost, and are simple to transport. High-density polyethylene (HDPE) is largely used as a plastic packing material, due to its high chemical resistance and tensile strength, which in turn, finds wide application in various end-use industries such as chemical and cosmetics. Also, un-pigmented HDPE bottles and containers are translucent, provide better stiffness, and are best suited for short self-life products such as milk.
A rise in the demand for polyethylene terephthalate (PET) plastic bottles for the packaging of bottled water, juices, soft drinks, medicines, salad dressing, oil, household cleaners, and personal care products is a major factor driving the growth of the global plastic packaging market. This is attributed to the advantages of PET materials, including high transparency, shiny surface, good stability, high-pressure resistance, good barrier properties, and lightweight.
Asia Pacific dominated the global plastic packaging market in 2021, accounting for 43.8% market share, in terms of revenue. Rapidly-growing application industries in key economies, such as China, India, Vietnam, South Korea, and Thailand, are expected to drive the regional market over the forecast period. China dominated the Asia Pacific market, in terms of both demand and production. The high population in the country, which supports the growth of the food & beverages, automotive, personal care, construction, and consumer electronics industries, is anticipated to act as a key driver for the market expansion. Therefore, infrastructure development of the retail and hospitality sectors is expected to drive the growth of the global plastic packaging market over the forecast period.
Figure 1. Global Plastic Packaging Market, Revenue Share (%), By Region, 2021
Consumers are increasingly gravitating toward alternative packaging materials that are more environmentally friendly. Owing to their environmentally friendly nature and great recyclability, aluminum and glass have seen strong acceptance rates. As a result, consumers are increasingly turning away from plastic. Moreover, rising consumer awareness levels for good health and bio-based packaging materials are compelling consumers to switch to biodegradable materials as an alternative to plastic. This is expected to restrict the global plastic packaging market growth during the forecast period.
|Base Year:||2021||Market Size in 2021:||US$ 389.509 Bn|
|Historical Data for:||2017 to 2021||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.30%||2028 Value Projection:||US$ 559.12 Bn|
Amcor Ltd., Sealed Air Corporation, Bemis Manufacturing Company, Sonoco Products Company, Mondi Plc., Tray Pack Corporation, Lacerta Group Inc., , Alwin Lehner GmbH & Co. Kg, and RPC Group Plc
|Restraints & Challenges:||
Food processing is simply the process of transforming agricultural products into edible food. It entails a variety of processing methods, such as grain grinding to produce raw flour and home cooking. According to IBEF, in December 2021, Between April 2014 and March 2021, India's food sector attracted US$ 4.18 billion in foreign direct investment. As a result the packaged and processed food manufacturing sector has grown in response to changing consumer lifestyles and food preferences, which is expected to propel market growth. This factor is expected to support the plastic packaging market growth.
Figure 2. Global Plastic Packaging Market, Revenue Share (%), By Product Type, in 2021
Among product type, rigid packaging dominated the global plastic packaging market in 2021, accounting for around 61.9% of market share, followed by flexible packaging. Rigid packaging finds wide applications in the packaging industry, due to its high impact strength, barrier properties, and stiffness which make it ideal for the transportation of various products in the form of bottles, ampules, jars, aerosol containers, and cans. Also, the rapidly growing export and import of food products across the world is expected to fuel the segment growth, which in turn is expected to fuel the plastic packaging market growth during the forecast period.
Global Plastic Packaging Market - Impact of Coronavirus (COVID-19) Pandemic
Due to lockdowns, travel bans, and business closures, the COVID-19 outbreak has affected economies and industries of various countries. The plastic packaging market is one of the world's most important industries which has been hit hard by supply chain failures, technology event cancellations, and office closures during the COVID-19 pandemic. The global COVID-19 pandemic had an impact on the plastic packaging market, especially in terms of plastic production costs. Food packaging for beverages, preservatives food, vegetables, etc. in grocery stores, restaurants, and other hospitality businesses such as hotels has nearly halted during the lockdown. The plastic packaging market is mostly impacted due to labour shortage and shut down production plant by the COVID-19 pandemic.
Key players operating in the global plastic packaging market include Amcor Ltd., Sealed Air Corporation, Bemis Manufacturing Company, Sonoco Products Company, Mondi Plc., Tray Pack Corporation, Lacerta Group Inc., Alwin Lehner GmbH & Co. Kg, and RPC Group Plc.
Plastic packaging is a world's packaging choice for many foods and beverages because it is hygienic, strong, lightweight, shatterproof, and retains freshness. It is most commonly used to package carbonated soft drinks (CSDs) and water. Polyethylene terephthalate (PET) used as a packaging material for food & beverages, pharmaceuticals, and household products, due to its strength, versatility, and recyclability. It is a clear, strong and lightweight plastic.
Plastic packaging is convenient, low cost, and has superior performance. Therefore, plastic bottles are widely used in beverage packaging. Trays and containers, on the other hand, are used in the foodservice and packaged food industries because of their lighter weight and aesthetics. Wraps & films, bags, pouches, and other, are products of plastic packaging. Pouches are gaining popularity in the market because they require less raw material to manufacture than rigid products like bottles and jars. Furthermore, the convenience of multiple pouch closure options such as a zipper, tear notch, and spout fuels demand.
Due to rising consumer awareness of personal grooming and hygiene, personal grooming and hygiene industry has seen significant growth. Plastic packaging is widely used in the personal grooming and hygiene industry. The attractive personal care packaging has also caught customer eyes this factors are expected to drive the segment growth the forecast period.
PET, which stands for polyethylene terephthalate, is a lightweight plastic. It is used in packaging for many foods and beverages. Regulations imposed on using PET bottles are one of the major factors hindering the plastic packaging market growth. For instance, in 2019, the European Union issued Directive 2019/904 on the reduction of the environmental impact of certain plastic products, which will require States Members to adopt national legislation prohibiting the use of certain single-use plastics and improving the management of others to reduce their impact on the marine environment.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.