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 Rigid Plastic Packaging Market – Insights
The market is projected to reach US$ 300 billion by the end of 2027, at a CAGR of 5.9% over the forecast period. This growth is attributed to growing end-use industries such as food & beverage, healthcare, personal care & cosmetics, and others. Rigid plastic packaging products offer various advantages such as durability, cost effectiveness, recycling properties, and can be molded into different shapes. These factors are expected to drive growth of the rigid plastic packaging market over the forecast period.
Materials used in rigid plastic packaging products are polyethylene (PE), polyethylene terephthalate (PET), polystyrene (PS), polypropylene (PP), polyvinyl chloride (PVC), bio plastics and others. Other materials used are polyamide, polycarbonate (PC) and polylactic acid (PLA). Polyethylene terephthalate (PET) segment is expected to grow at a faster pace during the forecast period. PET material is light weight in nature and offers various advantages such as durability, clear & shiny surface, high pressure resistance, high stability, and good barrier properties. These properties make PET the most widely used material in the rigid plastic packaging industry.
Stringent government regulations imposed on packaging products is expected to hamper market growth. For instance, the Federal Food, Drug, and Cosmetic Act mandates the need for adequate information related to packaging materials. Section 501(a) (3) of the Act states that a drug is deemed to be adulterated ‘if its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health’. However, favorable growth of food & beverages, pharmaceutical and personal care industries globally, presents immense opportunity for rigid plastic packaging manufacturers.
The global rigid plastic packaging market was valued at US$ 179 billion in 2018, and is expected to register a CAGR of 5.9% in terms of revenue over the forecast period (2019 – 2027).
Figure 1. Global Rigid Plastic Packaging Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Asia Pacific is the fastest growing region and accounted for the largest market share of around 34 % in 2018, owing to rapid urbanization, increasing disposable income, and increasing demand for food & beverage and household & personal care products in emerging economies is expected to drive the market growth. According to the India Brand Equity Foundation, India’s personal care industry was valued at US$ 12.58 billion in 2017, which was less than US$ 3 billion in 2000.
Furthermore, companies are focusing on product development in order to expand their product portfolio. For instance, in November 2018, Berry Global, Inc. launched a new line of containers called Verdant. The containers are made from 100% recycled post-consumer resin. The product was launched due to increasing demand for recycled plastic.
Among end-use industry, food & beverage held a significant market share of 63% in the global rigid plastic packaging market in 2018. Changing lifestyle patterns and increasing preference for packaged food products is driving growth of the rigid plastic packaging market.
Players operating in the global rigid plastic packaging market are adopting various growth strategies such as mergers, acquisitions, and business expansions to cater to increasing demand for rigid plastic packaging products. For instance, in 2016, Amcor Limited acquired Sonoco’s Global Plastics blow molding business in North America. The acquisition has helped Amcor increase its production capacity as well as its presence in the consumer goods and food market in the U.S. and Canada.
Major players operating in the global rigid plastic packaging market include Bemis Company, Inc., Amcor Limited, Silgan Holdings, Inc., Winpak Ltd., 3M Company, ALPLA, Berry Global Inc., RPC Group Plc., Anchor Packaging Inc., Coveris Holdings S.A., E-S Plastic Products, LLC and Plastipak Holdings, Inc.