It is no secret that the future of the Packaging market looks brighter than it ever has. There are a number of reasons why this business will continue to remain significant in the coming years. The packaging market services a string of essential industries: food and beverage, clothing and textile, electronics, and pharmaceutical. And it is set to become more important.
In the following report, we shall characterize the significance of the packaging market, how it was affected by COVID-19, and show how, despite a decline, it is sure to bounce back.
The aim of any type of packaging is to meet some specific objectives:
– The protection of a product from the external factors it may encounter during transit from manufacturer to the final consumer.
– The guarantee of convenience and safety of the product.
– Aesthetics, and making a product more appealing to consumers.
According to research from the World Packaging Organization (WPO), the global packaging industry generates US $500 billion annually, accounting for between 1% and 2% of the gross domestic product in industrialised nations. This growth is driven by both consumer and industry packaging trendsDespite the enormous size of the global packaging industry, it experienced a considerable decline as a result of the COVID-19 pandemic.
Industrial packaging is defined as a means of packaging used to protect, ship, and store a wide range of goods done at the production site. The automotive industry, technology industry, machinery manufacturers, susceptible equipment manufacturers, and others need to protect their products from everything from moisture to vibrations.
According to data from ReportLinker, globally, industrial packaging was valued at US 58.91 billion in 2019 and is estimated to be worth US $73.01 billion by 2025. The market registered a compound annual growth rate (CAGR) of 3.53% during the forecast period 2021 to 2026.
The food and beverage industry held the largest share in industrial packaging and grew at a CAGR of 4.3%. Despite the negative impact the COVID-19 had on it, the food and pharmaceutical industry are expected to do well with a steady growth due to the change and rise in the demand for packaged food and healthcare goods.
In 2020, the buying of goods online heightened due to the pandemic. In the interest of their own health and to reduce waste and harmful products in the environment, consumers sought easy-to-use and recyclable packaging. This rapid interest in eco-friendly packaging brought the emergence of sustainable and recyclable products and has continued to fuel market growth. It has also generated fierce competition among the industrial packaging businesses.
The Asia Pacific region (China, Japan, India, South Korea, Australia) holds the highest growth rate in the packaging market due to the growing number of food, chemical, pharmaceutical and construction industries and the easy accessibility of packaging raw materials. According to IndustryARC, in 2020, the region held the largest 38% share in the industrial packaging market, owing to the massive demand from the food packaging industry.
North America (U.S, Mexico and Canada) accounts for one of the world’s largest packaging markets, driven and dominated by the influence of top packaging companies like, International Paper, American Packaging, Amcor, Bemis, Mondi, WestRock, Crown Holdings, Ball, Corporation ,Berry Global.
Western Europe (Germany, France, U.K, Italy) is also one of the major key players in the industrial packaging market.
The future of the packaging market looks bright as economies recover, with a clear shift towards the use of sustainable packaging. Sustainable packaging is being actively adopted by many countries. It is increasing consumer demand and healthy competition among manufacturers and vendors.
Healthcare and food products have been central to the growth in the market, and will likely continue to drive demand and innovation over the next few years.