The emerging businesses across this region coupled with steady economic growth are propelling the growth of the packaging industry in Asia. The GDP growth for 2016 - 2017 is forecasted to be more than 5% which is helped by growth in economies, robust credit growth and good labor markets.
The APAC active and intelligent packaging market is estimated to grow from USD 1.79 billion in 2016 to USD 4.92 billion by the end of 2021 at a CAGR of 18.36%. China and Japan lead the market in terms of revenue followed by South Korea and India.
Traditionally, these regions have had conservative habits like home cooked food and consuming fresh produce, however altering lifestyle of people has resulted in the shift from home cooked to ready-to-eat products. Increasing consumer awareness on issues like food safety and hygiene are the core drivers in the APAC region and are expected to spur high growth in the coming years with Asia-Pacific region.
The advent of the supermarket culture has altered the landscape of shopping and has increased the need for packaging especially in the food and beverage products. The ever-increasing emphasis on the need to extend shelf life caused by longer supply chains and global markets is another major driver to the active and intelligent packaging industry in the APAC region.
The issue of counterfeiting is a major problem in the developing economies because of the lax security measures. Intelligent packaging plays a very important role in reducing this. The advent of intelligent packing with the integration of technologies like radio frequency identification tags and near field communication devices has enabled manufacturing firms to keep track of their shipments and prevent any attempts to sabotage or counterfeit the products.
Asia-Pacific active and intelligent packaging market is witnessing a remarkable growth. Increasing demand for these packaging products because of changing lifestyles and demand from manufacturers for longer shelf life is driving this market growth. Strict government regulations regarding food packaging and safety standards are other such factors which are contributing to the market growth.
The major concerns for this market are inflation problems, inadequate supply chains, restrictions by the governments, uncertain consumer behavior and fierce completion from domestic retailers. These problems can be allayed by the fact that the governments in this region are opening the markets to companies from abroad. Policies are being changed by the governments to attract more investment. Also, they are implementing new projects to help the infrastructure to support the supply chain.
The report provides a comprehensive analysis of the market segmented on the basis of packaging material used and the end-user industry. Detailed estimates for the next five years are included along with the analysis of the major players and their strategies. Some of the vendors mentioned in the report are BASF, Amcor Limited, Landec Corporation, Bemis, Rexam Plc and Sonoco.
Changing lifestyle of people, demand for packaging solutions with longer sustainability, demand for fresh and quality food are the major drivers for the growth of this market. Further, increase in counterfeit products in developing countries has also compelled companies to use technologies like RFID during packaging.
Issues regarding the effect of packaging materials on the human body, security and privacy issues in case of intelligent packaging systems are expected to be major challenges for the market’s growth over the next five years.
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