Europe Consumer Packaging Market Size

Europe Consumer Packaging Market Analysis

The Europe Consumer Packaging Market size is estimated at USD 168.84 billion in 2024, and is expected to reach USD 206.11 billion by 2029, growing at a CAGR of 4.07% during the forecast period (2024-2029).

Technological innovations, sustainability trepidations, and attractive economics are among the factors driving the remarkable growth of consumer packaging.

• Packaging for the consumer goods industry plays a key role in making the product appealing to the potential buyer and delivering products to the consumer that are sufficiently sophisticated, safe, convenient, and appropriate. According to Pro Carton, more than half of Europeans believe that the COVID-19 pandemic is the biggest issue, and climate change was rated as the second most important issue. Almost half of the European consumers surveyed strongly agreed that the pandemic had made them more concerned about the environment and more focused on sustainable packaging.
• Plastic packaging has become popular among consumers for other products, as plastic material is lightweight and unbreakable, making them easier to handle. Even major manufacturers prefer plastic packaging, owing to the lower cost of production. Moreover, introducing polymers, such as polyethylene terephthalate (PET) and high-density polyethylene (HDPE), expands plastic packaging applications. However, reducing the amount of environmentally harmful polymers used in packaging is one of the most researched areas in the consumer packaging market.
• Furthermore, the European Union is pioneering the plastic market with its drive toward circular economy principles. It is particularly focused on plastic waste, as the high-volume, single-use item plastic packaging has come under scrutiny. Multiple strategies are being advanced to address this issue, including substituting alternative materials, investments toward the development of bio-based plastics, designing packaging that is easier to process in recycling, and improving the recycling and processing of plastic waste.
• In 2021, the European market witnessed an increase in PET raw material prices. A sharp rise in PET prices was driven by PET supply tightness in Europe, stemming from high freight rates from Asia and shortages of raw materials. Furthermore, the premium for recycled PET (RPET) clear flakes over virgin PET in Northwest Europe reached a record high in June 2021. Virgin PET prices were pressured by supply and demand and weak buying interest, which resulted in a lack of ability to consume improved supply. Such fluctuation in the prices of raw materials has challenged market growth significantly.
• Although the price difference between recycled and virgin plastic has been growing recently, the COVID-19 pandemic further accelerated this disparity. As a result, the cost of food-grade recycled PET is almost double in price compared to virgin PET, causing a lot of substitution pressure. According to Brussels-based Plastic Recyclers Europe (PRE), the demand for plastic scrap was dramatically affected by the pandemic. Moreover, most of Europe's plastic recycling industry is shutting down production due to the current market developments. The factors contributing to the shutting down of production include the lack of demand due to the closure of converting plants, the record low prices of virgin plastics, and decreased activity globally.