Market Trends of Europe Paper Packaging Industry
Beverage Pakaging will Drive the Market Growth
- Paper is also easier to recycle than plastic because it is a non-synthetic material that may be repulped and reintroduced into production. Water, alcoholic, and non-alcoholic beverages can be packaged in paper-based bottles. Personal care firms also utilize it for shampoos, conditioners, lotions, and moisturizers.
- Beverages, including fruit juices, alcoholic drinks, and meal replacement shake, embrace paper packaging solutions. However, the quality of beverages is affected by pH, storage temperature, pressure, and contaminants. Changes in the levels may alter the composition of the beverage. Companies increasingly employ biodegradable packaging products with high barrier resistance (heat, moisture, and bacteria) to eliminate possible oxidation. In April 2022, a UK-based company, "When in Rome," launched a paper wine bottle into Ocado. The bottle is developed in collaboration with sustainable packaging company Frugalpac and is made from 94% recycled paper, and is claimed to have a carbon footprint 84% lower than a single-use glass bottle.
- The increasing wine consumption in the region and growing sustainability packaging are expected to support market growth in the forecast timeframe. According to the International Organisation of Vine and Wine (OIV), European countries had a significant share of Wine consumption in 2022. France accounted for 11% of global wine consumption in 2022, followed by Italy and Germany with 10% and 8%.
- In response, several beverage manufacturers introduced beverages in carton packs. In May 2022, Buen Vato, one of the world's first tequila in a cardboard bottle manufactured from 94% recycled material, will debut in Europe in July 2022, focusing on the Swedish market. Tequila Buen Vato aims to revolutionize the beverage business by investing in sustainable manufacturing, transportation, and CSR initiatives.
- Similarly, in November 2022, Huhtamaki, one of the leading global manufacturers of sustainable packaging solutions, launched the expansion of its existing paper-based packaging manufacturing facility in Nules, Spain. This latest investment reflects the growing demand for renewable and recyclable paper-based packaging as an alternative to rigid plastics. Nules' factory is the company's global centre of excellence, developing innovative and sustainable packaging solutions for European customers.
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Germany is Expected to Hold a Significant Market Share
- With the rapidly changing technological environment, the packaging industry is also set to improve its products by adopting various technologies to enhance and improve productivity. Due to increased legislation against excessive levels of plastic pollution, green packaging materials have the potential to see a rise in utilization throughout the forecast period. As a result of these constraints, paper and glass packaging are expected to be in high demand in the business, as they can be used as plastic substitutes.
- Owing to sustainability factors, players in the region are focusing on paper-based packaging. In February 2022, Amcor launched high-barrier recyclable paper-based packaging for snacks and confectionery. FMCG brands have successfully tested Amcor's LifeSpans material. It is expected to appear in European stores for snacks and confectionery in 2022, with expansion planned into coffee and culinary.
- Similarly, in January 2022, Amcor launched a platform for paper-based packaging. AmFiber innovations aim to redefine the abilities of standard paper packaging, providing a more comprehensive range of features and functional benefits to fulfil the changing demands of customers.
- Various international companies are also focused on expanding their business in the country. For instance, in November 2022, Solenis, one of the leading global producers of speciality chemicals, opened two new international centres to help drive more sustainable solutions for the consumer paper packaging industry. One centre is virtual, allowing customers to participate remotely in lab experiments, while the other is in a new facility in Mönchengladbach, Germany. Both centres are designed to simulate and test customer processes, processing programs, and paper/board properties to optimize performance, efficiency, and cost with a focus on sustainability.
- Driven by the various government regulations regarding sustainable packaging and growing consumer awareness about their buying choices' impact on the environment, the demand for paper and paperboard packaging is anticipated to rise in the country during the forecast period. According to Statistisches Bundesamt, in 2022, Germany generated 46% of its packaging industry revenue from paper packaging, and 34 % was made from plastic packaging.
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