Market Trends of FMCG Packaging Industry
Beverage is Expected to Hold Major Share
- Future development will mostly be fueled by urbanisation, active young and their increased labour force participation, rising disposable income for purchases, and better connections, especially in smaller towns. Government regulations have caused a new development in the market for beverage packaging. There have been initiatives to reduce trash production since packaging waste is thought to be detrimental to the environment. This has encouraged the industry to use recyclable and environmentally friendly packaging.
- Due to a number of issues, including escalating health concerns, the size of beverage packaging has been a divisive topic over the past ten years. Aerated drinks and other consumables consumed in excess lead to an unbalanced level of sugar in the blood. It increases the risk of Type 2 diabetes by impairing the liver's capacity to metabolize sugar intake. In order to provide customers with more alternatives and allow them more control over how much they drink, beverage makers are under tremendous pressure to minimize the size of their packaging. Additionally, a number of producers have made commitments to lower the calorie content, necessitating smaller packaging.
- Developments on the commercial printing front have led to variable printing capabilities on beverage packaging. With packaging end-customers appreciating the benefits of digital printing (aesthetics, personalization, etc.), customer loyalty to a particular FMCG brand is heightened. Moreover, quick response (QR) codes have become a basic/mainstream print on product packaging to be scanned with a smartphone for additional display of data, such as product info, and promotional content, to name a few. This further enhances on developing customer stickiness to a brand.
- According to Krones, the amount of packed water consumed worldwide in 2022 hit 472 billion litres, making it the most popular form of beverage. Dairy products and milk came in second and third place, respectively. The rising use of packaged beverages, especially bottled water, shows that producers will need to produce more packaged goods on a regular basis.
- The need for FMCG packaging materials such bottles, cans, cartons, and pouches is driven by this increased manufacturing volume. According to Krones report, Alcoholic beverage consumption exceeded 72 billion litres in 2022, making it the world's most consumed packaged beverage.
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North America is Expected to Hold Significant Share
- The United States is anticipated to lead the North American FMCG packaging market due to its large population and substantial client base for the local industry. In North America, the United States is one of the main regions that is expanding as a result of increased transportation of goods, import and export activity, and governmental environmental safety regulations. People's changing preferences for biodegradable and sustainable packaging materials are also expected to influence market demand.
- Some of the major packaging businesses that are active in the industry are based in the nation. Some of them include Graphic Packaging International, WestRock, Packaging Corporation of America, Sonoco Production Company, International Paper Company, and Packaging Corporation of America.
- The expansion of FMCG packaging is also anticipated to be supported throughout the projection period by rising demand for fresh produce, bulk packaging, and storage and by activities related to international commerce. Progressive Grocers reports that fresh produce sales in the United States as a whole increased from USD 63.6 billion in 2019 to USD 75.8 billion as of May 2022.
- The e-commerce infrastructure in Canada is highly advanced and well connected to that in the US. Amazon, Wal-Mart, Canadian Tyre, Costco, Best Buy, Hudson's Bay, and Etsy are among of Canada's top online merchants.The ease of home delivery, retailers' omnichannel capabilities, and contextual consumer experiences are driving an increase in e-commerce expenditure in the United States. The U.S. Department of Commerce estimates that e-commerce sales reached USD 1.03 trillion in 2022, an increase of 7.44% over 2021 and 18.44% over 2020. 19.3% of all retail sales in the United States in 2022 were made through e-commerce.
- The Internet is the primary ordering channel for Canadian customers. In the last ten years, online consumer sales have increased more than traditional retail sales. To enhance business-to-business and business-to-consumer connections, the majority of Canadian retail businesses have embraced cellular technology and internet-based systems.
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