France Packaging Market Size

France Packaging Market Analysis

The packaging market in France is anticipated to grow at a CAGR of 1.76%. One of the largest GDPs in the world belongs to the French economy; owing to its size and the demand from domestic consumption, the French packaging market is among the largest, most attractive, and mature markets in the world. The industry is maturing in terms of the adoption of packaging solutions in the nation, which is one of the main factors for the slow growth.

• Influenced by changing demographics and factors such as urbanization and employment rates, the growing market impacts consumer spending power and purchasing habits. Due to these changes, the need for new packaging types, such as convenience packaging, value-for-money, multi-packs, and more miniature single-serve packs, is increasing. Also, packaging types such as rigid plastics and flexible packaging are leading the market.
• Additionally, the growth in the number of tourists in France is causing an increased demand for traditional French food and beverages and the extended use of multi-lingual labels for conventional French products. Hence, these factors are expected to drive market growth.
• Moreover, the International Organization of Vine and Wine (OIV) also reports that France has the largest per capita wine consumption in Europe, with roughly 25.2 million hectoliters consumed in 2021, compared to 13.4 million hectoliters consumed in the UK in the same year. In France, packaging for glass bottles is anticipated to expand due to the growing consumption of wine.
• However, increasing regulations in the country against the use of plastic are anticipated to affect the market for plastic packaging in the country. For instance, the French Parliament's lower chamber passed a law in December 2020 that banned all single-use plastic products and packaging after 2040, in addition to several initiatives to increase reuse and recycling.
• Due to the COVID-19 pandemic, the nation witnessed lockdown restrictions, which led to panic buying. This imposed massive pressure on FMCG companies to adopt flexible plastic packaging solutions. Food companies increasingly witnessed an inclination toward pre-packaged food in smaller, consumer-sized packaging.
• The impact of Russia's Ukraine war on commodity pricing and global supply chains may put pressure on the profit margins of European non-paper packaging producers. While companies in the glass and metal packaging industries are turning to hedging tactics and stable demand to retain their resilience, the plastic packaging sector is anticipated to experience the most significant volatility as they struggle to pass on cost increases on time.