Market Trends of NA Home Care Packaging Industry
This section covers the major market trends shaping the North America Home Care Packaging Market according to our research experts:
Rising per capita income positively impacting the purchase power
- As per Organisation for Economic Co-operation and Development (OECD), the United States reported USD 14 trillion towards overall household spending. Moreover, allied personal income was recorded to have increased at USD 1,954.7 billion (10.0%) as of January 2020, according to the Bureau of Economic Analysis estimates.
- Similarly, the Disposable personal income (DPI) increased to amount to USD 1,963.2 billion (11.4%), along with personal consumption expenditures (PCE) increased by 2.4%.
- The PCE price index increased by 0.3% on a similar time frame, exclusive of food and energy estimates. This has been acting as an active driver to the increased purchasing power of the country’s consumers.
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Plastic packaging is driving the market
- The wide usage of plastic through all major packaging types creates a market for plastic as a material. The flexibility, strength, and durability of the material make it ideal for packaging many liquids, cream, and powder products in the industry. Compared to other materials available, plastic remains highly flexible and can be molded into any shape. The significant drivers for plastic products are growing retail, increasing dual-income households, and rising demand for PET bottles.
- Apart from its favorable properties, innovations, such as tamper-evidence caps and closures, are gaining popularity, leading to a significant value add for the brand owners. This has driven the use of plastics across a variety of products.
- Furthermore, there is a gradual shift in customer preference toward adopting flexible plastic packaging over its rigid counterpart because of convenience and sustainability issues. Flexible plastic packaging materials are 80% lighter in weight than their equivalent rigid plastic materials and cheaper.
- However, environmental concerns associated with plastics have resulted in a slowdown in the market growth in the last decade. Nevertheless, with the advent of biodegradable plastics and recycling, plastics are expected to sustain their usage in the packaging world.
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