NA Plastic Packaging Market Size

North America Plastic Packaging Market Analysis

North America's plastic packaging market is expected to grow with a CAGR of 2.7% during the forecast period of 2021-2026. The spread of novel coronavirus has not negatively affected the plastic packaging industry in North America. This is because it supports the vital food and beverage industry, which comes under essential services and will not be discontinued till the pandemic is over. The US Food and Drug Administration (FDA) has temporarily relaxed certain packaging and labeling requirements for shell eggs that are sold in retail markets. This is because the pandemic led to a surge in demand for shell eggs, while appropriately labeled retail packaging for such products dropped.

• The packaging industry in the North American region has undergone a drastic change in recent years, and the growth of e-commerce, along with innovations in digital printing, and sustainability are driving the market. Due to this, there has been an increased demand for sustainable, flexible packaging. For instance, according to the Flexible Packaging Association, more than 60% of consumers in North America are keen to pay more for tangible and functional packaging benefits, such as product protection, shipping friendly, and supply chain efficacy, among others.
• Flexible packaging is mainly used for food, which contributes to more than 60% of the total market. The US flexible packaging industry is witnessing healthy growth, as the industry was able to implement innovative solutions for the many packaging challenges it faced. According to the Flexible Packaging Association, brand owners are taking on films, pouches, and bags as a go-to packaging solution, acknowledgments in part to extensive acceptance by American consumers.
• The increased domestic demand for aluminum has led to an upsurge in aluminum foil imports from China, whose foil shipments to the United States increased almost 10-fold, valued at around 265 million pounds, in the last decade. Today, flexible packaging is mostly used for food, with the fastest areas of expansion being coffee, snack foods, fresh produce, ready-to-eat meals, and pet food.
• Canada is anticipated to witness a higher growth rate due to the growing adoption of innovative packaging techniques across numerous industries. Furthermore, the region has a flourishing retail industry that banks heavily on flexible packaging methods, being a global leader in the retail industry.
• The increasing popularity of packaging media in Canada, which provides long shelf life to finished food products, is driving the rigid packaging in the food and beverage industry in Canada. Moreover, the rising demand for convenience food and an increasing number of nuclear families is expected to further enhance the adoption of the rigid packaging market for food and beverages.