Market Trends of Global Plastic Packaging Industry
This section covers the major market trends shaping the Plastic Packaging Market according to our research experts:
Food Segment to Occupy Major Share
- Food packaging is one of the largest users of plastics. The demand for rigid plastic packaging for the food industry is witnessing demand, as they are increasingly replacing traditional materials such as paperboard, metals, and glass, owing to their beneficial properties, such as lightweight and reduced cost.
- The increasing consumption of bakery products is further driving the adoption of flexible plastic packaging solutions to increase the shelf-life and avoid chalky bread conditions. With roughly 80% of baked goods being sold in flexible packaging and bakeries now producing a more comprehensive range of bread, buns, and rolls than ever before, including specialty and gluten-free, market players are developing advanced solutions catering to the demand.
- Vendors strategically partnered to enhance flexible packaging for the segment. For instance, in May 2021, ProAmpac acquired Irish Flexible packaging and Fispak to serve flexible packaging products to bakeries in Ireland. Similarly, in September 2021, PPC Flexible Packaging announced the acquisition of custom flexible packaging to enhance the sales of flexible films for all products, including bakery products.
- Rigid plastic packaging includes plastic bottles and containers and continues to be popular in industries for food packaging applications. Containers are used to pack sauces and other consumer goods that use HDPE and LDPE material for packaging. Moreover, plastic bottles and containers gained importance in the food industry due to their ability to provide extended shelf life to packaged food items.
- The current market scenario indicates a global demand for flexible packaging solutions for sweets and confectionery products. The need for flexible plastic is also increasing in Eastern Europe, with expected growth in volume (3.0 billion units) by 2023. Poland is expected to witness the most significant change. Also, flexible plastic has been the primary choice for packaging, especially for confectionery products.
- According to the Department of Commerce's final 2021 trade data, the United States exported USD 177 billion worth of farm and food goods to other countries, an increase of 18% over 2020 and a 14.6% increase over the previous high from 2014. The trade statistics show that American agriculture is strong because it keeps supplying consumers worldwide with quality, reasonably priced farm, and food items. The trend is a significant gain for food processing and transportation sectors, which rely heavily on plastic packaging because it is affordable and has desirable qualities, like moisture resistance.
Asia-Pacific to Hold the Largest Market Share
- The Asia-Pacific packaging sector is heavily influenced by variables such as rising per capita income, changing social atmosphere, and demographics. As a result of the shift, new packaging materials, processes, and forms are required.
- China is the largest country contributing to plastic packaging usage. The growing trend of packed meals, the increasing number of restaurants and supermarkets, and increasing bottled water and beverage consumption are significant driving factors of the country's market growth.
- According to the National Bureau of Statistics of China, in December 2021, China produced about 7.95 million metric tons of plastic products. Such an increase in plastic product use in China is expected to drive the market demand for various rigid plastic packaging products.
- Moreover, the market vendors are offering products that focus on sustainability commitments. For instance, as part of its commitment to sustainability, the manufacturer of laminated plastic tubes, Essel Propack, based in India, has produced recyclable HDPE barrier tubes. Platina 250 and Green Maple Leaf (GML) 300 Lamitubeswere created for brands looking to switch to recyclable, environmentally friendly barrier packaging formats.
- According to the Japan Plastics Industry Federation, the number of plastic containers in Japan increased significantly in the first quarter of 2022. The trend is expected to increase the market demand for plastic bottles in the country for various end-user customers.
- Furthermore, in March 2022, Tosoh, a Japanese petrochemical manufacturer, aimed to construct its chemical recycling technology by the end of March 2025 to extract raw monomers from mixed polymers. The producer began researching the technique in November of 2021 in collaboration with Tohoku University, recycling company KeiwaKogyo, water treatment company TohzaiChemical Industry, and state-owned research institute National Institute of Advanced Industrial Science and Technology.