Market Trends of Rigid Plastic Packaging Industry
Polypropylene (PP) to Account for Significant Market Share in Rigid Plastic Packaging Market
- Compared to other plastic materials like polyethylene, polyethylene terephthalate (PET), polystyrene (PS), and others, polypropylene offers superior barrier qualities, improved surface polish, cheap cost, and high tensile strength. These features make polypropylene an ideal material for a range of packaging applications. Some of the growing applications for polypropylene include medicine bottles, bottles for ketchup and syrups, and bottle caps and closures. The market for rigid plastic packaging will thus continue to increase over the projected period due to the rising demand for polypropylene (PP) material.
- Medicine bottles, bottle caps and closures, and bottles for ketchup and syrups are some of the increasing applications of polypropylene. For instance, under its brand, Magnum, Unilever launched ice creams in tubs made from recycled PP plastic packaging, the first in the ice cream industry. The move was part of the company's broader strategy to ensure that 25% of its plastic packaging will come from post-consumer recycled content by 2025.
- Further, according to a report by the PlastIndia Foundation, India has a manufacturing capacity of 4,970 Kilo Ton per Annum (KTA) for Polypropylene (PP). According to IBEF, India is progressing in plastic industries with 30,000 plastic processing units, and about 4 million people are employed.
- According to the American Chemistry Council, in the United States, the total volume of plastics produced in 2022 was 125.5 billion pounds, a rise from the 123.9 billion pounds produced in 2021. The surge in plastic production is expected to increase the demand for rigid plastic packaging as raw materials become more readily available. In particular, the increased production of polyethylene (PP), widely used in rigid packaging, is expected to increase the supply of polypropylene resin, which may decrease costs and increase availability for packaging manufacturers.
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Asia-Pacific to Witness Significant Market Share in the Forecast Period
- The Asia-Pacific region holds a significant market share. Due to their expanding economies and economic activity, the rigid plastic packaging industry is predicted to increase in nations like China and India. In addition, these nations' expanding populations provide a significant market for FMCG goods and consumer durables, which is anticipated to fuel the expansion of the rigid plastic packaging industry.
- The demand for rigid plastic packaging has grown for the forecast period due to significant factors, including industrialization, the growth of the convenience food industry, an increase in manufacturing activities, rising disposable income, rising consumption levels, and rising e-retail sales. Furthermore, the growth of countries like India, China, and Indonesia drives the Asia-Pacific region to lead packaging demand for the global beauty and personal care industry.
- The consumption of soft drinks in China has seen a surge in recent years, as evidenced by the fact that in February of 2023, the volume of manufactured soft drinks in the country was estimated to be around 26.88 million metric tons. This has led to an increase in the need for packaging materials to store and transport these beverages. It is expected that the market for rigid plastic packaging will experience significant growth in the near future, as the durability, lightness, freshness, and recyclability of PET plastic bottles and containers are preferred by soft drink manufacturers.
- Manufacturers are launching innovative pack formats, sizes, and functionality in response to the consumer demand for convenience. Also, with the growth in oral, skincare, and niche categories, such as men's grooming and baby care, Asia-Pacific is both an opportunity and challenging region for packaging manufacturers.
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