Secondary Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.49 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Secondary Packaging Market Analysis
The Secondary Packaging Market was valued at USD 253.75 billion in the previous year and is expected to reach USD 315.52 billion over the forecast period, registering a CAGR of 4.49%. The increasing deployment of medical products for transportation is the primary short-term development driver for the worldwide secondary packaging industry. In addition, the increased demand for environmentally friendly packaging solutions is expected to drive growth in the secondary packaging market. Furthermore, stringent government regulations requiring sustainable packaging solutions are projected to benefit the secondary packaging market, driving reusable and recyclable materials in the coming years.
According to the Research Institute of Organic Agriculture survey titled "The World of Organic Agriculture 2022," states that organic food consumption per capita in the European Union (EU-28) was estimated to be at EUR 101.8 (~USD 111) in 2020. Since 2005, per-capita organic food consumption has increased by over EUR 80 (~USD 88). Such an increase in per capita consumption has aided the market and is expected to complement the market further. According to the Federal Ministry of Food and Agriculture, Germany consumed 81.7 kilograms of beef per capita, with around 55 kilograms meant for human consumption. Furthermore, According to Office for National Statistics (United Kingdom), consumer spending on meat was at approximately GBP 20.54 billion (~ USD 25.60 billion). Such expenditure on the food creates an opportunity for the secondary packaging players to develop products according to customer requirements that makes the product units stay togther without affecting the packaging aesthetics.
Secondary packaging in healthcare is used to provide an additional level of protection and organization for primary packaging, which contains the actual medical products. Secondary packaging can also provide important information about the product, such as dosage instructions, expiration dates, and regulatory information, as well as help prevent counterfeiting and tampering, for instance, according to the Indian Economic Survey 2021. Previously, India's domestic pharmaceutical market was expected to be worth USD 42 billion, rising to USD 65 billion by 2024 and USD 120-130 billion by 2030. During the forecast period, factors such as sustainable packaging, durability, and recyclables, as well as the growing propensity of various end-users, such as hospitals and medicine manufacturers are likely to promote the use of secondary packaging.
Corrugated box packaging is a flexible and cost-effective way to protect, store, and transport a variety of items. The characteristics of corrugated boards, such as their light weight, biodegradability, and recyclability, have made them an important component in the packaging business. According to the Shopify report, North America had contributed USD 552.6 billion the previous year, second only to Asia (USD 831.7 billion in total e-commerce sales).
On the flip side, the pulp and paper industry, as one of the world's largest industrial sectors, has a significant impact on global forests. This sector, according to the World Wildlife Organization, accounts for 13-15% of total wood consumption and uses between 33-40% of all industrial wood traded globally, producing items such as office and catalog paper, glossy paper, tissue, and paper-based packaging. Furthermore, the United States is the world's second-largest producer and consumer of paper. According to Global Forest Watch, the world had 3.92 global hectares of tree cover in 2010, accounting for more than 30% of its land area. It lost 25.3 million hectares of forest cover last year. Such huge deforestation would hamper the market.
During the outbreak of COVID-19, the market studied faced slow growth due to lockdowns imposed by various countries that have disrupted the supply chain process and the closure of production plants in some countries to curb the effect of the virus. Rising raw material and energy prices, a shortage of recycled fibers due to wastepaper collecting concerns, and the global supply chain crisis's rippling effects have all influenced the Corrugated board packaging. With lead times increasing and indications that demand may be outstripping capacity, segments, like the carton business, have been under strain.
Secondary Packaging Market Trends
Folding Cartons Segment Expected to Hold Significant Share in the Market
- Folding carton demand has been expanding across many industries, including food and beverage, healthcare, personal care, homecare, retail, and others, as the focus shifts to eco-friendly and sustainable practices. The need for this package form in the region has been driven by consumer awareness of sustainable packaging preferences, availability of raw materials, the lightweight, biodegradable, and recyclable nature of paper, and deforestation. Due to increased urbanization and an inflow of visitors who prefer safer processed meals, the region has a high packaged food and beverage consumption rate. Furthermore, the food service industry's market requirement has been reshaped, fueling the growth of the researched market as an increasing number of single homes require more takeaway and delivery of meal services.
- The investments towards the production of cartons are expected to drive the market studied. For instance, in May 2022, MM Kotkamills spent around EUR 30 million (~USD 33 million) on two cutting-edge cross-cutters with automated core and waste processing. The investment would enable MM Kotkamills to enhance its position as a carton board sheet provider in the European carton board industry. The investment project is projected to improve board production's competitiveness by increasing flexibility and lowering transportation costs.
- Furthermore, Polish packaging manufacturer Akomex announced increased capacity at its Starogard Gdański plant in Poland by installing a new printing press and finishing equipment for folding cartons. Akomex specializes in high-quality folding boxes for the food sector. The company is part of the Akomex Group and is one of the leading packaging producers in Central Europe, specializing in packaging made from carton board, solid board, and corrugated board, as well as leaflets and labels for various end-user industries such as food, pharmaceutical, electronics, household sectors, and personal care.
- Moreover, in April 2022, Asia Pacific Resources International Limited (APRIL Group) committed to strengthening the growth of the green economy in Indonesia by expanding its product portfolio in the downstream sector by investing IDR 33.4 trillion (~USD 2.3 billion) in a sustainable paperboard production facility. When completed, this facility was anticipated to produce 1.2 million tons of folding box board annually that is fully recyclable and biodegradable.
- Furthermore, according to the Forestry Production and Trade survey conducted by Food and Agriculture Organization (FAO) in December 2022, the production volume of paper and paperboard was approximately 417.3 million metric tons globally. The production of paper and paperboard has been stable over the past decade. Such factors are expected to create an opportunity for the players in the market to develop new products to capture the market share.
North America is Expected to Hold Significant Share
- The market in North America is being driven by the increased usage of environmentally friendly materials in packaging. Eco-friendly packaging is defined as packaging that is recyclable, biodegradable, reused, and non-toxic and has a low environmental impact. End-users, such as the food and beverage industry and makers of household care goods, are becoming increasingly aware of the need to utilize environmentally friendly packaging materials. Folding cartons are made of recyclable and biodegradable materials like paperboard and hence have no negative environmental impact.
- Further, increasing customer spending patterns and rapid internet penetration directly influence the expansion of e-commerce. According to the US Census Bureau and the US Department of Commerce, e-commerce accounted for 14.7% of all United States retail sales in the fourth quarter of 2022, an increase from the third quarter. The highest quarterly income in history was generated by retail e-commerce in the United States from October to December 2022, reaching approximately USD 262 billion.
- Also, increasing courier and messengers' revenue indicates the use of secondary packaging, such as corrugated boards and folding cartons packaging, in transiting the products from one place to another. According to the US Department of Commerce, before last year, the United States couriers and messengers generated almost USD 137.91 billion in operating revenue. UPS is the largest courier and delivery service provider in the United States, with around 40% of the courier market. Notably, according to the Pitney Bowes Parcel Shipping Index, United Parcel Service (UPS) held a market share of 37% in the United States, while FedEx had 33% of the market. Such stats indicate the significant demand for secondary courier bags and parcel packaging in the United States.
- The secondary packaging for beverages serves different purposes. The secondary packaging is used to protect heavy bottles from breaking, along with reducing costs by shipping multiple items together. It may sometimes be used as a barrier or protection against sunlight exposure. The secondary packaging helps reinforce the brand as well as enhance product visibility. Also, it can drive consumer perception and impact beverage companies' manufacturing environment.
- Further, in December 2022, UFP Packaging, a US-based holding company UFP Industries subsidiary, acquired corrugated packaging manufacturer Titan Corrugated and its subsidiary All Boxed Up. Titan specializes in manufacturing transport and storage boxes, industrial jumbo boxes, corrugated shipping containers, and POS displays. The acquisition helps advance UFP's mission of becoming a leading global packaging solutions provider.
Secondary Packaging Industry Overview
The secondary packaging market is fragmented with major players adopting various growth strategies, such as mergers and acquisitions, new product launches, expansions, joint ventures, partnerships, and others, to strengthen their position in the market. Some of the major players in the market are Amcor, International Paper Company, Reynolds Packaging, Stora Enso, WestRock, Ball Corporation, and Berry Plastics.
In July 2022, Knoll Packaging formed a business relationship with Italy's Albertini Packaging Group (APG). Because of APG's manufacturing site in Belgrade, Serbia, the deal between the two family-owned enterprises allows Knoll Packaging to expand its industrial production capability beyond China to Europe. The two firms will be market partners, but they will also be able to exchange technological and production know-how regularly. Beginning in 2023, the deal was anticipated to significantly increase the volume generated and orders for both businesses.
In April 2022, DS Smith designed environmentally friendly packaging for an Asian corporation. Instead of the previously used adhesive packaging with a single-use plastic insert, the corrugated cardboard box uses a single-material solution. The packaging can be utilized for e-commerce deliveries, with cardboard inserts storing separate gadget elements. It is also said to save money. Furthermore, the packaging is intended to increase environmental protection across the supply chain and to be easily recyclable.
Secondary Packaging Market Leaders
Amcor PLC
International Paper Company
Reynolds Packaging
Stora Enso
WestRock
*Disclaimer: Major Players sorted in no particular order
Secondary Packaging Market News
- January 2023: GPA major, a packaging and full-service solutions provider for the consumer electronics, health, jewelry, beauty, and wine and spirits markets acquired Cosfibel, a French firm that is a world player in secondary packaging and promotional goods for major luxury brands. With this transaction, GPA expands its position in Europe and the beauty industry and its production capacity for the premium and luxury sectors. GPA is establishing itself as a global leader in luxury packaging with this newest purchase, which follows the takeover of Jenco Productions in North America.
- August 2022: Mondi, a global player in the packaging and paper industry, teamed with Essity and Dow to design new, recyclable secondary packaging for Essity's feminine care products, using renewable materials and post-consumer recycled content that lowers the usage of fossil-based materials. Previously, Essity's feminine care towels were in bags made of 50% sustainable materials. However, extensive study and testing by Mondi resulted in the recommendation of a new solution that corresponds with Essity's packaging aims to work towards 100% recyclability and utilize up to 85% biomass, renewable, or recycled material in all bags where up to 25% are recycled plastics.
Secondary Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products and Services
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Industrial and Consumer Activities across the World
5.1.2 Increased Need for Safe Transportation
5.2 Market Restraints
5.2.1 Changing Consumer Needs and Awareness Towards a Sustainable Environment
6. MARKET SEGMENTATION
6.1 By Product Type
6.1.1 Folding Cartons
6.1.2 Corrugated Boxes
6.1.3 Plastic Crates
6.1.4 Wraps and Films
6.1.5 Other Product Types
6.2 By End-user Industry
6.2.1 Food
6.2.2 Beverage
6.2.3 Healthcare
6.2.4 Consumer Electronics
6.2.5 Personal Care and Household Care
6.2.6 Other End-user Industries
6.3 By Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia-Pacific
6.3.4 Latin America
6.3.5 Middle East & Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Amcor PLC
7.1.2 International Paper Company
7.1.3 Reynolds Group Holdings
7.1.4 Stora Enso Oyj
7.1.5 WestRock Company
7.1.6 Ball Corporation
7.1.7 Berry Plastics
7.1.8 Crown Holdings Inc.
7.1.9 Deufol SE
7.1.10 Molins
7.1.11 Mondi Group
7.1.12 Owens-Illinois Inc.
7.1.13 RPC Group
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Secondary Packaging Industry Segmentation
Secondary packaging refers to the packaging that is used to group and protect the individual units of a product that are already contained within the primary packaging. It is typically designed to provide additional protection during transportation and storage, as well as to facilitate distribution and handling of the product.
The Secondary Packaging Market is segmented by Product Type (Folding Cartons, Corrugated Boxes, Plastic Crates, Wraps and Films), End-User Industry (Food, Beverage, Healthcare, Consumer Electronics, Personal Care and Household Care), and Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value (USD billion) for all the segments.
| By Product Type | |
| Folding Cartons | |
| Corrugated Boxes | |
| Plastic Crates | |
| Wraps and Films | |
| Other Product Types |
| By End-user Industry | |
| Food | |
| Beverage | |
| Healthcare | |
| Consumer Electronics | |
| Personal Care and Household Care | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
Secondary Packaging Market Research FAQs
What is the current Secondary Packaging Market size?
The Secondary Packaging Market is projected to register a CAGR of 4.49% during the forecast period (2024-2029)
Who are the key players in Secondary Packaging Market?
Amcor PLC, International Paper Company, Reynolds Packaging, Stora Enso and WestRock are the major companies operating in the Secondary Packaging Market.
Which is the fastest growing region in Secondary Packaging Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Secondary Packaging Market?
In 2024, the Asia Pacific accounts for the largest market share in Secondary Packaging Market.
What years does this Secondary Packaging Market cover?
The report covers the Secondary Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Secondary Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Secondary Packaging Industry Report
Statistics for the 2023 Secondary Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Secondary Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
