Secondary Packaging Market Size

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.