Market Size of Sugar Packaging Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 4.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Sugar Packaging Market Analysis
The sugar packaging market is expected to reach a CAGR of 4% during the forecast period (2021 - 2026). The changing lifestyle of the people and changing food preferences of consumers, along with the increasing population in developing nations, is expected to drive the market's growth in the forecasted period. The global consumption of sugar is likely to reach 177.8 million metric tons in 2020-2021 from 171.58 million metric tons in 2019-2020, according to the US Department of Agriculture.
- The market is driven by a tremendous shift in preference for flexible packaging as sugar is packed in a variety of formats, both in bulk and retail. The advent of new packaging technologies, such as active packaging, intelligent packaging, and engineering science, enables flexible packaging for sugar and enhances the shelf life of sugar. According to the Flexible Packaging Association, in 2018, Food end-user segment contributed to 70% of total flexible packaging revenue worldwide (USD 31.8 billion), which is USD 22.6 billion.
- The rapid growth of the market is primarily driven by technology-enabled solutions such as QR codes, smart labels, etc. that can be scanned using a smartphone to provide more information about the product. Also, customers look for clear product information and biodegradable, recyclable, or reusable packaging. Hence, the packaging industry is evolving to cater to the changing preferences of the consumers.
- Moreover, considerable investments in the food processing industry end-user industries create scope for expansion of the packaging market. According to recent data released by the Associated Chambers of Commerce and Industry of India, the market size for organized packaged food is expected to reach INR 780 million, in 2020, from INR 530 million, in 2016.
- Due to the outbreak of COVID-19, the sugar packaging industry is significantly impacted. There is a drastic decline in demand for sugar from the bulk consumers as commodities like ice cream, cold drinks, and confectionery are produced less during this period. Moreover, hotel, retail, and catering market segment, which are one of the largest consumers of sugar, are severely impacted by the national lockdown.
