Packaging Material Industry Expands with Food Safety Tech

24 Jul 2024

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Table of Content

1. Packaging Material Market Revenue and Trends 2. Market Overview 3. Packaging Material Market Trends 4. Packaging Material Market Highlights 5. Packaging Material Market Top Companies 6. Regional Insights 7. Market Potential and Growth Opportunity 8. Packaging Material Market News

Packaging Material Market Revenue and Trends

The global packaging material market revenue was valued at USD 1.03 trillion in 2023 and is poised to grow from USD 1.05 trillion in 2024 to USD 1.44 trillion by 2034, at a CAGR of 3.2% during the forecast period 2024 – 2034. The increasing demand for packaged food and beverages has contributed to the growth of the packaging material market.

Market Overview

The packaging material market deals with the material used to protect, enclose, and present products for use, sale, distribution, and storage. Packaging materials play an important role in various industries, such as electronics, cosmetics, pharmaceuticals, food and beverages, and more. They have come in a wide range of types, with their suitability and characteristics for different applications. The increasing growth of e-commerce platforms and increasing efficient packaging solutions to ensure safe product delivery are anticipated to enhance the growth of the market.

In addition, the rising technological advancements in packaging technology, such as active packaging and tamper-proof seals, enhance food safety. Growing urbanization and global population and increasing customer consciousness related to product safety and quality are further expected to drive the growth of the packaging material market during the forecast period.

Packaging Material Market Trends

• The increasing emphasis on economical and lightweight materials is anticipated to enhance the growth of the packaging material.
• The growing adoption of eco-friendly methods to lower the carbon footprint is estimated to accelerate the growth of the market.
• The increasing growth of the pharmaceutical and healthcare industries is further anticipated to boost the growth of the packaging material market.

Rapid expansion of the e-commerce industry

The rapid expansion of the e-commerce platform has activated a significant growth in the demand for packaging solutions and products, reshaping the packaging industry to the extreme. This transformation is enhanced by various interrelated factors, such as the increment of online shopping landscapes, which has led to significant growth in the volume of products being delivered and shipped directly to customers’ doorsteps. There is a heightened need for efficient and robust packaging solutions, with consumers embracing the accessibility and convenience of online shopping that can withstand the accuracy of transportation while safeguarding products against tampering and damage.

In addition, the rapid expansion of the e-commerce platform has become an accelerating force behind the increasing demand for efficiency and sustainability, fueling innovation and packaging materials across the packaging supply chain. As e-commerce constantly reshapes suppliers, packaging material manufacturers and the retail landscape must remain responsive to the evolution of this rapidly growing and dynamic market, which is further expected to drive the growth of the packaging material market.

However, fluctuations in raw material prices may restrain market growth. The packaging materials, such as glass, metals, cardboard, paper, and plastics, are heavily based on raw materials sourced from natural resources such as metals, minerals, wood pulp, and petroleum. Any instability and volatility in the prices of these raw materials can impact negatively on the packaging industry. Fluctuations in raw material costs directly impact the manufacturing costs of packaging materials. These fluctuations may also restrain investments in research and development activities aimed at sustainability and innovation in packaging materials. These factors may restrain the growth of the packaging material market.

Packaging Material Market Highlights

Packaging Material Market Top Companies

• Amcor
• Ball Corporation
• Crown Holdings
• International Paper
• Reynolds Group
• Orlandi
• Mondi
• Stora Enso
• WestRock
• Bemis

Recent Breakthrough in the Packaging Material by Orlandi

• In May 2024, EcoProTM Paper-Wrap is a new product from Orlandi, a cutting-edge leader in packaging and sampling solutions. Since EcoProTM does not include foil, film, or plastic, it is a new packaging material that addresses the growing demand for environmentally friendly packaging. This represents a substantial development in recyclable packaging solutions.

Recent Breakthrough in the Packaging Material by Parkside

• In April 2024, Parkside introduced a line of flexible packaging materials made of recyclable paper. The new Recoflex paper line comes in various qualities and can be purchased as a single-ply or laminate. Its exceptional heat sealability, barrier effectiveness, and durability transform the landscape of paper-based flexible packaging for various market applications.

Regional Insights

North America is expected to grow fastest during the forecast period. The increasing demand for sustainable packaging materials, such as recycled materials and bioplastics, is increasing due to increasing environmental concerns. Additionally, strict government regulations on packaging materials, such as composability and recyclability, are driving the market growth in the region. The U.S. and Canada are the leading and fastest-growing countries in North America. The U.S. has the biggest market for packaging materials.

• In October 2023, A novel tool designed to encourage more packaging recycling in the US was the Fiber Recycling Readiness Tool. The website was created by ISRI and was based on research. It evaluated how well the domestic recycling system in the United States could handle everyday consumer fiber-based packaging. Fiber-based package recycling, which creates jobs and protects the environment, is one of the most popular forms of recycling in the world. It recovers fiber that is used to make other paper goods.

Asia Pacific dominated the packaging material market in 2023 and is expected to sustain its position during the forecast period. The market growth in the region is enhanced by the higher plastic consumption in various industries. Rising industrialization and urbanization in developing countries of the region are demanding innovative packaging materials, expected to enhance the market's growth. In addition, the increasing availability of low-price supplies required in financially viable packaging solutions contributed to driving the market growth in the region. China, India, Japan, and South Korea are the leading countries in the Asia-Pacific region.

China is the second biggest market in the packaging industry. China used millions of tons of paperboard and paper for packaging. According to the National Bureau of Statistics, billions of books, newspapers, and magazines are used for packaging materials in China. China has stepped up its recovery activities and recycles more than millions of tons of waste paper.  

• In January 2024, Mars introduced a Snickers bar with flexible mono-material packaging that has dark chocolate cereal in China. In addition to having a low glycemic index (GI) and no sugar option, this new product included individual packaging made of mono PP, which adheres to the idea of being "Designed for Recycling" and is easily recyclable through approved methods.
• In August 2022, the eco-friendly industrial packaging introduced by the merger of Nippon Paint China, a leading coatings company, and BASF was incorporated into the Nippon Paint dry-mixed mortar family of products. The water-based acrylic dispersion Joncryl® High-Performance Barrier (HPB) from BASF is used as the barrier material in the new packaging, which is being sold for use in Nippon Paint's dry mortar products. It was the first time China had seen the usage of water-based barrier coatings from BASF in industrial packaging.

Market Potential and Growth Opportunity

Development in smart packaging

Smart packaging involves the incorporation of indicators, sensors, and other intelligent features into packaging materials to offer additional functionality beyond traditional protection and containment. These features can include traceability, OR codes for tracking, tamper-evident seals, freshness indicators, and temperature monitoring. By adopting smart technology with packaging materials, retailers and manufacturers can enhance consumer satisfaction and engagement, reduce waste through better inventory management, improve supply chain visibility, and enhance product safety. These major factors are expected to enhance the growth of the packaging material market in the coming future.

Packaging Material Market News

• In March 2024, PepsiCo introduced new premium snack packaging that is 50% made of recycled plastic through a partnership with its supply chain partners in flexible food packaging. The new packaging, which was introduced for PepsiCo's Sunbites brand in late Ireland and the UK last year, complies with strict food-contact regulations.
• In April 2024, Bpacks, a sustainable packaging firm, introduced the first packaging method based on bark. The new materials made the transition to eco-packaging easier by integrating smoothly with the machinery now in use for producing various types of rigid plastic packaging. Given that the shift to biodegradable packaging must occur over the next five years due to policy guidelines from the European Union, this is particularly crucial.

Market Segmentation

By Material

• Paper
• Cardboard
• Rigid plastic
• Flexible plastic
• Wood
• Textile
• Glass
• Metal

By Product

• Bag
• Pouch
• Box
• Bottles
• Cans and Jars
• Containers
• Wraps
• Drums
• IBCs

By End-User

• Food & Beverage
• Healthcare
• Household products
• Chemicals
• Cosmetics

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