Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Packaging Market size is estimated at USD 1.14 trillion in 2024, and is expected to reach USD 1.38 trillion by 2029, growing at a CAGR of 3.89% during the forecast period (2024-2029).

Key Highlights

• Over the past decade, the global packaging market has grown steadily, driven by substrate preference shifts, new markets, and evolving ownership structures. Flexible packaging, high-barrier films, and stand-up retort pouches are increasingly challenging traditional formats like metal tins and glass jars, especially in the food sector.
• Digital printing in the packaging sector is set for significant growth, propelled by its capacity to deliver high-quality, customizable, and cost-efficient solutions. The incorporation of smart packaging technologies is set to revolutionize the sector.
• RFID tags, QR codes, and sensors bolster traceability, quality control, and consumer interaction. With the evolution of the Internet of Things (IoT), smart packaging solutions are becoming pivotal in the packaging industry.
• Rising retail sales will encourage manufacturers to innovate packaging to attract consumers. Creative and visually appealing packaging designs can help products stand out on store shelves and capture consumer attention, leading to a higher adoption of advanced packaging solutions. According to the United States Census Bureau, retail sales in the United States were USD 7.242 trillion in 2023. When compared to 2019, the sales value was USD 5.396 trillion.
• Conversely, the rise in the use of non-recyclable, non-biodegradable plastic packaging is leading to a surge in carbon emissions, potentially acting as a growth deterrent. In response, major players such as Amazon, Google, and Tetrapak are pivoting toward achieving net-zero carbon emissions, a move that's set to define their future capital investments.

Packaging Market Trends

Paper and Paperboard Packaging Products to Witness the Highest Growth

• Increasing demand for environmentally friendly materials propels the packaging market. Eco-friendly packaging, characterized by recyclability, biodegradability, reusability, and low toxicity, is gaining prominence due to its minimal environmental footprint. Notably, paper-based solutions, including bags, pouches, and cartons, have led to a surge in sustainable packaging adoption.
• The increasing trend of online retail and environmental regulations on non-biodegradable and non-recyclable packaging solutions progressively creates a massive demand for eco-friendly paper packaging solutions.
• Companies increasingly shift towards sustainable packaging to meet consumer demands and regulatory requirements. Consumers perceive paper and paperboard packaging as more environmentally friendly than plastic packaging.
• The food and beverage industry's shift from plastic to paper packaging is driven by increasing environmental concerns and regulatory pressures to reduce plastic waste. Manufacturers are increasingly embracing paper and paperboard packaging solutions. For instance, in May 2024, Mondi introduced 'TrayWrap,' a secondary paper packaging solution designed to supplant the conventional plastic shrink film utilized in bundling food and beverage items.
• According to AFRY and Suzano PaperLine, the global consumption of paper is expected to increase from 415 million metric tons in 2022 to 476 million metric tons in 2032. As online shopping continues to rise, the demand for sustainable and efficient packaging solutions will grow. Paper and paperboard are often preferred for their recyclability and biodegradability.

Asia Pacific Packaging Market to Expand Significantly

• Plastic packaging has observed wide-scale utilization in Asia, with countries like India and China contributing significantly through their food and beverages market. The Chinese packaging sector is heavily influenced by variables such as rising per capita income, changing social atmosphere, and demographics, including ban enforcement on plastics to minimize its plastic footprint. This results in significant impacts on the packaging business.
• India's packaging industry is experiencing robust growth, expanding at a rate of 22-25% annually, solidifying its position as a key player in the global packaging landscape. As the 5th largest sector in India's economy, the packaging industry has demonstrated consistent growth in recent years, with significant potential for further expansion, especially in the industry of exports.
• Notably, the costs associated with processing and packaging food in India can be as much as 40% lower than in many European countries. This, coupled with India's abundant skilled labor force, renders the nation an enticing investment destination for businesses eyeing the packaging sector.
• Japan stands out as a significant consumer of paper-based products across diverse sectors, spanning newspapers, packaging, printing, communication, and even sanitary applications. Notably, driven by a growing consumer consciousness towards sustainable practices, concerns over deforestation, and the availability of raw materials, Japan's packaging industry is increasingly pivoting towards paper-based solutions.
• China's monthly plastic product output averages 6.59 million metric tons. Notably, December 2023 marked a peak, with production hitting 6.98 million metric tons, as reported by the National Bureau of Statistics of China.
• Higher production volumes ensure a more stable supply of plastic raw materials for packaging manufacturers. This stability can lead to more consistent production schedules, reducing lead times and improving delivery reliability for packaging products.

Packaging Industry Overview

The global packaging industry appears fragmented due to several vendors. Some leading players in the are Amcor Group GmbH, Berry Global Group, Inc., International Paper Company, Mondi Group, and others. In the global packaging market, key factors include sustainable competitive advantages driven by innovation, market penetration levels, exit barriers, advertising expenditure, competitive strategy, and firm concentration ratios. Players in this market leverage innovation for a competitive edge. The material specifications, especially in plastic packaging, offer ample room for product differentiation.

• June 2024 - Berry Global Group Inc. launched a new offering: a rectangular Domino bottle tailored for the beauty, home, and personal care sectors. This bottle is manufactured from up to 100% post-consumer recycled (PCR) plastic. The 250ml Domino bottle boasts a distinctive 75-millimeter-wide front panel, complemented by customizable side panels.
• June 2024 - Smurfit Kappa, a sustainable packaging solutions provider, has acquired Artemis Ltd, a Bag-in-Box packaging facility in Shumen, Bulgaria. Specializing in food and beverage packaging, Artemis manufactures bags for bag-in-box items and produces films and caps tailored to the wine industry.
• April 2024 - Amcor, a global provider of sustainable packaging solutions, launched a product: a one-liter polyethylene terephthalate (PET) bottle designed specifically for carbonated soft drinks (CSDs). It's manufactured entirely from 100% post-consumer recycled (PCR) materials. By offering this pioneering stock option, Amcor underscores its commitment to sustainability and empowers its customers to align with their eco-conscious goals.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support