PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1346112
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1346112
Global liquid packaging market size was valued at USD 385.1 billion in 2022, which is expected to grow to USD 569.4 billion, in 2030 with a CAGR of 5%, during the forecast period, 2023-2030. Over the past few decades, the packaging sector has undergone rigorous transformation and the global reliance on plastic materials has taken a toll. Liquid Packaging needs to be spill proof for essential liquid products. To protect the longer life of products, from juice to cooking oil, special liquid packaging solutions including liquid packaging material, liquid bag packaging, and liquid pouch packaging are available.
Plastics continue to dominate the market. While other packaging materials like paper and metals are widely utilized. Furthermore, the packaging sector is introducing fresh innovations related to identifying recyclable packages and monitoring environmental aspects through intelligent and active packaging integrated with technology. It is imperative for packaging techniques and materials to demonstrate excellence in preserving the quality of food and beverages, considering that these products come into direct contact with the inner layers of the packaging. The growing preference for efficient and safe packaging drives the demand for liquid solutions. Ready-to-drink beverages, single-serve packs, and lightweight packaging choices that provide convenience and portability are preferred by consumers which is further expected to gain traction in the market.
The shift in consumer behavior towards ready-to-drink items is expected to create high demand for liquid packaging solutions. These packaging options are created to retain the appropriate level of beverage quality and freshness while ensuring the product safety, usability, and mobility. To suit the rising demands of ready-to-drink products, liquid packaging such as bottles, cans, cartons, and pouches are developed. For instance, aseptic cartons are popular for juices and dairy-based drinks whereas lightweight, sturdy plastic bottles are frequently used for fizzy beverages. These container designs improve the overall consumer experience while offering convenience, protection from contamination, and shelf-life extension of the liquid stored. Such growth in demand from food and beverage industries is coupled with the demand for ready-to-drink products which is expected to create demand in the global liquid packaging market.
For instance, in November 2022, Pernod Ricard USA announced that the Fort Smith facility in Arkansas will house the company's first-ever ready-to-drink (RTD) canning line. The plant will be able to provide canning facilities because of the USD 2 million investment.
One of the most trusted types of packaging for preserving health and flavor, and environmental safety is glass. Glass packaging, which is regarded as premium, keeps food and beverages, safe and fresh. Despite strong competition from plastic packaging, glass has continued as a packaging material in various end-use industries such as food and beverage industry. Additionally, cutting-edge techniques for shaping, embossing, and adding artistic finishes to glass increases the consumers' attention towards glass packaging. Consequently, factors like the increased demand from the food and beverage industry and the demand for environmentally friendly products are expected to create traction for the global expansion of the market.
The pandemic had a detrimental short-term effect on meat processing, resulting in occasional consumer shortages. Simultaneously, fast-food establishments experienced a surge in demand during this period. While some forms of packaging, like those for e-commerce deliveries, are witnessing growth and becoming vital in this evolving landscape, the COVID-19 outbreak has already triggered some of the most significant declines in demand for certain types of packaging in recent history. Many packaging companies are facing new difficulties due to these changes. Soda industries were impacted by aluminum shortages brought on by the closure of recycling facilities and flavoring shortages. When arenas and sporting venues closed, there was a decrease in demand for food packaging from the food services industry. A significant shift in consumer behavior throughout the globe was witnessed. The consumers started demanding better packaging to increase the shelf-life for products such as UHT milk, which would help them reduce visits. For instance, the global sales of dairy items like ultra-heat treated (UTH) milk have surged by approximately 279%, with India alone witnessing an impressive increase of about 20%.
There was significant impact on the liquid packaging market. The production of plastic suppliers, converters, and the larger packaging industry is dependent on oil and gas. The quantities of oil and gas required to create plastic goods are difficult to quantify. However, supply chain interruptions, sanctions, and divestment due to the war significantly negatively impacted the business. Over 300 significant western corporations have withdrawn operations from the country due to the conflict, and numerous production and packaging facilities in both Russia and Ukraine have been shut down. Some businesses were initially hesitant to halt operations, reducing back, or shutting down since they were unsure of the war situations. The largest petrochemical (PET) facility in Ukraine, Karpatneftekhim, was among the facilities compelled to halt operations after martial law was proclaimed in the country in February 2020.
The global liquid packaging market is highly competitive, with a few major players dominating the market. These players are Dow Inc., Amcor Plc., Berry Global Inc., Krones, Inc., Tetra Laval International S.A. (Switzerland), Gerresheimer AG, International Paper Company (US), Pactiv Evergreen Group Holdings Inc., Elopak ASA, and Silgan Holdings Inc. These enterprises possess a robust brand presence, an extensive distribution network and a dedication to innovation. They consistently allocate resources to research and development endeavours aimed at creating novel technologies and products aligned with their customers' requirements.
In October 2021, leading worldwide toothpaste brands and Dow Inc. collaborated closely to mass produce the new sustainable solution. This approach, when combined with infrastructure for appropriate disposal and recycling, will aid in lowering the quantity of old toothpaste tubes that end up in landfills. Dow's latest packaging solution addresses recyclability concerns by eliminating the aluminum layer, while safeguarding the quality of toothpaste items. Additionally, it provides printability, empowering brand owners to craft designs that enhance their products' shelf presence.
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