North America Hermetic Packaging Market

North America Hermetic Packaging Market

The North America hermetic packing market was valued at USD 1.39 billion in 2024 and is anticipated to reach USD 1.49 billion in 2025 from USD 2.53 billion by 2033, growing at a CAGR of 6.87% during the forecast period from 2025 to 2033.

Current Scenario of the North America Hermetic Packaging Market

The North America hermetic packaging market is focusing on airtight packaging solutions designed to protect products from external environmental factors such as moisture, air, and contaminants. Hermetic packaging is essential for preserving the quality and extending the shelf life of various products, including food, pharmaceuticals, and electronics. The market is experiencing significant growth, driven by the increasing demand for high-quality packaging solutions that ensure product integrity and safety. Moreover, the market growth is fueled by rising consumer awareness regarding food safety, the increasing prevalence of e-commerce, and the growing demand for sustainable packaging solutions. As manufacturers and consumers alike prioritize product preservation and safety, the hermetic packaging market is expected to continue its upward trajectory, positioning itself as a key player in the North American packaging landscape.

MARKET DRIVERS

Increasing Demand for Food Safety and Quality

The increasing demand for food safety and quality is a primary driver of the North America hermetic packaging market. As consumers become more health-conscious and aware of foodborne illnesses, there is a growing emphasis on packaging solutions that can effectively preserve the freshness and safety of food products. Hermetic packaging plays a crucial role in preventing contamination and spoilage by creating an airtight seal that protects food from moisture, oxygen, and other external factors. According to the Food and Drug Administration (FDA), foodborne illnesses affect approximately 48 million people in the United States each year, highlighting the urgent need for effective packaging solutions. The market for food packaging is projected to grow at a CAGR of 5% over the next five years, driven by the increasing demand for safe and high-quality food products. Additionally, the rise of e-commerce and online grocery shopping has further amplified the need for reliable packaging solutions that ensure product integrity during transportation.

Growth of the Pharmaceutical Industry

The growth of the pharmaceutical industry is another significant driver influencing the North America hermetic packaging market. As the demand for pharmaceuticals continues to rise, there is an increasing need for packaging solutions that can protect sensitive products from environmental factors and ensure their efficacy. Hermetic packaging is particularly important for pharmaceuticals, as it helps maintain the stability and potency of medications by preventing moisture and air exposure. This growth is driven by the increasing prevalence of chronic diseases and the rising demand for innovative drug formulations. Also, the emphasis on patient safety and compliance is prompting pharmaceutical manufacturers to invest in high-quality packaging solutions that enhance product protection.

MARKET RESTRAINTS

High Production Costs

High production costs represent a significant restraint on the North America hermetic packaging market. The manufacturing of hermetic packaging solutions often involves advanced materials and technologies that can be expensive to produce. The industry estimate reveal that the production costs for hermetic packaging can be up to 20% higher than traditional packaging solutions due to the specialized materials and processes required. This cost differential can deter smaller manufacturers from adopting hermetic packaging solutions, limiting market growth. Additionally, fluctuations in raw material prices, such as glass and plastics can further exacerbate production costs, making it challenging for manufacturers to maintain competitive pricing. As a result, companies may face pressure to balance quality and affordability, which can hinder their ability to invest in innovative packaging solutions.

MARKET CHALLENGES

Regulatory challenges also pose a significant restraint on the North America hermetic packaging market. The packaging industry is subject to stringent regulations regarding material safety, labelling, and environmental impact, which can complicate the development and marketing of hermetic packaging solutions. Compliance with regulations set forth by agencies such as the FDA and the Environmental Protection Agency (EPA) requires manufacturers to invest time and resources in ensuring that their products meet established safety and environmental standards. According to industry experts, the cost of compliance can account for up to 15% of total production expenses for packaging manufacturers. This financial burden can be particularly challenging for smaller companies that may lack the resources to navigate complex regulatory landscapes. Furthermore, the increasing scrutiny on packaging materials and sustainability practices may lead to heightened consumer expectations prompting manufacturers to reformulate their products to align with evolving regulations.

MARKET OPPORTUNITIES

Rising Demand for Sustainable Packaging Solutions

The rising demand for sustainable packaging solutions presents a significant opportunity for the North America hermetic packaging market. As consumers become increasingly environmentally conscious, there is a growing preference for packaging materials that are recyclable, biodegradable, or made from renewable resources. Hermetic packaging can be designed using sustainable materials, such as glass and biodegradable plastics, which align with the trend towards eco-friendly packaging. Based on a survey, about 70% of consumers are willing to pay more for products that use sustainable packaging. This shift in consumer preferences is prompting manufacturers to innovate and develop hermetic packaging solutions that minimize environmental impact while maintaining product integrity.

Expansion of E-Commerce and Online Retail

The expansion of e-commerce and online retail represents another significant opportunity for the North America hermetic packaging market. The COVID-19 pandemic has accelerated the shift towards online shopping, with consumers increasingly turning to digital platforms for their grocery and product needs.  This shift presents a unique opportunity for hermetic packaging manufacturers to enhance their visibility and accessibility through online channels. Hermetic packaging solutions are particularly well-suited for e-commerce, as they provide the necessary protection to ensure product integrity during transportation. Besides, the ability to offer hermetic packaging that maintains freshness and quality can foster brand loyalty among consumers.

MARKET CHALLENGES

Competition from Alternative Packaging Solutions

The competition from alternative packaging solutions poses a significant challenge to the North America hermetic packaging market. While hermetic packaging is recognized for its ability to preserve product quality, it faces competition from a variety of other packaging methods, including vacuum sealing, modified atmosphere packaging, and traditional packaging solutions. The market research reveals that the packaging trade worldwide is calculated to attain a major milestone by 2025. This competitive sphere can make it challenging for hermetic packaging manufacturers to differentiate their products and maintain market share. Also, the increasing popularity of alternative packaging solutions that offer similar benefits may lead consumers to opt for these options, limiting the growth potential of hermetic packaging.

Supply Chain Disruptions

Supply chain disruptions represent another significant challenge for the North America hermetic packaging market. The COVID-19 pandemic has highlighted vulnerabilities in global supply chains, leading to shortages of raw materials and increased production costs. According to industry reports, approximately 40% of packaging manufacturers have experienced disruptions in their supply chains due to the pandemic, impacting their ability to source essential materials for hermetic packaging production. These disruptions can lead to delays in product launches, increased prices, and reduced availability of hermetic packaging solutions in the market. In addition, fluctuations in raw material prices can further complicate production planning and pricing strategies for manufacturers.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The passivation glass segment was the largest in the North America hermetic packaging market by accounting for 50.3% of the total market share in 2024. This authority of the segment can be linked to the widespread use of passivation glass in various applications, including food and beverage packaging, pharmaceuticals, and electronics. Passivation glass is known for its excellent barrier properties, which help protect products from moisture, oxygen, and other contaminants. According to industry data, the passivation glass business is projected to be driven by the increasing demand for high-quality packaging solutions that ensure product integrity. The versatility of passivation glass allows it to be used in a wide range of formulations, making it a preferred choice for manufacturers looking to enhance product safety and shelf life.

In contrast, the reed glass segment is anticipated to be the fastest-growing category within the North America hermetic packaging market, with a CAGR of 7.3% in the coming years. This growth can be credited to the surging recognition of reed glass as a sustainable and eco-friendly packaging solution. Reed glass is made from natural materials and is fully recyclable, making it an attractive option for environmentally conscious consumers. According to market research, the demand for reed glass is expected to rise significantly as manufacturers seek to align their products with sustainability trends. The lightweight nature of reed glass also contributes to its growing popularity, as it reduces transportation costs and environmental impact. Additionally, the increasing emphasis on clean-label products and natural ingredients is driving the adoption of reed glass in food and beverage packaging.

By End-user Industry Insights

The food and beverages segment secured the top position in the North America hermetic packaging market by possessing 65.8% of the total market value in 2024. This influence is caused by the popular usage of hermetic packaging solutions in preserving the freshness and quality of food products including snacks, sauces, and ready-to-eat meals. Hermetic packaging is essential for preventing spoilage and extending shelf life, which is crucial in the highly competitive food industry. As indicated by industry data, the food and beverages industry is forecasted to grow at a decent rate throughout the coming eight years and is reflecting the increasing consumer demand for safe and high-quality food products. The rise of e-commerce and online grocery shopping has further amplified the need for reliable packaging solutions that ensure product integrity during transportation.

Whereas, the healthcare segment is expected to be the rapidly growing category within the North America hermetic packaging market, with a calculated CAGR of 8.2% in the future. This progression can be fuelled by the escalating need for hermetic packaging solutions that ensure the safety and efficacy of pharmaceutical products. Hermetic packaging is critical in protecting sensitive medications from environmental factors, thereby maintaining their stability and potency. As per market research, the demand for hermetic packaging in the healthcare sector is expected to rise significantly as the pharmaceutical industry continues to expand. The growing emphasis on patient safety and compliance is prompting manufacturers to invest in high-quality packaging solutions that enhance product protection. Also, the increasing prevalence of chronic diseases and the rising demand for innovative drug formulations are driving the adoption of hermetic packaging in the healthcare sector.

COUNTRY ANALYSIS

The United States retains a prominent edge in the North America hermetic packaging market by accounting for 72.6% of the total market share in 2024. This rule is driven by the robust food and beverage industry, which increasingly incorporates hermetic packaging solutions to ensure product safety and quality. According to the U.S. Department of Agriculture, the food processing sector is projected to reach $1 trillion by 2025, reflecting the growing demand for high-quality packaging solutions. The importance of the U.S. market lies in its diverse consumer base, which is increasingly seeking reliable packaging options that preserve freshness and prevent spoilage, further solidifying its position as a key player in the hermetic packaging market.

Canada experiences the fastest momentum in the North America hermetic packaging market, with a projected CAGR of 6.5% over the years. This growth can be linked to the increasing consumer awareness of food safety and the rising demand for sustainable packaging solutions. The Statistics Canada stresses that the food and beverage industry is projected to grow significantly, driven by the popularity of products that prioritize health and safety. The Canadian market is also benefiting from a shift towards e-commerce, where consumers are increasingly purchasing food and health products online, necessitating reliable packaging solutions that maintain product integrity during transit. This trend positions Canada as a significant player in the North America hermetic packaging market is contributing to the overall growth of the sector.

Other Regions across the continent exhibit incremental advancement in this market. In the coming years, Mexico is likely to experience moderate growth in the hermetic packaging market and is driven by increasing urbanization and changing attitudes towards food safety and quality. The Mexican National Institute of Statistics and Geography said that the food industry is calculated to grow at a notable rate, reflecting the rising interest in packaged food products that ensure safety and longevity. As consumers become more aware of the importance of packaging in preserving food quality, the demand for hermetic packaging solutions is expected to increase.

Top Players in the North America Hermetic Packaging Market

The North America hermetic packaging market is characterized by the presence of several key players that significantly contribute to its growth and development. Companies such as Amcor plc, Sealed Air Corporation, and Schott AG are among the leading players in this sector. Amcor plc is a global leader in packaging solutions, offering a wide range of hermetic packaging products that cater to various industries, including food, pharmaceuticals, and electronics. Their focus on innovation and sustainability has positioned them as a trusted supplier in the market. Sealed Air Corporation specializes in protective packaging solutions and has developed a range of hermetic packaging options that enhance product safety and integrity. Schott AG is known for its expertise in glass packaging and has a strong portfolio of hermetic packaging solutions for the healthcare and electronics sectors. These companies, along with others in the market, are continuously investing in product innovation and strategic partnerships to strengthen their positions and meet the evolving needs of consumers and manufacturers.

Major Strategies Used By Key Players in the North America Hermetic Packaging Market

Key players in the North America hermetic packaging market are employing various strategies to enhance their competitive edge and strengthen their market positions. One prominent strategy is the focus on product innovation, where companies are investing in research and development to create advanced packaging solutions that meet the changing preferences of consumers. For instance, many manufacturers are developing hermetic packaging that utilizes sustainable materials and technologies, catering to the growing demand for eco-friendly packaging options. Additionally, strategic partnerships and collaborations with food manufacturers, pharmaceutical companies, and distributors are being leveraged to expand market reach and enhance product offerings. By aligning with key players in various industries, hermetic packaging manufacturers can gain access to new distribution channels and customer segments.

Another significant strategy is the emphasis on sustainability and environmental responsibility. Many companies are adopting sustainable sourcing practices and reducing their carbon footprint in production processes. This commitment to sustainability resonates with consumers who are increasingly concerned about the environmental impact of their packaging choices. Furthermore, companies are focusing on enhancing their supply chain efficiency to mitigate the risks associated with raw material price volatility and ensure consistent product availability.

Competition in the North America Hermetic Packaging Market

The competition in the North America hermetic packaging market is intense, characterized by a mix of established players and emerging companies striving to capture market share. The presence of major corporations with extensive resources and established distribution networks creates a challenging environment for smaller manufacturers. These larger companies often leverage their economies of scale to offer competitive pricing, which can pressure smaller players to differentiate themselves through innovation and niche product offerings. Additionally, the rapid pace of technological advancements in packaging materials and design necessitates continuous investment in research and development, further intensifying competition.

Moreover, the increasing consumer demand for sustainable and high-quality packaging solutions is driving companies to innovate and reformulate their offerings. As a result, manufacturers are focusing on developing hermetic packaging that aligns with current trends, such as biodegradable materials and recyclable designs. This shift not only enhances product appeal but also fosters brand loyalty among environmentally conscious consumers. The competitive landscape is further complicated by the need for effective marketing strategies that communicate product benefits and build brand recognition.

Major Actions Taken by Companies in the North America Hermetic Packaging Market

In March 2023, Amcor plc launched a new line of sustainable hermetic packaging solutions aimed at meeting the growing consumer demand for eco-friendly packaging. This initiative is expected to enhance their product portfolio and cater to environmentally conscious consumers.

• In January 2023, Sealed Air Corporation announced a strategic partnership with a leading food manufacturer to develop innovative hermetic packaging solutions tailored to their specific needs. This collaboration aims to improve product quality and consistency across the manufacturer’s offerings.
• In February 2023, Schott AG expanded its production capacity for hermetic packaging in North America to meet the rising demand for high-quality packaging solutions. This expansion is anticipated to strengthen their market presence and enhance supply chain efficiency.
• In April 2023, Berry Global Group introduced a new range of hermetic packaging products designed to improve the shelf life and safety of food products, addressing the growing demand for reliable packaging solutions.
• In May 2023, WestRock Company announced the acquisition of a hermetic packaging manufacturer to broaden its product range and enhance its distribution capabilities in the North American market.
• In June 2023, Huhtamaki launched a new line of hermetic packaging solutions aimed at promoting sustainability and reducing environmental impact, catering to the increasing consumer interest in eco-friendly packaging.
• In July 2023, Mondi Group announced a partnership with a major pharmaceutical company to develop innovative hermetic packaging solutions that enhance the safety and efficacy of medications.
• In August 2023, Crown Holdings, Inc. expanded its capabilities in producing hermetic packaging through a new manufacturing facility, positioning itself as a leader in sustainable packaging production.
• In September 2023, Sonoco Products Company launched a new research initiative focused on developing innovative hermetic packaging solutions that utilize advanced materials and technologies, reflecting the growing trend towards high-performance packaging.
• In October 2023, AptarGroup, Inc. announced a strategic investment in a technology startup focused on developing smart hermetic packaging solutions, positioning itself as a leader in innovation within the market.

Conclusion

The North America hermetic packaging market is poised for significant growth, driven by evolving consumer preferences, increasing demand for food safety, and a strong focus on sustainable packaging solutions. While challenges such as high production costs and regulatory hurdles exist, the opportunities presented by trends like the expansion of the food and beverage industry and the growth of the pharmaceutical sector offer a promising outlook for manufacturers. Key players are actively investing in innovation and sustainability to maintain their competitive edge in this dynamic market. As the industry continues to adapt to changing consumer demands, the North America hermetic packaging market is expected to thrive, providing a fertile ground for growth and development in the coming years.

KEY MARKET PLAYERS

Schott AG, Ametek.Inc., Micross Components Inc., Materion Corporation, Teledyne Technologies Incorporated. are the market players that are dominating the North America hermetic packaging market.

MARKET SEGMENTATION

This research report on the North America hermetic packaging market is segmented and sub-segmented into the following categories.

By Type

• Passivation Glass
• Reed Glass Segment

By End-user

• Food And Beverages Segment
• Healthcare Segment

By Country

• U.S
• Canada
• Mexico
• Rest of North America