Plastic Packaging Market

Global Plastic Packaging Market Size (2024 to 2032)

The global plastic packaging market size is expected to be worth USD 298.46 million in 2024 and USD 479.30 million by 2032, growing at a CAGR of approximately 6.1% during the forecast period from 2024 to 2032.

Current Scenario of the Global Plastic Packaging Market

Plastic packaging has become an integral part of many businesses because of its cutting-edge design that assists in providing innovative packaging solutions. Plastic packaging is utilized for shielding sensitive products that are hard to carry and transfer. Plastic is known to be of less cost and durable performance goods. Plastic packaging is employed for the protection of goods when in transit, storage, and distribution. It also shields and escalates the shelf life of goods from breaking, spoiling, and contamination. It acts to provide customers with information about the product and handle brand identity and variation. Plastic packaging has been extensively permitted and acknowledged in packaging customer goods, from food items and electronic devices to big business equipment and machines. It serves as an easy and durable way of packaging for several businesses. Plastic packaging businesses have matured with the advent of technology and overall environmental awareness.

• For Instance, the plastic used for packaging is around 141 million tonnes per year across the world. Plastic production, use, and disposal contribute to about 1.8 million tonnes of carbon emissions annually.

The plastic packaging market has matured with the advent of technology and overall environmental awareness. The worldwide plastic packaging market is rising continuously in which mature markets are offering a modest expansion rate. In contrast, the latest growing markets are opening the latest opportunities for prospective expansion rates. Packaging is a technology that includes enclosing and protecting various kinds of products for storage, distribution, sale, and utilization. Plastic is considered more price-competitive and offers improved performance. As a recyclable material, it offers environmental advantages like waste reduction and energy savings. 

MARKET DRIVERS

The global plastic packaging market is multiplying where mature markets are offering a modest expansion rate whereas the latest growing markets are opening the latest opportunities for prospective expansion rates. Plastics are organic materials with a notable molecular weight that are made of different synthetic organic elements that can be shaped into a variety of shapes because of malleability. Plastic products comprise several altered elements like wood, paper, metals, and glass in numerous uses. Packaging is a technique that must enclose and protect several kinds of goods for storing purposes, distribution, sale, and utilization. Plastic is generally more competitive in price and offers good performance. As a recyclable material, plastic offers environmental advantages like waste reduction and energy savings.

• For Instance, Coca-Cola company announced its intention to use 50% of the recycled PET in its containers by 2030. And Unilever announced its commitment to making 100% of its plastic packaging reusable by 2025.

With problems regarding the effects of plastic on the environment, changing customer requirements, and escalating calls, the plastic packaging business is enhancing and incorporating the changes that are advantageous to all sectors. The expansion of the plastic film market is one of the significant drivers of the plastic packaging market. Flexible plastic films can be used as stretch and shrink films in wrapping processed food items, meat, and vegetables. Some more benefits, such as lower truck space occupation will boost end-users to use plastic film packaging over the other packaging solutions. The rising call for PET bottles is one of the significant trends estimated to gain traction in the global plastic packaging market. The increased utilization of plastic packaging in developed nations augments the market growth rate.

• For Instance, around 5 million tonnes of plastic is used in the United Kingdom every year and almost 2.25 million tonnes is utilized for packaging.

The plastic packaging business is showcasing a rise with the expansion of the global e-commerce business. Corrugated boxes (plastic and cardboard), polybags, and protective packaging such as bubble wraps and air pillows are vital types of packaging employed in e-commerce. Hence, the rising call for corrugated plastic packaging products from logistics and e-commerce companies is driving the total expansion of the global plastic packaging market.

MARKET RESTRAINTS

The major factor impacting negatively on the plastic packaging market is the environmental concerns where plastic production and disposal lead to environmental pollution in several ways. Plastic disposal leaves a carbon footprint and pollutes waterbodies, and plastics are often stuck in landfills, where these factors are hindering the market growth. The rising consumer demand for the bioplastics and availability of various other alternative packaging methods are estimated to hamper the market growth rate. Plastics contain harmful chemicals that may affect health and microplastics often end up in the food plastic packaging absorbs the flavors and smell of the food products, these significant factors impede the global market expansion. Most of the plastics are used for single-use which enhances the environmental waste leading to a negative influence on the ecosystems.

MARKET OPPORTUNITIES

The growing introduction of various innovative packaging methods such as active packaging, edible packaging, and bioplastic packaging are gaining traction among the people leading to market growth opportunities. The extended utilization of plastic packaging products such as pouches, films, and wraps in developed countries and emerging economies of developing nations is estimated to create growth opportunities in the coming years. Most of the market players are investing in R&D activities to develop new plastic solutions for packaging that possess minimal environmental effects and will augment growth opportunities.

• For Instance, in 2023, Yash Pakka Ltd, a manufacturer of compostable packaging solutions announced the introduction of India’s first-ever compostable flexible packaging through collaboration with Brawn Bear company.

MARKET CHALLENGES

The stringent government regulations banning plastics and packaging to limit the environmental effects and the presence of different regulations in various regions are the significant challenging factors in the market growth.

• For Instance, according to an OECD report, over 120 countries have implemented bans and taxes on single-use plastics to reduce overall pollution.

Various plastics with additives may lead to chemical leaching, which causes harmful health effects during its usage in the food and beverages sector leading to restricted market growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Plastic Packaging Market Analysis By Type

Flexible plastic packaging is assumed to progress at the fastest rate throughout the foreseen period due to more calls from food and beverage, and pharmaceutical segments. Flexible plastic packaging provides the benefits of cost-effectiveness, escalated durability and flexibility, better visual appearance, and convenience compared to its counterpart which contributes to the segment growth rate.

The rigid plastic packaging segment is predicted to register substantial growth during the forecast period. The high aesthetic appeal and sturdiness of the rigid plastic and its high barrier to oxygen and moisture are boosting the adoption rate leading to enhanced segment growth. The rising reusability of rigid packaging products such as intermediate bulk containers, pallets, and other packaging products escalates the segment revenue expansion.

Global Plastic Packaging Market Analysis By Product

The bottles sector held the dominant portion of the global market in 2023 due to rising usage in medical applications and the expanding need for PET bottles for soft drinks and water. The extensive utilization of plastic bottles in beverage packaging due to their low cost, convenience, and effectivity is boosting the segment revenue. The increasing population rate across the regions is enhancing the food service industry fuels the segment growth.

The pouches segment is projected to have considerable growth during the forecast period. The pouches such as zipper, tear, notch, and spout help in easy opening and closing of the packaging which is gaining traction among the people leading to segment growth opportunities.

Global Plastic Packaging Market Analysis By End-User

The food and beverages segment dominated the global plastic packaging market with a significant share and is expected to continue the domination during the forecast period. The expanding food and beverages industry and the changing consumer lifestyles are enhancing the demand for sustainable packaging leading to segment revenue growth. The increased consumption of beverages especially among the younger population is estimated to propel the market growth.

The personal care and home care segment is supposed to hold a significant market share during the forecast period. Personal care packaging including products like cosmetics and toiletries escalates the demand for plastic packaging which leads to enhanced segment growth opportunities.

REGIONAL ANALYSIS

The Asia-Pacific regional segment is estimated to play the leading role in the global market during the forecast period. Regional supremacy of Asia Pacific is assigned to the rising eminence of the food and beverage business in countries such as China and India. As plastic packaging finds escalated employment in different applications in healthcare, beverage, and food businesses, the plastic packaging business is expected to showcase fast expansion in the region. In addition, a rise in population escalated customer expenditure, and rising disposable income is estimated to boost the expansion of the plastic packaging market in the Asia Pacific. Moreover, increasing the popularity of beauty and personal care products is also probable to boost the expansion of the market in the Asia Pacific. 

• According to statistics data provided by the National Bureau of Statistics of China, in 2023, China alone produced about 74.89 million metric tons of plastic products.

The Europe Plastic packaging market holds the second-largest share in the global market and is anticipated to witness steady growth during the forecast period. The presence of stringent regulations regarding the utilization of plastic packaging and the rising awareness among consumers is majorly attributed to the market growth steadily. The increasing recycling content inclusion policies are fueling the market growth rate.

• For Instance, the European Commission has mandated that by 2025, all plastic bottles contain at least 25% of recycled content which is estimated to increase 30% by 2030.

The North American region is estimated to record prominent growth during the forecast period. The presence of major market players, the adoption of advanced technologies, lathe rging food and beverages industry, and the wide utilization of plastic in most of the end-use industries are contributing to the regional market growth rate.  

KEY PLAYERS IN THE GLOBAL PLASTIC PACKAGING MARKET

Companies playing a major role in the global plastic packaging market include Mondi Group, Berry Plastics Corporation, Sonoco Products Company, Amcor Limited, DS Smith plc, Bemis Company, Inc., NatureWorks LLC, Consolidated Container Company, Reynolds Group Holdings Limited, and Alpla Werke Alwin Lehner GmbH & Co. KG.

RECENT HAPPENINGS IN THE MARKET

• In October 2023, Grief Inc., a U.S. manufacturer of industrial packaging products and services announced the acquisition of PACKCHEM Group SAS, a French manufacturer of small plastic containers. The major aim of the acquisition is to enhance the product portfolio of the company.
• In March 2023, SK Chemicals announced the acquisition of the chemically recycled BHET and PET business division of Shuye, a Chinese company that specializes in green materials for a value of USD 100 billion.
• Mondi Group, the worldwide packaging and paper company, will showcase numerous innovations that fulfill packaging trends and the rising call for sustainable solutions at three key industry events this September and October.
• Kohlberg will merge the acquired business unit with its hard healthcare packaging unit Nelipak. The operations of Bemis to have collaborated with Nelipak are located in the UK and Ireland. The collaborated business will work under the Nelipak Healthcare Packaging brand. Nelipak offers custom-designed hard healthcare packaging solutions employed for Class II and Class III medical devices, and pharma drug delivery products.
• Packaging materials maker Tekni-Plex has entered a definitive buying agreement to purchase three production facilities from Australian packaging company Amcor’s Flexible Packaging business unit for a cash consideration of $215m (~€248m). The three facilities are situated in Madison and Milwaukee in Wisconsin, US, and Ashland in Massachusetts, US.

DETAILED SEGMENTATION OF THE GLOBAL PLASTIC PACKAGING MARKET INCLUDED IN THIS REPORT

This research report on the global plastic packaging market has been segmented and sub-segmented based on the product, type, end-user, and region.

By Type

• Rigid Plastic Packaging
• Flexible Plastic Packaging

By Product

• Bags
• Cans
• Bottles
• Pouches
• Others 

By End-User

• Food and Beverage
• Healthcare
• Pharmaceutical
• Retail
• Personal and Home Care
• Others

By Region

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East & Africa