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Plastics are organic compounds with high molecular weight, which consists of a wide range of synthetic organic compounds which can be molded into various shapes, due to malleability. Packaging is a technology, which involves enclosing and protecting various types of products for storage, distribution, sale and use. The increasing demand for healthy, safe and convenience food in the last couple years in Asia Pacific, Europe and North America respectively, has been rapidly driving the global market for plastic packaging. Also, the use of polyethylene terephthalate (PET), as a packing material for food & beverages, pharmaceuticals and household product, due to its strength, versatility and recyclability and hence is projected to boost an excellent sustainability for plastic packaging market during 2017-2025.
Plastic films are the primary raw materials used for manufacture of flexible packaging, which finds wide applications in various end use industry such as food & beverages, cosmetics and healthcare industry, as they offer significant visibility to the product and provide attractive and secure packaging options. Pillow pouch and stand up pouch are the widely used product for flexible packaging market, due to its excellent barrier towards oxygen and moisture coupled with cost effective and low material usage are expected to boost the market for flexible packaging during the forecast period.
The growing disposable income and consumer preferences for packaged goods coupled with retail industry, especially in Asia Pacific and Latin America due to rise in per capita income among the middle class is projected to witness a significant growth during 2017-2025, for instance, India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, the retail market is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015.
The global plastic packaging market size was valued at US$ 300.86 billion (revenue) and 91,520.07 kilo tons (volume) in 2016 and is expected to expand at a CAGR of 5.3% in terms of revenue and 5.1% in terms of volume during 2017 – 2025.
Rigid packaging segment is expected to dominate the plastic packaging market over the forecast period and is expected to expand at a CAGR of over 5.6% in terms of revenue and 5.3% in terms of volume. According to a study conducted by Coherent Market Insights, the industrial end use industry segment in global Plastic Packaging market is projected to reach over US$ 21.45 billion by the end of the calendar year 2017. Plastic packaging drives the cutting edge solutions to innovative packaging solution, which protects fragile goods, low cost and provides easy transportation. High Density Polyethylene (HDPE), is largely used as a plastic packing material, due to its high chemical resistance and tensile strength, is in turn finds wide application in various end use industries, such as chemical and cosmetics industry. Also, the un-pigmented HDPE bottles and containers are translucent and provide better stiffness and best suited for short self-life products, such as milk. However, due to rising consumer preferences for good health and bio based packaging material is projected to be the key challenges for the growth of plastic packaging. Also, the market leading packing industry is continuously investing to develop environment friendly and bio based packaging. For instance—
June 7, 2016, EEQO in collaboration with Braskem and Avery Dennison, introduced a biobased polyethylene self-adhesive label supports brands in their quest for more sustainable packaging.
Asia Pacific, followed by Europe and North America, respectively, accounted for major share in the global plastic packaging market both in terms of revenue and volume in 2016 and the trend is estimated to remain the same over the forecast period. In 2016, Asia Pacific held a share of 41.8% in terms of volume, followed by Europe (24.3%). The growing demand for rigid packaging product in Asia Pacific due to growing demand for packaged and convenience food coupled with growing population and infrastructure development of retail and hospitality sector is expected to drive growth of the global plastic packaging market over the forecast period. According to a study conducted by Coherent Market Insights, the household product, end use segment market is expected to witness a CAGR of 5.3% from 2017 to 2025 in terms of revenue which in turn is expected to fuel the global plastic packaging market.