Packaging Market Size, Share, Analysis, Trends, Growth Report, 2030

Packaging Market Insights

According to the report published by Zion Market Research, the global Packaging Market size was valued at USD 1473.69 Billion in 2023 and is predicted to reach USD 1991.10 Billion by the end of 2032. The market is expected to grow with a CAGR of 3.4% during the forecast period. The report analyzes the global Packaging Market's growth drivers, restraints, and impact on demand during the forecast period. It will also help navigate and explore the arising opportunities in the Packaging industry.

Packaging Industry Prospective:

The global packaging market size was worth around USD 5.42 billion in 2022 and is predicted to grow to around USD 8.72 billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.14% between 2023 and 2030.

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Packaging Market: Overview

Packaging is a term used for the process that deals with surrounding or covering a product with an additional coating with the aim to protect it from damage and to improve the overall aesthetics of the product. Packaging may sound like a simple process but effective packaging covers the artistic, scientific, and technological aspects of enclosing the final item before it reaches the consumer. Ideal packaging reduces any form of damage risk across the supply chain including initial preparation of goods for transport, warehousing, actual transport or logistics, and sale. On the other hand, packaging also deals with the enhancement of the overall appeal of the product being sold.

For instance, consumer perception of poorly packaged products tends to be negative whereas products packaged with premium quality and beautiful packaging material automatically enhance the overall value of the product in the view of the customer. With time, the packaging industry has undergone changes depending on the latest trends or materials available for efficient enclosing of the product. In recent times, technologies such as smart and edible packaging are some of the most popular forms causing the market outlook for the packaging sector to emerge with high growth potential.

Key Insights:

• As per the analysis shared by our research analyst, the global packaging market is estimated to grow annually at a CAGR of around 6.14% over the forecast period (2023-2030)
• In terms of revenue, the global packaging market size was valued at around USD 5.42 billion in 2022 and is projected to reach USD 8.72 billion, by 2030.
• The packaging market is projected to grow at a significant rate due to the growing rate of consumerism
• Based on end-user segmentation, food & beverages were predicted to show maximum market share in the year 2022
• Based on material segmentation, rigid plastic packaging was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Packaging Market: Growth Drivers

Growing rate of consumerism globally to drive market growth

The global packaging market is expected to grow owing to the increasing rate of consumerism across the globe. The world population is rising at a rapid rate. In addition to this, disposable income or per capita income is steadily rising in the backdrop of growing job opportunities and the emergence of several unconventional means of earning livelihood, especially from social media platforms. This has resulted in an unprecedented demand for all forms of goods that are currently available in the commercial market. Consumerism is defined as the economic and social order that comprises individuals with the end goal of acquiring goods or services. With a world population of over 8 billion, every product manufacturer across industries is likely to find buyers, the strength of which may grow with time.

Packaging is an integral part of consumer goods. Every new product in the market has to be packaged in a way that resonates with the brand name and the end-use of the product. In addition to this, in most cases, packaging products deal with multiple layers including inner and outer segments. For instance, electronic items tend to showcase inner packaging that helps protect against external pressure. In addition to this, the outer covering may be wrapped with plastic covering to protect against sunlight or dirt.

Growing demand for luxury personal care and cosmetic products to deliver high market revenue

The global packaging industry is projected to benefit from the rising demand for the luxury segment in personal care and cosmetic products. These high-end products showcase exceptional packaging. Market research suggests that attractive packaging is essential to generate the interest of the intended consumer group. It acts as the first impression for the final products especially when consumers are spending large sums of money on cosmetics or personal care items. In 2023, the world’s leading makeup brand MAC Cosmetics generated a revenue of over USD 2 billion as per official sources.

Packaging Market: Restraints

Rising environmental pollution caused by the packaging sector to restrict market growth

The global packaging market growth rate is expected to be restricted due to the growing concerns over the exponentially rising pollution rate caused by the packaging industry. As per market reports, more than 7.5 million tons of plastic waste are dumped in the ocean every year. It is a result of poor waste management systems. Once the products are put to use the packaging materials are discarded. As consumerism is growing exponentially it is also leading to an increase in the amount of waste generated from excessive buying and selling of goods. Improper management of packaging material is more dangerous when non-biodegradable plastic is being used. The packaging sector is responsible for using almost 40% of all plastic produced across the globe.

Packaging Market: Opportunities

Increasing demand for recycled packaging material to create new growth possibilities

The global packaging industry is anticipated to encounter new growth opportunities due to the increasing demand for recycled packaging material. World leaders and environmental agencies are working toward creating a highly efficient circular economy by reducing and reusing waste. This trend can be observed across industries and sectors.

In October 2023, Coca-Cola India launched 100% recycled Polyethylene Terephthalate (PET) bottles for its new range of 250 ml and 750 ml soft drinks across India. The company uses technology developed by the US Food and Drugs Administration (FDA) to recycle food-grade PET.

In September 2023, one of the world’s highest revenue-generating food & beverages (F&B) companies Nestle announced that it will adopt 100% sustainable packaging. The company aims to achieve this vision by 2025. The growing need for recycled packaging holds several growth opportunities.

Increasing research & development (R&D) intended toward packaging innovation to allow higher revenue flow

Innovation is the key for a business to survive in a competitive world. In April 2023, Huhtamaki, a global leader in packaging solutions, launched a groundbreaking mono-material technology that is expected to revolutionize the sustainable flexible packaging industry. In addition to this, companies are focusing on customized solutions to consumers which may further contribute to exceptional return on investment.

Packaging Market: Challenges

Changing prices of raw materials and high cost of innovation to challenge market leaders

The global packaging industry will be challenged by the changing and rising prices of raw materials used for packaging products. These changes are due to multiple social and economic reasons. The growing political tension between countries and rising inflation rate in several economies directly impact prices of the raw materials. Additionally, the cost of innovation is equally high leading to smaller players continuing with existing options.

Packaging Market: Segmentation

The global packaging market is segmented based on end-user, material, and region.

Based on end-user, the global market is segmented into healthcare, food & beverages, consumer goods, personal care & cosmetics, and others. In 2022, the highest growth was observed in the food & beverages sector. Companies operating in the F&B sector invest a large portion of their total investment in developing the right packaging solution for their products. The technology and material used for food packaging must ensure that the food or beverage integrity is maintained throughout the supply chain. The growing adoption of recycled packaging in the F&B sector will drive segmental growth in the coming years. As per official reports, around 10 to 20% of the final retail price is spent on packaging alone.

Based on material, the global market divisions are rigid plastic packaging, flexible packaging, glass, board packaging, and others. In 2022, the highest growth rate was observed in the rigid plastic packaging sector. The main reason for higher segmental growth is the extensive use of rigid packaging solutions that provide essential protection to the packaged goods. Flexible packaging is a leading revenue generator in the personal care & cosmetics industry as well as the food & beverages segment. As of 2022, the cosmetic packaging sector was valued at more than USD 50 billion.

Packaging Market: Report Scope

Packaging Market: Report Scope

Packaging Market: Regional Analysis

Asia-Pacific to continue growing at the highest rate during the projection period

The global packaging market will be dominated by Asia-Pacific during the forecast period. The region has a high consumer base as China and India are the world’s most populated countries. In addition to this, they also have a growing middle-income consumer segment leading to greater demand for products across sectors. The rising investments in infrastructure development projects as well as continuous regional and foreign investments in Asian countries are likely to support regional market expansion. The Asia-Pacific industry for packaging is heavily influenced by the e-commerce sector since it is one of the largest contributors to regional packaging solutions needs.

Apart from the consumer perspective, it is also the leading region in terms of manufacturing or developing new-age packaging solutions as Asian countries are home to an extensive network of large-scale manufacturing sectors. North America is an important market for the packaging industry. The presence of dominating players in the F&B sector as well as heavy industries requiring specialized packaging services contribute to the regional market growth rate.

Packaging Market: Competitive Analysis

The global packaging market is led by players like:

• Amcor Limited
• International Paper Company
• Sealed Air Corporation
• Crown Holdings Inc.
• Berry Global Group Inc.
• Sonoco Products Company
• DS Smith Plc
• Ball Corporation
• Reynolds Group Holdings Limited
• WestRock Company
• Bemis Company Inc. (Acquired by Amcor)
• Huhtamaki Group
• Tetra Pak
• Mondi Group
• Graphic Packaging International LLC.

The global packaging market is segmented as follows:

By End-User

• Healthcare
• Food & Beverages
• Consumer Goods
• Personal Care & Cosmetics
• Others

By Material

• Rigid Plastic Packaging
• Flexible Packaging
• Glass
• Board Packaging
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa