Global Packaging Market Outlook to 2028

Global Packaging Market Overview

The Global Packaging Market was valued at USD 1 trillion in 2023. This growth is primarily driven by the rising demand for sustainable and innovative packaging solutions, increased consumer awareness about environmental issues, and advancements in packaging technology. The e-commerce boom has also played a significant role, with online shopping necessitating robust packaging solutions to ensure product safety and integrity during transit.

The global packaging market is highly competitive, with key players including Amcor plc, International Paper Company, Sealed Air Corporation, Smurfit Kappa Group, Crown Holdings, Inc. These companies have established a strong presence through extensive product portfolios, continuous innovation, and strategic mergers and acquisitions.

In 2023, Amcor plc announced the launch of its new eco-friendly packaging line, which is projected to reduce plastic waste by 30% by 2025. This development aligns with the growing consumer preference for sustainable products and the increasing regulatory pressure on plastic usage. The new packaging solutions are expected to contribute significantly to the company's revenue growth in the coming years.

The United States was dominating the market in 2023, due to its large consumer base, advanced technological infrastructure, and significant e-commerce activities. The presence of major market players and robust e-commerce growth further bolster the market in this region.

Global Packaging Market Segmentation

The Global Packaging Market is segmented into different factors like by material, by end user industry and by region.

By Material: The market is segmented by material into paper & board, plastic, glass, and metal. In 2023, paper & board held the largest market share, driven by the growing demand for recyclable and biodegradable packaging solutions. Companies like International Paper Company have capitalized on this trend by expanding their eco-friendly product lines.

By Region: The global packaging market is segmented by region into North America, Europe, APAC, MEA, and Latin America. In 2023, North America was dominating the market share 2023, due to its large consumer base, advanced technological infrastructure, and significant e-commerce activities. The presence of major market players and robust e-commerce growth further bolster the market in this region. Additionally, stringent regulations regarding packaging waste and sustainability in the U.S. encourage the adoption of eco-friendly packaging solutions.

By End-User Industry: The market is also segmented by end-user industry into food & beverage, healthcare, cosmetics & personal care, and others. In 2023, food & beverage was dominating a market share in 2023, this segment is driven by the rising demand for packaged foods and beverages. The industry's growth is fueled by changing consumer lifestyles and the need for convenient, ready-to-eat products.

Global Packaging Market Competitive Landscape

Company

Establishment Year

Headquarters

Amcor plc

1860

Zurich, Switzerland

International Paper Company

1898

Memphis, USA

Sealed Air Corporation

1960

Charlotte, USA

Smurfit Kappa Group

1934

Dublin, Ireland

Crown Holdings, Inc.

1892

Philadelphia, USA

Smurfit Kappa Group: In June 2024, Smurfit Kappa, a sustainable packaging solutions provider, has acquired Artemis Ltd, a Bag-in-Box packaging facility in Shumen, Bulgaria. Specializing in food and beverage packaging, Artemis manufactures bags for bag-in-box items and produces films and caps tailored to the wine industry.

Crown Holdings, Inc.: Crown Holdings, Inc. announced that it has priced an offering of 600 million aggregate principal amount of 4.500% senior unsecured notes due 2030 issued at par by its subsidiary Crown European Holdings S.A. The notes will be unconditionally guaranteed by Crown and certain of its subsidiaries.

Global Packaging Market Analysis

Global Packaging Market Growth Drivers

Increasing Demand for Sustainable Packaging: The global packaging market is experiencing a surge in demand for sustainable packaging solutions. For instance, a survey indicated that 66% of consumers consider sustainability before making purchases, highlighting the demand for eco-friendly packaging options. This shift is driven by both consumer preference and regulatory requirements, with companies increasingly adopting eco-friendly packaging to meet the demand.

E-commerce Boom: The e-commerce sector generates 4.8 times more packaging waste than traditional retail, driving the packaging market's growth. As online shopping surges, theres a growing need for packaging that protects products in transit, enhances the unboxing experience, and supports branding. The packaging industry is meeting this demand with robust, sustainable, and customizable solutions that balance durability, waste reduction, and recyclability.

Growth in the Food and Beverage Sector: The food and beverage industry drive the packaging market due to the need for packaging that ensures safety, extends shelf life, and maintains freshness. With rising demand for convenience foods and changing lifestyles, advanced solutions are crucial. Innovations like smart packaging, which monitors product condition, and sustainable packaging, which reduces environmental impact, are increasingly important.

Global Packaging Market Challenges

High Cost of Sustainable Materials: One of the significant challenges in the packaging industry is the high cost associated with sustainable materials. While there is a strong push towards adopting biodegradable, recyclable, and renewable packaging solutions, these materials often come at a premium compared to traditional plastics and other non-sustainable options. This cost disparity can be a barrier for many companies, particularly smaller businesses, as they strive to balance environmental responsibility with economic viability.

Regulatory Compliance: The packaging industry operates under a complex web of regulations that vary significantly across different regions and countries. Companies must navigate an array of compliance requirements related to material use, recycling, waste management, and environmental impact. These regulations are constantly evolving, often becoming more stringent, which can lead to increased compliance costs and operational challenges. For multinational corporations, this means adapting to multiple regulatory environments simultaneously, which can be both costly and time-consuming.

Global Packaging Market Government initiatives

Recycling Modernization Act in Oregon: In 2021, Oregon passed the Recycling Modernization Act (Senate Bill 582), which established Extended Producer Responsibility (EPR) for packaging materials. This act requires producers to pay annual fees to join a Producer Responsibility Organization (PRO) by July 1, 2025, to ensure that materials sold can be recycled responsibly. The fees collected will fund a statewide recycling system and a commodity risk fee to stabilize recycling costs.

Support for Multifamily Communities: The DEQ will conduct a needs assessment by September 2024 to address recycling access in multifamily communities. This will be followed by a two-year period of planning and technical assistance, with new requirements taking effect on July 1, 2026. The law ensures regular needs assessments every four years to maintain effective and equitable recycling opportunities for residents in multifamily housing.

Global Packaging Market Future Outlook

The Global Packaging Market is anticipated to grow substantially by 2028, driven by continued innovation in packaging materials, the expansion of the e-commerce sector, and heightened consumer demand for eco-friendly packaging solutions.

Market Trends

Growth in Sustainable Packaging: The global packaging market will continue to see significant growth in sustainable packaging solutions. By 2028, it is estimated that the market for biodegradable and recyclable packaging materials will increase and this is driven by consumer demand and regulatory pressures. Companies will increasingly invest in research and development to create innovative, eco-friendly packaging options.

Integration of AI and Automation in Packaging Processes: Artificial intelligence (AI) and automation will play a crucial role in the packaging industry. By 2028, AI-powered packaging lines will process will increase annually, increasing efficiency and reducing operational costs. Automation will streamline packaging processes, enhance precision, and minimize waste, supporting the industry's sustainability goals.
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