Germany Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Germany Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Germany Plastic Packaging market was expected to register a CAGR of 2.52% during the forecast period (2021-2026). The COVID-19 pandemic provided significant relief to the Plastic packaging vendors. Although many countries were slowly banning such packaging and promoting reusable packaging, the outbreak changed the consumers’ and governments’ behavior toward them. Due to the COVID-19 outbreak, the demand for nutritional drinks and healthy food increased exponentially. The majority of these products are packaged with single-use plastic. The orders were so huge on a global level that the manufacturers and packaging companies in the field even expanded their facilities, which was also supported by most of the governments.

Key Highlights

• Online fashion is the most popular product category in Germany, followed by consumer media and electronics. German consumers are very keen on shopping online instead of offline, especially in the listed categories ‘consumer electronics & computers’ and ‘media’ (books, music, movies, video games). According to the study from RetailX, around 85% of German citizens shopped online during 2020. Such a trend is expected to continue in the coming years, leading to plastic packaging adoption.
• However, recent years have brought a major change and more stringent regulations for the plastics packaging industry in the country. The German Packaging Law and its quotas mainly affect packaging manufacturers that bring packs into circulation, requiring a register with a centralized authority.
• Furthermore, in the Czech Republic conference, various German researchers held the meeting for such issue discussion. Moisture permeation is one of the common challenges that can impact the quality of the product, so having a more accurate and reproducible method to determine how effective the packaging is at keeping moisture out will be a benefit to the industry. Accordingly, USP recently revised the packaging and moisture permeation chapters (USP General Chapter Containers—Performance Testing) for including a new method for determining moisture permeation for high and low barrier pharmaceutical packaging. USP is also considering changing the USP classification system for the packaging, which is limited so far to “well-closed”, “tight”, and “hermetic” containers. ​
• Since the past decade, awareness among the population regarding the harmful effects of plastic usage has been growing drastically. Many public campaigns and initiatives by governments have resulted in the increased awareness among the public. Thus, the consumption of plastic packaging witnessed a significant impact in the past few years. ​

Key Market TrendsPouches is Observing a Significant Increase

• Flipkart Group and Myntra, a fashion e-tailer, announced in July 2021 that they have collaborated with Canopy, a non-profit environmental organization, to expand their sustainability commitment to move toward sustainable packaging and material procurement. The two Flipkart Group firms will change to sustainable sourcing of forest-derived products and pilot alternative next-generation solutions to migrate away from forests for raw materials as signatories of Canopy's Pack4Good (packaging) and CanopyStyle (fashion) projects.
• Furthermore, pouch films, also known as stand-up bags are being widely used in the e-commerce packaging market. These bags are tough and durable, protecting the contents from physical and environmental risks while being transported from one area to another. Apart from these uses, one of the main reasons for their popularity is that they are quite inexpensive in comparison to their counterparts.
• The market witnessed a massive turnaround from reusable to disposable packaging globally. Most grocery stores worldwide started banning reusable bags due to high chances of virus transmission, and in contrast, their disposable products were flying off the shelves. The demand and trend are expected to continue in 2021 as the approaching winter will likely bring an upward flu spike and more waves of COVID-19.
• Pouches and bags are being predominantly deployed in the food, beverage, personal care, and pharmaceutical industries, which serve many e-commerce products as they are one of the most cost-effective options. These are made either with several layers of aluminum, plastic, and similar food-grade materials.

Food is One of the Significant Factor for Market Growth

• Food packaging is one of the most significant users of plastics. The demand for plastic packaging for the food industry is increasing. They are increasingly replacing traditional materials, such as paperboard, metals, and glass, owing to their beneficial properties, such as lightweight and reduced cost.
• Moreover, the preference for processed and packaged foods has propelled the food packaging market in the region due to the rapidly developing lifestyles and economic growth. The main reason for the increasing preference for processed food is the shifting population dynamics toward urban centers from rural areas.
• Amidst the COVID-19 crisis, flexible packaging is expected to witness high demand in the region. New restrictions on daily life laid by different governments across the region have had a considerable impact on the consumption of food items, and the food processing industry is struggling to adapt. These rapid measure changes have resulted in a wave of panic buying and stockpiling.
• In 2020, Lidl, a German global discount supermarket chain with Copernus, Sharpak, and Bantam Materials, became the first supermarket to introduce a new kind of packaging using ocean-bound plastic (plastic collected from beaches and coastline around Southeast Asia).

Competitive Landscape

As the demand for plastic packaging has been increasing significantly in the Germany region, the market is mildly concentrated with the presence of major players like Amcor, Coveris Holding, Berry Global, Sealed Air Corporation, Constantia Flexibles, among others.

• March 2021 - A partner for the maintenance, repair, and handling of passive bulk temperature-controlled containers at several key locations was announced by Sonoco ThermoSafe, a Sonoco unit provider of temperature-assured packaging solutions, and Unilode Aviation Solutions, a company dealing with outsourced unit load management and repair services.
• June 2021 -Constantia Flexibles announced the completion of its acquisition of Propak and welcome Constantia Propak to its global network. Constantia Propak will provide a natural fit to Constantia Flexibles' packaging solutions offering, as one of the main competitors in the European snacking industry operating out of a single factory in Dücze. Constantia Flexibles is now a major participant in the European snack sector as a result of this acquisition.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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