Liquid Packaging Cartons Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Liquid Packaging Cartons Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Liquid Packaging Cartons Market size in terms of shipment volume is expected to grow from 5.90 Million tonnes in 2024 to 7.30 Million tonnes by 2029, at a CAGR of 4.38% during the forecast period (2024-2029).

One of the main factors contributing to market growth is the growing beverage industry, which tracks, conserves, and ensures the safe transit and storage of fast-moving consumer goods (FMCG). With growing health awareness and busy schedules, consumers' shifting preferences for healthy ready-to-eat (RTE), on-the-go drinks, and dietary supplements are expected to function as another growth-inducing element during the forecast period.

Key Highlights

• As premium and luxury products surge in demand, so does the demand for cartons, often linked to these high-end offerings. Technological and design innovations in cartons, including superior printing techniques and the adoption of cutting-edge materials like bioplastics, have significantly boosted their market appeal.
• Consumer and brand demand for sustainable products is fueling the rise in liquid packaging carton usage. This shift stems from heightened environmental awareness, a push to reduce reliance on fossil resources, and ongoing innovations in materials boasting enhanced properties and functionalities.
• The demand for organic beverages surges as consumers become more aware of the advantages of organic products, such as reduced exposure to pesticides and other contaminants. Consumers prioritize sustainability and eco-friendliness in their beverage choices, often viewing organic products as more sustainable than their conventional counterparts. With a heightened focus on health and wellness, consumers increasingly turn to organic beverages to bolster their healthy lifestyles.
• Sustainable packaging is increasingly becoming a significant factor in many consumers' purchasing decisions. This level of influence is expected to increase further as more people become aware of the environmental impacts of materials such as plastic.
• Rising raw material and energy prices, shortages of recycled fibers due to concerns over wastepaper recovery, and the growing influence of the global supply chain crisis impacted the paper industry. However, the key factors that affected the liquid packaging cartons market after the pandemic include the impact on each stage of its value chain, including the workforce at an industrial level, raw material supply, and uncertain beverage demand at different outlets.

Liquid Packaging Cartons Market Trends

Milk Liquid Type Segment Holds Significant Market Share

• The milk carton packaging market is experiencing robust growth, fueled by rising milk consumption, including pasteurized and flavored varieties. This uptick is attributed to a burgeoning affluent consumer base and an escalating demand for convenient, health-conscious choices, a response to today's fast-paced lifestyles. A heightened awareness of milk's health benefits further spurred its demand. Countries like India, the United States, and China are witnessing a notable uptick in the consumption of diverse milk types, from pasteurized and UHT to flavored, recombined, and lactose-free variants.
• Data from the US Department of Agriculture indicates a slight uptick in US milk production, projecting 228.2 billion pounds in 2024, up from 226.6 billion pounds in 2023. The USDA Foreign Agricultural Service reports that India led global fluid cow milk consumption in 2023, tallying 87,455 thousand metric tons.
• As milk production and consumption continue to rise, there is a potential for innovation in carton packaging. Such advancements could cater to the unique demands of dairy producers and consumers, encompassing enhanced barrier technologies for extended shelf life, user-friendly features for convenience, and eco-friendly initiatives to mitigate environmental impact.
• Packaging manufacturers, including those producing milk cartons, are increasingly adopting digitally connected packaging. This shift will boost sales, enhance consumer engagement, and deepen their understanding of consumers.
• For instance, Tetra Pak International SA emphasizes that its Tetra Pak Connected Package facilitates businesses' digital transformation. Creating and managing unique digital identities for every packaged product enables businesses to leverage consumer engagement solutions akin to practices long adopted by various industries: establishing direct connections with consumers for deeper insights.

Asia-Pacific Expected to Witness Significant Growth in the Market

• Over the past two decades, China has witnessed remarkable growth in liquid packaging, driven by sustainability concerns, technological innovations, and appealing economic factors. As consumer perceptions and interactions with packaging evolve, vendors in China are pivoting toward sustainability.
• This shift has led to a move from traditional rigid packaging solutions to innovative and eco-friendly paperboard carton packaging. The rising demand for user-friendly packaging and enhanced product protection highlights the growing prominence of liquid packaging as a viable and cost-effective alternative.
• Liquid packaging cartons provide content safety and protection from contaminants, prolonging the product's shelf life. Edible liquids (milk, juice, tomato sauce), soft drinks, water, etc., are packaged in liquid packing cartons. The shelf life of milk cartons is longer, and the risk of contamination is lower. Due to the ease of re-closing the cartons after use, the consumption of liquid packing containers is expected to grow faster than in the last decade.
• Japan's liquid packaging cartons are the go-to for items like milk juices. These cartons extend product shelf life and ensure freshness. The rising demand for eco-friendly packaging has spurred innovations, resulting in cartons made from recyclable and biodegradable materials.
• As the Japanese market witnesses a growing preference for packaged and ready-to-drink beverages, this segment's expansion highlights a broader trend toward convenient and portable packaging solutions.
• In India, the demand for liquid cartons is on the rise, fueled by critical factors such as the consumption of milk, fruit juices, and various other beverages, and so does the demand for liquid cartons.

Liquid Packaging Cartons Industry Overview

The liquid packaging carton market is consolidated, with incumbents like Elopak, Mondi Group, and Tetra Pak operating. Design, technology, and application innovation may give companies a sustainable competitive advantage. The market incumbents have been identified to adopt moderate competitive strategies through partnership activities, emphasis on R&D, and innovative activities. Manufacturing capability is expected to shift toward such trends, strengthening the competitive rivalry.

Product innovation may bring about a sustainable, competitive advantage. The firm concentration ratio is expected to grow more during the forecast period as several players consider this market a lucrative opportunity to consolidate their product offerings.

The market has a moderately high level of barriers to exit, a high preference for established brands, and a moderate level of advertising expense. Overall, the competitive rivalry is expected to be high.

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