Rigid Plastic Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Rigid Plastic Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The rigid plastic packaging market was valued at USD 490.34 billion in 2020 and is expected to reach USD 685.84 billion by 2026, at a CAGR of 5.75% over the forecast period 2021 - 2026. According to Plastics Industry Association (PLASTICS)’s Rigid Plastic Packaging Group (RPPG), Plastics account for one-third of the USD 700-billion global packaging industry, and much of this plastic packaging is rigid.

• Augmenting demand for biodegradable rigid plastic packaging is expected to boost the market growth in the future. Also, people moving towards beverages and other household care products have a positive impact on the rigid plastic packaging market. Moreover, rapidly increasing urbanization also contributes to market growth. Furthermore, the growing disposable income of the people will have a positive impact on market growth in the coming future.
• The growing demand for rigid plastic packaging from the healthcare industry is also one of the critical factors that will trigger the growth of the market in recent years. Rigid plastic helps enterprises in the healthcare industry to protect medicines from contamination. The medical product packaging must be compliant with international regulatory standards for safety. Therefore, the properties of rigid plastic, along with its durability, lightweight, cleanliness, and transparency, make it the perfect choice for storing medical products.
• However, high competition for advanced rigid plastic packaging may hinder the market growth to some extent. Also, increasing the use of BisphenolA (BPA) in the manufacturing of plastic products is also posing as a significant challenge for the overall rigid plastic packaging market. Raw material volatility is another major stumbling block to the market's expansion. Crude oil is the primary raw material used in the production of plastic-based products, and price fluctuations in crude oil have an impact on the pricing of the finished goods.
• With the outbreak of COVID-19, rigid plastic packaging is witnessing growth owing to the demand for essential services, such as personal and healthcare products. A spike for products, such as HDPE containers, pumps, and pharmaceutical bottles, has been witnessed. However, demand from the packaging of non-essential industries is decreasing, with many countries under lockdown and restricted movement across countries.

• Increasing demand for polypropylene from the packaging industry is estimated to stimulate market demand in the forecast period. Superior barrier properties, high tensile strength, better surface finish, and low cost allows polypropylene to be an ideal product for numerous packaging applications.
• Medicine bottles, bottle caps and closures, and bottles for ketchup and syrups are some of the increasing applications of polypropylene. For instance, under its brand, Magnum, Unilever launched ice creams in tubs made from recycled PP plastic packaging, which was a first in the ice cream industry. The move was part of the company’s broader strategy to ensure that a minimum of 25% of its plastic packaging comes from post-consumer recycled content by 2025.
• According to a report by PlastIndia Foundation, India has a manufacturing capacity of 4970 Kilo Tonn per Annum (KTA) for Polypropylene (PP).
• According to IBEF, India is progressing in terms of plastic industries with 30000 plastic processing units and about 4 million people are employed in this industries.
• Further, according to the American Chemistry Council, the capacity to produce polyethylene, the plastic resin most influenced by the abundance and low cost of shale gas, is expected to grow more than 50%. The price of Shale gas is further dampened due to the current market weather, which is turbulent due to the COVID-19 pandemic. Polyvinyl chloride and polypropylene resins are also anticipated to benefit from abundant, affordable shale gas.

• The Asia-Pacific region holds the largest market share. This is mostly due to the emerging economies of India and China. With the growth in the applications of rigid plastic packaging in the food, beverage, and healthcare industries the market is poised to grow.
• Factors, such as the rising disposable income, increasing consumer expenditure, and growing population are likely to boost the demand for consumer goods, which in turn will support the growth of the plastic packaging market in Asia-Pacific.
• Furthermore, the growth from countries like India, China, and Indonesia drives the Asia-Pacific region to lead the packaging demand from the global beauty and personal care industry.
• Manufacturers are launching innovative pack formats, sizes, and functionality in response to the consumer demand for convenience. Also with the growth in oral, skincare, niche categories, such as men’s grooming and baby care, Asia-Pacific is both an opportunity and challenging region for packaging manufacturers.

The rigid plastic packaging market is fragmented. Companies are focusing on providing lightweight and high-performance corrugated grades for reducing costs and improving the performance of packaging. Due to the presence of several players, the market has strong competition. Some of the major players in the market are Amcor Plc., RPC Group Plc, Coveris Holdings S.A., ALPLA, Silgan Holdings, Sealed Air, Reynolds Group Holding, Plastipak Holding, Sonoco Products Company, DS Smith, Consolidated Container Co. LLC, Graham Packaging Company Inc., among others.

• June 2020 - Aramco announced the completion of its share acquisition of a 70% stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF). The acquisition of the SABIC stake aids Aramco’s long-term downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain.
• February 2020 - Sonoco acquired TEQ Thermoform Engineered Quality, a global manufacturer of thermoformed packaging, serving healthcare, medical device and consumer markets, and is expected to rename and brand all its manufacturing locations strictly as TEQ. This includes facilities across Europe, currently branded as Plastique. The legal name will become SONOCO TEQ, with the appropriate company type dependent on the region of the facility

• The market estimate (ME) sheet in Excel format
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