Single-use Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Single-use Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The single-use packaging market is expected to grow at a CAGR above 5.08% during the forecast timeframe (2020-2027). Demand for single-use plastic packaging has increased due to urbanization and busy lifestyles in the food and beverage industry. Due to its strength, flexibility, affordability, and transparency, single-use plastic packaging has become popular across various industries.

Key Highlights

• The changing consumer buying behavior due to the recent COVID-19 outbreak and the growing adoption of flexible, cheap, and easy-to-use packaging are the major factors driving the investment in the single-use packaging market. In the present world, most end-user industry organizations adopt designs upon which modern life seems to depend, like single-use paper or plastic beverage cups, lids, straws, and bottles.
• Increased e-commerce, particularly in developing nations like China and India, will likely boost the demand for single-use packaging. The need for the market will also be affected by increasing urbanization, changing lifestyles, and growth in the food and beverage, home care, healthcare, personal care, and emerging e-commerce sectors.
• Also, the growing demand for online food delivery services and the use of single-use packaging offer to deliver food has propelled the market demand. Additionally, single-use plastics are still being used due to their lightweight and durable properties compared to other materials, despite having significant environmental effects. However, the impact of the driver will gradually decrease once alternatives to single-use plastics gain considerable traction in the market.
• Governments across all nations have responded to public concerns regarding packaging waste, especially plastic packaging waste. They are implementing regulations to minimize environmental waste and improve waste management processes. This would negatively impact the market's growth.
• The COVID-19 pandemic provided significant relief to single-use packaging vendors. Although many countries were slowly banning these packaging and promoting reusable packaging, the pandemic changed consumers' and governments' behavior toward it. Due to the COVID-19 outbreak, the demand for sanitizers, soaps, disinfecting wipes, and sprays increased exponentially. The majority of these products are packaged with single-use plastic. The orders were so huge globally that the manufacturers and packaging companies in the field expanded their facilities, which most governments supported.

Key Market TrendsGowing Demand for Online Food Delivery Services

• Single-use food service packaging in QSRs has become an essential part of the fast-paced life in developed economies. With less time for meal preparation at home, more people are relying on fast food for meals. Single-use packaging allows food service establishments to package meals in a sensible, safe, and cost-effective manner while providing customers with a convenient and efficient way to transport meals.
• Most of the single-use food service products used in QSRs are either made of plastic, including rigid polystyrene (PS), expanded polystyrene (EPS), polypropylene (PP), polyethylene terephthalate (PET), and polylactic acid (PLA).​
• Most plastic bottles used for soft drinks and water are made from polyethylene terephthalate (PET), which is highly recyclable. But as their use soars across the globe, efforts to collect and recycle the bottles to keep them from polluting the oceans are failing to keep up.
• For instance, a study analyzing the impact of single-use and reusable bottles for carbonated soft drinks highlights that if a PET bottle has 40%-60% recycled content, its emissions would be reduced by 32%-48% compared to one produced from virgin material.
• Therefore, the vendors in the market are focusing on increasing the recyclability of PET single-use packaging to adhere to the regulations and create a closed-loop cycle in terms of recycling. The increasing emphasis on recycling these materials is expected to provide growth prospects for PET single-use packaging.
• For instance, in February 2021, Coca-Cola’s trademark brands, which include Coke, Diet Coke, Coke Zero Sugar, and Coca-Cola Flavors, introduced a 13.2-oz. bottle made from 100% recycled PET (rPET) plastic in California, Florida, and select states in the Northeast, with other sparkling beverage brands following this summer.
• Moreover, in 2020, the demand for plastic packaging for home-delivered groceries significantly increased during the COVID-19 lockdowns.

Asia-Pacific Expected to Hold a Significant Market Share

• China has one of the world's largest economies and is a major manufacturing center. China's GDP increased by 8.1% in 2021, despite a reduction in consumption due to COVID-19-related restrictions and a catastrophic power deficit in the year's second half. The strong manufacturing of electronics, pharmaceuticals, cosmetics, and food and beverages presents a huge opportunity for the packaging industry in the country.
• Also, China has a huge cosmetics market, with very high local consumption and exports. According to CIRS Group, exports of beauty products and wash suppliers accounted for 445,794 tons in the first half of 2021, up by 1.6% from the previous year. Imports totaled CNY 133.0654 billion, up by 2.6% from the prior year's period.
• Japan is another critical manufacturing hub in Asia with its high-quality goods and innovative manufacturing techniques. When it comes to manufacturing, Japan is a leader. Japan is also a global cosmetics producer and one of the biggest consumers of single-use packaging materials.
• Moreover, India is one of the most populous countries in the world and ranks second only after China. According to IMF, the country's current population will be approximately 1391.99 million in 2021, and it is expected to reach 1455.82 million by 2026. This large country's mass also makes it a heavy consumer of all sorts of products. Therefore, India presents a huge market for the packaging industry as well.
• According to the Korea International Trade Association, South Korea boasts a thriving cosmetics industry, with China being the top destination for skincare products shipped from the country in 2021. The value of skincare cosmetics exported from South Korea to China was around USD 2.84 billion. It was followed by Hong Kong and the United States, which exported skincare worth USD 391.4 million and USD 340.5 million, respectively.

Competitive Landscape

The single-use packaging market comprises several global and regional players vying for attention in a contested market space. This market is characterized by low product differentiation, growing levels of product penetration, and high levels of competition. Generally, the products are offered in bulk.

• January 2022 - Amcor launched a novel platform of paper-based packaging products, AmFiber. AmFiber innovations aim to redefine the competencies of traditional paper packaging, delivering a more comprehensive range of features and functional advantages to meet the changing requirements of consumers.

Additional Benefits:

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

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