The global plastic packaging market size is expected to reach $486.2 billion by 2028, according to a new report by Grand View Research, Inc., registering a CAGR of 4.2% from 2021 to 2028. The rapid expansion of the food and beverages, personal care, and pharmaceuticals sectors coupled with the rising penetration of organized and e-retail across the world is expected to fuel market growth.
Low-density polyethylene (LDPE), polypropylene (PP), high-density polyethylene (HDPE), and polyethylene terephthalate (PET) are the most widely used materials for the manufacturing of products, such as bottles and jars, trays and containers, wraps and films, and pouches, as they are cost-effective, lightweight and have extensive functionalities and strong barrier properties against moisture. Growing demand for sustainable packing solutions is prompting manufacturers to use recycled plastic resins to make such products.
Key suggestions from the report:
- In terms of revenue, the flexible product segment is projected to ascend at the fastest CAGR of 4.5% over the forecast period on account of the growing demand for pouches and bags in the food and beverages sector owing to their low cost and high sustainability
- The extrusion technology segment accounted for the largest revenue share of more than 38% in 2020
- The segment is estimated to retain the leading position throughout the forecast period as the majority of the flexible packing solutions, such as pouches, bags and films, are produced with the help of extrusion technology
- Food and beverages was the largest application segment in 2020 and accounted for more than 51% of the global revenue share
- Extensive product usage for the packing of raw food products and for final packaged single-serve food packing mainly contributed to the higher share of the food and beverages segment.
Globally, the changing lifestyle led to the introduction of single-serve packaging that significantly contributed to the market growth in the past few years. Moreover, advancements in technology, such as the development of modified atmosphere technology (MAP) and airless packaging, and their growing penetration in the food and beverages and personal care industries are likely to boost the growth of the global market.
However, plastic is a non-biodegradable, unsustainable material; thus, its products, specifically single-use packing solutions, are banned across several countries. For instance, on March 11, 2020, the European Union (EU) released its new “Circular Economy Action Plan” intended to promote sustainable packaging in the region. Moreover, growing consumer awareness levels are compelling manufacturers to switch to biodegradable materials, which is expected to hamper the industry growth to some extent.
Asia Pacific emerged as the leading regional market with a revenue share of 43.8% in 2020 and is expected to witness the fastest CAGR from 2021 to 2028. This growth is attributed to the robust growth of manufacturing and e-commerce sectors in several emerging Asian countries, such as India, China and Thailand. The global market is highly fragmented with the presence of large-scale international companies as well as small- and medium-scale domestic players. Key players are focusing on acquisitions and also increasingly expanding their product portfolios to gain maximum market share.
Visit https://www.grandviewresearch.com/industry-analysis/plastic-packaging-market for more information.