Packaging

Industries : Packaging

Global Packaging and Protective Packaging Market was valued at $757 billion in 2016, and is expected to reach $1,014 billion by 2023, registering a CAGR of 4.3% from 2017 to 2023. Packaging and protective packaging is intended to protect goods from loss, damage, and theft during transport, distribution, and storage. This process includes containers or wrapping that hold several items together, which provide a stable platform for transport. It is used in across various areas of the supply chain, such as at the assembly line, transportation, warehouses, and order picking to withstand different static and dynamic forces. It also gives protection from climatic conditions, such as solar radiation, temperature, humidity, and precipitation.

Asia-Pacific is the largest revenue contributor to the global market, owing to the increased manufacturing activities in emerging economies, such as India and China, carried out to meet the rising populations demand. China dominated the packaging and protective packaging market, in terms of revenue, accounting for largest share in Asia-Pacific region in 2016.

The size of the industry in India is about USD 32 billion, which constitutes only 4 per cent of the global packaging industry, said the joint report by FICCI and Tata Strategic Management Group (TSMG) on plastic industry.

 The per capitapackagingconsumption in India is quite low at 4.3 kg. India is a growing market for plastics and consumes about 12.8 million tonnes of plastics annually against the global consumption of 285 million tonnes per year.

Flexible packaging is gaining grounds in the field of primary packaging. Advancements in material science have allowed manufacturers to create flexible packaging the food and beverage industry better than before. This packaging can maintain the primary function of protecting its contents while providing the advantages of lower weight, better performance, and a much lower scope of contamination. Flexible packaging is also easier to handle and store, making transportation of goods a lot smoother.

The global market for flexible packaging is expected to expand at a CAGR of 5.1% in terms of revenue, from 2018 to 2024. This revenue is expected to reach US$358.7 bn by the end of 2024.

Europe is expected to stay a highly attractive market for the manufacturers of flexible packaging over the coming years. By the end of 2024, Europe is expected to generate a revenue of US$117.7 in flexible packaging. Although this increment in demand is expected to stagnate soon, the overall requirement is already large enough to be a very lucrative market for existing players. Similar scope is expected to be seen in North America. Expected numbers for 2018 is $204.6 billion. The 2020's projected demand for food containers in US is $31 billion.

On the other hand, Asia Pacific is expected to provide a key opportunity for flexible packaging manufacturers owing to a massive demand for better packaging and a growing consumer goods industry. The increasing disposable income of individuals is expected to solidify the consumer goods industry and thus provide a solid foundation for growth of new entrants.

The Overall growth of the market is estimated to be fairly modest, and generally in line with moderate growth in domestic food production.

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