The global molded plastic packaging market is expected to witness healthy growth in the near future owing to increasing product penetration in numerous application industries including food and beverages, household care, electrical and electronics, personal care, and automotive. The growing retail industry globally is responsible for the growth of molded plastic packaging solutions. In addition, owing to the changing lifestyles and consumer inclination towards eating on-the-go, processed foods, and frozen foods is likely to boost product demand. The food industry in developing economies including China and India are expected to further drive the market growth.
The market is segmented on the basis of material, application, and technology which is further segmented across major regions including North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. On the basis of material, the market is segmented into Polyvinyl Chloride, Polypropylene, Polystyrene, Polyethylene, and Polyethylene Terephthalate among others. On the basis of technology, the molded plastic packaging market is segmented into injection molding, extrusion, and blow molding among others. Based on application industries, the market is segmented into food & beverage, electronics, personal care & cosmetics, pharmaceuticals, and homecare among others.
Molded plastic packaging products are widely used in the food & beverage industry. This industry has witnessed significant growth over the past decade, as a result, the market for molded plastic packaging has flourished in the past few years. The molded plastic packaging offers protection from physical damage to the final product. Molded plastic packaging solutions are produced according to the shape and size of the end product. Hence, this type of packaging is highly customized according to the end-use product manufacturer.
The pharmaceuticals application segment is another major consumer of molded plastic packaging and has been experiencing significant growth in the past years. Pharmaceutical companies rely highly on packaging and labeling to protect their products. Moreover, packaging solutions in the pharmaceutical industry are also responsible for promoting the product, meet regulations, and increase repeat purchases from patients.
Molded plastic packaging market value chain comprises of raw material suppliers, product manufacturers, distributors, and end-users wherein the products produced are used. Molded plastic packaging products are produced with the support of raw material suppliers who provide the raw materials including different types of plastic to the product manufacturer who produces the molded plastic packaging with the support of different techniques including injection molding, extrusion, and blow molding among others.
Some of the raw material suppliers include Tahoma Rubber & Plastics, Inc., Modern Plastics Inc., and Eastman Chemical Company among others. A moderate level of backward integration is observed between the product manufacturers and raw material suppliers in order to gain a competitive edge by optimizing the manufacturing process according to their requirements and increasing their profit margins.
A moderate level of forward integration is observed between the product manufacturer and distributor. This forward integration has been helping in cutting the cost of logistics, improving supply chain management, and providing hassle-free operations in the long run for the players. These products are sold to the customers in the end-use industries either through their own sales offices or through distributors. Some of the key distributors operating in the market include Bunzl Distribution USA, Inc., Imperial Dade, TriMark Adams-Burch, Genpak, LLC, Placon Corporation among others.
According to the Federation of Indian Chambers of Commerce & Industry (FICCI), the rising per capita income, urbanization, and growing working woman population are anticipated to boost the spending on packed food products in the future years. The increasing expenditure on packed food products is likely to boost the demand for molded plastic products in the foreseeable future.
Indian retail industry is one of the most dynamic industries in India and has witnessed significant growth in the past decade. The Indian FMCG industry has attracted multinational companies and increased investments owing to supportive regulations such as 100% Foreign Direct Investment (FDI) allowed in B2B e-commerce and 100% FDI under automatic route is permitted in the marketplace is expected to further elevate the demand for molded plastic packaging solutions in India. Moreover, rising disposable income levels are expected to further boost the demand for packed food products, thereby, pushing the demand for molded plastic packaging solutions.
The industry is characterized by intense competitive rivalry with market incumbents including HTI plastics, Sidel, First American Plastic, APEX Plastics, Plastipak, Alpha Packaging, Graham Packaging, R&D Molders, Sonoco, Hassan Plas Packaging, Silgan, Linpac, Resilux, RPC, and Streamline Plastic dominating the market. Expansion of product portfolio and product innovation are among the preferred competitive strategies deployed by prominent market participants to stay abreast of the competitors. Key molded plastic packaging market participants have been focusing on gaining a sustainable competitive advantage in the market through innovation in design and technology employed. To gain a foothold in untapped markets, new entrants have been focusing on partnering with well-established cosmetic product companies. Such trends are expected to sustain throughout the forecast period.
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The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.