Plastic Packaging Market Size, Share & Trends Analysis Report By Product (Rigid, Flexible), By Technology (Injection Molding, Extrusion, Blow Molding, Thermoforming), By Application (Food & Beverage), And Segment Forecasts, 2022 - 2030

Report Overview

The global plastic packaging market size was valued at USD 355.0 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2022 to 2030. The expanding size of key application industries including food and beverages, pharmaceuticals, personal and household care, and growing penetration of organized as well as e-retail across the world, are primarily fueling growth in the industry. Plastic offers both flexible & rigid, transparent, and lightweight forms of packaging, on account of which the key industries such as personal care, food and beverage, and industrial primarily prefer it over its counterparts such as metal or glass.

Furthermore, engineered plastic can survive in extreme environments and does not degrade in extreme temperatures, thus preserving the integrity of products such as food and beverages, and cosmetics. Moreover, the low cost and excellent printability associated with plastic make it a lucrative packaging material. The extrusion technology segment is expected to witness robust growth in the U.S. market from 2021 to 2030. Extrusion-based plastic packaging products such as wraps & films, pouches, and bags are widely employed in most consumer as well as industrial applications in the country owing to their performance benefits and sustainability.

The high penetration of organized retail has also significantly contributed to the large share of plastic packaging in the country. Globally, the packaged food & beverage sector has been experiencing robust growth for the past several years. Changing lifestyles, growing urban population, rising economical activities in emerging countries, and increasing penetration of e-retail across the world are a few macro factors driving the global packaged food industry. Besides, the demand for food is poised to grow as the world population is expected to increase from 7.3 billion in 2015 to 9.7 billion in 2050, which in turn is anticipated to fuel the demand for plastic packaging products.

The robust growth of the e-commerce sector is also likely to open new avenues for industry growth. E-commerce companies prefer lightweight and flexible packaging solutions to reduce the cost of transportation. The growth of online shopping for daily fresh foods, FMCG products, and electronic gadgets as well as clothing is expected to spur industry growth.

Furthermore, the increasing introduction of innovative packaging solutions such as active packaging, modified atmosphere packaging, edible packaging, and bioplastic packaging is also expected to open newer avenues for plastic packaging in the coming years. However, rising sustainability awareness and a stringent ban on single-use plastic to curb plastic pollution are likely to pose a threat to the growth of the industry in the coming years.

The packaging industry experienced a significant effect from the COVID-19 pandemic owing to the disruption of the supply chain. The shutdown in China in the first quarter of 2020, which is one of the key plastic manufacturers with more than 30% of the global share, has impacted plastic packaging manufacturers globally. The shortage in supply of plastics from Chinese manufacturers has resulted in a demand-supply gap. However, the demand-supply gap was majorly observed in the first quarter of 2020.

Product Insights

The rigid segment dominated the market for plastic packaging and accounted for the largest revenue share of 61.2% in 2021 owing to its sturdiness and high aesthetic appeal. Besides, factors such as a high barrier to light, moisture, and oxygen provided by rigid packaging also contributed to the higher share of the segment in 2021. The reusability of rigid packaging products such as pallets, intermediate bulk containers, and other industrial packaging products is likely to favor the growth of rigid plastic products.

The rigid plastic-type segment is bifurcated into bottles and jars, cans, trays and containers, caps & closures, etc. Plastic bottles are extensively utilized in beverage packaging owing to their low cost, convenience, and superior performance. Whereas trays and containers are utilized in the foodservice and packaged food sectors owing to their lower weight and aesthetics. Flexible packaging type is further divided into four sub-segments, namely, wraps and films, bags, pouches, and others. Pouches are gaining significant popularity in the market as they require lower plastic material to make as compared to rigid products such as bottles and jars.

Moreover, the convenience of multiple closure choices in pouches, such as a zipper, tear notch, and spout support the easy opening and closing of the packaging, which attracts consumers to this packaging format. Growing demand for food on account of the increasing population in Asia Pacific, particularly in India and China, is expected to boost the growth of the flexible packaging segment during the forecast period. Bioplastics are the chief raw materials used by the manufacturers of flexible packaging solutions. Rising demand for bio-based PLA films in bakery, confectionery, food, and snack packaging applications, on account of their recyclability and biodegradability, is anticipated to be a major factor augmenting the segment growth in the forecast period.

Technology Insights

The extrusion segment accounted for the largest revenue share of 38.8% in 2021, as the majority of the flexible packaging products such as pouches, bags, and films are produced by extrusion technology. The growing popularity of flexible packaging products owing to their higher sustainability and lower cost than their rigid counterparts is expected to advance the demand of the extrusion segment in the coming years.

The thermoform technology segment is anticipated to witness the highest CAGR of 5.2% from 2022 to 2030. Rigid packaging products such as blisters, clamshells, trays, containers, lids, bowls, plates, and others are manufactured using a thermoforming process. The growing demand for lightweight and thin-gauge packaging on account of a rising focus on sustainable packaging is attributed to the high growth of the thermoforming technology segment in the coming years.

A large number of food and beverage items such as dairy products, bakery products, meat, and others are packaged in thermoformed packaging as it acts as an excellent barrier to oxygen, air contaminants, and chemicals and increases the shelf life of the product. Moreover, thermoform packaging improves the aesthetic appeal of packed products and also comes at a lower cost; such factors contribute to the higher adoption of thermoformed packaging in food and beverage applications. Injection molding technology is typically employed to produce rigid or sturdy packaging products such as industrial containers, crates, caps, and closures.

However, higher lead time and tooling costs involved in injection molding technology are likely to hamper the growth of the segment during the forecast period. Blow molding is a popular plastic molding process, which is designed to create hollow parts such as bottles, liquid containers, drums, and storage tanks. There are three key types of blow molding technologies, namely, extrusion, injection, and injection stretch blow molding. Among these, extrusion blow molding is the most common process and is primarily utilized to create complex product shapes such as bottles or containers.

Application Insights

The food and beverage application segment led the industry and accounted for a revenue share of over 51.5% in 2021. The segment is expected to witness substantial growth during the forecast period. Changing consumer lifestyles and food preferences have led to the growth of the packaging and processed food manufacturing sector, which in turn is likely to propel the demand for plastic packaging. Also, increasing consumption of alcoholic and non-alcoholic beverages, especially among the young population, is expected to support the industry growth.

Single-serve consumer packaging has been witnessing significant growth in the past few years owing to its convenience. Growing consumer attention toward health and well-being, an increase in awareness regarding waterborne diseases, and rising spending capacities have propelled the demand for packaged drinking water across the globe, which is expected to impact them positively.

The personal and household care application segment is expected to witness a CAGR of over 4.4% in terms of revenue during the forecast period. This industry has witnessed significant growth owing to increasing consumer awareness of grooming and hygiene. Growing attentiveness about health and wellness in developing countries along with mounting consumer interest in plant-based or clean label cosmetics is also expected to play a key role in segment growth during the projection period.

Favorable demographic trends in the European and North American regions due to the aging population are expected to create additional demand for pharmaceutical products, which in turn is expected to benefit the market. Moreover, the expanding production of generic medicines is anticipated to augment the demand for plastic packaging in the pharmaceutical application segment.

Moreover, an increase in the utilization of shipping containers and import/export activities has fueled the growth of the industrial packaging segment. Shipping container liners are primarily used for the mass shipment of goods and commodities. However, stringent regulations and policies to curb the consumption of non-degradable packaging may restrain the growth of the industrial packaging segment during the forecast period.

Regional Insights

Asia Pacific led the plastic packaging market and accounted for a revenue share of over 43.0% in 2021; the region is projected to expand further at the fastest CAGR from 2022 to 2030. Rapidly-growing application industries in key economies, such as China, India, Vietnam, South Korea, and Thailand are expected to drive the regional demand during the forecast period.

China dominated the Asia Pacific market in terms of both demand and production. The high population in the country, which supports the expansion of food and beverages, automotive, personal care, construction, and consumer electronics industries, is anticipated to act as a key driver for the growth of the industry.

Europe emerged as the second-largest regional market for plastic packaging after the Asia Pacific; however, it is anticipated to witness a sluggish growth rate during the forecast period. Stringent regulations on the use of plastic packaging, coupled with significant sustainability awareness among the consumers, are primarily attributed to the slow growth of the market in the region.

Furthermore, the European Parliament has set a 90% collection target for plastic bottles by 2029, and plastic bottles will have to contain at least 25% of recycled content by 2025 and 30% by 2030. Such stringent regulations on the use of plastic are anticipated to lead to the development and adoption of alternative packaging products, thereby hampering the market growth. However, the outbreak of COVID-19 in early 2020 led to the postponement of the legislative process associated with the plastic ban, which is likely to delay the deadlines associated with the plastic ban in Europe.

Key Companies & Market Share Insights

The market is highly fragmented in nature with the presence of large-sized international companies as well as small- and medium-sized domestic players. The market is steadily moving toward sustainability packaging owing to the rising stringent regulations on the use of excessive plastic packaging, coupled with the growing sustainability awareness among the consumers. Key companies operating in the industry are majorly adopting acquisition strategies to expand their manufacturing capabilities and geographical presence.

For instance, in June 2019, Amcor plc acquired Bemis Company, Inc., a U.S.-based flexible packaging manufacturer, for nearly USD 5.25 billion. On similar lines, in July 2019, Berry Global Inc. acquired RPC Group Plc, a UK-based plastic packaging manufacturer, for USD 6.5 billion. Both the acquisitions were undertaken to strengthen the plastic packaging portfolio, manufacturing capability, and geographical footprint. Some prominent players in the global plastic packaging market include:

• Amcor plc

• Sealed Air

• Coveris

• Berry Global Inc.

• Mondi

• Sonoco Products Company

• WINPAK LTD

• CCL Industries, Inc

• Constantia Flexibles

• Alpha Packaging

Plastic Packaging Market Report Scope

Global Plastic Packaging Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global plastic packaging market report on the basis of product, technology, application, and region:

• Product Outlook (Revenue, USD Billion, 2017 - 2030)

  • Rigid

    • Bottles & Jars

    • Cans

    • Trays & Containers

    • Caps & Closures

    • Others

  • Flexible

    • Wraps & Films

    • Bags

    • Pouches

    • Others

• Technology Outlook (Revenue, USD Billion, 2017 - 2030)

  • Injection Molding

  • Extrusion

  • Blow Molding

  • Thermoforming

  • Others

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Food & Beverages

  • Industrial Packaging

  • Pharmaceuticals

  • Personal & Household Care

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa