Plastic Packaging Market Size, Share & Trends Analysis Report By Product (Rigid, Flexible), By Technology (Injection Molding, Extrusion, Blow Molding), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global plastic packaging market size was valued at USD 369.21 billion in 2022 and is expected to progress at a compound annual growth rate (CAGR) of 3.6% from 2023 to 2030. Expanding the size of key application industries, including personal and household care, pharmaceuticals, food & beverages, and the growing penetration of e-retail across the globe are primarily fueling the growth of plastic packaging. Plastic offers both rigid & flexible, lightweight, and transparent forms of packaging, on account of which the key industries such as food and beverage, household & personal care, and industrial primarily prefer it as a substitute over its counterparts such as glass or metal. Furthermore, engineered plastic can endure extreme environmental conditions and not degrade in extreme temperatures, thereby preserving the integrity of products such as cosmetics and food & beverages. 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 2022 to 2030. Extrusion-based plastic packaging products such as wraps & films, pouches, and bags are widely employed in most consumer and industrial applications in the country owing to their performance benefits and sustainability. The high penetration of organized retail across the U.S. has been a significant contributing factor to the large share of plastic packaging demand in the U.S.

The packaged food & beverage sector is witnessing robust growth globally for the past several years. Growing urban populations, changing lifestyles, rising economic activities in emerging countries, and increasing penetration of e-retail across the globe are expected to drive the demand for packaged food significantly. 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 and 10.4 billion by 2080 based on United Nations projections, which in turn is anticipated to fuel the consumption of plastic packaging products for packaged food segment.

The robust growth of the e-commerce sector will also likely open new avenues for industry growth. E-commerce companies prefer flexible and lightweight packaging solutions to reduce transportation costs. 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. 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 disruption of the material supply chain due to the COVID-19 pandemic severely impacted the packaging industry. The lockdown in China in the first quarter of 2020, which is one of the critical plastics manufacturers and suppliers with more than 30% of the global share, and the closure of the trade boundaries among the global countries has impacted plastic packaging manufacturers globally. The shortage in the supply of plastics from Chinese manufacturers increased the demand-supply gap since significant manufacturing plants were shut down to curtail the pandemic spread. However, the demand-supply gap was majorly observed in the first quarter 2020.

Product Insights

The rigid segment dominated the market for plastic packaging and accounted for the largest revenue share of over 61.0% in 2022, owing to its high aesthetic appeal and sturdiness. Besides, factors such as a high barrier to oxygen, moisture, and light provided by rigid packaging also contributed to the higher share of the segment in 2022. The reusability of rigid packaging products such as intermediate bulk containers, pallets, and other industrial packaging products will likely favor the growth of rigid plastic products.

The rigid plastic-type segment is bifurcated into bottles and jars, cans, trays, containers, caps, closures, etc. Plastic bottles are extensively utilized in beverage packaging owing to their low cost, convenience, and superior performance. In comparison, trays and containers are utilized in food service 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 demand lower plastic material than rigid products such as bottles and jars.

Moreover, the convenience of multiple closure choices in pouches, such as a zipper, tear notch, and spout, supports the easy opening and closing of the packaging, attracting consumers to this packaging format. Growing demand for food on account of the increasing population in the Asia Pacific, particularly in India and China, is expected to boost the growth of the flexible packaging segment over the forecast period. Bioplastics have seen a growing demand due increasing adoption of sustainable materials by manufacturers of flexible packaging solutions. Rising demand for bio-based PLA films in snack, food, confectionary, and bakery packaging applications due to their biodegradability and recyclability is anticipated to be a major factor augmenting the segment growth over the forecast period.

Technology Insights

The extrusion technology in the technology segment accounted for the largest share of over 38.0% in 2022 in terms of revenue, as the majority of the flexible packaging products, such as bags, pouches, 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 2023 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 due to a rising focus on sustainable packaging is expected to be attributed to the high growth of 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 contributed to the higher adoption of thermoformed packaging in food and beverage application. 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 in injection molding technology will likely hamper the segment's growth over the forecast period. Blow molding is a popular plastic process designed to create hollow parts such as bottles, liquid containers, drums, and storage tanks. There are three critical types of blow molding technology, 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 51.0% in 2022. 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 will likely propel the demand for plastic packaging. Also, increasing consumption of alcoholic and non-alcoholic beverages, especially amongst the young population, is expected to support the industry's growth.

Single-serve consumer packaging has been witnessing significant growth in the past few years owing to its convenience. Growing consumer attention towards health and well-being and increased awareness regarding waterborne diseases coupled with rising spending capacities have propelled the demand for packaged drinking water globally, 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 over the forecast period. This industry has grown significantly due 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 over the forecast period.

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

Moreover, growth 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 in the forecast period.

Regional Insights

Asia Pacific led the plastic packaging market and accounted for a revenue share of over 43.0% of the global revenue share in 2022 and is projected to expand further at the fastest CAGR from 2023 to 2030. Rapidly growing application industries in key economies, such as China, India, Vietnam, South Korea, and Thailand, are expected to drive regional demand over the forecast period.

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

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 in the forecast period. Stringent regulations on the use of plastic packaging coupled with significant sustainable awareness among consumers are primarily attributed to the slow growth of the market in the region.

Furthermore, the European Parliament has set a plastic bottle collection target of 90% by 2029. Furthermore, the growing recycled content inclusion policies by the European Commission have mandated that 2025 plastic bottles will contain at least 25% of recycled content, which is expected to increase by 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 market growth.

Key Companies & Market Share Insights

The plastic packaging market is highly fragmented, with the presence of medium-sized and small-sized domestic players as well as large-sized international companies. The stringent regulations on excessive plastic packaging usage, coupled with the growing sustainability awareness among consumers, are driving the plastic packaging market to adopt sustainable packaging materials steadily. Key companies operating in the global plastic packaging market are majorly adopting acquisition strategies to expand their geographical presence and manufacturing capabilities.

For instance, in August 2022, Amcor plc completed the acquisition of a flexible packaging plant located in the Czech Republic. This acquisition will help Amcor increase its flexible packaging network in Europe. On similar lines, in August 2022, Constantia Flexibles inked an agreement to acquire U.K.-based FFP Packaging Solutions to strengthen its product portfolio and increase its penetration in the food packaging market. 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 Report 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 2018 to 2030. For this study, Grand View Research has segmented the global plastic packaging market report based on product, technology, application, and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Rigid

    • Bottles & Jars

    • Cans

    • Trays & Containers

    • Caps & Closures

    • Others

  • Flexible

    • Wraps & Films

    • Bags

    • Pouches

    • Others

• Technology Outlook (Revenue, USD Billion, 2018 - 2030)

  • Injection Molding

  • Extrusion

  • Blow Molding

  • Thermoforming

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Food & Beverages

  • Industrial Packaging

  • Pharmaceuticals

  • Personal & Household Care

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 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