The global rigid packaging market size was valued at USD 472.19 billion in 2016. It is projected to witness a CAGR of 6.7% from 2016 to 2025. Surging demand for eco-friendly and sustainable packaging is one of the key trends stoking market growth.
Metals such as aluminum & steel, plastic grades such as polyethylene terephthalate (PET) & polyethylene (PE), and glass, and paperboard are majorly used for packing. Robust growth of the manufacturing sector in developing economies, particularly China, India, Brazil, & South East Asia countries is likely to fuel the utilization of these materials over the forecast period.
Rigid packaging finds applications in several industries such as pharmaceuticals, food & beverages, electronics, personal care, and many more. Food & beverage industry is one of the major consumers of rigid packaging products. Growing consumption of convenience & ready-to-eat food products is poised to help the market gain tremendous traction over the coming years.
The packaged food market grew from 575 million tons in 2012 to 600 million tons in 2014. This growth was primarily attributed to changing consumer lifestyles. Burgeoning consumption of snacks such as sausages, bread, and potato chips in emerging economies of China, India and Middle East is working in favor of the overall market. Growing number of food retail outlets and new product launches are estimated to augment the importance of rigid packaging.
Sustainable packaging, also referred to as green packaging, is a new trend within the market. Stringent regulations regarding recycling of packing materials are leading to upswing the demand for renewable and eco-friendly materials. Demand for bioplastics for packaging has witnessed remarkable growth over the past few years and this trend is anticipated to continue over the forecast period.
With advent of the internet, the e-commerce industry is expected to witness significant growth. Packaging is one of the important elements in this industry in order to make sure the product reaches consumers without damage. Rigid packing products such as boxes and containers are used in this application.
Plastic dominated the market with a revenue share of 39.0% in 2015. Advantages of plastic such as high strength and stability have made it a popular material for manufacturing rigid packaging products. Besides, it can be molded into various shapes and sizes, without compromising on its quality.
Metals used include aluminum, stainless steel, and tin. Aluminum is the most widely used metal for rigid packaging. Containers and cans are some of the commonly made packing products from metals. Metals are often used due to their extremely high strength and durability. It is more commonly used as a tertiary source of packing, forming the outermost packaging layer, which is not in immediate contact with the product.
Paper was one of the most widely used materials in 2015. It can be used in making both, rigid as well as flexible packaging products. The fact that paper & paperboard can be recycled has made it a common material in the industry. Cost-effectiveness and easy availability of paper & paperboard are contributing to the growth of the segment. The segment accounted for a volume share of 70.1% in 2015.
Glass is considered to be a sustainable material in the market, as it can be completely recycled. Spiraling demand for glass from the personal care sector is also projected to play a major role in the coming years. Moreover, increasing use of glass bottles in the beverage and pharmaceuticals industries is likely to stimulate the growth of the overall market.
In terms of application, the food & beverage sector was at the forefront of the rigid packaging market in 2015. It accounted for a revenue share of 55.1% in 2015. Increasing demand for packaged food owing to changing lifestyles is poised to be one of the key growth stimulants of the segment. Flourishing beverage industry, led by products such as liquor and energy drinks, is resulting in boost in the demand for rigid packaging.
Pharmaceutical packaging is carried out in order to keep medicines free from getting contaminated and prevent microbial growth. Proper packaging helps in increasing the shelf life of drugs. Increased spending on medicines and medical devices is estimated to stir up the demand for rigid packaging.
Personal care packaging includes packing of products such as cosmetics and toiletries. This industry has witnessed phenomenal growth over the past few years owing to growing importance of grooming and hygiene. Rising awareness about health and wellness in developing countries is also anticipated to spur the growth of the segment. This segment accounted for a revenue share of 19.0% in 2015.
Other applications include the industrial and electronics sectors. Increasing utilization of electronic devices including smartphones, tablets, and laptops is expected to supplement the growth of the segment over the forecast period. Proliferation of smart devices in emerging regions such as Asia Pacific and Central & South America is also playing a pivotal role in the growth of the overall market.
Asia Pacific accounted for a major revenue share of 48.4% of the global market in 2015. This region is driven by rapid expansion of the pharmaceutical and food & beverage sectors. Besides, emerging economies such as China and India are projected to register sharp rise in the demand for rigid packaging over the forecast period.
U.S. was the leading revenue contributor in North America. Plastic was the most popular material in this region in 2015. Robust growth of the food & beverage industry is one of the key factors propelling the regional market. Regulations regarding recycling and sustainability of materials in order to maintain environmental balance are triggering the demand for bioplastic packaging solutions.
Europe is considered to be one of the most developed regions in the world. However, the economic depression from 2007 to 2009 severely affected the economies of most of the region. End-use industries such as food & beverages and personal care also witnessed a downfall during this period in this region. Consequently, the rigid packaging industry was also affected.
Central & South America is considered to be one of the promising regions of the world. This region comprises some of the emerging countries such as Brazil, Argentina, Colombia, and Chile. Similar to Asia Pacific, this region is likely to witness rapid expansion of the food & beverages and personal care industries; thereby, positively influencing the global market.
The market is fragmented in nature and is dominated by players such as Reynolds Group Holding, Amcor Limited, Sonoco, and Bemis Company Inc. Other key players include Sealed Air Corporation; Plastipak Holdings, Inc.; Berry Plastics Corporation; Coveris Holdings S.A.; Consolidated Container Company; DS Smith PLC; Silgan Holdings, Inc.; and Ball Corporation.
Companies in the market have adopted numerous strategies including expansions, mergers & acquisitions, and collaborations and joint ventures in order to expand their global footprint and consequently, their market shares.
This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global rigid packaging market report on the basis of material, application, and region:
Material Outlook (Volume, Kilo Tons; Revenue, USD Billion, 2014 - 2025)
Paper & Paperboard
Application Outlook (Volume, Kilo Tons; Revenue, USD Billion, 2014 - 2025)
Food & beverages
Regional Outlook (Volume, Kilo Tons; Revenue, USD Billion, 2014 - 2025)
Central & South America
Middle East & Africa
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Halted manufacturing activities across various end-use industries has led to weakened demand for specialty polymers. The prevailing macroenvironment due to the pandemic shall register indications of recovery depending on the course of COVID-19's prevalence and subsequent resuming of manufacturing activities. The report will account for Covid19 as a key market contributor.