Most of the food and beverages, along with the healthcare industries are making use of plastic packaging on a large scale. There is a tremendous change in the lifestyle of various consumer groups that are teaming up with the rapid degree of urbanization. This is fueling the demand for plastic packaging on a large scale. The demand of consumers for plastic packaging is due to the ease and convenience brought in by the processed, as well as, the package food items that are likely to reduce the cooking time by a considerable quantum. Hence, this has played a major role for the food and beverage industry to majorly adopt the use of plastic packaging in various food products. During the historic year of 2015, the food and beverage market has the highest value and emergest as the largest application for the global plastic packaging market trends.
Cosmetics, pharmaceuticals, as well as personal care are sectors that are increasing their adoption of plastic packaging that is helping the market grow by the end of the global forecast in 2022. The plastic packaging market growth is subject to growth owing to reasons like an increase in the disposable income of people, growing demand for modern retailing, as well as, dependence on e-commerce business activities. The market is expected to grow at a 5% CAGR and reach a market valuation of USD 400 billion by the end of the global forecast period in 2022.
COVID 19 Analysis
The Plastic Packaging Market value is expecting various hurdles on its way to growth in the pandemic year of 2020-2021. The main reason behind this is the shutting down of production units brought in by the imposition of lockdown imposed by different countries of the government. However, owing to the current market trends, there is an expectation for the market to have increased demand in various sectors like pharmaceutical, food, as well as, beverage applications for packaging of the products during the pandemic. Here are 2 things to note:
Because of the busy and changing lifestyles of people, there is an increase in demand for convenient products that are giving rise to plastic packaging. Plastic packaging does not require the input of many resources or energy, as well as, the cost is quite low. They occupy less shelf space and hence, they are quite cost-effective in comparison to other popular forms of packaging the materials. The consumer choices are further undergoing a gradual shift in buying plastic-packed foods in comparison to the traditional ways of buying and cooking.
Plastic packaging amounts to a lot of waste and the recycling of the same is possible with the availability of major infrastructural facilities. Also, recycling is a long, elaborated, and time-consuming process that should not be done without personnel expertise. The main concern is that some geographical locations around the world do not have these facilities and infrastructure available. Currently, only 9% of the plastic waste has been recycled and only 14% has been collected for recycling.
The plastic packaging market trends are expected to gain momentum by the end of the global forecast ending in 2022. The global market valuation is largely dependent on the performance of the market segments and sub-segments. The market segmentation has been done based on the following:
Based on regions, the market is currently functional in 4 major geographical locations. These are North America, the APAC region, European nations, as well as, the rest of the world (RoW).
Based on application, the plastic packaging industry contains several sectors like personal care, industrial, food, and beverages, along with the global healthcare sector.
Based on type, the market delivers raw materials, as well as, finished items in flexible and rigid packaging. Based on their liking, the customers can choose what is preferred by them.
The Asian Pacific region is expected to emerge as a dominant player in the market. The major reason behind this is that the market is investing greatly for the rapid development in different sectors like healthcare, as well as, food and beverages. Historically in 2015, the APAC region was the region that experienced the second maximum growth. By the end of the global forecast in 2022, the North American region is expected to grow at a steady rate. Following the trend, next up in line are the European nations. The food and beverage industry belonging to the European nations is expected to increase at a staggering rate. This is going to act as a major driving force for the demand of the global plastic packaging market by the end of the global forecast period in 2022. In the historic year of 2015, the North American region was a dominant nation in a fast-growing market.
The key market players of the global market include the following:
Frequently Asked Questions (FAQ) :
The global plastic packaging market is expected to cross USD 400 billion by 2022.
Global plastic packaging market is expected to exhibit a strong 5% CAGR over the forecast period from 2016 to 2022.
Increasing urbanization is likely to be the major driver for the plastic packaging market.
Asia Pacific dominates the global plastic packaging market.
Leading players in the plastic packaging market include Mondi Group, Sealed Air Corporation, and BASF, among others.
The APAC Region