Rigid Packaging Market Analysis

Growing demand from the paper packaging industry to boost the market growth

The trend in consumer preference for paper-based substitutes is a result of the environmental concerns surrounding plastic usage in packaging. Governments and organizations must take the lead in transforming the sector by establishing stringent laws and regulations that protect the environment and promote products made of recycled paper. The EPA Administrator, on November 17, 2020, at the America Recycles Summit, announced the National Recycling Goal to raise the U.S. recycling rate to 50% by 2030. Compared to other materials like metal and plastic, paper packaging materials may be recycled and reused considerably more easily.

This is why paper packaging is regarded as the most economical and eco-friendly type of packaging.

By March 2024, Repsol's new material part of its Reciclex range for sustainable polyolefins shall be used in all lubricant containers having capacities ranging from 1l to 5 l inclusive, available in five colors representing various product lines like car engine oils, transmission fluids for motorcycles and heavy trucks. These new containers seem to cut down on carbon emissions by 25% compared to the old ones, according to the multinational energy firm. It is argued by the corporation that it leads the Iberian Peninsula's lubricants business.

In order to support its plan for expansion, it bought a shareholding interest equaling forty percent (40%) each in Bardahl, a Mexican enterprise over two years, which are 2018-2019, then United Oil based out Singapore having two manufacturing bases one each at Indonesia as well as its home country.

Figure1: Estimated market value of personal care, home care, and healthcare paper packaging worldwideSource: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

According to market research, reusing and recycling packaging materials has garnered much attention internationally during the past several years. Recycling is converting trash into a product that may be used once more. Recycling rigid plastic packaging reduces the requirement for raw materials, reducing air and water pollution, and reducing greenhouse gas emissions. Only 5% to 6%, or roughly two million tonnes, of the 40 million tonnes of plastic garbage produced in the U.S. in 2021 were recycled. Many governments and industry players have devised plans to reduce plastic waste through recycling.

Therefore, the trend of recycling plastic has enhanced the global rigid packaging market CAGR in recent years.

The lifestyles of most consumers in emerging economies are influenced by trends such as an increase in the proportion of working women and the prevalence of nuclear and double-income families, particularly in urban regions. According to market statistics women's involvement in the workforce peaked in 2021 at 57.8%, the greatest level since March 2020, the first month of the epidemic. With the desire for on-the-go products that cut down on cooking time caused by busier lifestyles, the market for rigid packaging has grown, which affects the rigid plastic packaging market.

The demand for rigid packaging in emerging nations will also be fueled by rising disposable income and rising packaged-goods consumption.

According to market report, governments are putting money into developing nations' healthcare systems on multiple continents to respond to the outbreak. According to projections, the need for rigid plastic packaging will increase globally as the healthcare industry expands. For instance, according to the staff research report for the "US-China Economic and Security Review Commission," the Chinese healthcare sector will be worth 16 trillion RMB (USD 2.3 million) by 2030. The expanding healthcare industry is another factor driving the rigid packaging market revenue.

A new laundry detergent called Tide Evo was launched by Procter & Gamble (P&G) brand Tide in April 2024. It is a square-shaped, six-layer "tile" of concentrated ingredients woven together. The thin, malleable fiber tile design was influenced by eco-friendliness and customer feedback.

P&G's study discovered that customers expect higher and greater levels of convenience, hence the creation of lighter, faster, and simpler Tide evo fiber tiles compared to other detergents produced by this company, besides being made from tens of thousands of tiny fibers arranged into layers of soap rather than extra liquid and fillers to remove plastic bottles from circulation effortlessly or easily as well as these tiles have been designed so that they will dissolve whenever they come into contact with water.

The Global Rigid Packaging Market Industry is increasingly influenced by sustainability initiatives as consumers and manufacturers alike prioritize eco-friendly solutions. Companies are adopting recyclable and biodegradable materials to meet regulatory requirements and consumer expectations. This shift is evident in the growing demand for sustainable packaging options, which is projected to drive the market's value to 305.6 USD Billion in 2024. As environmental concerns escalate, brands are likely to invest in innovative packaging designs that minimize waste and enhance recyclability, thereby aligning with global sustainability goals.

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for rigid packaging. With key market developments like new product releases, contractual agreements, mergers & acquisitions, increased investments, and collaboration with other organizations, global rigid packaging market participants are also undertaking various strategic activities to expand their global presence. To grow and remain in a market that is becoming increasingly competitive, rigid packaging industry competitors must provide affordable products.            

Manufacturing locally to cut operational costs is one of the main business tactics used by the rigid packaging industry to serve customers and increase the market sector. The market industry has recently given medicine some of the most important advantages. Market players, including Medtronic Inc. (Ireland), Abbott Laboratories (US), Stryker Corporation (US), and others, are attempting to increase market demand by funding R&D initiatives.

Amcor provides societal and economic advantages to people and communities worldwide who depend on essential energy. It is one of the world's largest integrated energy and chemicals companies. For instance, in March 2021, Amcor announced a new collaboration with the Alliance to End Plastic Waste. Amcor has announced its membership in the Alliance to End Plastic Waste's Executive Committee (the Alliance).

Also, Myers Industries, Inc. is a major producer of polymer products for the industrial, agricultural, automotive, commercial, and consumer markets. Myers Industries has grown into a leading polymer manufacturer of material handling containers and a distributor of tire repair and retread products for domestic and international markets. For instance, in October 2022, Myers Industries, Inc, a customer-centric innovator of engineered plastics solutions for over 85 years, will showcase items from their entire materials handling segment portfolio at Pack Expo, which will take place October 23-26, 2022, in Chicago, Illinois.

Attendees will be able to validate the performance of high-value storage and handling containers and bin-matched industrial shelving for usage in the reusable packaging sector.