Global Rigid Packaging Market is valued at USD 159.95 Billion in 2022 and it is expected to reach USD 222.08 Billion by 2029 with a CAGR of 4.80% over the forecast period.
Rigid packaging refers to packaging products that are constructed from stiff, sturdy materials that are not easily deformed. This type of packaging is used to protect and preserve a wide range of products during transportation and storage. The history of rigid packaging can be traced back to ancient times when humans first started using natural materials such as clay, wood, and stone to create containers for storing and transporting goods. Over time, new materials such as metal and glass were developed, which led to the creation of more sophisticated and durable packaging products.
Rigid packaging is used in a wide range of industries, including food and beverage, pharmaceuticals, personal care, and consumer goods. Common examples of rigid packaging products include metal cans, glass bottles and jars, plastic bottles and containers, and cardboard boxes. These products are used to package and transport a wide range of products such as food, beverages, cosmetics, medications, and electronics.
The end-users of rigid packaging products include manufacturers, distributors, retailers, and consumers. Manufacturers use rigid packaging to protect their products during transportation and storage, while distributors and retailers use it to display and sell products to consumers. Consumers also use rigid packaging to store and transport products.
The COVID-19 pandemic has had a mixed impact on the rigid packaging market, with both positive and negative effects. On the positive side, the demand for rigid packaging has increased in some sectors, such as food and pharmaceuticals, due to an increase in online shopping and home delivery. On the negative side, the closure of non-essential businesses and disruptions to global supply chains have impacted the demand and supply of packaging products.
A survey by Packaging Europe found that 48% of packaging professionals in Europe reported increased demand for packaging due to the COVID-19 pandemic, with the highest increases seen in the food, pharmaceutical, and e-commerce sectors. The COVID-19 pandemic has also led to increased demand for sustainable packaging solutions, with consumers and businesses prioritizing environmentally-friendly options.
Some major key players for the global Rigid Packaging market report cover prominent players like
The North American rigid packaging market is driven by factors such as the growing demand for sustainable packaging solutions, the increasing adoption of e-commerce, and the demand for pharmaceutical and personal care products. Key market players in this region include Amcor, Berry Global, and Ball Corporation.
For example, In a 2020 survey, 82% of North American consumers said that sustainability was important to them when making purchasing decisions. And in 2021, Amcor announced plans to invest $10 million in its Elk Grove Village facility in Illinois to increase the production of recycled content packaging solutions. Additionally, in 2020, e-commerce accounted for 14.5% of total retail sales in North America, up from 11% in 2019.
The European rigid packaging market is characterized by the increasing demand for sustainable packaging solutions, the growth of the food and beverage industry, and the rising demand for luxury packaging. Key market players in this region include Ardagh Group, DS Smith, and Smurfit Kappa. For example, in 2020, 75% of European consumers said that they were more likely to purchase a product that has premium or luxury packaging.
Revenue is generated in the rigid packaging industry through the sale of packaging products to manufacturers, distributors, and retailers. The revenue generated by companies in this industry is largely dependent on the volume of packaging products sold and the pricing of those products.
The rigid packaging industry involves a complex supply chain that includes raw material suppliers, manufacturers, distributors, and retailers. Raw materials such as glass, metal, and plastic are sourced from suppliers and then processed by manufacturers into finished packaging products. These products are then distributed to retailers and ultimately sold to consumers.
The value chain in the rigid packaging industry includes several key activities such as research and development, raw material sourcing, product design and manufacturing, marketing and sales, and distribution. Each of these activities adds value to the final product and contributes to the overall success of the industry.
The demand for rigid packaging is driven by the growth of end-use industries such as food and beverage, healthcare, and personal care. For example, according to India Brand Equity Foundation, in 2021 approximately, 173 million units of smartphones were sold in India, showing 14% growth as compared to the sales in 2020.
The demand for sustainable packaging solutions has increased due to growing environmental concerns. Rigid packaging companies are responding to this trend by developing sustainable packaging solutions, such as biodegradable and recyclable materials.
For example, The US EPA provides guidelines for sustainable packaging practices and encourages the use of environmentally friendly packaging materials and designs. According to the EPA, in 2018, the recycling rate for rigid plastics was 16.6%, and the recycling rate for glass containers was 33.4%.
The cost of raw materials used in rigid packagings, such as plastics and metals, is subject to fluctuations due to changes in supply and demand. This can impact the profitability of rigid packaging companies. For example, Plastic resins, such as polyethylene (PE), polypropylene (PP), and polystyrene (PS), are commonly used in rigid packaging.
However, According to PlasticsToday, prices for these resins have been volatile in recent years, with prices for PP and PS reaching record highs in 2021. For example, the average price for PP was around USD 0.60 per pound in early 2020, but by mid-2021, prices had reached over USD 1.30 per pound. Similarly, the average price for PS was around USD 0.50 per pound in early 2020, but by mid-2021, prices had reached over USD 1.50 per pound.
Flexible packaging solutions, such as pouches and bags, are gaining popularity due to their flexibility and cost-effectiveness. This has led to increased competition for rigid packaging products.
However, it is important to note that the rigid packaging market is currently larger than the flexible packaging market, although many brands have moved to flexible packaging. PDA said the global rigid packaging market is expected to exceed $800 billion by 2024, while the flexible packaging market is projected to reach $299 billion by 2024. Rigid packaging will always hold a strong position in the CPG space with many applications. It makes sense. For example, premium beverages, spirits, perfumes, and certain beauty and health products that require aerosol cans may remain in rigid containers.
Rising demand for sustainable packaging solutions: With the growing awareness about environmental issues, there is a rising demand for sustainable packaging solutions that can reduce waste and carbon footprint. Rigid packaging manufacturers are exploring eco-friendly alternatives such as biodegradable plastics, recycled materials, and reusable packaging to meet this demand.
Increasing demand from emerging markets: The rigid packaging market is expanding rapidly in emerging markets such as Asia-Pacific and Latin America, due to rising population, urbanization, and economic growth. This presents a significant opportunity for manufacturers to expand their reach and tap into new markets.
The development of new technologies such as digital printing, RFID tracking, and smart packaging is opening up new opportunities for innovation in the rigid packaging market.
Product and technology development: Rigid packaging manufacturers are investing heavily in product and technology development to offer better protection, convenience, and sustainability. For example, there is a growing trend toward lightweight packaging that reduces material usage and transportation costs.
Consumers are increasingly demanding packaging that is not only visually appealing but also provides functional benefits such as easy opening, reliability, and tamper-evident seals. Rigid packaging manufacturers are responding to these demands by developing packaging that is not only functional but also aesthetically pleasing.
The rigid packaging market is highly competitive, with manufacturers competing on factors such as price, quality, and sustainability. Manufacturers are also investing in mergers and acquisitions to expand their product portfolio and reach new markets.
Strategies of key market players:
Many key market players are investing in product innovation to offer new and innovative packaging solutions to their customers.
Partnerships and collaborations: Key market players are forming partnerships and collaborations with other companies to expand their reach and offer more comprehensive packaging solutions.
Many key market players are adopting sustainable practices such as using recycled materials, reducing waste, and investing in renewable energy sources.
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