Global packaging boom continues: a CAGR of 6% is expected at least until 2022
Global packaging market has done nothing but grow during the last 20 years and forecasting data confirms this. In 2017 the total value of the packaging globally was $851 billion, according to the last study by Smithers Pira. But the brand new research by Technavio — a leading global technology research and advisory company, developing over 2000 pieces of research every year and covering more than 500 technologies across 80 countries, thanks to its about 300 analysts globally specialized in customized consulting and business research assignments across the latest leading-edge technologies — once and for all confirms the figures experts and investors have been waiting for: a grow at a CAGR of more than 6 percent from 2018–2022 for the global protective packaging market, which confirms 2017 projections, reporting around 45 percent of the market share originated from foam protective, rigid protective and flexible protective packages, mostly foam-in-place and polyolefin rolled foam.
Definitive data and projections are given for 17 major and 33 minor national and regional markets worldwide, in order to provide a full view of the current and future commercial landscape for the packaging industry.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets, obtaining information using a combination of bottom-up and top-down approaches, in-house market modeling tools, and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users: the result was a growing popularity of home delivery of food and grocery items, the increase in popularity of flexible protective packaging options such as air pillows and paper fills will result in the paper manufacturers gaining a competitive advantage over other vendors in the market and an increased focus on sustainability.
The analysis also observes the packaging sector from a geographical point of view: the market has been segmented into APAC — Asia-Pacific, from which almost 39% of the market share came, EMEA and the Americas. “APAC dominated the global protective packaging market in 2017, and it is anticipated to project the highest growth during the forecast period. Countries such as China and India are predicted to witness the maximum growth within the region. The prominent growth driver for the protective packaging market in APAC is the growth of e-commerce,” says a senior analyst at Technavio for packaging research.
Globalization has ensued in the transportation of various products around the world, with a significant rise in export activities in some of the major countries: China, India, and Japan are the leading exporters of goods. “The global demand for goods from countries in APAC –he adds- is contributing to the growth of the market. The exports range from food and beverage goods to homecare and other consumer good products. Packaging is an essential component of these goods, and it needs to comply with international standards, which drives the demand for tube packaging globally”. Growth in the packaging industry is, indeed, largely stimulated by rising international demand for emerging countries: the beauty and hygiene sectors are forecast to record the highest growth by 2021, followed by consumer electronics, pet food, household and garden products.
Opportunities in Emerging Flexible Packaging Markets — currently account for over 20% of global demand — to grow a CAGR of 10–12% in next 3 years, will assure expansion not only in the Middle East and Asia, which will continue to be the most significant regional market for flexible format packaging, and will increase its relative share of sales 42% to nearly 45% at least until 2021, but also in new regions like Africa: these markets will present investment and penetration opportunities for all those involved across the flexible packaging supply chain.
Rising of online sales are also driving the growth of the packaging industry, as expected, with a strong push given by IoT (Internet of Things), nanotechnology, biotechnology, bio-based plastics, that will shape the form of the global packaging market of tomorrow, a sector to keep an eye on.
Do you want to be part of one of the most moneymaker sector of the present time? You can contribute to our innovative project: take a look at https://medium.com/@openpackaging/our-tokensale-starts-august-1st-here-is-why-you-shouldnt-miss-this-opportunity-5f4cfb926e60