DUBLIN, March 8, 2023 /PRNewswire/ — The “Global Industrial Packaging Market Report 2022-2028” report has been added to ResearchAndMarkets.com’s offering.
The global industrial packaging market was valued at US$65.62 billion in 2022. The market value is forecasted to grow to US$88.03 billion by 2028. The market is anticipated to grow at a CAGR of approx. 5% during the forecasted period of 2023-2028.
Industrial packaging refers to specific, heavy-duty customized packing solutions that are designed for wrapping, containing, & sealing finished fast-moving consumer goods (FMCG) during storage and distribution procedures.
Industrial packaging market consists of sales of industrial packaging solutions by entities (organizations, sole traders and partnerships) that help in preparing goods for transport, warehousing, logistics, sales & end use and safeguarding the products from any damage or contamination.
Packaging formats in this industrial sector include drums (steel, plastic and fiber), intermediate bulk containers (IBCs, flexible and rigid), sacks, pails and crates/totes. Economic growth is the principal driver of industrial packaging usage and in particular the health of the key industries it serves. Development in the industrial packaging market focuses primarily on sustainability, recycling and reuse/reconditioning.
As in many of the consumer packaging formats, down-gauging is an important driver of innovation, reducing the material used while maintaining performance. Increasing re-use of containers and establishment of an infrastructure for reconditioned drums are also factors promoting sustainable solutions in industrial packaging as well as business opportunities.
Market Segmentation Analysis:
Corrugated boxes industrial packaging market is both the largest and fastest growing segment of global industrial packaging market as corrugated box packaging are ideal for packing a wide variety of items that are independent of size & form and offers other benefits such as modification and customization of boxes to meet specific company requirements.
Food and beverages industrial packaging market held the largest share of global industrial packaging market in 2022, owing to rapidly expanding population, rapid urbanization, shift in consumer’s preference towards consumption of packaged & processed food, rising demand for customized industrial packaging & increased sales of daily essentials, FMCG, and fresh food through e-commerce and online platforms.
The Asia Pacific industrial packaging market in the largest & fastest growing region of global industrial packaging market owing to growing working population, rise in currency rates, increasing e-commerce sales, rising per capita income of individuals and increased benefits offered by industrial packaging solutions in the form of safety, cost effectiveness, durability, strength, environmental friendliness and logistics convenience.
The Asia Pacific industrial packaging market is divided into five regions on the basis of geographical operations, namely, China, Japan, India, South Korea and Rest of Asia Pacific, where China industrial packaging market held the largest share in Asia Pacific industrial packaging market owing to massive demand from the food packaging industry, increasing retail sales of grain, oil, and food & beverages, quick adoption of technological advancements and stable growth in industries such as automotive, construction and healthcare.
Also, on the basis of end user, Asia Pacific industrial packaging market is divided into five segments namely, food & beverages, chemicals & pharmaceuticals, building & construction, oil & lubricants and others, where chemicals & pharmaceuticals is the fastest growing segment of Asia Pacific industrial packaging market and food & beverages held the largest share of Asia Pacific industrial packaging market in 2022.
The global industrial packaging market has been growing over the past few years, due to factors such as rising demand from end user industries, rapid urbanization, rise in modern retailing, increasing e-commerce, globalization, etc. Industrial packaging in addition to ensuring safety and protection of goods from damage and contamination, is also used for advertising and branding of products by various companies and organizations.
Industrial packaging are often labeled in the same way that resembles commercial packing done by various companies, having a positive effect on company’s brand visibility & attention. There is an increasing demand for industrial packaging services as a result of increasing retail outlets and rise in modern retailing, boosting the demand and hence the growth of global industrial packaging market.
However, the market growth would be negatively impacted by various challenges such as volatility in raw material prices, recycling & environmental concerns, etc. There has been increasing fluctuations in supply of raw materials & basic chemicals that are used in production and manufacturing of packaging materials.
For instance, crude oil and natural gas are major sources of naphtha and ethylene which are used to manufacture polypropylene, polystyrene, EPS Styrofoam, polyethylene & polyurethane, used as raw materials in the manufacturing of insulated packaging. So, with fluctuating prices of crude oil and increasing cost of raw materials, the prices of industrial packaging is also increasing, impeding the growth of global industrial packaging market.
The market is projected to grow at a fast pace during the forecasted period, due to various latest trends such as increased integration of artificial intelligence (AI), emergence of sustainable and recyclable packaging materials, increasing adoption of nanotechnology, advancements in supply chains, etc.
Artificial intelligence is helping industrial packaging firms in employing advanced algorithms in the areas of inspection, data labelling, recycling waste, etc. to produce better packaging solutions for various end user industries. Also, companies are increasingly using AI-assisted robots for carrying out monotonous packaging processes like picking, placing, palletizing, & inspection and with many startups developing AI-powered vision systems that take pictures of finished goods to analyze the package quality and automate the process of product sorting & quality control, the overall growth of industrial packaging market is expected to rise in the forecasted period of 2023-2028.
The market for industrial packaging has been fragmented due to presence of numerous international, regional and local vendors. Local manufacturers of industrial packaging products cater to unique and innovative solutions at a lower price as compared to the international vendors, usually resulting in price battles between different players of the market.
Product launches, mergers & acquisitions and partnership & collaborations are the main strategies which are adopted by market players in industrial packaging market to expand market share and gain competitive advantage.
For instance, On December 21, 2022, Amcor PLC announced that Amcor Australia & New Zealand (ANZ) business had signed a Memorandum of Understanding (MOU) with Australian-based technology pioneers, Licella Holdings, to invest in one of Australia’s first plastic advanced recycling facilities. Similarly, On December 15, 2022, Greif, Inc. announced that the company has completed the acquisition of Lee Container Corporation, Inc. (“Lee”).
- Rising Demand from End User Industries
- Rapid Urbanization
- Rise in Modern Retailing
- Increasing E-commerce
- Volatility in Raw Material Prices
- Recycling and Environmental Concerns
- Increased Integration of Artificial Intelligence (AI)
- Emergence of Sustainable and Recyclable Packaging Materials
- Increasing Adoption of Nanotechnology
- 3D Printing
- Advancements in Supply Chains
The key players of the market are:
- Amcor PLC (Bemis Company, Inc.)
- Grief, Inc.
- Berry Global Group, Inc.
- Mondi PLC
- Sonoco Products Company
- International Paper Company
- WestRock Company
- Packaging Corporation of America (PCA)
- Orora Limited (Orora Packaging Solutions)
- Sealed Air Corporation
- NEFAB Group AB
- Global-Pak, Inc.
- BAG Corporation
For more information about this report visit https://www.researchandmarkets.com/r/vcwf62
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