PACKAGING TESTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Packaging Testing Market size is expected to reach US$ 16.53 Billion by 2030, from US$ 9.90 Billion in 2023, growing at a CAGR of 7.6% during the forecast period.

Packaging testing involves testing the physical and chemical properties of packaging materials and packaging components. It ensures that the packaging is fit for purpose and compliant with regulations. Packaging testing is crucial for food, beverages, pharmaceuticals, cosmetics, and other packaged products. It helps determine the durability, strength, shelf-life, and safety of the packaging. Key tests include transit tests, vibration tests, compression tests, and chemical migration tests. The market is driven by stringent regulations, growth in packaged food demand, rising counterfeits, and innovations in packaging.

The packaging testing market is segmented based on product, material, technology, end-user industry, and region. By product, the market is segmented into transit packaging testing, consumer packaging testing, medical packaging testing, active packaging testing, and others. Transit packaging testing held the largest share of the market in 2023, owing to high demand from the logistics and transportation sectors.

Packaging Testing Market Regional Insights

• North America is expected to be the largest market for packaging testing during the forecast period, accounting for over 38% of the market share in 2023. The growth of the market in North America is attributed to the established packaging industry, stringent regulations, and high adoption of smart packaging in the region.
• Asia Pacific is expected to be the second-largest market for packaging testing, accounting for over 25% of the market share in 2023. The growth of the market in the region is attributed to the rapidly growing manufacturing sector, increasing middle-class population, and rising disposable incomes in the region.
• Middle East & Africa is expected to be the fastest-growing market for packaging testing, growing at a CAGR of over 9.5% during the forecast period. The growth of the market in Middle East & Africa is attributed to the rising demand for packaged food and beverages due to changing lifestyles and growing retail sector in the region.

Figure 1. Global Packaging Testing Market Share (%), by Region, 2023

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Packaging Testing Market Drivers

• Stringent regulations for packaging quality and safety: Government authorities across the globe are implementing stricter regulations pertaining to the quality and safety of packaging used across various end-use industries. For instance, the U.S. Food and Drug Administration has established stringent norms for packaging used in the pharmaceutical and healthcare applications. Such regulations necessitate rigorous testing of packaging to ensure compliance, which is driving the demand for packaging testing services. The introduction of strict regulatory protocols has compelled manufacturers to adopt packaging testing as a mandatory procedure before product release. This external obligation is a major factor propelling the growth of the packaging testing market. For instance, the Indian government plans to notify stricter product safety rules under the newly passed Consumer Protection Act by 2023, according to officials at the Department of Consumer Affairs. More packaging attributes will be examined and threshold limits for contaminants lowered. This will compel brands to ensure compliance through packaging testing.
• Rising demand for packaged food and beverages: The globally rising demand for packaged food and beverages is a key driver for the packaging testing market. Packaged foods such as ready-to-eat meals, snacks, confectionery, dairy products, and bakery items require high-quality packaging that preserves the taste, texture, and freshness of products. Testing helps ensure the packaging used for such food products maintains product properties during their stated shelf life. Moreover, the growing demand for packaged beverages including carbonated drinks, juices, and health drinks also contributes to the increasing need for beverage packaging testing. For instance, according to the Food and Agriculture Organization (FAO) of the United Nations, the global food packaging sales jumped by over 15% in 2020 compared to the previous year. The FAO report attributes this partly to stockpiling of packaged staples by households during pandemic-related lockdowns.
• Growth of the e-commerce sector: The e-commerce industry has witnessed exponential growth worldwide in recent years. Online shopping platforms rely extensively on packaging material to ship their products safely to customers. Testing is vital to ensure the packaging used for shipping can withstand transit-related risks including shocks, vibrations, and compression. E-commerce companies conduct packaging testing to optimize logistics costs, reduce returns due to damage, and improve customer satisfaction. The continuously rising global e-commerce sales will remain a key driving factor for packaging testing services. For instance, according to statistics by the United Nations Conference on Trade and Development (UNCTAD), the global B2C e-commerce sales surged from US$25.6 trillion in 2019 to US$27.7 trillion in 2020 highlighting increasing preference for online shopping driven by pandemic. The pandemic further accelerated this trend as more people turned to e-commerce for safety and necessity.
• Increasing counterfeiting and piracy: The growing risks associated with counterfeiting and piracy is compelling manufacturers, especially in the fashion goods and pharmaceutical industries, to adopt packaging testing as an effective anti-counterfeit solution. Testing packaging attributes such as traceability features, labeling, warning signs, and material composition helps differentiate authentic products from counterfeits. Packaging testing also aids in intellectual property protection by identifying fake or pirated products. The growing number of counterfeiting incidents globally will continue to generate significant demand for packaging testing and authentication services.

Packaging Testing Market Opportunities

• Integration of smart technology and digital tools: Integration of smart technologies such as RFID, NFC tags, smart sensors with digital platforms and analytics tools provides huge scope for innovation in packaging testing domain. Smart packaging testing solutions enabled with automation, robotics, Internet of Things, and artificial intelligence can revolutionize quality checks with rapid, non-destructive testing, data analytics, and improved efficiency. They provide user-friendly interfaces, generating a high return on investment. Packaging manufacturers have an opportunity to partner with technology companies to develop next-gen smart testing solutions and strengthen their position in the market. For Instances, According to the World Health Organization (WHO), over 30% of vaccines were wasted worldwide in 2020 due to issues in packaging and logistics underscoring the need for innovations in this market.
• Growing demand for sustainably sourced packaging: Sustainable packaging is gaining traction driven by circular economy goals, eco-conscious consumers and stricter environmental regulations. Testing bio-based, recyclable and compostable packaging made from materials like bioplastics requires specialized capabilities. Packaging testing providers have the opportunity to develop testing methodologies aligned with sustainability goals and offer services tailored for green packaging. Collaborating with material manufacturers in eco-friendly packaging development can help tap into the fast-growing sustainable packaging market.
• Rising applications of digital printing in packaging: Digital printing technology is enabling faster design changes, variable data printing, targeted marketing, and customization in packaging. Packaging testing providers have the opportunity to upgrade their testing competencies to handle the specific demands associated with digitally printed packaging such as assessing print quality, accuracy, barcodes, graphics, and texts. Offering testing capabilities aligned with digital printing can help gain competitive edge and attract packaging companies using this technology. For instance, according to United Nations Educational, Scientific and Cultural Organization data for 2020-2021, cross-border e-commerce sales jumped by 26% during the COVID-19 pandemic as lockdowns increased online shopping. This points towards continuing demand for validated customizable packaging globally.
• Growing demand for testing in emerging economies: High growth markets like China, India, Brazil, Indonesia present significant opportunities for packaging testing due to rapidly growing manufacturing, improving economic conditions, rising consumer class and urbanization in these countries. Developing testing expertise for traditional packaging styles preferred in regional markets and aligning testing methods to region-specific industry standards and regulations can help testing companies strengthen foothold in emerging economies. Localization initiatives through partnerships are also crucial to tap into these high-potential markets.

Packaging Testing Market Trends

• Adoption of non-destructive testing methods: Traditionally destructive test methods have been used in packaging testing which cannot be repeated on the same sample. Non-destructive techniques like leak testing, 3D scanning, digital video microscopy, hyperspectral imaging, and ultrasonic inspection are growing in prominence. They enable repeatable tests without damaging samples. Moreover, automation and data analytics can be easily integrated with them. Major packaging testing providers are adopting non-destructive testing technology to improve speed, efficiency and inline capabilities. For instance, according to data from the United States Bureau of Labor Statistics, the number of non-destructive testing jobs in the U.S. manufacturing sector grew over 10% between 2019 and 2021, indicating widespread uptake of these techniques across industries like food, beverage, and pharmaceuticals.
• Increasing use of automation and robotics: Automation and robotics are finding increased implementation in the packaging testing domain, aligned with Industry 4.0 trends. Robotic test tools for tasks like drop/shock testing, vibration, compression, and puncture offer consistent results. Automated vision inspection enables fast and accurate defect detection and quality checks. Test automation provides benefits like higher throughput, better productivity, reduced costs and human errors. Packaging manufacturers are increasingly looking to implement automated testing solutions in their labs and production lines to enhance quality control.
• Growing need for microbial challenge testing: There is an increasing need for microbial challenge testing or sterility testing of packaging systems used in industries like pharmaceuticals and healthcare. Testing helps evaluate the ability of packaging to maintain sterility and prevent contamination during shelf life. Moreover, antimicrobial packaging solutions also require rigorous microbiological testing. Major packaging testing laboratories are expanding capabilities in microbial challenge testing in line with rising quality standards, safety regulations, and innovation in antimicrobial packaging. For example, in the 2020-21 period, the WHO reported over 300 cases of diseases and 2 deaths due to Salmonella contamination originating from incorrect packaging permeation in some countries. This led many national food safety agencies and the UN Food and Agriculture Organization to release updated guidelines mandating stricter packaging testing standards, including microbial challenge assessments.
• Emphasis on testing packaging interaction with contents: Previously packaging testing focused on packaging materials and performance. However, there is a growing emphasis on testing the interaction between packaging and contents. For instance, the chemical reaction that occurs between medical supplies and packaging, or the effect that packaging has on the flavor and perfume of food. Advanced technologies allow testing parameters like barrier properties, sorption, and permeability at higher sensitivity. Evaluating packaging's impact on contents enables better design aligned to end-use requirements.

Packaging Testing Market Restraints

• High capital investment requirements: Setting up packaging testing laboratories requires substantial investment in equipment, facilities, tools, and skilled workforce. Advanced universal and functional test instruments, testing automation, accreditations, and tech infrastructure involve high costs. The need for periodic upgrades to meet advancing test methodologies also impacts capital budgets. Moreover, the highly-fragmented market limits economies of scale. For small companies, the high investment requirements hamper market entry and expansion. For instance, according to statistics sourced from World Bank, capital investment as a percentage of GDP stands at 22% for advanced economies like U.S. and Germany compared to just over 20% for the global average. The higher costs of doing business in developed packaging markets restrict the entry of new testing facilities, thereby slowing capacity additions. This acts as a brake on the testing needs of proliferating packaged goods sectors in these regions and poses challenges for market growth.
• Limitations of conventional testing methods: Traditional physical, mechanical, and chemical testing methods have limitations like being destructive, slow, and labor-intensive. They lag in mimicking complex real-world conditions. For instance, shock testing through drop tests has drawbacks in consistency and human errors. Moreover, many conventional techniques have low fault detection rates. The inability to conduct predictive analysis using legacy testing methods restricts their application scope. This is compelling end-users to seek more advanced testing solutions. For example, according to a 2020 report by the United Nations Environment Program (UNEP) on sustainable packaging, the failure rates of produce packages during supply chain transportation were estimated to be as high as 25-30% when assessed through traditional lab-based tests only.
• Shortage of skilled testing personnel: There is an acute shortage of qualified personnel with the specialized skills needed to operate state-of-the-art instruments and technologies used in packaging testing. Moreover, expertise is required for conducting complex test procedures and accurately analyzing results. Lack of proper training and education infrastructure poses challenges in building an adequate skilled workforce. The limited availability of competent lab technicians, scientists, and researchers is affecting the capability expansion plans of testing laboratories.

Analyst’s Views

The packaging testing market is expected to grow steadily over the next five years primarily due to stringent government regulations regarding product safety and quality. Growing consumer awareness about potential contamination and toxins is also driving more companies to thoroughly test their packaging materials. Regulations such as ASTM D4332 in the US mandate periodic testing of packaging for food, drinks and pharmaceuticals. This is likely to increase testing frequency and boost market revenues. Additionally, the thriving e-commerce industry is increasing the need for robust yet affordable packaging solutions for safe delivery of products online. All of this will augment demand for packaging testing services. However, high costs of testing equipment and lack of skilled professionals may restrain market growth to some extent. Smaller firms may not have adequate resources or capacity for in-house testing. The Asia Pacific region particularly China and India is anticipated to dominate market share due to expanding manufacturing industry and growing exports. North America will remain one of the largest packaging testing industry fueled by stringent Food and Drug Administration regulations and presence of global labs. Rapid growth of e-commerce in developing economies like Brazil, South Africa, and Southeast Asia presents new opportunities for market players to tap into emerging markets.

Recent Developments

New product launches

• In March 2022, Intertek launched Protek healthcare packaging testing to ensure medical packaging quality and safety. The new testing helps improve patient safety and drug efficacy. Intertek Group plc is a U.K.-based multinational assurance, inspection, product testing, and certification company headquartered in London, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
• In January 2021, SGS announced a new suite of smart packaging testing solutions enabled with automation, robotics and analytic systems. It provides faster and more efficient testing. SGS is a Swiss multinational company headquartered in Geneva, which provides inspection, verification, testing and certification services. Its 98,000 employees operate a network of 2,650 offices and laboratories worldwide.
• In April 2020, Bureau Veritas launched 3D scanning technology for packaging validation testing. It provides non-contact optical scanning for defect detection. Bureau Veritas is a France-based company specialized in testing, inspection, and certification founded in 1828. It operates in a variety of sectors, including building and infrastructure, agri-food and commodities, marine and offshore, industry, certification, and consumer products.

Acquisition and partnerships

• In March 2022, Intertek acquired QIMA, a leading provider of quality, safety, and compliance solutions including packaging testing. The acquisition expands Intertek’s TIC capabilities.
• In January 2020, SGS acquired Thomas Howell Ferguson, a leading material testing and expertise company. The acquisition enhanced SGS's material testing and packaging testing capabilities.
• In October 2019, Bureau Veritas acquired Primary Integration Solutions, an Australia-based company specializing in packaging testing and integration technologies. The acquisition strengthened Bureau Veritas position in APAC.

Figure 2. Global Packaging Testing Market Share (%), by Material, 2023

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Top companies in Packaging Testing Market

• Intertek Group plc
• SGS SA
• Bureau Veritas
• Eurofins Scientific
• TÜV SÜD AG
• Mérieux NutriSciences
• Microbac Laboratories, Inc.
• ALS Limited
• National Technical Systems, Inc. (NTS)
• Westpak, Inc.

Definition: Packaging testing involves evaluating packaging materials and packaging components to ensure they are fit for the intended use and comply with regulations. It determines the durability, strength, shelf-life safety, and quality of packaging across industries such as food, beverages, pharmaceuticals, cosmetics, consumer goods, etc. Key tests include physical, chemical, microbiological testing. Packaging testing ensures safety, quality, and integrity of packaged products. It is conducted by third-party testing laboratories and packaging manufacturers using standard test methods and equipment. The growing demand for packaged goods globally, rising focus on consumer safety, and stringent regulations are driving the packaging testing market growth.

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