BAG-IN-BOX CONTAINER MARKET ANALYSIS

Market Challenges And Opportunities

Global Bag-in-Box Container Market: Growth Drivers

Rapidly Growing demand for food and Beverages industry

The growth of the online food retail sector, the rise in the trend of eating out, particularly in developing countries, and other factors have all contributed to the expansion of the food and beverage industry. Due to the benefits mentioned above, the bag-in-box packaging is widely used in the food and beverage industry. Additionally, the automotive industry frequently uses bag-in-box packaging to deliver vital fluids like lubricants and motor oil used by cars. Additionally, the personal care and hygiene products sector uses bag-in-box packaging for items such as shampoo, detergent, and other comparable items. Additionally, a rise in disposable income, population growth, and business-friendly government policies in many nations all contribute significantly to the acceleration of industrialization. As a result, it is anticipated that the growth of all the aforementioned industries, which make extensive use of bag-in-box containers, will fuel the market's expansion over the coming years (2023-2030).  For instance, in May 2020, Smurfit Kappa introduced the Vitop Blue tap for use with Bag-in-Box cleaning products. During the COVID-19 pandemic, the product is intended to be used for bag-in-box hand sanitizer packaging. Smurfit Kappa is a FTSE 100 company and one of the leading providers of paper-based packaging in the world, with operations in over 30 countries.

Increased Demand for sustainable packaging

Packaging extends the product's shelf life and improves its shelf presence in addition to keeping it safe during transportation. As it is a sustainable packaging method that uses less plastic and more paperboard, which is readily recyclable, bag-in-box technology has gained popularity in the industry. Furthermore, as it is essentially a flat packaging, it takes up less space than a bottle and is therefore simpler to transport. Additionally, it can be used for packing a variety of dry and liquid products across the industry, including products for storing chemicals, motor oil, lubricants, wine, juices, and other liquid consumer products. For instance, in May 2021, New SIOC (Ships-In-Own-Container) approved bag-in-box packaging for liquid products was unveiled by Scholle IPN, a provider of bag-in-box and other packaging solutions. According to coherent market insights, this packaging can save up to 75% more energy overall and up to 67% on carbon emissions.

Global Bag-in-Box Container Market: Market Restraints

High cost of bag-in-box and Availability of alternative

The high cost of bag-in-box packaging solutions compared to conventional packaging options is anticipated to restrict the adoption of bag-in-box, in turn, expected to hinder the market growth over the forecast period. This factor is expected to inhibit the adoption of bag-in-box across various industrial applications and further restrict the market growth during the forecast period (2023-2030).

The growing usage of plastic bottles in the packaging of soft drinks due to cost-effectiveness is projected to restrain the market growth of bag-in-box over the forecast period. Moreover, fluctuation in the supply of raw materials that are used to produce bag-in-box containers is further expected to propel the market growth over the forecast period.