SQUEEZE TUBE PACKAGING MARKET ANALYSIS

The squeeze tube packaging sector is facing challenges due to fluctuating prices of raw materials used to manufacture tubes. Plastic polymers like Low Density Polyethylene (LDPE), Linear Low-Density Polyethylene (LLDPE), and aluminum, which are key raw materials, have witnessed high price volatility in the past year affecting packaging manufacturers. The uncertainty caused by changing prices makes it difficult for companies to arrive at optimal production cost. Moreover, plastic polymers are crude oil derivatives and fluctuations in global oil prices automatically impacts raw material costs. Sudden price hikes reduce profit margins, while drops in rates negatively impact the top-line of companies.

For example, during mid-2021 when input costs rose sharply, several personal care and food product manufacturers halted new squeeze tube packaging launches, preferring stable rigid plastic packaging instead. Manufacturers struggle to transfer increased costs to brand owners and end consumers directly leading to immediate loss of business. The unpredictability in sourcing crucial inputs at affordable rates poses significant squeeze tube packaging risks for participants.

Market Opportunity - Product innovation and development of sustainable and recyclable packaging solutions

The squeeze tube packaging sector sees huge opportunities through constant innovation and development of environment friendly products. As sustainability becomes a major purchase criterion, companies are investing in R&D to launch tubes made from renewable, recycled and recyclable materials. Bioplastics obtained from sugarcane or plant-based resins are gaining popularity.

For instance, according to United Nations Environment Programme (UNEP)reports from 2023, enabling reuse and improving recyclability are critical to curb plastic pollution which is projected to triple by 2040 if no action is taken. Innovation in squeeze tube design can thus have large positive impact on sustainability while future-proofing growth in the squeeze tube packaging sector. Efforts are also on to enhance the recyclability of aluminum tubes. Participants partner with brand owners proactively to replace non-recyclable multi-layer tubes.