Global rigid packaging market is estimated to be valued at USD 227.36 Billion in 2024, exhibiting a CAGR of 4.6% over the forecast period 2024-2031. Furthermore, growing e-commerce sector has boosted demand from food & beverage industry for packaging their goods.
Market Dynamics:
Rapid industrialization in emerging economies has led to growth in manufacturing and processing industries that require rigid packaging for transporting goods. This is expected to drive the global rigid packaging market growth. Furthermore, increasing consumer spending on packaged food and beverages has also boosted the market growth. Rigid packaging provides durability and protects products from damage during transportation. This makes rigid packaging preferable over flexible packaging for shipping industrial goods as well as consumer goods over long distances. Changing lifestyle and rising disposable income are other key factors bolstering the sales of packaged food and beverages, and this drives the rigid packaging market.
Market Drivers
Increasing Demand for Processed and Packaged Food
Global rigid packaging market is experiencing significant growth due to rising demand for processed and packaged food products globally. Rigid packaging solutions like cans, bottles, jars, and others provide durability and preserves the quality and freshness of food items for a longer period. With changing lifestyle and growing urbanization, demand for ready-to-eat packaged food items is increasing rapidly. Rigid packaging plays a crucial role in maintaining the hygiene, safety and shelf life of processed food. This boosts its adoption across food manufacturers.
Growth of E-commerce Sector
Rise of e-commerce industry is another major factor fueling the rigid packaging market growth. Large packaging is required for safe delivery of products ordered online. Rigid containers made of plastic, metal, glass, and othersprovides protection to products against damage during transit. E-commerce companies widely use corrugated boxes, plastic bottles and cans for packaging various items. The exponential growth of online retail has created huge demand for rigid packaging solutions. Manufacturers are launching innovative and sustainable rigid packaging specially designed for secure delivery through e-commerce channels.
Market Restraints
Stringent Environmental Regulations
Growing environmental concerns related to plastic waste is a key challenge for rigid plastic packaging producers. Many governments and regulatory bodies have imposed bans or restrictions on certain types of plastics. Compliance with stringent norms regarding recyclability, reuse, and disposal of plastic packaging is increasing production costs. Manufacturers have to invest in R&D to develop sustainable alternative materials and novel recycling methods. Stringent eco-regulations if not addressed properly can hamper the market expansion in long run.
High Production and Transportation Costs
Rigid packaging solutions have higher material and manufacturing costs as compared to flexible pouches and bags. Producing rigid containers involve multiple processing steps like forming, decorating and assembly which increases production overheads. Transportation of rigid packages consume more space and adds to freight costs. The bulky nature of rigid packaging negatively impacts the profit margins of producers and brand owners. Fluctuating raw material prices also pose inflationary pressure on the overall packaging costs.
Market Opportunities
Growth in Pharmaceutical Industry
Rigid packaging finds major application in pharmaceutical industry for product protection, tamper evidence and compliance with medical drug regulations. The market is growing at a rapid pace driven by increasing healthcare investments, aging population and rise of lifestyle diseases. This offers lucrative opportunities for rigid plastic and glass packaging companies to cater to this industry. Manufacturers are investing in innovative rigid solutions meeting stringent requirements of pharmaceutical supply chain.
Demand for Sustainable Packaging
In current market scenario, there is huge demand for eco-friendly and sustainable packaging solutions. Rigid packaging manufacturers can leverage this opportunity by developing bio-based, recyclable and refillable rigid containers with reduced environmental footprint. Introduction of bamboo, bioplastics, compostable materials, and packaging made from recycled content will provide it competitive advantage over rivals. Innovations promoting circular economy principles can boost adoption of rigid packaging among conscious consumers and brands.
Link - https://www.coherentmarketinsights.com/market-insight/rigid-packaging-market-846
Key Developments
- In 2023, Amcor introduced a 100% recycled PET (rPET) bottle for the Ron Rubin Winery's new BLUE BIN wine range, marking the first premium wine packaged in a 750ml rPET bottle in the U.S.
- In September 2022, Amcor Rigid Packaging (ARP) launched the DairySealTM packaging line, which includes ClearCorTM, an advanced polyethylene terephthalate (PET) barrier
- In 2022, Amcor introduced a ground breaking two-step lightweighting technology called Quantum, which significantly reduces the weight and material in packaging finishes, particularly PET bottles. This innovative technology eliminates more than 50% of the material in the finish of PET bottles, leading to substantial weight reductions without compromising performance. By focusing on lightweighting the finish rather than the body of the bottle, Quantum offers sustainability benefits, lowers manufacturing costs, reduces greenhouse gas emissions, and enhances packaging appearance across various industries like drinks, personal care, food, and healthcare.
- In March 2021, Amcor announced a new partnership with Alliance, a 57 member companies to end plastic waste. Amcor announced that it had joined the Alliance at Executive Committee Level. Similar to Alliance membership, Amcor's 2025 Sustainability Pledge intends to have 100% of its packaging recyclable or reusable by 2025
Key Players
Amcor Limited, DS Smith Plc., Holmen AB, Plastipak Holding, Berry Plastics Corporation, Reynolds Group Holdings Limited, Sealed Air Corporation, Resilux NV, Sonoco Products Company, Silgan Holdings., EPL Limited, Time Technoplast Ltd. , Manjushree Technopack Ltd., Rishi FIBC Solutions Private Limited, Tripak Solutions , Bulkcorp International Private Limited, Parekhplast India Limited, Pearlpet (Pearl Polymers Limited), Pyramid Technoplast Pvt. Ltd, Regent Plast Pvt. Ltd.
