Single Use Packaging Market Estimated to Witness High Growth Owing to Sustainability Initiatives and High Adoption Across Industries
The single use packaging market is estimated to be valued at USD 108.35 Bn in 2024, exhibiting a CAGR of 5.6% over the forecast period (2024-2031). Growth of the packaging industry coupled with rising demand for convenient packaging from the food & beverage industry are some of the key factors driving the growth of the single use packaging market. Furthermore, the increasing adoption of single use packaging across several industries such as healthcare, personal care & cosmetics is also expected to support the market growth during the forecast period.
Improved sustainability practices and shift towards eco-friendly packaging solutions are expected to fuel the market growth over the forecast period. Many key players are focusing on manufacturing single use packaging using recyclable and biodegradable materials in order to reduce environmental impact. In addition, high demand from end-use industries such as food & beverage, personal care, and pharmaceutical is also driving the market growth. Factors, such as busy lifestyle, need for portable packaging, and rise of ready-to-eat food industry, have increased the adoption of single use packaging.
Growing Demand for Convenient and On-The-Go Food Packaging
The fast-paced lifestyle of modern consumers has increased the demand for convenient and on-the-go food and beverages. Single use packaging such as cups, plates, bowls, cutlery, etc. allow consumers to easily carry and consume food outside of their homes. They eliminate the need to carry reusable containers and cutlery, making outdoor dining very convenient. This rising demand for convenient packaging from the food service industry as well as individual consumers acts as a major driver for the growth of the single use packaging market.
Strict Regulations on Use of Multi-use Plastic Bags
In recent years, various governments across the globe have imposed strict regulations to curb the use of multi-use plastic bags due to their adverse environmental impact. Several countries and cities have outright banned plastic bags or imposed levies on them. This has forced retailers as well as consumers to shift towards more sustainable single use packaging alternatives such as paper bags. The tightening norms around plastic bags are steering the demand for alternative single use options like paper bags, creating opportunities for growth in the single use packaging market.
Availability of Re-usable and Sustainable Alternatives
In the current scenario of rising environmental concerns, many consumers are actively looking out for greener and more sustainable packaging options. Re-usable containers, cups, boxes, etc. made from materials like stainless steel, glass, and bamboo are gaining preference over single use varieties. Manufacturers are also innovating new models of re-fill stations to encourage reuse. The availability of such sustainable alternatives poses a major restraint for the single use packaging market.
High Cost of Production
Single use packaging requires more material per unit compared to multi-use varieties. Additionally, they offer limited scope for reuse which increases the overall production cost. The costs of procuring raw materials like paper, plastic as well as production and disposal costs add to the expense. Manufacturers pass on a significant portion of these costs to consumers by pricing single use products higher. The relatively high costs pose affordability issues and act as a major impediment for the single use packaging market.
Innovation of Bio-degradable and Compostable Materials
With the rising environmental concerns, bio-degradable and compostable materials offer huge opportunities for growth in the single use packaging market. Manufacturers are innovating new varieties of packaging made from renewable resources like bagasse, bamboo, corn starch, leaves, etc. that can decompose quickly and safely. The ability to decompose without harming the environment addresses a key issue and increases acceptability of single use packaging. This presents significant opportunities to capture the fast-growing eco-friendly segment.
Emerging Markets in Developing Countries
Developing nations in the Asia Pacific and the Middle East regions are witnessing rapid economic development and urbanization. This has spiked the disposable incomes as well as hectic lifestyles in such countries. Along with it, these nations are also adopting Western food consumption and dining habits which inflate the demand for convenient single use packaging. Manufacturers can capitalize on these emerging markets by customizing offerings as per local tastes and affordability levels. The evolving markets in developing countries offer lucrative opportunities for growth.
Link: https://www.coherentmarketinsights.com/market-insight/single-use-packaging-market-5161
Key Developments
- In March 2024, supply chain partners came together to introduce a new premium film packaging that incorporates 50% recycled plastic.
- In 2023, Google initiated a Single-Use Plastic Challenge aimed at finding alternatives to plastic in single-use food service packaging.
- In 2022, Ardagh Group collaborated with Constellation Brands Inc. to create a beautifully designed wine bottle for the Crafters Union brand. This 750ml Claret wine bottle features 360-degree decoration and is produced by Ardagh Group, offering exceptional shelf appeal while being crafted from premium, sustainable glass.
- In 2022, Amcor introduced a groundbreaking platform of paper-based packaging products called AmFiber. AmFiber innovations are designed to enhance the capabilities of traditional paper packaging, offering a broader range of features and functional benefits to cater to the evolving needs of consumers.
Key Players
Ardagh Group SA, Amcor PLC, Winpak Limited, Dart Container Corporation, Snapsil Corporation, Transcontinental Inc., Berry Global Inc., , Huhtamaki Oyj, Sealed Air Corporation, Sonoco Products Company, and Hotpack Packaging Industries LLC
