The Global Plastic Packaging Market is expected to experience a compound annual growth rate of 4.4 percent by the year 2025. It is estimated that this market will be worth approximately $456.6 billion by the year 2025. It is believed that the development of biodegradable plastics and other technological advances and the increased demand for these products will fuel the growth of this market on a global scale. The Global Plastic Packaging Market is comprised of companies that primarily engage in the manufacturing of various plastic products, such as plastic containers and plastic films. Several industries utilize plastic packaging. It is widely used in the packaging of personal care products, household goods, foods and beverages, pharmaceuticals, among other products.
Factors Expected to Fuel the Growth of the Global Plastic Packaging Market
Several factors are expected to boost the augmentation of the global plastic packaging market. Of all the elements that are projected to contribute to the growth of this market over the forecasted time period, rapid urbanization and changes in the lifestyle of consumers are boosting the demand for plastic packaging products. The demand for packaged processed foods, which reduce cooking time, is leading to increased growth of the market, as it has lead to more use of plastic packaging in the food and beverage industry. In fact, the food and beverage industry held the largest market share in the global plastic packaging market in 2015, accounting for more than 54 percent of the volume of consumption.
The healthcare industry is also projected to increase the growth of this market over the forecasted period. This is the result of increased health risks, including the development of age-related and infectious diseases, which has necessitated the need for more healthcare products that are packaged in plastic materials. Furthermore, an increase in technological innovation and the application of healthcare products in various sectors, as well as the rapid growth of the pharmaceutical industry, will likely boost augmentation for plastic packaging in the healthcare industry.
Product Segmentation of the Global Plastic Packaging Market
The rigid packaging segment held the largest market share in the global plastic packaging market in 2016. It is expected that this segment will continue to dominate the market, thanks to the increased demand for products that are packaged in plastic materials in the pharmaceutical sector.
It is also predicted that the flexible packaging segment will increase in value during the forecasted time period, as more sectors that will become interested in using products that require this type of plastic packaging.
The exceptional aesthetic value and the superior barrier that plastics create against moisture and air are highly important qualities of these materials. These qualities are driving the increased demand for plastic packaging worldwide.
However, while the global plastic packing market is expected to experience a significant growth in the forecasted time period, there are factors that could pose a challenge for the augmentation of this market: the constantly fluctuating costs of raw materials that are used to manufacture plastic materials. Another factor that could more severely impact the growth of the global plastic market is the increasing environmental concerns in regard to the impact plastic has on the environment. Moreover, government regulations and the demands from consumers that are pushing manufacturers to look for plastic packaging solutions that are more biodegradable or made from sustainable sources.
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Growth of the Plastic Packaging Market in Regard to Regions
In 2016, Asia Pacific dominated the global plastic packaging market. During this year, this region accounted for more than 30 percent of the shares of the total volume consumption in this market. Over the forecasted time period, this region is expected to continue dominating the market, as it will likely be the fastest growing market for the foreseeable future. This is due to the developing markets that are utilizing plastic packaging materials in both India and China.
North America held the second largest share of the global plastic packaging market in 2016. The pharmaceutical and food and beverage industries contributed the most to the use of plastic packaging products. Over the next few years, it is predicted that these sectors will continue fueling the growth of this market in North America.
During the forecasted time period, Europe is also expected to see significant growth. This will likely be due to the increased demand for plastic packaging materials in the food packaging industries.
Key Contributors and Competitive Landscape of the Global Plastic Packaging Market
The global plastic packaging market is highly competitive. The reason for such high competition is due to the existence of several well-established vendors that invest in the market. During the course of the next few years, the competition among vendors is expected to intensify even more. This increased competition will likely be due to the increase in the extension of products, the innovation of technology, and the higher acquisitions and investments made by key contributors.
Vendors in the global plastic packaging market compete against one another based on innovation, cost, performance and quality, as well as the range of plastic products that they offer.
Some of the most notable vendors that contribute to the global plastic packaging market include APEX Plastics, Alpha Packaging, Plastipak, Sidel and Silgan. While these companies may be the largest vendors in the market, there are other notable key players in the market, which include:
- Hassan Plas Packaging
- Graham Packaging
- HTI Plastics
- First American Plastic
- Linpac Group
- R&D Molders
- RPC Group
- Streamline Plastic
More investments in regard to research and development and an increased demand for products that are packaged in plastic materials are expected to significantly spur the growth of this market. As such, investors who are interested in this market can expect to see a significant return on their moneys. It should be noted, however, that the challenges this market faces, such as stringent regulations set forth by the government and the increased demand for more ecologically-friendly packaging products could potentially hamper investment growth.