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Lifestyle changes are driving consumer demand for products packed in rigid plastic packaging

Lifestyle changes are driving consumer demand for products packed in rigid plastic packaging



Rigid plastic market to reach $222.4bn

The global rigid plastic packaging consumption is projected to grow at an annual rate of 3.5 per cent to 69.8 million tonnes by 2024 from 58.6 million tonnes in 2019

August 2020

The rigid plastic packing industry is reacting to new challenges around competition with innovative flexible packaging designs, and the exploration of new markets in transition economies, a new report said.

Smithers Pira’s latest market report: ‘The Future of Rigid Plastic Packaging to 2024’ forecasts rigid plastic packaging sales to grow from $181.1 billion in 2019 at an annual rate of 4.2 per cent during 2019–24 to reach $222.4 billion in 2024. Economic, demographic and lifestyle trends are key drivers of rigid plastic packaging market growth.

In volume terms, the global rigid plastic packaging consumption is projected at 58.6 million tonnes in 2019 and is forecast to grow during 2019–2024 at an annual rate of 3.5 per cent to 69.8 million tonnes.

With shifts in end-use demands increasing at a fast rate, the study identifies the following key drivers and trends for the rigid plastic packaging industry:

Lifestyle and social influences: Lifestyle changes are driving consumer demand for convenience products packed in rigid plastic packaging;

Cost, availability of materials: the cost and availability of standard thermoplastics has a major impact on the profit margins of rigid plastic packaging processors;

Rigid plastics replace traditional packaging materials: rigid plastic packaging will continue to benefit from the drive to replace materials like glass and metal with lightweight, cost-effective, and high-performance plastic materials in various markets;

Rigid plastic packaging challenged by flexibles: flexible packaging has gradually taken market share from rigid pack formats in different end-use applications;

Sustainable packaging: brand owners and retailers are responding to consumer demand for more sustainable packaging in order to reduce the environmental impact of packaging;

Consumer concern about food waste and food safety: the packaging industry has introduced various active and intelligent packaging technologies in response to this concern; and

Regulatory developments for packaging and packaging waste: the European Union has introduced regulations in relation to food contact, recycling of packaging waste and greater use of recycled plastics in product packaging.

Rigid plastic has been among the most widely used packaging materials due to the numerous properties it provides over more traditional rival materials, such as metal and glass. Rigid plastic is a light, malleable, durable material that can adapt to various packaging designs and requirements, and is a most cost-effective choice of packaging. Glass is seven times heavier than the equivalent volume of plastic.

 

Market Dynamics

Increasing demand and awareness for fresh and personal care food and beverages is effectively growing the market. Moreover, the market is driven by technological development and increasing investment in research and development. Global rigid plastic packaging market is also growing with the increasing demand for home care product. Thus, global rigid plastic packaging market is expected to grow at significant growth rate in forecast period. However, non-biodegradable properties of rigid plastic packaging material may hinder the market of rigid plastic packaging. Nonetheless, untapped market and improving health awareness are expected to generate new opportunity in forecast period, the report noted.

 

Segment Overview

 The market is split into product types, polymer type, application type and regional segments. Based upon product type, rigid plastic packaging market is classified as bottles, tubs, cups, trays and others. On the basis of polymer type, rigid plastic packaging market has been segmented as polyethylene terephthalate (PET), high-density polyethylene (HDPE), polyvinyl chloride (PVC), low-density polyethylene (LDPE), polypropylene (PP), polystyrene (PS) and others. Based upon application type, market of rigid plastic packaging is classified as food, beverage, healthcare, cosmetics, personal care, industrial packaging and others.

North America dominates the market with highest market share due to increased healthcare conditions. Europe is second largest market for rigid plastic packaging and it is expected to generate new opportunity with product innovation and increased investment in research and development. Asia Pacific market is witnessing strong growth rate due to increased public health awareness.  




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