NEW YORK, July 12, 2024 /PRNewswire/ — The global secondary packaging market size is estimated to grow by USD 86.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.6% during the forecast period. Growing E-commerce industry is driving market growth, with a trend towards increasing mergers and acquisitions (M and A). However, rising cost of raw materials poses a challenge. Key market players include Amcor Plc, Ball Corp., Berry Global Inc., Catalent Inc., Crown Holdings Inc., Daio Paper Corp., DS Smith Plc, Graphic Packaging Holding Co., Huhtamaki Oyj, International Paper Co., Mondi Plc, Packaging Corp. Of America, Rengo Co. Ltd., Salzgitter AG, Sealed Air Corp., Smurfit Kappa Group, Sonoco Products Co., Stora Enso Oyj, Tetra Laval SA, and WestRock Co..
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Forecast period |
2024-2028 |
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Base Year |
2023 |
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Historic Data |
2018 – 2022 |
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Segment Covered |
Type (Paper and Plastic), Application (Food, Beverages, Pharmaceuticals, Personal and home care, and Others), and Geography (North America, Europe, APAC, South America, and Middle East and Africa) |
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Region Covered |
North America, Europe, APAC, South America, and Middle East and Africa |
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Key companies profiled |
Amcor Plc, Ball Corp., Berry Global Inc., Catalent Inc., Crown Holdings Inc., Daio Paper Corp., DS Smith Plc, Graphic Packaging Holding Co., Huhtamaki Oyj, International Paper Co., Mondi Plc, Packaging Corp. Of America, Rengo Co. Ltd., Salzgitter AG, Sealed Air Corp., Smurfit Kappa Group, Sonoco Products Co., Stora Enso Oyj, Tetra Laval SA, and WestRock Co. |
Key Market Trends Fueling Growth
Vendors in the global secondary packaging market are expanding their businesses through strategic mergers and acquisitions (M&A) to boost their market presence. Notable recent acquisitions include Amcor’s purchase of MDK, a Shanghai-based medical device packaging provider, and Smurfit Kappa’s acquisition of Atlas Packaging, an independent corrugated packaging supplier. These deals will enable Amcor to strengthen its position in the APAC medical packaging market and Smurfit Kappa to enhance its capabilities in the UK market, offering innovative and sustainable packaging solutions to customers. These strategic moves are expected to drive growth in the secondary packaging market during the forecast period.
The secondary packaging market is witnessing significant growth in various industries such as food and beverages, electronics, and pharmaceuticals. Trends include eco-friendly solutions using paper and paperboard, reducing damage during transportation through bulk packaging like Corrugated Boxes and Plastic Crates, and addressing external factors like moisture and infestation with Wraps and Films. The food & beverages industry focuses on brand marketing and product display using Cartons and Trays. In contrast, the electronics industry prioritizes protection for sensitive items like Lights and LEDs. The chemicals industry and electrical industry also benefit from secondary packaging to ensure safe transport. E-commerce websites drive demand for home delivery solutions. The Folding Cartons segment is a popular choice due to its versatility and cost-effectiveness. Environmental concerns are driving the use of recycled solutions. Primary packaging, such as Bottles, is often integrated with secondary packaging for added protection.
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Market Challenges
• The secondary packaging market is experiencing a significant increase in raw material costs, primarily due to the volatility of paper pulp and plastic prices. Paper pulp, a major raw material for corrugated boxes, has seen a surge in prices due to a widened demand-supply gap and rising wood costs, which account for over 70% of the total input cost in paper-based packaging solutions. Additionally, plastic-based packaging solutions have been affected by the invasion of Ukraine by Russia, leading to increased resin prices and manufacturing costs. Crude oil prices, derived from petroleum hydrocarbons, have also risen, impacting the cost of synthetic polymers such as PE, PP, nylon, PS, PTFE, and epoxy. These increasing raw material costs are expected to negatively impact the production of secondary packaging products, potentially hindering market growth during the forecast period.
• The secondary packaging market encompasses various product categories, including folding cartons, corrugated boxes, plastic crates, wraps, and films. Key industries like beverage, healthcare, consumer electronics, and cosmetics drive demand. Brands prioritize product display and brand marketing through eye-catching designs. Recycled solutions and eco-friendly practices are essential due to increasing environmental concerns. Primary packaging, such as bottles, vials, and blisters, must comply with regulations regarding dosage instructions, expiration dates, and regulatory information. Challenges include counterfeiting and tampering, necessitating secure packaging solutions. Folding cartons and trays are popular due to their lightweight and versatility. Raw materials, such as biodegradable and recyclable options, are crucial for sustainability. E-commerce growth increases demand for film bundles and shrink films for product protection. Environment-friendly materials, like recycled paper and biodegradable plastics, are preferred. Deforestation and tourism impact paper sourcing, while processed food, carbonated beverages, and ready-to-eat foods require specific packaging solutions. Graphic packaging enhances product appeal, while regulatory compliance remains a priority.
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Segment Overview
This secondary packaging market report extensively covers market segmentation by
- Type
- 1.1 Paper
- 1.2 Plastic
- 2.1 Food
- 2.2 Beverages
- 2.3 Pharmaceuticals
- 2.4 Personal and home care
- 2.5 Others
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and Africa
1.1 Paper- Paper-based secondary packaging is a popular choice for businesses and consumers due to its sustainability and eco-friendliness. This type of packaging involves the use of paper-based materials for product protection, transportation, and storage. The food and beverage industry is a significant user of paper-based secondary packaging, as it ensures proper handling and storage of food products while protecting them from environmental factors and contamination. Examples include pizza boxes, cereal boxes, and beverage cartons. The e-commerce sector is also adopting paper-based packaging to address waste and sustainability concerns, with major companies like Amazon and Walmart using corrugated cardboard boxes for shipping. The beauty and cosmetics industry is another sector embracing paper-based packaging due to its cost-effectiveness, sustainability, and attractive appeal. The growing trend towards eco-friendly solutions is driving the adoption of paper-based secondary packaging in these industries, contributing to the growth of the paper segment in the global secondary packaging market.
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Research Analysis
The secondary packaging market encompasses various types of packaging solutions designed to protect and transport primary packaged products. This market includes Folding Cartons, Corrugated Boxes, Plastic Crates, Wraps and Films, Trays, and Outer Packaging. Folding Cartons are popular for their versatility and cost-effectiveness, while Corrugated Boxes offer robust protection against damage. Plastic Crates and Trays are ideal for bulk packaging and heavy items. Wraps and Films provide an additional layer of protection, especially for sensitive products like Beverages, Healthcare, and Consumer Electronics. Shrink Films are commonly used for Primary Package Envelopment in industries like Food and Beverage and Electronics. External factors such as Damage, Appearance, Moisture, and Infestation can significantly impact the effectiveness of secondary packaging. Therefore, it is crucial to consider these factors when selecting the appropriate packaging solution. Paper and paperboard are common materials used in secondary packaging due to their sustainability and cost-effectiveness. However, they can be susceptible to Physical Damage and Moisture. To mitigate these risks, advanced coatings and treatments can be applied to enhance the durability and water resistance of these materials. Overall, the secondary packaging market plays a vital role in ensuring the safe and efficient transportation of primary packaged goods.
Market Research Overview
The secondary packaging market encompasses various types of packaging solutions designed to protect and promote primary packaged goods. Folding cartons, made of paper or paperboard, offer versatility and branding opportunities for various industries, including beverages, healthcare, consumer electronics, and cosmetics. Corrugated boxes provide strength and protection for heavy and bulky items, while plastic crates offer durability for industrial applications. Wraps and films, such as shrink films, ensure product security and product display. Eco-friendly practices are increasingly important in the secondary packaging market. Recycled solutions, lightweight, biodegradable, and recyclable materials are gaining popularity to reduce environmental impact. Raw materials, such as paper and paperboard, are under scrutiny for their sustainability, with deforestation and tourism being significant external factors. Folding carton demand is driven by brand marketing and product display needs, with regulatory information, expiration dates, and tamper-evident features crucial for industries like pharmaceuticals and food and beverages. Secondary packaging plays a critical role in protecting against counterfeiting, damage, and environmental concerns. E-commerce growth and home delivery have accelerated the demand for secondary packaging, with e-commerce websites requiring efficient and protective packaging solutions. The food and beverages industry, chemicals industry, electronic products, and pharmaceuticals industry are major consumers of secondary packaging, with external factors like damage, appearance, moisture, infestation, and physical damage influencing packaging choices. The folding cartons segment dominates the secondary packaging market, with environment-friendly materials, such as biodegradable and recycled paper, gaining traction. Other packaging types, such as trays, film bundles, and primary package envelopment, cater to specific industry needs. The market is influenced by various external factors, including the electronic industry, lights, and LEDs, and environmental concerns.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Type
- Paper
- Plastic
- Application
- Food
- Beverages
- Pharmaceuticals
- Personal And Home Care
- Others
- Geography
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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SOURCE Technavio
