Global Liquid Packaging Market Projected to Grow at a CAGR of 4.6% and Generate a Revenue of $501.2 billion by 2028Download Sample Reports Overview
The global liquid packaging market size is predicted to be valued at $501.2 billion by 2028, surging from $352.5 billion in 2020, at a noteworthy CAGR of 4.6%.
Impact Analysis of COVID-19 on the Liquid Packaging Market
The coronavirus outbreak has led to drastic changes such as revenue losses that have negatively impacted functioning of various business across the world. However, the pandemic has created a positive impact on liquid packaging market due to growing popularity of e-commerce platforms, shop-at-home, and delivery services including food delivery. Many e-commerce companies such as Amazon and Flipkart have introduced protective packaging solutions, zero-contact delivery, and other measures to prevent the spread of pandemic. This is majorly owing to more direct-to-consumer shipping compared to traditional retailer-to-consumer shipping. For instance, as stated on August 19, 2021, in the U.S. Census Bureau, a principal agency of the U.S. Federal Statistical System, the e-commerce sector accounted for 11.3% of North America’s retail market in 2019. However, the onset of pandemic increased the-e-commerce sales by 42.4% in 2020. Hence, a shift towards touchless or zero-contact delivery of various goods such as groceries, food & beverage, and vegetables has led to an increase in the demand for aesthetically pleasing, safe, and hygienic packaging.
Various technological advancements such as shift towards sustainability keeping hygiene in mind owing to heightened consumer-safety concerns are helping the society to recover from chaotic situation. The implementation of innovative technologies and improved design in packaging are estimated to boost the liquid packaging market growth. For instance, the demand for light-weight packaging materials with enhanced filling and volume density, small size packs, and shelf-ready packaging has increased. In addition, near field communication (NFC) and radio frequency identification (RFID) technique that uses radio signals to tagging & tracking of packages and use of bar codes are some of the technologies implemented by manufacturers, suppliers, retailers of packaging industry.
Global Liquid Packaging Market Analysis
Liquid packaging market is gaining huge demand from food & beverage sector where packaging plays an important role by retaining the product quality, preventing product deterioration, and extending the shelf-life of the products. For instance, liquid packaging offers chemical protection such as exposure to gases, moisture, light, and other environmental factors. For instance, glass and metal containers used for liquid packaging offer complete protection against external chemicals and environmental factors. In addition, liquid packaging offers protection against biological agents such as pathogens, insects, rodents, and others thereby preventing spoilage of food and risk of any disease. Moreover, paperboards and corrugated materials used for liquid packaging resist physical barriers such as impacts, abrasions which is used for packaging of food & beverages. Furthermore, child-resistant closures prevent exposure to potentially dangerous chemicals. For instance, plastic packaging used for packaging of shampoos, body lotions, and soda bottles reduces the danger from broken glass containers.
However, increase in consumption of plastic and growing concerns regarding its degradability and recyclability is estimated to hinder the market growth. Plastics widely used for liquid packaging raises environmental concerns as they are usually non-biodegradable and take years to decay. This is due to the intermolecular bonds present in plastic that do not corrode or decompose. Although, most of the plastics are recycled, most of them remain uncollected in the dump sites that pollute the environment by entering the landfill and water bodies.
Technological innovations in liquid packaging such as edible packaging, micro-packaging, anti-microbial, and smart packaging are anticipated to boost the liquid packaging market demand. Some of the examples of edible packaging include packing pumpkin soup in spinach membrane, melted chocolate in cherry membrane, candy wrapped in edible rice paper, and others. Micro packaging uses nanotechnology which can be used for food & beverage packaging, which is thousand times smaller than human hair. Such micro packaging consists of water, a soluble polymer, and clay particles which is more eco-friendly than plastics. In addition, the anti-microbial packaging shields the food from bacteria and acts against it. Some of the anti-microbial packaging also absorbs oxygen and keeps the food fresh.
Global Liquid Packaging Market, Segmentation
The global liquid packaging market is segmented based on material, technology, packaging format, and end-use industry.
The material segment is further classified into plastics, glass, metal, and others. Among these, the plastics sub-segment is anticipated to have a dominant market share and shall surpass $197.6 billion by 2028, with an increase from $133.6 billion in 2020. Plastics are widely used for liquid packaging as they can survive extreme temperatures since they do not degrade in hot or cold temperatures. This helps in preserving the integrity of food & beverage inside by preventing them from external conditions such as moisture, dust, light, oxygen, and others. In addition, plastics can be customized in any shape and size as they are the most flexible and adaptable form of packaging. Plastic is highly versatile due to which it can be recycled and reused. Also, plastic packaging is economical due to which it is used by various small scale as well as big industries.
The technology segment is further classified into aseptic liquid packaging, blow molding, and form fill seal. Among these, the aseptic liquid packaging sub-segment is anticipated to have a dominant market share and shall surpass $248.3 billion by 2028, with an increase from $169.4 billion in 2020. The aseptic liquid packaging technology in food & beverage sector incorporates a specialized manufacturing process where the food contents are sterilized separately from packaging and then inserted into the container in the sterile environment. Extremely high temperature is used to maintain the freshness of content inside and to prevent contamination due to micro-organisms. One of the key advantages of aseptic liquid packaging is increased shelf-life of the product by 6 to 12 months without refrigeration. Aseptic liquid packaging is lightweight and compact that reduce the shipping & distribution costs, as there is no need to refrigerate the product during shipping.
The packaging format segment is further classified into flexible and rigid. Among these, the rigid sub-segment is anticipated to have a dominant market share and shall surpass $321.2 billion by 2028, with an increase from $231.7 billion in 2020. The rigid liquid packaging of products offers superior strength as it is made from hard plastics and other materials. The use of rigid packaging such as glass provides impression of quality for example, luxury to the customers. Also, it does not affect the food flavor due to lack of soft plastics.
The end-use industry segment is further classified into food & beverage, personal care, pharmaceutical, household care, and industrial. Among these, the food & beverage sub-segment is anticipated to have a dominant market share and shall surpass $178.3 billion by 2028, with an increase from $118.9 billion in 2020. Packaging plays a vital role in food & beverage industry as efficient packing of products offers food safety, extends the shelf-life of the product, and offers mobility & transport convenience. Packaging protects the food & beverages from any physical or chemical damage that can occur during transportation, handling, and storage.
The liquid packaging market for the Asia-Pacific region is projected to witness rapid growth. This region’s market generated a revenue of $119.3 billion in 2020 and is projected to reach up to $176.4 billion by 2028. Liquid packaging demand dominates the Asia-Pacific region, as consumers are interested in the packaging material and its impact on health & environment. For instance, as stated on December 11, 2019 in the Packaging World, leading packaging news provider platform, the cartons used to pack liquid products such as milk, syrups, fruit juices, sour milk, and others have gained huge popularity in China. In addition, plastic pouches that are lightweight, eco-friendly, portable, and available in various shapes & sizes used for packing of fresh milk and juices is widely adopted in China. In addition, as stated on April 30, 2019, in the Packaging Insights, packaging industry news platform, aseptic liquid packaging in India is growing at the rate of 17 to 18 percent per annum which is anticipated to double in next five years. This is majorly owing to growing concerns regarding food safety, high demand for recyclable carton packs, extended shelf-life products, and reducing the need for addition of preservatives.
Top 10 Major Key Players in the Global Liquid Packaging Market are -
- Amcor plc
- Berry Global, Inc.
- Constantia Flexibles
- Gerresheimer AG
- Goglio S.p.A.
- Mondi plc
- Sealed Air Corporation
- Smurfit Kappa Group
- Tetra Pak International S.A.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Liquid Packaging Market:
- Bargaining Power of Suppliers: Majority of the liquid packaging companies are dependent on numerous suppliers for purchase of raw materials such as plastics, metals, cartons, and others from suppliers. Hence, the suppliers are at dominant position and can use their bargaining potential to gain higher profits.
Thus, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: In this market, the concentration of buyers is high as packaging is one of the largest industries in the world. Almost, every industry including food & beverage, pharmaceutical, industrial, household care, and others utilizes variety of packaging for packing of their goods.
Thus, buyer’s bargaining power will be low.
- Threat of New Entrants: The threat of new entrants is moderate as the emerging players are focusing on sustainable packaging and the use of innovative technologies such as nano-technology, micro-packaging to sustain the market competition.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: The presence of alternatives such as bio-based packaging which is gaining huge popularity due to growing environmental concerns with the use of plastics, glass, metals, and other materials is estimated to hinder the demand for liquid packaging materials such as plastics, glass, metals
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The liquid packaging market players are focusing on enhancing their production capacity with the use of innovative and sustainable technologies to attract large number of customers.
Therefore, competitive rivalry in the market is high.