Market Overview:
Rigid packaging refers to the packaging of products using hard or inflexible materials like wood, metal, glass and plastics. Rigid plastic packaging provides strength, durability, resistance to contamination, cost effectiveness and sustainability which makes it suitable for packaging food and beverages, personal care and homecare products, pharmaceuticals and various other industrial goods. Rigid plastic packaging enhances the shelf life of products and prevents damage during transport.
The Rigid Packaging Market is estimated to be valued at US$ 693,808.32 Mn in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the rigid packaging market is the increased adoption of rigid plastic packaging. Rigid plastic packaging is witnessing high demand due to ease of manufacturing, lower costs and minimal environmental impact. Transition from rigid metal and glass packaging to rigid plastic packaging helps companies reduce costs and environmental footprint. Growth in convenience food industry is also fueling demand for rigid plastic containers for ready-to-eat and ready-to-cook meals. Furthermore, rigid plastic packaging helps maintain freshness of food due to its protective and moisture-proof barrier. These protective properties allow rigid plastic packaging to extend shelf life of products without preservatives.
Porter’s Analysis
Threat of new entrants: Entry into the rigid packaging market requires high initial investment costs for equipment, machinery, and production facilities which limits threats of new entrants.
Bargaining power of buyers: The rigid packaging market has a large number of buyers and is a fragmented industry. This reduces the bargaining power of individual buyers.
Bargaining power of suppliers: Raw material prices fluctuate and suppliers have limited control over prices. This reduces their bargaining power over rigid packaging producers.
Threat of new substitutes: Substitute materials like flexible packaging are emerging; however, rigid packaging maintains an edge in sustainability, durability and ease of recycling which reduces threat from substitutes.
Competitive rivalry: The rigid packaging industry has multiple well-established global players increasing competitive rivalry.
SWOT Analysis
Strength: Rigid packaging offers longevity, durability and ease of transportation compared to other types of packaging. It helps reduce product damage and wastage during shipment.
Weakness: Rigid packaging materials have higher raw material and manufacturing costs. It also has a larger carbon footprint compared to other alternatives.
Opportunity: Increasing demand for sustainable and recycled rigid packaging materials offers opportunities for players to tap the market through innovative offerings. Growth of e-commerce is also driving demand for robust packaging solutions.
Threats: Stricter environmental regulations around material disposal and recycling may increase compliance costs for rigid packaging producers. Substitutes like flexible packaging and alternatives to plastic gain traction.
Key Takeaways
The global Rigid Packaging market is expected to witness high growth, exhibiting CAGR of 3.3% over the forecast period, due to increasing demand for durability and sustainability in packaging. The North America region dominates the rigid packaging market currently due to large food and beverage industry in the region. The Asia Pacific region is expected to be the fastest growing market for rigid packaging due to growing manufacturing industries and expanding middle-class population driving packaging consumption.
Key players operating in the rigid packaging market are Amcor Limited, DS Smith Plc., Holmen AB, Plastipak Holding, Berry Plastics Corporation, Reynolds Group Holdings Limited, Sealed Air Corporation, Resilux NV, Sonoco Products Company, and Silgan Holdings. Amcor Limited is one of the leading players with significant market share of around 19% in the global rigid packaging market. The company offers packaging solutions across multiple industries including food and beverages, pharmaceuticals, medical devices, home care and personal care.
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