Rigid packaging includes packaging solutions made from various types of materials such as plastic, metal, glass, paper, and wood. These packaging solutions are necessary as they provide durable barrier protection to products such as food and beverages, pharmaceuticals and personal care, and industrial goods from external factors such as moisture, pressure, dust, etc. during storage, distribution, and sales. The increasing demand for sustainable and durable packaging from end-use industries is primarily driving the growth of the rigid packaging market.
The global rigid packaging market is estimated to be valued at US$ 190 billion in 2024 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 Opportunity:
The growing need for sustainable and durable packaging solutions across industries represents a key opportunity for the rigid packaging market. Industries are under increasing pressure to reduce plastic usage and adopt more eco-friendly packaging alternatives. Rigid packaging made from materials like glass, paper, wood offers reusable and recyclable alternatives to plastic packaging. The reusable and recyclable nature of rigid packaging made from sustainable materials is drawing more brand owners and retailers to shift towards such packaging formats. This growing demand for sustainable rigid packaging solutions from industries like food and beverages, consumer goods is expected to drive significant growth in the rigid packaging market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the rigid packaging industry requires high capital investments for machinery and raw materials. However, regulations are not very stringent.
Bargaining power of buyers: The bargaining power of buyers is high as rigid packaging is a commodity product with many substitutes available. Buyers can negotiate on price and demand value-added services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for raw materials like paper, plastics, and metals. However, supplier concentration is increasing through mergers and acquisitions.
Threat of new substitutes: The threat of new substitutes is high with the rise of flexible packaging, active and intelligent packaging replacing rigid materials in certain applications.
Competitive rivalry: The competitive rivalry is high among major players and private labels due to increasing competition and pricing pressure.
SWOT Analysis
Strength: Rigid packaging offers protection, safety and extended shelf life to products. It has high recycling rates.
Weakness: Rigid packaging has high material and manufacturing costs. It is less environment-friendly compared to flexible packaging.
Opportunity: Growth in e-commerce is fueling demand for protective rigid packaging solutions. Rising incomes in developing nations are propelling consumption.
Threats: Stringent environmental regulations on non-recyclable rigid plastic packaging pose major challenges. Successful flexible packaging innovations eat into rigid packaging market share.
Key Takeaways
The global rigid packaging market size for 2024 is estimated at USD 290 billion. The market is expected to witness high growth supported by consumption of packaged foods and beverages and increasing e-commerce activities globally. The global rigid packaging market is estimated to be valued at US$ 190 billion in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific dominates the rigid packaging market with China, India, Japan and South Korea being the major markets. The region accounts for over 40% of global rigid packaging demand driven by the large manufacturing and consumption sectors. North America and Europe are also sizable regional markets though growth is modest compared to Asia Pacific.
Key players operating in the rigid packaging market are Amcor, Ball Corporation, Berry Global, DS Smith, Holmen, International Paper, Reynolds Group, Sealed Air Corporation, WestRock Company. Amcor and Ball Corporation are the top players with strong presence across rigid plastics and glass packaging product segments globally.
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