Global Plastic Packaging Market Estimated at Close to $198 Billion in 2017

Grand View Research’s new report, “Plastic Packaging Market Size, Share & Trends Analysis Report by Product (Bottles, Bags, Wraps & Films), by Type (Rigid, Flexible), by Application (Food & Beverages, Industrial), and Segment Forecasts, 2018 – 2025,” estimates the global plastic packaging market size at close to $198 billion in 2017.
 
Growing product penetration in various applications, including food and beverages, personal care, household care, electrical and electronics, and automotive, is expected to act as a key driver for market growth over the forecast period.
 
Food and beverages is one of the fastest-growing industries globally, owing to changing lifestyles and consumer preference for eating on-the-go, ready-to-eat, frozen foods, and processed foods. The growth of the food industry in developing economies of Asia Pacific is expected to drive market growth globally.
 
The primary functions of packaging are to offer protection to the products, inform consumers about its features, enable its transportation over long distances, and storage. Growing use of rigid HDPE, and PC plastic canisters, bottles, and tanks as opposed to metal and/or glass for industrial packaging applications is expected to have a positive impact on industry growth.
 
Improved chemical and mechanical properties such as moisture resistance, thermal resistance, and higher strength-to-weight ratio exhibited by various plastics has led to an upsurge in use of such packing solutions for personal and household care applications. However, growing environmental concerns regarding disposal of these products is expected to hamper growth.
 
On the basis of type, the market has been segmented into rigid and flexible. The rigid segment is expected to witness steady growth over the forecast period on account of its increasing usage in industrial applications.
 
Plastics are being increasingly used for flexible packaging solutions owing to easy disposal, light weight, and consumer convenience. The flexible segment was valued at $131.2 billion in 2017 and is expected to witness significant growth over the forecast period. This growth can be attributed to rapidly increasing demand for flexible packing solutions in food and beverage, personal care, and household care applications.
 
On the basis of product, the market has been segmented into bottles, cans, wraps and films, bags, pouches, and others. These products cater to the requirements of various end-use industries, including food and beverages, personal care, household care, consumer electronics, construction, and chemicals. Bottles formed the largest segment in 2017 in terms of revenue, followed by bags and wraps and films.
 
Plastic bags are the most widely used packaging solutions by various end-use verticals; however, the product segment is expected to witness slow growth owing to rising environmental concerns regarding usage and disposal of such bags. Several environmental threats concerning their disposal in deep water bodies are likely to hamper segment growth in the coming years.
 
Wraps and films is expected to be the fastest growing product segment in the plastic packaging market. The segment is expected to witness significant growth over the next few years owing to increasing use of protective wraps and films for packaged foods, frozen foods, and ready-to-eat food applications.
 
On the basis of application, the market has been segmented into food and beverages, industrial packaging, and personal and household care. The food and beverages segment accounted for a revenue share of over 20.0% in 2017 and is expected to witness substantial growth during the forecast period. Growing demand for packaged foods owing to change in consumer lifestyle has driven segment growth in recent years and the trend is expected to continue over the forecast period. In addition, growth of the beverages industry, led by product categories such as liquor and energy drinks, has resulted in increased demand for plastic packaging.
 
The personal and household care application segment is expected to witness a CAGR of over 4.0% over the forecast period, in terms of revenue. Personal care packaging includes that of products such as cosmetics and toiletries.
 
As of 2017, Asia Pacific dominated the global market, in terms of revenue, with a share of just over 43.0%. Rapidly-growing end-use industries in key economies such as China, India, Vietnam, South Korea, and Thailand is expected to drive demand for plastic packaging in the region over the forecast period. China dominated the Asia Pacific market in terms of both demand and production.
 
Changing lifestyles and consumer preferences in terms of food are expected to propel the growth of the food and beverages industry in North America, most notably for products that are ready-to-eat, thus influencing demand for plastic packaging in the region.