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The secondary packaging market size is estimated to grow by USD 86.2 billion, at a CAGR of 4.6% between 2023 and 2028. The burgeoning e-commerce sector is amplifying the demand for sustainable packaging materials and logistics solutions to minimize environmental footprints. This escalating need for eco-friendly alternatives is catalyzing innovations in packaging and processing technologies, aligning with consumer preferences for sustainability. Moreover, the rising consumption of processed and packaged foods is fueling a market for sustainable packaging solutions capable of prolonging shelf life and curbing food wastage. As industries adapt to these trends, there's a growing emphasis on integrating sustainable practices across supply chains, from production to delivery. This holistic approach not only addresses environmental concerns but also meets regulatory requirements and enhances brand reputation. The evolving landscape underscores the pivotal role of sustainable packaging in shaping the future of logistics and consumer goods industries worldwide.
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The market share growth by the paper segment will be significant during the forecast period. They uses paper-based materials to pack, transport, and store products. The segment involves a wide variety of products such as cardboard boxes, cartons, and protective films. Sustainability and environmental considerations are driving the demand across a variety of industries.
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The paper segment showed a gradual increase in the market share of USD 193.40 billion in 2018. With growing concerns about climate change and the negative environmental impact of plastic materials, many businesses and consumers are turning to more sustainable solutions such as paper. These materials are primarily sourced from renewable sources, such as trees from responsibly managed forests, and are readily recycled or biodegradable. The food and beverage industry is one of the largest users of these materials. Processed food, soft drinks, and dairy manufacturers use these to store and transport their products. This is to ensure proper handling and storage of food and to protect food from environmental influences and contamination. Another industry that is rapidly adopting is the beauty and cosmetics industry, which produces products that require attractive packaging. These materials are attractive, cost-effective, and sustainable, making them an excellent choice for the industry. Therefore, due to its sustainability and environmental considerations, the adoption of this is increasing across major industries such as food and beverages, e-commerce, cosmetics, etc., thereby driving the segment's growth.
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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is expected to grow steadily over the forecast period. The lightweight and biodegradable properties of these products, such as corrugated boxes, are contributing to the increased demand. Increasing import and export activities in the North American market have increased the demand, contributing to the growth of the regional market. The growth of e-commerce and the organized sector is also driving the growth of the North American market. Additionally, the demand for sustainable products will drive the demand for recyclable corrugated boxes. Corrugated boxes also come in different shapes and dimensions to meet different needs.
In addition, the presence of major players such as International Paper, WestRock Packaging Corp. of America, and Mondi is also driving the regional market growth. These providers continue to expand their presence in the region by opening new facilities. For example, in December 2021, International Paper announced plans to build a state-of-the-art corrugated facility in the United States. This will create around 150 new jobs in the region. This mill is International Paper's first board mill built in the United States in over 30 years. Such expansion plans will boost the growth of the regional market during the forecast period.
The market encompasses various types of packaging solutions used to protect and transport primary packaged goods. Folding cartons, corrugated boxes, plastic crates, wraps, and films are among the popular forms of secondary packaging. Folding cartons provide protection and branding opportunities for various industries such as food and beverage, healthcare, and consumer electronics. Corrugated boxes offer durability and are widely used for transporting heavy and bulky items. Plastic crates provide a cost-effective solution for transporting and storing goods. Shrink films are used for outer packaging to ensure product safety and maintain appearance. Wraps and films offer a cost-effective solution for bundling multiple primary packages. The beverage, healthcare, electronics, and food and beverage industries are major consumers of secondary packaging.
Further, external factors such as damage, appearance, moisture, and infestation necessitate the use of secondary packaging. Physical damage during transportation and handling can be minimized with the use of appropriate secondary packaging solutions. Overall, the market is expected to grow due to the increasing demand for product protection and branding opportunities. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for processed and packaged foods is the key factor driving the growth of the global market. Changing consumer preferences due to rapid urbanization, lifestyle changes, and busy schedules have led to an increased demand for processed and prepared foods. There is also a rising preference for convenience foods that require lightweight packaging for easy transportation. These trends have driven the need for innovative packaging solutions, including pre-packed products, second layers of packaging, primary packaging such as cardboard boxes and cartons, and the use of plastic crates for transportation. Flexible materials are essential for processed foods to ensure convenience and product safety. These trends are driving the demand for innovative packaging solutions in the processed food industry, which is expected to continue growing as more people opt for packaged foods for their convenience and ease of use.
Moreover, the production of packaged foods is increasing, driven by companies like Nestlé, Kraft Foods, and General Mills. These companies are driving the need for efficient and reliable packaging solutions to protect products during transportation and storage. As the consumption of processed and packaged foods grows worldwide, the demand for innovative packaging solutions in the food and beverage industry will increase, fueling market growth. Additionally, other industries, such as the electronics industry and personal and household care industry, are also likely to drive demand for these solutions. Packaging that offers water-saving capabilities and efficient transportation options will be particularly sought after in these industries. Additionally, the introduction of new materials and design innovations is further driving the adoption of innovative packaging solutions to ensure product safety and extend shelf life. These factors are expected to contribute to the global market's growth in the forecast period.
Growing demand for lightweight materials is the primary trend shaping the global market growth. companies in the market are looking for ways to reduce the weight. They are switching to plastic, paper, and cardboard containers. By understanding the needs of manufacturers, companies are providing high-performance, lightweight paper and paperboard containers that are cost-effective and environmentally friendly. Lightweight containers and these solutions reduce bulk and reduce production costs.
Therefore, various companies rely on lightweight. For example, International Paper Co. offers Alaska Plus. It is a lightweight GC2 board for pharmaceutical and healthcare, cosmetics and beauty, chocolate, and confectionery, and dry food. Similarly, Mondi plc introduced ProVantage, a high-fiber corrugated board made from recycled fibers that offers lightweight and high packing strength. Therefore, increased adoption of lightweight containers and will increase the revenue generated by the companies and drive the growth of the global market during the forecast period.
The rising cost of raw materials is a major challenge impeding the growth of the global market. Paper pulp is used as a raw material, such as cardboard boxes. Its price fluctuates as it depends on the supply and demand scenario. Raw material costs have risen due to the widening gap between supply and demand for pulp and paper over the past five years. Moreover, paper pulp comes from wood, the price of which he said has risen by more than 10% since 2014. This has led to higher prices for paper pulp and higher prices for these solutions. Additionally, kraft paper accounts for more than 70% of the total input cost in manufacturing paper-based solutions, and the price of kraft paper has also increased by more than 12% since 2013. This has led to higher production costs and, ultimately, higher prices for these solutions.
Moreover, plastic is another widely used material for manufacturing these solutions. Rising resin prices, especially after Russia invaded Ukraine in February 2022, have increased the cost of manufacturing these solutions. As the conflict between the two countries continues, rising oil prices are driving up the price of resins, including thermoplastic polymers. Therefore, rising prices of paper, pulp, plastics, and other raw materials are expected to hamper the production of products, which will adversely affect market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amcor Plc: The company offers flexible packaging, rigid packaging, and specialty cartons.
The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market encompasses various types of packaging solutions used to protect and promote primary packaged goods. Folding cartons, corrugated boxes, plastic crates, wraps and films are popular forms of secondary packaging. In industries like Beverage, Healthcare, and Consumer Electronics, secondary packaging plays a crucial role in brand marketing and product display. Folding cartons are widely used for their ability to protect and promote products, while corrugated boxes ensure safe transportation. Plastic crates offer durability and are ideal for heavy items. Wraps and films provide an extra layer of protection and are often used for e-commerce shipping. Secondary packaging solutions are essential for various sectors. In the Beverage industry, they help maintain product freshness and provide necessary information like expiration dates and regulatory information.
In Healthcare, they ensure product safety and security against counterfeiting and tampering. Eco-friendly practices are increasingly influencing the market. Raw materials like recycled solutions, biodegradable, and recyclable materials are gaining popularity. Lightweight and environment-friendly materials are preferred to reduce deforestation and carbon footprint. Processed food, carbonated beverages, ready-to-eat foods, beauty products, cosmetics, and skincare are some industries that extensively use secondary packaging. Graphic Packaging and e-commerce are major contributors to the market's growth. The use of secondary packaging not only ensures product protection but also enhances brand image and consumer appeal.
In addition, the market, encompassing personal care, household care, electronics, and semiconductors industries, thrives on diverse applications such as trays and bulk packaging. Radio frequency identification technology enhances supply chain efficiency by tracking products from primary package envelopment through distribution. This technology is crucial in medical or clinical trials, ensuring accurate monitoring and management of sensitive goods. Innovations in secondary packaging cater to various needs, from enhancing product protection to optimizing storage and transportation. The electronics and semiconductors industry benefits significantly from advanced secondary packaging solutions that safeguard delicate components during shipping and storage. As consumer demand for sustainable practices grows, the market continues to evolve with eco-friendly materials and efficient designs, driving sustainability across sectors while maintaining product integrity and market competitiveness.
Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market Growth 2024-2028 |
USD 86.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.18 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, Germany, China, Canada, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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