Enjoy complimentary customisation on priority with our Enterprise License!
The secondary packaging market size is estimated to grow by USD 72.19 billion at a CAGR of 4.04% between 2022 and 2027. The growing e-commerce industry is increasing the demand for sustainable packaging materials and logistics solutions to reduce environmental impact. The increasing need for sustainable solutions is also driving innovation in packaging and processing technologies to meet consumer demand for eco-friendly products. Additionally, the increasing demand for processed and packaged foods is creating opportunities for sustainable packaging solutions that can extend shelf life and reduce food waste.
To learn more about this report, View Report Sample
This market report extensively covers market segmentation by type (paper and plastic), application (food, beverages, pharmaceuticals, personal and home care, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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.
Get a glance at the market contribution of various segments View the PDF Sample
The paper segment showed a gradual increase in the market share of USD 187.09 billion in 2017. 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.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 33% 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.
The presence of major players such as International Paper, WestRock and 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.
Secondary packaging plays a crucial role in protecting products during storage and transportation. It includes materials like cardboard boxes, cartons, plastic crates, and more. These solutions not only ensure the safety of products but also contribute to environmental sustainability. Companies are increasingly focusing on environmentally friendly options to reduce their carbon footprint. The use of water-saving capabilities and efficient transportation methods further enhances the sustainability of secondary packaging, aligning with the goals of organizations like the Food and Agriculture Organization (FAO) and the American Cancer Society. Our researchers analyzed the data with 2022 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.
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.
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.
Global Market 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is influenced by trends like medical products demand, environmentally friendly packaging solutions, and the rise in organic food consumption. It also faces challenges such as counterfeiting and tampering, driving the need for durability and recyclables. Companies like Berry Plastics, Deufol, and Molins are key players in this sector. The market is adapting to the global supply chain crisis by optimizing production plants and reducing lead times. Corrugated box packaging and high-quality folding boxes are prominent solutions for various industries, including food, electronics, and personal care.
The market is influenced by various factors such as beef consumption and consumer spending on meat, which drive the demand for packaging solutions like corrugated board packaging and carton business. The market also reflects trends like per-capita organic food consumption and the importance of sustainable practices due to concerns like deforestation and the shortage of recycled fibers. Key players like UPS (United Parcel Service) and UFP Packaging are focusing on capacity and operational efficiency while adopting automated core and waste processing to meet the demands of the food sector, household care goods, and retail industries.
In the market, primary packaging plays a crucial role in protecting products during transportation. Printing press and finishing equipment are essential for creating attractive leaflets and labels that enhance product visibility. Corrugated boards and folding cartons are commonly used for secondary packaging in industries like homecare. As the demand for sustainable practices grows, the market is witnessing a shift towards a green economy, catering to the needs of single homes and promoting eco-friendly packaging solutions. In the market, the operating situation impacts transportation costs, often managed through courier and messengers services.
Secondary Packaging Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.04% |
Market growth 2023-2027 |
USD 72.19 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.78 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, Canada, China, Germany, 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 S.A., and WestRock Co. |
Market dynamics |
Parent market 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 forecast period. |
Customization purview |
If our 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.