Rigid Plastic Packaging Market

Rigid Plastic Packaging Market Size

The global rigid plastic packaging market size was valued at USD 207.8 billion in 2022 and is projected to reach USD 262.5 billion by 2027, growing at a cagr 4.7% from 2022 to 2027. The market is growing due to its multiple applications in end-use industries such as beverage, food, and healthcare. It is driven by factors such as strong demand in major APAC markets (mainly India and China) and increasing demand from food & beverage packaging industries.

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Impact of COVID-19 on Rigid Plastic Packaging Market

The outbreak of COVID-19 affected the end-use industries of the rigid plastic packaging market across the globe. The impact can be felt on the economy with lockdowns and discontinuation of manufacturing operations due to social distancing norms. Decrease in the demand from end use industries impacted the rigid plastic packaging market across the globe.

Many companies have introduced short-term plans to keep their operations running amid the COVID-19 pandemic. The companies started selling their products through online platforms with contactless delivery.

Rigid Plastic Packaging Market Dynamics

Driver: Strong demand from the food & beverage packaging industry

The rigid plastic packaging market is witnessing an increase in demand from end-use industries such as food & beverages, cosmetics & toiletries, and healthcare. The food & beverage industry held a highest share in the packaging industry; growth in this industry highlights the growth potential for rigid plastics in packaging. The retail industry, which is currently witnessing a shift from unorganized to organized retail, will also stimulate the demand for rigid plastics in packaging material.

The beverage industry is a major consumer of rigid plastic packaging as it retains the quality and freshness of the product by sealing the contents within the container. Factors such as rising disposable income, change in consumer lifestyles, product presentation & differentiation, and rising demand for beverage products such as packed bottled water and alcoholic beverages will increase the consumption of rigid plastic packaging.

Restraint: Fierce competition from flexible plastic packaging

Flexible plastic packaging provides the biggest advantage for the manufacturer and retailer as it reduces the weight of packaging, which can result in reduced shipping and warehousing costs, thereby creating more space. For consumers, it provides convenience features such as single-serve portions, easy-open, easy-peel options, and the food tastes better in retort pouches than traditional tin cans. Flexible packaging is 40% less in terms of overall packaging cost, amounts to a 50% reduction in landfill waste and 62% reduction in Greenhouse Gas (GHG) emissions over rigid packaging. Hence, factors such as convenience, portability, cost savings, sustainability, and health benefits encourage product packaging manufacturers and packaging converters to move away from standard rigid materials to flexible materials.

Opportunity: Change in demographic trends

Demographic factors often have a much more complex effect on demand trends. In the packaging market, a great deal of attention has been devoted to ensuring that the demand from a particular demographic segment is met. Changing global demographic trends such as rising aging population as well as increasing middle-class population are also likely to support the demand for rigid plastic packaging. An increase in the global middle-class population will increase the consumption level of products such as beverages and packed food, which would directly drive the demand for rigid packaging in the coming years. According to the Asian Development Bank, “China’s middle-class population is estimated to increase by 83% in 2030.”

Challenge: Recycling and environmental concerns

According to the World Economic Forum, over 300 million tons of plastics are produced every year for use in a wide variety of applications. At least 8 million tons of plastics end up in our oceans every year and make up 80% of all marine debris from surface waters to deep-sea sediments. About 90% of all the trash in the ocean is from plastic. Estimates suggest that rigid plastic packaging represents the major share. According to the World Economic Forum, a study suggests that in Europe, around 53% of plastic packaging could be recycled economically and in an environmentally friendly manner.

Rigid Plastic Packaging Market: Ecosystem

The bottles & jars segment of accounted for the largest share of the rigid plastic packaging market during the forecast period

The rigid plastic bottles & jars market is projected to record moderate growth during the forecast period because of the flourishing retail industry, combined with the rise in disposable income of consumers. The increasing population, growing urbanization, and rising demand for beverages and home care products are fueling the market growth.

PET segment is the second largest market in rigid plastic packaging market by type of material

Polyethylene Terephthalate (PET) is a general-purpose thermoplastic polymer that belongs to the polyester family of polymers. Polyester resins are known for their excellent combination of properties such as mechanical, thermal, chemical resistance as well as dimensional stability.

The injection molding segment is projected to grow at the second-highest CAGR during the forecast period

Injection molding is a widely used process. Common injection molded packaging items include tubs, buckets, rigid tubes, screw caps, and fitments. An injection molder consists of a purpose-built extruder coupled with a clamping press that is fitted with an interchangeable mold. A common form of injection molder has a reciprocating screw extruder as the injection unit. The screw has a one-way valve or check ring at its tip.

APAC accounted for the major share of the Rigid plastic packaging market

The rigid plastic packaging market in APAC is forecast to record its highest CAGR, in terms of value, between 2022 and 2027. Such growth is due to growing developmental activities and rapid economic expansion. In addition to this, the growing population in these countries presents a huge customer base for FMCG products and consumer durables, which, in turn, is expected to lead to the growth of the rigid plastic packaging market.

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Key Players in Rigid Plastic Packaging Market

Berry Global Group Inc. (US), Amcor Plc (Switzerland), Takween Advanced Industries (Saudi Arabia), Silgan Holdings Inc. (US), Pactiv LLC (US), Sonoco Products (US), DS Smith Plc (UK), SABIC (Saudi Arabia), Al Jabri Plastic Factory (UAE) among others are some of the major players operating in the global market.

Read More: Rigid Plastic Packaging Companies

Rigid Plastic Packaging Market Report Scope

This research report categorizes the global rigid plastic packaging market on the basis of Type, Application, and Region.

Rigid plastic packaging market, By Type

• Bottles & Jars
• Rigid Bulk Products
• Trays
• Tubs, Cups, and Pots

Rigid plastic packaging market, By End Use Industry

• Food
• Beverages
• Healthcare
• Cosmetics & Toiletries
• Industrial

Rigid plastic packaging market, By Raw Material

• Bioplastics
• Polyethylene (PE)
• Polyethylene Terephthalate (PET)
• Polystyrene (PS)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Expanded Polystyrene (EPs)
• Others (PC, Polyamide)

Rigid plastic packaging market, By Production Process

• Extrusion
• Injection Molding
• Blow Molding
• Thermoforming

Rigid plastic packaging market, By Region

• North America
• Europe
• Asia Pacific (APAC)
• South America
• Middle East & Africa

The market has been further analyzed for the key countries in each of these regions.

Recent Developments in Rigid Plastic Packaging Market

• In 2022 Amcor Plc Amcor's New Lightweighting Technology Introduces in a Quantum Leap for the Future of Packaging. More than 50% of the material in the finish is eliminated by a new two-step lightweighting technology. Bottles assist businesses in meeting sustainability goals while maintaining a premium appearance and feel.
• In 2022, Pactiv Inc. announced that Fabri-Kal, a top producer of foodservice and consumer brand packaging solutions, had been acquired by its wholly-owned subsidiary, Pactiv Evergreen Group Holdings Inc. Fabri-Kal’s products include portion cups, lids, clamshells, drink cups and yogurt containers for the consumer packaged goods and industrial food markets. Approximately half of Fabri-Kal’s sales are generated from fully compostable packaging products or fully recyclable packaging products.

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