The rigid plastic packaging market was valued at USD 490.34 billion in 2020 and is expected to reach USD 685.84 billion by 2026, at a CAGR of 5.75% over the forecast period 2021 - 2026. According to Plastics Industry Association (PLASTICS)â€™s Rigid Plastic Packaging Group (RPPG), Plastics account for one-third of the USD 700-billion global packaging industry, and much of this plastic packaging is rigid.
- Augmenting demand for biodegradable rigid plastic packaging is expected to boost market growth in the future. Also, people moving towards beverages and other household care products have a positive impact on the rigid plastic packaging market.Moreover, rapidly increasing urbanization also contributes to market growth. Furthermore, the growing disposable income of the people will have a positive impact on market growth in the coming future.
- The growing demand for rigid plastic packaging from the healthcare industry is also one of the critical factors that will trigger the growth of the market in recent years. Rigid plastic helps enterprises in the healthcare industry to protect medicines from contamination.
- The medical product packaging must be compliant with international regulatory standards for safety. Therefore, the properties of rigid plastic, along with its durability, lightweight, cleanliness, and transparency, make it the perfect choice for storing medical products.
- According to Plastics Europe, in 2018, total European plastics converters demand is 51.2 million tons. Out of which packaging, building and construction, automotive contributes to 39.9%, 19.8%,9.9% respectively.
- However, high competition for advanced rigid plastic packaging may hinder the market growth to some extent. Also, increasing the use of BisphenolA (BPA) in the manufacturing of plastic products is also posing as a major challenge for the overall rigid plastic packaging market.
Key Market Trends
Polypropylene (PP) to Account for Largest Market Share in Rigid Plastic Packaging Market
- Increasing demand for polypropylene from the packaging industry is estimated to stimulate market demand in the forecast period. Superior barrier properties, high tensile strength, better surface finish, and low cost allows polypropylene to be an ideal product for numerous packaging applications.
- Polypropylene films have exceptional optical clarity and low moisture/vapor transmission makes it appropriate for implementation in food packaging. Also, polypropylene is blow molded to manufacture bottles, crates, and pots. Thin-walled containers made from polypropylene are usually used for packaging of food items.
- According to Plastics Europe, in 2018, total European plastics converters demand is 51.2 million tons. Out of which Polypropylene accounted for 19.3%, which comes around 10 million tons of usage across plastic industries.
- Moreover, PP has a wide application in making of medicine bottles, bottle caps and closures, and bottle for catsup and syrup.
- According to a report by PlastIndia Foundation, India has a manufacturing capacity of 4970 Kilo Tonn per Annum (KTA) for Polypropylene (PP).
- According to IBEF, India is progressing in terms of plastic industries with 30000 plastic processing units and about 4 million people are employed in this industries.
Asia-Pacific to Hold the Largest Market Share
- The Asia-Pacific region holds the largest market share. This is mostly due to the emerging economies of India and China. With the growth in the applications of rigid plastic packaging in the food, beverage, and healthcare industries the market is poised to grow.
- Factors, such as the rising disposable income, increasing consumer expenditure, and growing population are likely to boost the demand for consumer goods, which in turn will support the growth of the plastic packaging market in Asia-Pacific.
- Furthermore, the growth from countries like India, China, and Indonesia drives the Asia-Pacific region to lead the packaging demand from the global beauty and personal care industry.
- Manufacturers are launching innovative pack formats, sizes, and functionality in response to the consumer demand for convenience. Also with the growth in oral, skin care, niche categories, such as menâ€™s grooming and baby care, Asia-Pacific is both an exciting and challenging region for packaging manufacturers.
The rigid plastic packaging market is fragmented. Companies are focusing on providing lightweight and high-performance corrugated grades for reducing costs and improving the performance of packaging. Due to the presence of several players, the market has strong competition. Some of the major players in the market are Amcor Plc., RPC Group Plc, Coveris Holdings S.A., ALPLA, Silgan Holdings, Sealed Air, Reynolds Group Holding, Plastipak Holding, Sonoco Products Company, DS Smith, Consolidated Container Co. LLC, Graham Packaging Company Inc., among others.
- July 2019 - ALPLA and PTT Global Chemical (GC) will collaborate on a feasibility study for the construction of a recycling plant in Thailand. The companies announced the plan at the Circular Living Symposium 2019 in Bangkok at the end of June.GC will work with ALPLA to conduct a study on investing in the first high-quality circular plastic recycling plant in Thailand, including materials such as rPET and rHDPE.
- February 2019 - Amcor Limited launched Genesis, a new in-store recyclable laminate solution. It targets a wide range of segments, including fresh fruits and vegetables, frozen food, dried fruits, nuts, confectionery, chilled goods, and pet food. The product is adaptable to a variety of packaging types and is appropriate for certain medical, home, and personal care markets.
- January 2019 - Amcor Limited and Danone partnered to develop a new package for its new all-natural spoonable yogurt sold in Argentina. The new PET jar supports the 100% natural positioning of Danoneâ€™s La SerenÃsimaâ€™s yogurt, with featured engraving, a finely finished base, and a body-wrap label
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