The Single-use Packaging market was valued at USD 34.29 billion in 2020 and is expected to reach USD 47.31 billion by 2026, at a CAGR of 6% over the forecast period 2021 - 2026.
- The increasing need for small and more convenient packages, exceptional presentation, and strong visual impact are some of the factors that would contribute to the growth of single-use packaging over the forecast period.
- The growing per capita income and the changing social climate and demographics such as increasing urbanization have enabled people to live more modern lifestyles, leaving them always on the move. For instance, the urban population increased from 53.913% in 2015 to 55.271% in 2018 with the GDP per capita also increasing from USD 10,217.656 in 2015 to USD 11,298.304 in 2018.
- The increasing adoption of single-use packaging by the supermarkets is exp0ected to boost market growth over the forecast period. According to the Department for Environment, Food and Rural Affairs(DEFRA) Tesco issued the greatest number of Single-use plastic carrier bags in the 2018 -2019 financial year that numbered at 121 million while Asda issued 106.89 million Single-use plastic carrier bags.
- However, the growing number of regulations restricting the usage of single-use packaging is expected to hinder the market growth.
Key Market Trends
Plastic Segment is Expected to Register a Decline in the Market Share
- The increasing initiatives by the government and the related regulatory bodies to curb the plastic waste disposal into the environment and to reduce its footprint is expected to hinder the single-use plastic packaging market over the forecast period.
- In April 2019, New York imposed a statewide ban on single-use plastic bags and the law is expected to take effect from March 2020. Also, Hawaii proposing a bill that would prohibit the restaurants and government agencies from using plastic items such as bottles, straws, utensils and foam containers, by 2022.
- Industries, such as e-commerce, food & beverage, and logistics, which rely greatly on plastics for packaging would have to look for alternatives to keep their businesses up and running. or instance, during the ten days of the Alibaba's Double 11 shopping festival, Chinese consumers received nearly 1.9 billion packages.
- However, this ban presents an opportunity for plastic manufacturers to develop a biodegradable packaging solution that enables them to support their business activities.
North America is Expected to Show a Slow Growth Owing to Ban on Plastics
- The government and the related regulatory bodies, in order to curb the plastic footprint of the region, have formed new regulations and strategies that would enable them to achieve its objective. This would hamper the growth of single-use packaging market over the forecast period.
- In June 2018, the council of Vancouver initiated a Single-Use Item Reduction Strategy aimed at reducing the impact of Foam cups and foam take-out containers, Plastic and paper shopping bags, Disposable hot and cold drink cups, Take-out food containers, plastic straws, and Single-use utensils.
- Also in May 2019, state senate in the state assembly passed the SB-54 and its companion bill, AB-1080. These bills enact the California Circular Economy and Plastic Pollution Reduction Act, with the bills requiring the manufacturers and retailers of single-use packaging or priority single-use plastic products to source reduce those products and ensure that those products are recyclable or compostable.
- However, the increasing GDP per capita of the region poses as a lucrative opportunity for the single-use packaging providers to innovate their offering that enables them to comply with the growing stringent regulations being enacted by the government. According to World Bank, the GDP per capita of the United States in 2018 was USD 62,641.015 as compared to USD 56,803.472 in 2015.
The competitive rivalry amongst the players in the single-use packaging market is high owing to the presence of some key players such as Snapsil Corporation, Zipz Inc., Ardagh Group S.A. amongst others. Their extensive investments in research and development activities have enabled them to gain a competitive advantage over other players. Through strategic partnerships, mergers & acquisitions these players have been able to gain a stronger footprint in the market.
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