Smithers, in his study in "The Future of Packaging: Long-Term Strategies to 2028", shows that by 2028, the global packaging market will grow by 3% yearly, to reach 1200 billion rmbs.
From 2011 to 2021, the global packaging market has grown by 7.1%, with most of this growth coming from China, India, and some other countries. More and more consumers are choosing to move to urban areas and adopt a modern lifestyle, hence this boosts the demand for packaged goods. And the e-commerce industry has accelerated this demand globally
Many market factors are having a significant impact on the global packaging industry. Several main trends probably will emerge in the next few years.
1.According to WHO statistics, as of Nov 2 nd , 2022, the number of people infected with covid-19 worldwide has reached 628 millions, and experts predict that the epidemic sweeping the world will continue for 1-3 years. The impact of the epidemic on the global packaging industry is also in various aspects. For example, in some countries which took the lead in responding to the epidemic such as China & S.Korea, the demands for packaging for groceries, healthcare products and e-commerce(courier service) will rise sharply. At the same time, demands for industrial, luxury goods and some traditional B2B (shipping)business is likely to decline. Therefore, the epidemic may become one of the trends that is changing the packaging & printing industry.
2.In addition, global consumers may be increasingly incline to change their pre-pandemic shopping habits, leading to a strong rise in e-commerce delivery and other door to door service. This leads into increased consumer spending on consumer goods, as well as access to modern retail channels and a growing middle-class’whom are eager to access global brands and whom have more shopping habits. In the pandemi-plagued US, online sales of fresh food have increased dramatically compared to pre-pandemic levels in 2019, increasing by more than 200% between the first half of 2021, and sales of meat and vegetables by more than 400%. This has been accompanied by increased pressure on the packaging industry, as the economic downturn has made customers more price- sensitive and packaging producers and processors struggle to win enough orders to keep their factories open
In fact, since 2017 there has been a growing interest in sustainability, especially in the packaging industry. This is reflected in central governments, municipal regulations, consumer attitudes and consumer brands around the world which want to convey their values through packaging.
The European Union is leading the way in this area by promoting a circular economy, and European governments and people are particularly concerned about plastic waste. Plastic packaging is highly censored in Europe as a high-volume, single-use item. A number of EU’s strategies are moving forward to solve this issue, including using alternative materials, investing in the development of bio-based plastics, designing packaging to make it easier to recycle, and improving the recycling and disposal of plastic waste.
But to be pointed out in particular, in the context of the pandemic, concerns for health and food safety may become a higher priority, while the sustainability of other packaging substrates may be less important -- at least for now. New awareness and expectations among consumers and the packaging industry about the health and safety seems to outweighconcerns about recyclability and the leakage of plasitc waste into the environment.
3.Driven by the popularity of the internet and smartphones, global online retail-market continues to grow rapidly. Consumers are increasingly used to buying goods online. Smithers pointed out that this situation will continue to increase in the next 10 years, and people and businesses will demand solutions which are more environmentally friendly, hygienic and safer transported goods. For example, more and more people will consume food, beverages, medicines and other products on their way to work or travel. As a result, the demands for demands of convenient and portable packages are ncreasing, and the flexible packaging industry is one of the main beneficiaries.
In addition, with the trend of single life, more and more consumers - especially younger groups - tend to buy groceries more frequently and in smaller quantities. This leads to growth in convenience store retailing and drives demand for more convenient, smaller sized packaging formats. convenient, smaller sized packaging formats.
As brand companies around the world continue to seek new high-return, high-growing fields & markets, the internationalization of many FMCG brands is also increasing. Over the next few years, people's increasingly modern and technological lifestyles will accelerate this process.
Likewise, the globalization of e-commerce and international trade has stimulated brands needs with components such as RFID i.e.Radio Frequency Identification tags and also smart tags to prevent counterfeiting and implement better marketplaces monitor.
To be frank, consumers are not as loyal to brands as they used to be. In order to improve this phenomenon, brands have tried their best to use various marketing activities to attract customers to participate, and have added a link of packaging experience to their customers' shopping process, because brand owners want to rely on flexible packaging designing to deliver personalized products, convey an uniqueselling proposition (USP) and brand philosophy in such a profitable way to attract consumers and earn customers’ loyalty at the same time.
Transparency and sustainable marketing also means that brands can communicate their brand values through packaging that combines functionality, performance and environmental awareness. Conveying concepts such as environmentally responsible products & recyclable product packaging without incurring additional costs or reducing profits. Generally speaking, flexible packages have unique designs and attractive colors that help brands create brand identity, grab consumers' attention, increase sales and gain competitive advantages among a variety of similar products.
The corona virus has changed consumers' product usage habits and manufacturers have rethought about their business operations. Nearly every industry has been impacted, either positively or negatively by the pandemic. In addition, trends in the packaging industry have changed in many ways. Businesses feel the need to adopt new technologies. Based on these business functions, supply-chain processes are changing
4.Workplace Safety Measures for Employees Packaging brands are changing workplace regulations in light of the covid-19 pandemic. They are taking steps to take safety measures and ask employees to put on their masks. Additionally, packaging companies are vaccinating workers and ensuring social distances to avoid the deadly effects of the coronavirus.
5. Plastic packages are no longer used by brands.Flexible packaging products are made of plastic and are mainly used for food. Nearly 83% of companies use some form of flexible packaging. According to the Flexible Packaging Association, this type of packaging is mainly used for food packaging, accounting for 60% of the overall market. Therefore, the global packaging market is expected to reach USD 1,275.06 billion by 2027, growing at a CAGR of 3.94% (2022-2027)
Covid-19 viruses can stay on plastic and stainless steel for up to 3 days, according to the New England Journal of Medicine whereas they stay on paper materials for only 24 hours. Consumers dislike plastic packaging and prefer paper product packaging. Many companies, including grocery chains, are feeling this difference in consumer buying behavior and turning to sustainable packages of their products to meet customer needs.
6.Consumer products will have a longer shelf life The COVID-19 pandemic has changed purchasing decisions for household goods. People prefer to buy convenience foods, such as ready-to-eat meals with a longer shelf life. Some people don't want to bother buying vegetables and fruits,they prefer canned food to save time. Considering this fact, companies are focusing on extending the shelf life of their products to increase their sales.
According to the International Food Information Council, people bought more & more packaged food than they did previously. Also, consumers are shopping at online stores due to the Covid-19 lockdown. This factor has greatly improved the e-commerce business, especially in the US and European countries. Also, logistics companies and e-commerce companies now demand more corrugated boxes due to their sustainability
7.Impact of COVID-19 on packaging production in China. China is the backbone of the global packaging industry, with numerous packaging factories producing bulk packages for brands. Many companies rely on Chinese flexible-packaging suppliers for their products’ packaging needs.
For the forecast period of 2021-2026, the CAGR of China's packaging industry is expected to reach 13.5%. Packaging production has dropped dramatically during the covid-19 pandemic. The main reason behind that was the difficulty in getting packaging from China. Therefore, they are looking for alternatives to meet their packaging concerns. This is also one of the packaging industry trends worth mentioning in the global market amid the deadly coronavirus outbreak. Experts are optimistic about the situation of China's packaging and printing industry, especially the flexible packaging industry, in the post-epidemic era.
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Post time: Nov-04-2022
