The FMCG packaging market is expected to expand its roots at an average CAGR of 5.8% during the forecast period. The market is likely to hold a revenue of USD 443.1 billion in 2023 while it is anticipated to cross a value of USD 778.7 billion by 2033.
| Attributes | Details |
|---|---|
| FMCG Packaging Market CAGR (2023 to 2033) | 5.8% |
| FMCG Packaging Market Size (2023) | USD 443.1 billion |
| FMCG Packaging Market Size (2033) | USD 778.7 billion |
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Demand in the global FMCG packaging market is projected to grow at a 5.8% CAGR over the forecast period, in comparison with the 4.0% CAGR registered between 2018 to 2022.
The ubiquity of convenience and discount retailers and increasing production in the food and beverage sector are key factors driving the expansion of the market. Sales of dairy products such as milk, cheese, and yogurt have surged in the USA in recent years.
According to the USDA ERS, between 1975 and 2018, per capita cheese consumption increased from 14.3 pounds to 40 pounds. This has had a significant impact on the demand for various packaging formats.
In the FMCG industry, packaging accounts for a significant portion of the material costs associated with manufacturing a final product. As a result, manufacturers are inventing novel packaging methods to reduce operational costs.
Also, with the growing demand for nutritional foods, FMCG packaging players are reinventing their packaging to protect the nutritional content of perishable items.
Intelligent packaging offers a value-added experience to consumers. Technology-enabled packaging enables consumers to gain complete information about the product. Intelligent packaging is a smart way of identifying the quality and shelf life of consumable products.
Touchless codes such as barcode, QR codes, temperature and moisture indicators, and many others retrieve data in less time, which ultimately speed up buying decisions.
On the other hand, active packaging such as Modified Atmospheric Packaging (MAP) and Vacuum Atmospheric Packaging (VAP) ensure longer shelf life of the consumable products. As smart packaging offers opportunities to establish a brand presence to marketers, numerous end users such as food & beverages and pharmaceuticals are switching to smart packaging from traditional packaging formats.
As per FMI, intelligent packaging is preferred by 98 out of 100, which in turn is a big turning point in the packaging industry.
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The expansion of the e-commerce sector has been fueled by shifting preference from conventional brick-and-mortar stores to online channel retailers. The increasing penetration of mobile devices has also led to more consumers preferring online retail.
In addition to this, home delivery services for food is becoming more popular because of rising urbanization and changing lifestyle. Growing demand for ready-to-eat or frozen foods is likely to fuel the market.
Online retail channels offer a plethora of products, ranging from food, and electronics, to personal care items under one roof. These products require different packaging formats for safety during transit. This is expected to continue pushing sales in the FMCG market over the assessment period.
Country-wise Revenue Share:
| Country | United States |
|---|---|
| Revenue Share % (2022) | 18.9% |
| Country | Germany |
|---|---|
| Revenue Share % (2022) | 5.6% |
| Country | Japan |
|---|---|
| Revenue Share % (2022) | 7.1% |
| Country | Australia |
|---|---|
| Revenue Share % (2022) | 1.9% |
| Country | North America |
|---|---|
| Revenue Share % (2022) | 28.5% |
| Country | Europe |
|---|---|
| Revenue Share % (2022) | 24.3% |
Country-wise CAGR:
| Country | China |
|---|---|
| CAGR % (2023 to 2033) | 6.0% |
| Country | India |
|---|---|
| CAGR % (2023 to 2033) | 7.4% |
| Country | United Kingdom |
|---|---|
| CAGR % (2023 to 2033) | 2.4% |
Food and Beverage Manufacturers in the United States Prefer Flexible FMCG Packaging
The rapid expansion of the beverage sector in the United States is expected to drive sales in the market over the forecast period. Packaging and labeling companies that are working in collaboration with the beverage sector are emphasizing packaging innovation, and improving the words, fonts, and images to attract consumers. The nation leads the market as it held a market share of 18.9% in 2022. The North American region on the other side held a market share of 28.5% in 2022.
As per FMI, sales in the United States FMCG packaging market are projected to increase at a 5% CAGR over the forecast period.
In addition to this, the growing demand for sustainable and recyclable packaging formats is compelling manufacturers to launch innovative products. For instance, in January 2020, Ball Corporation introduced infinitely recyclable aluminum bottles that may be recycled into other metal products.
A re-closable threaded cap is included on the bottles, allowing customers to twist the top on and off. Companies in the FMCG sector are reconsidering their packaging choices. P&G, for example, wants to make all of its fabric care packaging in the USA recyclable by 2023.
FMCG Packaging Companies are Investing in Sustainable Packaging Formats
Increasing production and consumption in the pharmaceutical and food and beverage industries are driving sales in the Indian market. Growing investments in the food processing, personal care, and pharmaceuticals sectors are enabling the expansion of the FMCG packaging market in India. India is expected to thrive at a leading CAGR of 7.4% in the Asia Pacific region.
To maximize the packaging sector's potential in India, the government has been contacting industry experts. The Packaging Industry Association of India (PIAI), for example, drafts norms and guidelines to regulate packaging operations in the country.
Packaging consumption in India has surged by 200 percent in the last decade, from 4.3 kilograms per person per annum (pppa) to 8.6 kg pppa, according to the Indian Institute of Packaging (IIP).
Driven by these factors, demand in the Indian market is projected to grow at a robust 7.3% CAGR over the forecast period.
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| Category | By Product Type |
|---|---|
| Leading Segment | Rigid Packaging |
| Market Share (2023) | 63.9% |
| Category | By End Use |
|---|---|
| Leading Segment | Food & Beverages |
| Market Share (2023) | 56.2% |
Demand for Rigid Packaging in the Food and beverage Sector Will Remain High
In terms of end use, sales in the food & beverage sector are projected to increase at a 6.1% CAGR over the forecast period. Beverage companies are investing in innovative packaging formats to improve sales. The segment held a major share of 63.9% in 2022.
For instance, AVE United Kingdom introduced its new range of bottling equipment in August 2019 in Monobloc (filler/capper) and Unibloc (rinser/filler/capper) models, that can handle a multitude of components in a single machine. The movable bottling equipment is intended to reduce costs related to plastic packaging.
Sales of Rigid Packaging Will Gain Traction on The Back of the High Demand for Sustainable Solutions
Rigid packaging, such as glass containers, plastic boxes, cans, and cardboard is utilized to package food, cosmetics, and personal care products. It is slightly more expensive and heavier than flexible packaging, but it provides better protection against heat and other environmental influences, such as moisture.
The emergence of novel rigid packaging solutions and innovative product development is creating growth prospects for market players. In response to growing single-use plastic waste, manufacturers are launching sustainable and eco-friendly rigid packaging solutions.
These include packaging products made of glass, wood, and metal. During the forecast period, sales in this segment are forecast to increase at a 5.5% CAGR.
FMCG Packaging Companies are Using Plastics to Manufacturer Innovative Packaging
Based on the material, the plastic segment is forecast to expand at a considerable pace through 2032. PET and HDPE are the most often used materials in the manufacturing of bottles and jars. PVC is utilized in the fabrication of bottles, jars, and vials in some applications. However, as environmental concerns grow, producers are attempting to transition to PET and HDPE.
To enhance sustainability in the packaging sector, companies like Bizongo are developing biodegradable spill-proof lunch trays.
Leading players operating in the global FMCG packaging market are tailoring their services to more precise market niches by customizing products for various end users. In addition to this, players are investing in research and development to improve their product portfolios. For instance:
Market Developments
The market is valued at USD 443.1 billion in 2023.
Berry Global Inc., Crown Holdings, and WestRock Company are the leading market players.
The market is estimated to reach USD 778.7 billion by 2033.
Increasing adoption of intelligent packaging drives the market prospects.
The United States generated a share of 18.9% in 2022.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Flexible Packaging 5.1.1. Pouches & Sachets 5.1.2. Stick Packs 5.1.3. Bags & Sacks 5.1.4. Foils & Films 5.2. Rigid Packaging 5.2.1. Boxes & Cartons 5.2.2. Trays 5.2.3. Tubes 5.2.4. Containers & Jars 5.2.5. Bottles 5.2.6. Cans 5.2.7. Blisters 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type 6.1. Plastic 6.2. Paper and Paperboard 6.3. Metal 6.4. Glass 6.5. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Food & Beverage 7.2. Pharmaceuticals 7.3. Personal Care & Cosmetics 7.4. Homecare Products 7.5. Electronics 7.6. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Berry Global Inc. 16.2. Crown Holdings 16.3. WestRock Company 16.4. Sealed Air Corporation 16.5. Sonoco Products Company 16.6. Ball Corporation 16.7. Kimberly-Clark Corporation 16.8. Mondi Plc 16.9. Huhtamaki Oyj 16.10. Ardagh Group S.A. 17. Assumptions & Acronyms Used 18. Research Methodology
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FMCG Packaging Market
