by The global Next Generation Packaging Market is estimated to be valued at US$ 54.84 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Next generation packaging refers to innovative packaging solutions that help extend shelf life of products, retain freshness, and improve safety. Such packaging utilizes advanced materials and technologies such as active & intelligent packaging. The food & beverage industry widely uses next generation packaging solutions to shipping, storage, and distribution of goods. Packaging plays a vital role in protecting food products from external factors such as moisture, oxygen, bacteria etc. thereby preventing spoilage. Next generation packaging provides excellent barrier properties against external elements and maintains quality and freshness of food for longer durations. Growing demand for longer shelf-life and high-quality packaged food & beverages is driving growth of the next generation packaging market.
Market key trends:
One of the key trends in the next generation packaging market is the rising adoption of active and intelligent packaging solutions. Active packaging incorporates components like oxygen scavengers and moisture absorbers inside the packaging to actively control internal environment of packaging. Similarly, intelligent packaging provides indicators to track freshness, monitor degradation of contents, and detect contamination through technologies like time-temperature indicators. Technology advancement is another prominent trend, with manufacturers focusing on developing innovative materials offering improved performance. Development of biodegradable and sustainable packaging using bio-based materials is also gaining traction in line with rising environmental consciousness. Growing e-commerce sector has further spurred innovations in packaging for efficient distribution and shipping of goods.
Porter’s Analysis
Threat of new entrants: With high capital requirements for R&D and manufacturing of new packaging solutions, the threat of new entrants is moderate. However, opportunities for niche players remain with innovations in sustainable packaging materials.
Bargaining power of buyers: The bargaining power of buyers is high owing to the presence of numerous packaging solution providers. Buyers can negotiate on price and demand value-added services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as some raw materials require specialized production processes. However, alternatives are available limiting suppliers’ influence.
Threat of new substitutes: The threat of new substitutes is high with the increasing focus on developing sustainable packaging from paper, glass, and renewable materials replacing plastics.
Competitive rivalry: Intense competition exists among existing players to gain market share through product innovation and portfolio expansion.
Key Takeaways
Global Next Generation Packaging Market Demand is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing demand for sustainable and intelligent packaging solutions. The market size for 2023 is estimated to reach US$ 54.84 Bn.
Regional analysis – North America dominates the market currently due to stringent regulations regarding use of plastics. Asia Pacific is expected to witness the fastest growth during the forecast period owing to rising expenditure on packaged food and growth of e-commerce sector in countries like China and India.
Key players operating in the next generation packaging market are Amcor Limited, WestRock Company, Sonoco Products Company, Sealed Air Corporation, Stora Enso Oyj, Bemis Company, Inc., MULTIVAC, WS Packaging Group, Inc., Active Packaging Ltd., and ULMA Packaging, S.Coop. Key players are focusing on new product launches and mergers & acquisitions to strengthen their market position. For instance, in 2022, Amcor acquired Bemis to enhance its product portfolio and expand its presence across key markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
