Aseptic Packaging Market Size USD 39,856 Million By 2030 | CAGR of 10.1%

Introduction

Aseptic packaging is a specific method of production in which food, pharmaceutical, and other products are sterilized independently of the packaging. The components are then placed in a sterile container. Aseptic packaging aims to produce food products that can be stored at room temperature for at least six months while retaining their chemical and sensory properties. This technique employs exceptionally high temperatures to maintain the product's freshness and prevent microbial contamination.

Aseptic packaging technology is fundamentally distinct from conventional food preservation by canning. Before filling, the canning process begins with food preparation. Aseptic packaging necessitates plastic, glass, cardboard, or metal. These materials are utilized extensively in manufacturing cans, containers, cartons, and another aseptic packaging. Paperboard is a popular aseptic packaging material due to its distinctive visual appeal and recyclable nature.

The unique benefits of aseptic packaging, such as increased shelf life, eco-friendliness, preservation of product quality, and lack of preservatives, are a tremendous asset for the global aseptic packaging market. The market for aseptic packaging is forecasted to be driven by an increase in the beverage industry's adoption of aseptic packaging and an increase in demand from the healthcare industry. The goal of the market's significant participants is to develop new products and processes to meet rising customer demand.

Market Dynamics

Increased Government Spending on Health Infrastructure and Growing Recycling Rates to Drive the Market

All governments throughout the world have increased their healthcare expenditures. In 2016, healthcare expenditures in the United States rose by 4.3%, while those in the United Kingdom rose by 3.6%. In addition, it is stated that approximately 30% of healthcare expenditures are allocated to infrastructure improvement. It is anticipated that this rise in healthcare costs will encourage the pharmaceutical and biopharmaceutical industries to adopt aseptic packaging.

Furthermore, the reuse and recycling of packaging materials have garnered significant global attention in recent years. Recycling aseptic packaging reduces production costs and water and air pollution. Consequently, it contributes to the reduction of greenhouse gas emissions. It is also possible to control CO2 emissions using recycled packaging materials. Numerous governments and industry leaders have developed recycling strategies to combat plastic waste, and aseptic packaging materials have been shown to have high recycling rates.

In addition, several companies strive for ongoing collaboration that could aid in reducing plastic production and increasing the global recycling of plastic packaging. Nestlé, for example, established an Institute of Packaging Sciences in December 2018 to collaborate with a variety of industrial partners on the development of new packaging materials and sustainable packaging solutions.

Impact of COVID-19

Due to the prolonged lockdown caused by the outbreak of the coronavirus pandemic in powerful nations such as the United States, China, Japan, India, and Germany, all production facilities had to be shut down. However, these facilities did not manufacture essential products. Besides that, the pandemic negatively affected most businesses during the first and second quarters of 2020. Nonetheless, the expansion of the market for aseptic packaging was not significantly hindered.

As a result of the stringent measures imposed on the mobility of persons and other industrial activities, construction projects came to a halt, oil and gas production decreased, and the automobile service industry declined, resulting in a drop in the sales of new aseptic packaging machinery. However, the production and packaging of foods and beverages were not significantly affected. In addition, a decline in the number of hotels and other businesses in the hospitality sector reduced the demand for food and drink. Despite this, the production and packaging of beverages and food items for retail sale continued without interruption throughout the operation.

Regional Insights

It is anticipated that Asia-Pacific will develop at a CAGR of 10.5% to reach USD 15,828 million by 2030. The economies of developing nations in the Asia-Pacific region are the primary force propelling growth in the aseptic packaging industry on a global scale. China, India, Vietnam, South Korea, and Indonesia are just some countries that fall into this category. In many countries situated in the Asia-Pacific region, the consumption of aseptic packaging has maintained a robust level of strength over recent years. This is because the consumers have access to an excessive amount of disposable income, urbanization has increased, and a large population base has led to an increase in the consumption of beverages and food products. In addition, urbanization has increased because more people are living in cities.

Since aseptic packaging is becoming increasingly popular in the food and beverage industry, there are now more opportunities for the market to grow than there were previously. In addition, the production of beer in Australia is already the most lucrative industry in terms of the amount of money it brings in. According to data published in April 2019 by the Brewers Association of Australia, beer production contributed approximately USD 4,600 million to the Australian economy between 2017 and 2018. It is anticipated that this contribution will grow in the future. Consequently, it is expected that the market for aseptic packaging will grow over the coming years.

By 2030, it is envisioned that Europe will have grown at a CAGR of 9.2%, reaching a value of USD 10,318 million. Aseptic packaging has evolved into an integral and increasingly essential component to succeed in the European market. The impact of aseptic packaging is directed through an efficient supply chain to add value and satisfy the steadily increasing demands placed on businesses by their respective customers. Due to growing concerns about the environment, the governments of Western Europe are putting in place initiatives to deal with the waste and recycling of plastic packaging.

Additionally, there has been a rise in recycled plastic materials for packaging applications among European companies specializing in aseptic packaging. Further, European companies that make aseptic packaging are frequently revising the product lines in their packaging portfolios to meet the growing demand from customers for environmentally friendly packaging and combat the proliferation of environmental problems. Paper-based packaging is being adopted throughout Europe to reduce overall plastic consumption. It is anticipated that all of these occurrences will contribute to the growth of the aseptic packaging industry.

Key Highlights

• The global aseptic packaging market was valued at USD 16,765 million in 2021. It is expected to grow at a CAGR of 10.1% by 2030, accounting for USD 39,856 million during the forecast period (2022–2030).
• Based on type, cartons will have the largest share of USD 24,408 million at a CAGR of 10.6% during the forecast period.
• Based on material, paper and paperboard are expected to have the largest share of USD 24,141 million at a CAGR of 10.4% by 2030.
• Based on the end-use industry, beverages will account for USD 37,659 million at a CAGR of 10% by 2030.
• Among the regions, Asia-Pacific will dominate the market during the forecast period, with USD 15,828 million at a CAGR of 10.5%.

Competitive Players

Competitive Players in the Market

• Amcor Plc
• Ds Smith Plc
• Mondi Plc
• Sonoco
• Smurfit Kappa Group Plc
• Stora Enso Oyj

Recent Developments

Market News

• In 2022, Amcor Plc launched a 100% recyclable bottle for the Villavicencio water brand exclusively for the Argentinean market.
• In 2022, Amcor Plc announced the creation and launch of PowerPostTM.
• In 2022, Amcor Plc announced investments to establish new thermoforming capabilities for medical packaging in Sligo, Ireland, a healthcare packaging facility.
• In 2022, Mondi Plc and Beck Packautomaten launched a robust paper-based flexible solution dedicated to the e-commerce industry.

Segmentation

Global Aseptic Packaging Market: Segmentation

By Type

• Carton
• Bags & Pouches
• Bottles & Cans

By Material

• Paper & Paperboard
• Plastics
• Metals
• Glass

By End-Use Industry

• Beverages
• Food

By Regions

• North America
• Asia-Pacific
• Europe
• Latin America
• The Middle East and Africa