Aseptic Packaging Market

Market Overview

The global aseptic packaging market size 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).

Aseptic packaging is a specialized method of manufacture in which food, pharmaceutical, or other products are sterilized apart from the packaging. The elements are then placed into the container under sterile conditions. Aseptic packaging aims to create food products that can be retained without refrigeration for at least six months while containing their chemical and sensory characteristics. This method uses exceptionally high temperatures to preserve the freshness of the product and prevent microbial contamination.

Aseptic packaging technology is fundamentally distinct from conventional food preservation by canning. The process of canning begins with food preparation before filling. Aseptic packaging requires the utilization of plastic, glass, paperboard, or metal. These materials are widely employed in the production of cans, containers, cartons, and other aseptic packaging. Paperboard is a popular material for aseptic packaging owing to its unique visual appeal and recyclable nature.

The unique advantages of aseptic packaging, such as increased shelf life, eco-friendliness, preservation of product quality, and absence of preservatives, are a great asset for the global aseptic packaging market. The aseptic packaging market is estimated to be driven by the beverage industry's adoption of aseptic packaging and an increase in demand from the healthcare industry. The objective of the market's major players is to develop new products and processes to meet rising customer demands.

Market Dynamics

Drivers: Ascending Government Spending on Better Healthcare

Worldwide, governments in all territories have increased their healthcare expenditures. In 2016, healthcare expenditures in the United States increased by 4.3%, while healthcare expenditures in the United Kingdom increased by 3.6%. In addition, it is stated that roughly 30% of healthcare expenditures are allocated to infrastructure improvement. Such an increase in healthcare expenditures is anticipated to spur the pharmaceutical and biopharmaceutical industries' adoption of aseptic packaging.

Drivers: Growing Recycling Rates for Packaging

Recently, the reuse and recycling of packaging materials have garnered significant global attention. Recycling aseptic packaging decreases the cost of production, thereby reducing water and air pollution and contributing to the reduction of greenhouse gases. With recycled packaging materials, it is also possible to control CO2 emissions. Significant recycling rates have been observed for aseptic packaging materials, and numerous governments and industry leaders have developed recycling strategies to combat plastic waste.

Additionally, several companies strive for a continuous collaboration that could aid in reducing plastic production and increasing the recycling of plastic packaging worldwide. For instance, Nestlé established an Institute of Packaging Sciences in December 2018 to collaborate with various industrial partners to create new packaging materials and sustainable packaging solutions.

Restraint: Mercurial Prices of Raw Materials

Polymer, board, paper, glass, aluminum, and steel are critical raw materials utilized by packaging companies. Both household and industrial packaging use these materials. Price fluctuations of these raw materials place packaging companies in a conceivably precarious position in the value chain. Key material suppliers usually are large corporations with the ability to pass along their higher commodity costs, resulting in an increase in material prices; a rise in input costs.

On the buyer side, packaging companies must deliver their products to large and powerful food and beverage companies, which cannot pass on price increases to end consumers and therefore use the threat of switching suppliers to maintain compliance. Costs for rigid packaging manufacturers are increased by fluctuating raw material prices and the inaccessibility of some raw materials in certain regions. Consequently, it is anticipated that this factor will restrain market expansion.

What Are Future Key Opportunities in Global Aseptic Packaging Market?

Scope of Growth in Emerging Markets

As a result of optimized pharmaceutical industry infrastructure, the rise in the number of pharmaceutical industries, and the increase in demand for aseptic packaging products, prospects in untapped, emerging markets are expected to drive the growth of the aseptic packaging market. The healthcare industry in emerging market economies is expanding rapidly due to increased demand for more advanced manufacturing systems and substantial government investments to improve healthcare infrastructure. In addition, pharmaceutical companies are concentrated in emerging markets such as China and India, which contributes to the market's growth.

handling logistics electronically

The entire supply chain is connected through electronic processing, from raw supplies to merchants and customers. Instantaneous and precise information is provided, along with cost and time savings, simplicity in logistics and inventory management, and a superior ability to meet customer expectations. The supply chain for aseptic packaging is comparable and is increasingly reliant on electronic tracking and logistics. Consequently, this may present a higher chance for market expansion.

Regional Analysis

The Predominance of Asia-Pacific Over Others

The regional segments of the global aseptic packaging market share are North America, Asia-Pacific, Europe, Latin America, and the Middle East and Africa.

Asia-Pacific is estimated to be the largest region in the market, advancing at a CAGR of 10.5% to reach USD 15,828 million by 2030. Developing countries in the Asia-Pacific region primarily drive the global market for aseptic packaging. Some of these countries include China, India, Vietnam, South Korea, and Indonesia. This is because consumers have access to an excessive amount of disposable income, urbanization has increased, and a large population base has led to increased consumption of beverages and food products.

The market has additional opportunities for expansion due to the expanding use of aseptic packaging in the food and beverage industry. In addition, the beer industry in Australia is already the most lucrative in terms of the amount of revenue it generates. Beer production contributed approximately 4,600 million USD to the Australian economy between 2017 and 2018, according to data published in April 2019 by the Brewers Association of Australia. This contribution is anticipated to grow in the future. Therefore, the market for aseptic packaging is expected to expand over the next few years.

Europe is expected to be the second-largest region, proceeding at a CAGR of 9.2% to reach USD 10,318 million by 2030. Aseptic packaging has become an integral and increasingly essential component for the success of the European marketplace. The impact of aseptic packaging is channeled through an effective supply chain to add value and meet steadily rising customer demands. Growing environmental concerns, governments in Western Europe are implementing initiatives to address the waste and recycling of plastic packaging. In addition, there is seen an upsurge in the use of recycled plastic materials for packaging applications among European aseptic packaging companies.

In addition, European aseptic packaging manufacturers are constantly updating their packaging portfolios to provide environmentally friendly packaging to consumers to combat escalating environmental issues. To limit Europe's plastic consumption, they are transitioning to packaging made from paper. All such occurrences are anticipated to contribute to the expansion of the aseptic packaging industry.

The rapidly expanding pharmaceutical business in North America is driving demand for aseptic packaging. The strong economy of the nation, coupled with the country's capacity to develop technologically sophisticated medical products, fuels product consumption. A vast population's quest for better health drives product consumption for medical packaging of medications, vials, and ampules.

The market in Latin America is anticipated to increase significantly, likely due to the region's expanding population and rising food consumption. Consumption of processed foods and beverages has increased due to the region's urbanization and population demand for a higher quality of life, pushing the industry there. In contrast, similar packaging is utilized in the Middle East and Africa to prevent perishable food from spoiling in response to the region's dramatic climate change. Additionally, the consumption of exotic fruits is expanding, increasing product demand.

Segmental Analysis

The segmentation of the global aseptic packaging market share based on type is as follows: Carton, Bags and Pouches, and Bottles and Cans.

Carton is expected to ascend at a CAGR of 10.6% to reach USD 24,408 million during the forecast period. 75% paperboard, 21% low-density polyethylene, and 4% aluminum are used to manufacture cartons. It contains six layers of packaging that prevent light, oxygen, and moisture from penetrating beverages. Since aseptic technology allows beverages to remain fresh without adding preservatives until the pack is opened, these cartons are also known as aseptic cartons. In addition, cartons are 100 % recyclable and have a small carbon footprint due to renewable wood fiber. Carton's ability to be recycled encourages their use with fresh liquids such as milk, yogurt, fresh juices, pulps, and other dairy products. These characteristics drive the demand for cartons in the aseptic packaging industry.

Due to a rise in demand from the food, beverage, and pharmaceutical industries, the bags and pouches segment held a sizable portion of the market. The packaging is used for juice pouches for beverage applications, saline bags for medical and water uses, and blood bags. Vials and ampoules are also used extensively in the medical field to store vaccinations and injectable drugs. Because medications must be sterile before being injected into a patient with a syringe to prevent infection, there is a market for such products.

The growth of bottles & cans and other segments can be attributed to the shift toward food & beverage products consumed on the go. The fast-paced consumer lifestyle has surged the attraction toward easy-to-use beverage products. Bottles & cans make beverage storage easy and handle while keeping the product inside fresh to consume and dispose. This factor supports packaging consumption.

Based on material, the global aseptic packaging market is classified into Paper and Paperboard, Plastics, Metals, and Glass.

Paper and paperboard are estimated to have the largest share of USD 24,141 million at a CAGR of 10.4% by 2030. Due to concerns about plastic pollution, paperboard packaging is becoming increasingly popular. Although 100% paperboard is not used in the production of cartons, approximately 75% of it is fully recyclable. To increase paperboard consumption in the aseptic packaging industry, major players are investing in product development-related research to implement its use in the packaging of beverages apart from dairy products and juices.

The expansion of the glass market can be ascribed to a surge in the use of environmentally friendly food and beverage packaging. Glass is the perfect material for packaging beverages like wine, juice, and soda because it is simple to sterilize and has a naturally non-reactive nature. Utilizing paper and paperboard instead of plastic in food and beverage packaging is another way to reduce plastic usage. Paperboard is used to make cartons, and processing creates the perfect atmosphere for food and drinks to stay fresh for a longer time. Paperboard's simple composability adds to the prospects for market expansion.

Based on the end-use industry, the market for aseptic packaging is segmented into Beverages and Food.

Beverages are estimated to dominate the market with USD 37,659 million at a CAGR of 10% during the forecast period. Aseptic packaging has grown in popularity in the beverage industry because it extends the shelf life of food products. The beverages industry utilizes aseptic packaging types such as containers, ampules, cans, bottles, and cartons. Compared to other packaging types, aseptic packaging containers offer unique advantages like high barrier properties, economical packaging with aesthetic values, and no contamination, which has led to the expansion of the aseptic packaging market in recent years.

Impact of covid-19

Due to the prolonged lockdown that resulted from the outbreak of the coronavirus pandemic in major countries such as the United States of America, China, Japan, India, and Germany, production facilities had to be completely shut down. However, these facilities did not produce essential goods. In addition, the pandemic harmed most businesses during the first and second phases of the year 2020. Nonetheless, there was no significant negative impact on the expansion of the market for aseptic packaging.

Due to the stringent measures enforced 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, which led to a decrease in sales of new aseptic packaging machinery. However, the manufacturing and packaging of foods and beverages were not significantly impacted. In addition, a decline in the number of hotels and other businesses in the hospitality industry led to a decline in the demand for food and drink. But even so, the production and packaging of beverages and food items for retail sale continued unabatedly throughout the entire operation.

Recent Developments

• In December 2022, Amcor will launch China's most extensive flexible packaging facility, enhancing its position in the Asia-Pacific region.
• In December 2022, Amcor (NYSE: AMCR, ASX: AMC), a leader in the development and manufacture of ethical packaging solutions, recently announced a US$3 million investment in PulPac, a Swedish business that offers innovative manufacturing technology for inexpensive, high-performance fiber-based packaging.
• In December 2022, Morocco now has a bigger Mondi paper bags market.
• In June 2022, Sonoco Added Residential Paper Cup Recycling to its Hartsville, South Carolina, Mill.