Home Care Packaging Market

Market Overview

The global home care packaging market size is expected at USD 42.74 billion in 2030, and it is predicted to increase at a CAGR of 5.91% from 2022 to 2030. Home care packaging materials are manufactured using durable materials for safeguarding and protecting their contents from any form of microbial contamination. This gives rise to factors aimed at increasing the overall quality of the product. Additionally, they ensure highly effective usage and provide maximum efficiency by shielding the packaged product by offering convenience and security during storage and transportation. They are often available in various sizes, colors, ranges, and material types, depending on the product that needs to be packaged. The global home care packaging market can be categorized into material, type, and regions. 

Market Dynamics

Market Driving Factors

Product Innovation and Strong Branding Tactics to Support Market Growth

An ongoing trend of consumers attesting to real-time information about the products being used daily is arising. Additionally, the CPG industry-based Consumer Brand Association has begun identifying SmartLabel as a trusted source of information for product and ingredient information, further enabling consumer trust. These factors are expected to drive the global home care packaging market growth towards a new horizon. Rising disposable income among consumers and the added strength of increasing capita per consumer have enabled spending power among a widening consumer base. Additionally, improving distribution facilities through e-commerce will further tag the market to grow at an exceptionally high rate. 

An alternative trend of easy storage requirements and lower costs will increase the footprint of the market in terms of gaining market volume. The pandemic impacted the market positively as consumers opted for storing essential supplies over a prolonged period. Manufacturers in the global home care packaging market noted the ongoing emergency and increased production to keep up with the stacking demand. Rising healthcare awareness and the continued focus of the FMCG industry on wellbeing will contribute to the market's growth. Factors such as rapid urbanization and improving living standards will further help flourish the market during the forecast period. 

Rising Consumption of Personal Care Products to Propel Growth

Factors such as the rapidly growing economy and shifting lifestyle patterns among emerging economies such as China, India, and Brazil will be major contributors to the growth of the global home care packaging market during the forecast period. Advancements in packaging technology and the ability to offer a higher aesthetic value to products will increase the market's footprint. Sustainable packaging practices have led to lightweight and durable solutions. Rising health awareness among consumers and smaller pack sizes available at an affordable price range will help consumers stock up on a broader range of products.

Dominant players in the home care brands are also shifting their focus on integrating naturally derived formulas while keeping track of on-pack sustainability issues at a more accessible level to understand. A comprehensive range of product availability and a rising focus on a healthier lifestyle will push the market to grow at an accelerated pace. The pandemic struck consumers to lower medical costs, which prompted them to increase their consumption of products pertaining to the home care packaging market. 

Market Restraining Factors

Raw Material Pricing and Irregular Purchasing Patterns to Hinder Market Growth

The COVID-19 pandemic led to a tougher environment for acquiring raw materials as volatility regarding costs and supply on a global scale was observed. For instance, in December 2020, Saertex announced implementing a 5% increase in their glass fiber material. The glass price was increased due to irregularity in regular intervals due to pre-pandemic stock-keeping habits. In February 2021, Smurfit Kappa announced a pre-warning that an increase in raw material coss regarding waste paper and paper would be implemented. This increase in price was also attributed to lowered recycling activities by consumers due to frequent lockdowns. 

In metals, a diversion for raw materials was noted as many dominant players and suppliers of tinplate were extrapolated. According to the Metal Container Manufacturers Association (MCMA), raw material pricing increased by more than 15% as volatility in manufacturing was observed. Lowered crude oil prices and decreased cost of oil-based raw materials, including plastic resins for the packaging sector, fell drastically.

Home Care Packaging Market Opportunities

Integration of Plastic for Flexibility and Durability to Increase Market Value to Boost Market Opportunities

The widening use of plastic across all sectors of the home care packaging sector is creating a huge demand for plastic as a material. Plastic offers a wide range of attributes such as flexibility, durability, and strength, making them highly ideal for packaging products containing liquids, powder, and cream. Additionally, plastic is highly machinable and can be easily molded into any shape. Rising demand from the retail industry, increasing foothold from petcare industries, and a rising number of dual-income households will increase the viability of plastic. 

A shifting trend of consumers adopting flexible plastic packaging over their rigid counterparts was observed due to increasing convenience and widened sustainability issues. Studies show that flexible plastic materials offer 80% lighter weight than their counterparts. Dominant players are focusing on materials that possess fewer virgin materials by adding a higher level of post-consumer recycling (PCR) or post-industrial recycling (PIR). They are also aimed at exploring other varieties of bioplastics and bio-derived product resins for increasing their carbon footprint. These factors will increase the market volume for the global home care packaging market towards untapped growth. 

Segmental Analysis

By Material

Based on material, the market can be divided into plastic, paper, metal, and glass. The paper segment was estimated to be at USD 18.65 billion in 2021 and is expected to grow at a CAGR of 4.65%. Plastic packaging is being highly criticized due to its corroborative nature, prompting dominant players are shifting their focus toward paper packaging products. Increasing usage of household care packaging will contribute a larger amount owing to reducing plastic pollution measures. These activities contribute a larger share to amounts in terms of paper bottles and multi-layered cardboard carons. Plastic will account for the second market share and is estimated to grow at a CAGR of 5.15% during the estimated period. 

By Type

Based on type, the market can be broken down into bottles and containers, metal cans, cartons and corrugated boxes, pouches and bags, and others. Cartons and corrugated boxes will account for the largest share and have an estimated value of 16.85 billion, with a CAGR growth of 4.81% during the forecast period. Cartons and corrugated boxes allow for sustainable home packaging solutions. Factors such as an important opportunity for aiding consumers in reducing plastic consumption and reducing recycling complications will push the market towards lucrative growth. Bottles and containers account for the second-largest market share with an estimated market value of USD 7.75 billion in 2021 and are expected to grow at a CAGR of 5.08%. 

By Products

Based on products, the market can be segmented into dishwashing, insecticides, laundry care, toiletries, polishes, air care, and others. Laundry care accounted for the largest market share during the forecast period and is estimated to grow at a CAGR of 4.90%. In 2021, the market was estimated to grow at USD 13.31 billion. Factors such as changing patterns in laundry, cleaning, and other chores for improving hygiene and cleaning habits will contribute to the growth of the market. Stay-at-home solutions will give rise to an increase in demand, such as dishwashing liquids and detergents will give rise to segmental growth. Dishwashing is expected to significantly grow during the forecast period and register a growth of USD 4.73 billion in 2021. 

Impact of covid-19

The ongoing pandemic raised the demand for sanitization requirements that soon became the new normal. Sanitization and hygiene maintenance with utmost care rose to a new high as the demand-wise category for cleaning agents, sanitizers, disposable gloves, and masks came to an all-time high. Pre-pandemic, the home sanitization category witnessed a downward growing trend. However, the post-pandemic period saw a surge in this category due to rising demand for home care products and cleaners. Consumers demanding a continuous link with home care brands and products amid COVID-19 will further contribute to the home care packaging market during the forecast period. 

Consumers pertaining to age groups adopted ordering products online due to the ongoing shutdowns and lockdowns, thereby witnessing a surge in sales. In China, the e-commerce channel grew 1.5 times to account for about 70% of sales. This was a combinative effort from online-only brands such as Free plus and Curél. Changing consumer buying habits affected packaging as traditional formats faced the issues of closures, openings, dispense systems breaking, and leakages. In 2020, consumers had to face extended periods of cleaning, which increased the intake of products for the home care packaging market. In essence, the market is expected to register a higher growth rate during the pandemic stage. 

Regional Analysis

Asia-Pacific to Witness Largest Market Share Owing to Highly Aware Consumer Base

The market for home care packaging in Asia-Pacific was estimated to be at USD 14.19 billion in 2021 and is estimated to grow at a CAGR of 5.44%. China accounted for the lion's share of the contributor as they have a highly educated consumer base. Rapid changes in Chinese living standards will also help contribute to the growth of the segment. India will also occupy a significant market share in terms of value due to rising literate parents and transparent information giving rise to natural products. The consumer base for fewer or no chemicals preservatives is forcing dominant players to produce products in the same conservatory. 

North America accounted for the second-largest market share during the forecast period. It had an estimated value of USD 8.13 billion in 2021 and will grow with a CAGR of 3.92%. The presence of dominant beauty brands in the region, such as Unilever, Dove, Tresemme, and Toni & Guy, will give a creative opportunity for the market to grow at a rapid pace. The US accounted for a major contributor due to the rising usage of e-commerce channels for supplying home care to consumers directly. Additionally, environmental concerns and the rising integration of premium brands will further increase the volume of the market. 

Recent Developments

• May 2021 – Unilever announced their use of post-consumer recycled plastic, with 11% of their total plastic packaging volume of recycled plastic.
• September 2020 – Borealis and Menshen GmbH announced their new packaging closure of post-consumer recycled resin. 
• November 2020 - L'Oréal's Garnier Ultimate Blends became the first brand to market a beauty brand into packaged 100% recyclable FSC-certified cardboard. 
• June 2020 – Aptar Group Inc. announced producing a 100% PCR (Post Consumer Resin) spray pump for redesigning their natural pet care brand WildWash. 
• August 2020 – Ball Corporation announced the complete acquisition of Tubex Industria E Commercio de Embalagens Ltd with extruded aluminum aerosol packaging with manufacturing. 
• Dec 2020 – Aptar Group Inc. announced an expansion of their post-consumer (PCR) within their airless line by launching two new—Micro ECO and Mezzo ECO—incorporating a 45% PCR manufacturing. 
• Nov 2020 – Sonoco announced their new EnviroSense sustainable packaging initiative, including cans from 100% recycled paperboard and rigid plastic packaging conditions. 
• June 2019 – SC Johnson announced their first concentrated refill in the UK for its Mr. Muscle line of cleaning products. 

Home Care Packaging Market Segmentation

By Material

• Plastic
• Paper
• Metal
• Glass

By Type

• Bottle and Containers
• Metal Cans
• Carons and Corrugated Boxes 
• Pouches Bags
• Others Types

By Products

• Dishwashing
• Insecticides
• Laundry Care
• Toiletries
• Polishes
• Air Care
• Other Products

By Regions

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