The global rigid plastic packaging market size was valued at USD 1,93,358 million in 2021. It is expected to reach USD 2,97,911 million by 2030, growing at a CAGR of 4.92% during the forecast period (2022-2030). Rigid plastic refers to an item constructed primarily of plastic resin, has a somewhat inflexible set shape or form, and is capable of retaining its shape or form, whether empty or full, during regular use, regardless of its product or other external support. The rigid plastic packaging process uses plastic materials to create boxes, trays, containers, cases, and other plastic packages. Because of its distinctive visual appeal and long-lasting durability, plastic is one of the most used materials for packaging. Unique advantages of rigid plastic packaging, such as increased impact strength and improved stiffness, serve as a significant market driver. Although rigid packaging has been around for a while, it is still developing to satisfy the demands of a shifting consumer base.
Packaging and product distinctiveness are crucial in the highly fragmented consumer goods market. Demand for rigid plastic packaging is fueled by consumer goods consumption worldwide. Additionally, the industry is growing as recycling rates for packaging increase globally. Furthermore, rigid plastics are used in various packaging due to their affordability. However, increased plastic consumption is the primary barrier to the market for rigid plastic packaging. Plastics have several adverse effects on both people and the environment. Several rules have been put in place to limit the excessive use of plastics, which is anticipated to have a detrimental impact on the market's expansion.
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Increased Consumption of Consumer Goods and Advancements in Recycling Rates
Over the past 25 years, the consumer-packaged goods (CPG) sector has experienced rapid expansion. The surge in consumer spending in developing nations is one of the main factors fueling the CPG industry's growth. For instance, from 2019 to 2023, consumer expenditure in the UK is predicted to increase by 5.8%. The consumer goods industry covers many commodities people buy at retail and wholesale, including electronics, luxury goods, luxury clothes, fences, and deck railings. Customers seek plain packaging that is easy to use and transfer due to their busy schedules and lifestyles. The packaged consumer goods sector is expected to develop due to increased consumer spending, even if the products that customers buy depend on the economic climate.
Furthermore, the consumer products sector is highly fragmented, with packaging and product differentiation essential factors. Thus, it is anticipated that the market for rigid packaging will expand with the rise of the consumer products industry. Additionally, over the past few years, the reuse and recycling of packaging materials have drawn considerable attention on a global scale. PET bottles and HDPE milk bottles are frequently seen being recycled. Recycling rigid plastic packaging lowers the need for raw materials, reducing pollution of the air and water and the emission of greenhouse gases. Significant recycling rates have been seen for rigid plastic packing materials. Numerous governments and business stakeholders have developed plans to reduce plastic waste through recycling.
Transition Towards Flexible Packaging
The packaging industry has seen a transition from rigid to flexible materials in the packaging of many businesses. Flexible packaging is becoming more widely used due to changes in customer behavior. Traditional package styles are being replaced by innovative and adaptable choices meant to fulfill consumer needs, particularly in the personal care market, as consumer focus on convenience and sustainability grows.
More consumers are drawn to flexible packaging due to factors including simple dispensing, environmental friendliness of the material, weightlessness, and improved moisture barrier qualities. Flexible packaging is predicted to develop faster than the GDP, hamper market expansion.
The Global E-Commerce Sales
Global e-commerce revenues are anticipated to increase by 8.1% between 2014 and 2024. The expansion of e-commerce has enormous potential for future global retail growth, spurring the rigid plastic packaging industry's development. Due to technological improvements over the past few years, more consumers now choose to purchase online. Being technologically advanced and adapting to the problems the e-commerce business provides compared to traditional sales channels, the rigid plastic packaging industry is reducing its supply.
To deliver items to customers' doorsteps, packaging companies must build durable packages to withstand the usually complex manual and automated supply networks required. Therefore, it is projected that the growth of the e-commerce sector would present lucrative prospects for the market for rigid plastic packaging to expand throughout the forecast period.
The global rigid plastic packaging market is analyzed across the material, production process, end-user industry, and region.
Per the material, the categories include polyethylene terephthalate (PET), polypropylene (PP), high-density polyethylene (HDPE), and others.
The polyethylene terephthalate section will likely have the highest shareholding, expanding at a CAGR of 5.3%. The most widely deployed commercial polymer is PET, used in packaging electronics and vehicle parts. Because PET rigid plastic packaging is recyclable and reusable, it has many advantages over other forms. As a result, it is mainly utilized in tubes, aerosol cans, food cans, drums, and pails. Rapid urbanization and the need to maintain a healthy lifestyle in emerging nations have increased the demand for PET-rigid plastic packaging. Additionally, customer preference for packaged and processed goods significantly contributes to market expansion.
The polypropylene section will have the second-largest shareholding. Due to its characteristics, including stiffness, improved impact resistance, and high strength, the market for PP rigid plastics packaging is anticipated to develop with the rise in the consumer goods and food & beverage industries. The industry is expected to grow significantly from growing nations in Asia-Pacific and Africa. This is explained by factors including the expansion of the pharmaceutical business and the increase in demand for packaging in the home and personal care, retail, and fresh food and beverage industries.
Per the production process, the fragments are extrusion, injection molding, blow molding, thermoforming, and others.
The injection molding section will likely have the highest shareholding, expanding at a CAGR of 5.13%. The increasing need for injection molding machines in the food and beverage industry to produce various packaging and processing components, such as food and beverage containers, processing equipment components, conveyor system components, and others, is one of the key factors fueling the market's overall growth. Additionally, the market expansion is predicted to be driven by the development of the automotive sector.
The extrusion section will have the second-largest shareholding. The rigid plastic packaging market is expanding because of the increased demand for extruded plastic products in various industries, including the automotive, medical, packaging, and food and beverage sectors. In addition, the automotive industry has expanded in nations like China, the United States, Germany, and India, increasing demand for high-performance plastic products and supporting market expansion.
Per the end-user industry, the categories include food & beverage, personal care, household, healthcare, and others.
The food & beverage section is forecasted to hold the largest share, growing at a CAGR of 4.5%. Packaging innovation is crucial for retailers and product manufacturers that want to promote and differentiate their brands in the food and beverage sector to acquire a competitive edge. The relevance of rigid plastic packaging has grown in the food and beverage industries because it gives packaged foods extended shelf life. Rigid packaging materials are used in the food and beverage business. Examples include aerosol cans, ampules, cans, bottles, and jars. Compared to other package materials, rigid plastic packaging containers offer distinctive advantages such as high barrier characteristics, rigidity, and impact resistance. As a result, the market for rigid plastic packaging has recently expanded.
The household section will hold the second-largest share. Due to its many benefits, including increased convenience, better handling, improved visual appeal, economic effectiveness, and ease of disposal, rigid plastic materials are becoming increasingly popular. Additionally, the industry is growing as rigid plastic packaging replaces glass, metal, and other packaging materials in sectors including sauces, soups, and PET food. Additionally, because of their affordability, many businesses favor rigid plastic packaging options, including pots, tubs, and trays. House rigid plastic packaging is becoming more and more common in developing countries, particularly in Asia-Pacific, thanks to its recyclable qualities. Therefore, the market may have prospects for expansion due to all these aspects.
The region-wise segmentation of the global rigid plastic packaging market includes North America, Europe, Asia Pacific, and LAMEA.
The Asia Pacific and Europe will likely dominate the regional rigid plastic packaging market
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The Asia Pacific will command the market while expanding at a CAGR of 5.6%. The rising nations in the Asia-Pacific region, including China, India, Vietnam, Australia, and Indonesia, are the major market players for rigid packaging. Due to rising consumer disposable income, increasing urbanization, and rising consumption of cosmetics, food, beverages, and dry goods, rigid plastic packaging consumption has stayed positive and consistently strong in several Asia-Pacific nations.
According to Plastics Europe, a European business association, Asia-Pacific generates 359 million tons of plastic annually, of which 38% is used for consumer goods. On the other hand, China forbade the import of plastic for recycling since it would negatively impact the market expansion for rigid plastic packaging. One of the main drivers of growth in the Asia-Pacific area is the region's expanding e-commerce market. Additionally, during the projected period, the market may benefit from the rapid usage of rigid plastic packaging in the food and beverage industry.
Europe is predicted to expand at a CAGR of 4.23% and hold USD 72,939 million. The development of the European market depends increasingly on the packaging, which has evolved into an integral aspect. An adequate supply chain is used to channel the influence of rigid plastic packaging systems to provide value and satisfy steadily rising client demands. Governments in western Europe are taking action to address the problem of plastic packaging waste and recycling due to environmental concerns.
One of the main aspects propelling the market is the growing trend among European packaging businesses to employ recycled plastic materials for their packaging applications. Additionally, packaging businesses have moved their attention to using lightweight materials for packings, such as high-density polyethylene, which can lower the cost of transportation and material handling. The expansion of the consumer market brought about by Europe's economic growth has unintentionally helped the rigid plastic packaging industry. The development of the automotive, electrical appliance and packaging sectors is also anticipated to accelerate the adoption of rigid plastic packaging options, which would speed up the expansion of the rigid plastic packaging market in Europe.