The global tube packaging market size was worth USD 5.5 billion in 2021, and it is estimated to reach an expected value of USD 10 billion by 2030, registering a CAGR of 7% during the forecast period (2022-2030). Due to their portability, flexibility, and ability to hold and dispense a wide range of products, tubes are one of the most widely used packaging formats in the cosmetic and personal care industry. The market is expanding due to several factors, including rising urbanization, a growing millennial population, and rising consumer disposable income. Urbanization has increased disposable income and raised consumer awareness of the availability of various cosmetics products, opening up several opportunities for market participants and sharply increasing the demand for tube packaging. With companies investing more in developing new and innovative packages while considering portability and ease of use for such tubes, the market's growth is expected to augment during the forecast period.
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Increased Demand from the Cosmetic Industry
The demand for adequate product packaging has increased with the emergence of a wide range of customized beauty products. This can be attributed to rising personal grooming awareness, which increased the number of people using cosmetic products.
The investments in businesses that create cutting-edge packaging solutions are driven by the rising demand for cosmetic products in emerging nations like Brazil and India, among others, and growing consumer awareness. Hence, it is anticipated that increased demand for cosmetic products will increase demand for packaging.
Primarily, female consumers are considered a significant source of demand for cosmetic products. However, the men’s grooming industry is also witnessing healthy growth in the current market. The Associated Chamber of Commerce and Industry of India reported that men between the age of 18 and 25 years spend more money on grooming and personal care products than women. Such market trends are further expected to create opportunities for tube packaging vendors in the male cosmetics market.
Increasing Demand for Convenience Packaging
Because of portability, convenience, ease of use to hold and dispense liquid or pasty products, and excellent barrier properties, tubes are one of the most preferred packaging forms in the cosmetic, personal care, healthcare, and pharmaceutical segment.
Moreover, tube packaging can prevent excess product usage, unlike other packaging forms, such as container where product shelf life decline subsequently, and the product get easily exposed to the environment.
Companies are adopting creative and eye-catching product packaging strategies in response to the growing consumer demand for valuable and user-friendly dispensing products and solutions. For instance, in November 2020, Yuan Harng Co. Ltd introduced its innovative and highly sustainable bioplastic and PCR tubes. Using plant-derived plastic, their bioplastic tubes offer the same properties as their virgin plastic tubes in terms of aesthetics and technicalities. As a result, customers can benefit from the green benefits with no reduction or compromise in quality. Such factors contribute to market demand.
Regulations in the Packaging Industry
When discarded, the growing amount of plastic used in cosmetic tube packaging has several adverse effects on the environment. As a result, plastic use has been prohibited in many industries. Plastic microbeads previously found in items like toothpaste and exfoliating face scrubs are no longer permitted in China's cosmetic industry. In China, under the cosmetic industry, plastic microbeads used in products, such as exfoliating face scrubs and toothpaste, can no longer be used in cosmetics and personal care. This is because their disposal significantly affected the ocean waters. In 2019, China announced to ban the production of new cosmetic products containing microbeads by 31 December 2020. Sales of existing cosmetic products containing microbeads will be prohibited by 31 December 2022.
According to the Centre for Monitoring Indian Economy, it is estimated that around 141 thousand metric tons of toothpaste will be produced in 2020 in India. With such large production, many toothpaste tubes are also discarded yearly in the country. According to OpenIDEO, this number raises to 15 billion discarded toothpaste tubes on the global level. These may end up in landfills every year. By 2050, there will likely be more plastic than fish in the ocean. All these force the respective governments to implement stringent laws and regulations regarding tube packaging: all these regulations by various governments and authorities regarding the usage of plastic would hamper the market growth in the forecast period.
Innovations in Material Technology
The development of environmentally friendly plastic packaging solutions has been made possible by significant advances in material technology and sustainable packaging. Furthermore, to strike a balance between better economics and sustainability, many companies are shifting to recyclable packaging by using reusable and compostable plastic material, which will drive the market in the future. For instance, in February 2021, HCT Group introduced Crimpless Tube Technology to promote and encourage sustainable packaging solutions. These tubes dispel the limitations of classic crimped tubes by allowing sleeker uniform products, multiple applicators, more formula pairings, and more decoration possibilities to make the product stand up and out. Such developments provide lucrative opportunities for market growth.
The global tube packaging market is segmented by Type of Packaging, material, and application.
By type of packaging, the global tube packaging market is segmented into a squeeze, twist, stick, cartridges, and other types of packaging. The squeeze segment is further bifurcated into laminate, plastic, and collapsible. In the squeeze segment, the laminate sub-segment accounted for the largest market share and is estimated to grow at a CAGR of 7.2% during the forecast period. In tube laminates, companies such as Huhmataki are looking into using post-consumer recycled materials (PCR). Also, waste and residue oils are the base for new PE resins comparable to resins made from crude oil. Printing and tube-making tests are done after the production of laminates. The company's laminate also complies with regulatory requirements such as food compliance. According to Wifag Polytype India, the Indian lamitube market has enormous potential. Herbal products are strengthening the laminate squeeze tube demand in India. Companies such as Patanjali Ayurveda and Dabur are planning to launch variants in Dant Kranti, Babool, and others. Its increasing share of packaging in the pharma, oral care, food, chemical, and cosmetic industries presents opportunities for consumer product companies to extend their shelf impact, customer loyalty, and exports.
By material, the global tube packaging market is segmented into plastic, metal, and paper. The plastic segment accounted for the largest market share and is estimated to grow at a CAGR of 6.3% during the forecast period. Laminated tube packaging is also one of the latest trends that dominate the plastic packaging industry. This kind of tube is manufactured in multi-layer laminate foil using plastic barriers inserted between the tube's outer and inner layers. The major driving factor for its growth is its ability to maintain the product’s integrity by providing features such as moisture retention. Thus, they are used in cosmetic packaging, such as skincare products. Vendors in the market are also focusing on enhancing the sustainability aspects of laminated tubes. To meet such requirements, the companies are focusing on mergers and acquisitions. For instance, in November 2020, Essel Propack, an Indian-based company, announced the acquisition of Stylo packs Ltd, an established manufacturer of laminated tubes and plastic co-ex tubes, among others that serve packaging applications such as personal care, pharmaceuticals, cosmetics, and other fast-moving consumer goods. The acquisition is aimed at helping EPL’s growth in sales of laminate tubes with new developments focusing on sustainability; such instances drive the segment growth.
By application, the global tube packaging market is segmented into cosmetics and toiletries, healthcare and pharmaceutical, food, adhesive and sealants, and other applications. The cosmetics and toiletries segment accounted for the largest market share and is estimated to grow at a CAGR of 6.4% during the forecast period. Changing lifestyles, increasing urbanization, and the rising demand for skincare products are some significant drivers expected to drive the market in the future. Also, varying climatic conditions and rising disposable incomes have increased spending on cosmetic products. In recent years, the cosmetics industry, especially in the Asia-Pacific region, has accelerated owing to the growing middle-class population and the influence of social media. According to Shiseido, a Japan-based cosmetics vendor, significant spending is from a group of women over 20 years of age earning an annual income of over RMB 30,000 are the influential buyers; in 2020, such consumers that are inclined towards buying cosmetics have reached almost 800 million in 2020. Millennials and middle-aged women in the Asia-Pacific and Latin America are expected to add to the growing demand for cosmetics. Such instances are expected to propel the market.
By region, the global tube packaging market is segmented into Asia-Pacific, Latin America, Middle East & Africa
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Asia-Pacific accounted for the largest market share and is estimated to grow at a CAGR of 7.5% during the forecast period. China is the largest packaging market in the world, especially when it comes to plastic packaging. The country is expected to command a dominant market share in the region. In addition, the government has a rapidly growing pharma, cosmetics, healthcare, food, and adhesive market, which positively impacts the demand for tube packaging. n September 2020, HCP announced an investment in its production capabilities in Asia better to meet the new needs of the beauty market. The group opened a Centre of Excellence dedicated to "Fast Development' at its existing manufacturing hub in Suzhou, China. Such investments are expected to increase further over the forecast period. Cosmetics and personal care products are other significant drivers behind tube packaging in the country. The demand for eco-friendly packaging is gaining traction in the country's indie beauty space, according to a study by WWP, a US-based packaging firm, in December 2020. To keep up with this trend, vendors in the country are expected to focus on offering sustainable packaging solutions. For instance, WWP launched the Eco-Pac Tube, which is made from 100% Bio-PE, and with every million Eco-Pac tubes produced, about five tons of plastic is saved. Such instances drive market growth.
Latin America is the second largest region. It is estimated to reach an expected value of USD 1.5 billion by 2030, registering a CAGR of 5.4%. The Latin American beauty and personal care industry has been continually experiencing both innovation and growth. Companies like Loreal Brazil have been promoting the use of sustainable ingredients along with providing impetus to the domestic production of cosmetics in the country. This is expected to expand the use of tubes in the cosmetic industry, as the cosmetic industry has a high potential for immense growth in the region. South America is one of the major hubs for automobile manufacturing, with major manufacturers like General Motors, Toyota Motor Corporation, Hyundai Motor Corporation, and Volkswagen AG having a presence in the region. Automobile Industry makes considerable use of industrial oils and fluids and automotive lubricants that are packed using tubes. The pharmaceutical industry, one of the major end-user segments of this industry, has a considerable presence in the region. There are more than 400 pharmaceutical companies in Mexico, with companies like Bayer, Groupo Novartis, Pfizer, and Merck among the leading pharmaceutical companies. 20 of the top 25 pharmaceutical companies have a presence in Mexico. The presence of a well-developed pharmaceutical industry is expected further to drive the consumption of tubes in the region
Middle East & Africa is the third largest region. Due to the recent effects of the pandemic, the demand for online food shopping in Saudi Arabia increased. According to a study done in May 2020 by the Choueiri Group with input from 2,800 Saudi participants, Saudi Arabian consumers increased their online purchases of food and beverages during the pandemic. In April, about 55% of the population did so, significantly higher than the 6% they had done before the outbreak. Amongst the top online purchased products accounted for dairy products (69%). This indicates the growing need for tube packaging in the country.
List of top key global tube packaging market manufacturers