The global packaging market will reach a market value of $761.4 billion in 2014 and exhibit strong growth in the next decade. Packaging is essential for most products people use and has few, if any, substitutes. As the global population grows, demand for products and thus for product packaging will continue to increase. Lifestyles in emerging economies are changing and people are requiring safer and more convenient packaging. Additionally, increasing income and urbanisation in the emerging economies provide immense market potential for packaging companies.
However, the packaging industry does face challenges. People are more concerned about the environmental impact of human behaviour. Governments are placing numerous regulations on the production, consumption and disposal of packaging products. Packaging companies must therefore focus on sustainability as well as adapting themselves to the increasingly regulated market place.
The packaging industry, although exhibiting vast potential, is highly competitive and fragmented with a myriad of companies competing for market share. The top 20 companies account for only 20.3% of the global packaging market in 2014. No single company or group of companies have a monopolistic type control.
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