Global FMCG Packaging Market - 2023-2030

Overview

Global FMCG Packaging Market reached US$ 805.2 billion in 2022 and is expected to reach US$ 1170.5 billion by 2030, growing with a CAGR of 4.8% during the forecast period 2023-2030.

The FMCG packaging market is experiencing significant growth and innovation, driven by consumer demand for more sustainable and eco-friendly packaging options. Unilever has introduced a world-first paper-based laundry detergent bottle. Its prototype is made from sustainably sourced pulp and is designed to be recycled in the paper waste stream. In addition, Unilever is also exploring paper-based packaging for haircare products, demonstrating their commitment to reducing plastic waste.

Nestle's Smarties brand has transitioned to recyclable paper packaging for all its products globally. It shifts required adapting machinery and rigorous testing to ensure the packaging met the necessary quality and safety standards. Nestle is also exploring paper packaging for its Vittel bottled water brand, emphasizing the importance of maintaining product quality during the transition to paper.

The Asia-Pacific's Fast-Moving Consumer Goods (FMCG) sector demonstrated robust growth in the fourth quarter of 2022, registering a 3.1% increase in value despite inflationary challenges, according to Worldpanel's Asia Pulse report. Its growth was primarily driven by the home care and beverages segments, which expanded by 5.7% and 4.6%, respectively, which further expanding the market for FMCG packaging.

Dynamics

Rising Consumer Demand

The trend towards sustainability is significantly increasing the market for FMCG packaging. Consumers these days are increasingly aware of environmental issues and they are actively promoting products with sustainable packaging. As they prefer packaging materials that have a lower environmental impact and are easily recyclable or biodegradable. As a result, FMCG brands are under pressure to adopt sustainable packaging solutions to fulfill consumer preferences.

Governments and regulatory bodies are implementing measures to reduce plastic waste and promote sustainability. EU, for example, has banned selected single-use plastics and some countries have prohibited single-use packaging in certain sectors. FMCG businesses are recognizing the importance of pre-empting future legislation by incorporating sustainable packaging into their supply chains. Sustainable packaging has become a key differentiator in the FMCG industry. Brands that adopt sustainable packaging can use it as a marketing point to attract eco-conscious customers.

Diageo has introduced a 100% plastic-free paper-based spirits bottle for its Johnnie Walker scotch whisky brand. The innovative bottle is made entirely from sustainably sourced wood and is resin-lined instead of using plastic. The initiative aligns with Diageo's commitment to sustainable packaging and reducing plastic use. P&G has introduced plastic-free roll-on deodorant packaging for select Old Spice and Secret lines. The packaging is made from 90% recycled paper and certified by the Forest Stewardship Council. P&G plans to extend the use of this sustainable packaging across more product lines.

Smart Packaging Technologies

The FMCG packaging industry is experiencing significant growth and innovation driven by new technology advancements and innovations in smart packaging technologies. Smart packaging technologies are being used to ensure the safety of FMCGs by providing real-time information about product freshness, expiration dates and storage conditions. Sensors embedded in packaging can monitor environmental factors, reducing spoilage and waste and ensuring consumers receive safe and fresh products.

Digimarc Corporation and Sealed Air have joined forces to introduce product digitization to various markets, including food proteins, e-commerce fulfillment, industrials and consumer goods, through smart packaging. Its partnership aims to enable brands to enhance the value of their packaging by meeting consumer demands for authenticity, sustainability and personalized experiences. It also provides operational benefits by shedding light on a product's supply chain journey.

Environmental Concerns and Plastic Ban

Environmental concerns, particularly related to the ban on single-use plastics, are negatively impacting the FMCG packaging market. The government's globally putting ban on various plastic products which has led to the closure of businesses involved in the manufacturing, supply, storage and marketing of these goods, affecting the FMCG sector. The FMCG sector in India is significant in terms of size and it faces the challenge of ensuring the safety and cost-effectiveness of packaging while complying with the plastic ban.

However, with increasing environmental awareness and the ban on plastic use, FMCG companies are under pressure to find alternative packaging solutions. While the government has suggested substitutes like bamboo straws and jute bags, it remains a challenge for FMCG companies to transition to sustainable packaging materials. Despite these challenges, there is a growing awareness among producers and efforts are being made to develop creative and affordable alternatives to plastic packaging in the FMCG sector.

Segment Analysis

The global FMCG packaging market is segmented based on type, material, end-user and region.

Plastic Dominates FMCG Packaging Market Despite Sustainability Efforts

Plastic material holds the largest segment in the FMCG packaging market, any FMCG products, including packaged foods, beverages, personal care products, cleaning products and over-the-counter drugs, are delivered in single-use plastic packaging. Plastic packaging offers functional benefits such as health and safety, product protection and preservation. It also provides marketing advantages by helping products stand out on shelves and online.

Some of the largest FMCG companies, including Nestle, Proctor and Gamble, PepsiCo, Unilever, AB-InBev, The Coca-Cola Company and L'Oreal, rely significantly on plastic packaging for their products. In alignment with the national agenda on plastic waste management, many FMCG companies are aggressively working on adopting 100 percent biodegradable plastic for packaging certain products. It highlights the industry's commitment to finding more sustainable packaging solutions.

Geographical Penetration

Asia-Pacific FMCG Packaging Market Driven by Health Trends and E-commerce Growth

Asia-Pacific is expected to be the fastest-growing region in the FMCG packaging market, with various trends and growth patterns across different countries within the region. Health and wellness have become significant trends in the FMCG industry. Consumers in the Asia-Pacific are increasingly proactive about health and wellness. Vietnam recorded an impressive 8% GDP growth in 2022, despite inflation pressures and expectations of further increases in 2023.

Furthermore, notable trends include the rapid rebound of consumer FMCG purchases in major Chinese cities, with opportunities expected to arise in lower-tier cities in Q2 of 2023. As per Kantar Worldpanel's Asia Pulse report, Taiwan experienced a 20% surge in online FMCG sales, led by health supplements and facial skincare. India witnessed strong growth in the beverages sector, along with categories such as chocolates, soft drinks and ready-to-eat mixes. South Korea's mature digital infrastructure contributed to online FMCG sales capturing a 35% share of the total market value.

Competitive Landscape

The major global players in the market include: Amcor plc, Ball Corporation, Tetra Pak, Mondi Group, Sealed Air Corporation, Smurfit Kappa Group, Sonoco Products Company, Huhtamaki, Constantia Flexibles and WestRock Company.

COVID-19 Impact Analysis:

The COVID-19 pandemic had a significant impact on the FMCG packaging market, as the pandemic accelerated the shift towards e-commerce and home delivery as consumers sought safer and more convenient shopping options. Lockdowns prompted a surge in online sales and many consumers adopted new shopping habits, including online grocery shopping. As because of pandemic, the FMCG packaging industry saw an increase in demand for packaging suitable for e-commerce and home delivery.

Furthermore, with the rise of e-commerce, there was a need for packaging that can protect products during transit and maintain product quality. It had led to changes in packaging design to ensure that products arrived in good condition when ordered online. Additionally, packaging played a role in reassuring consumers about product safety and hygiene during the pandemic. The pandemic heightened consumer awareness of environmental issues, including the increase in packaging waste generated by online shopping.

Russia-Ukraine War Impact

The Russia-Ukraine war has had a significant impact on the FMCG packaging industry, leading to several disruptions. The FMCG industry was already dealing with financial challenges due to the second wave of the pandemic. Companies were witnessing margin and cost reductions to meet the rising demand for FMCG products, particularly in health and hygiene categories. The war has brought back the possibility of a financial slump, impacting the industry's recovery. Prices of FMCG products have increased, affecting daily consumers who rely on these products for daily use. The increase in crude oil prices has further contributed to higher prices in various FMCG-related commodities.

By Material

• Plastic
• Paper and Paperboard
• Metal
• Glass
• Others

By Packaging

• Flexible Packaging

Pouches & Sachets

Stick Packs

Bags & Sacks

Foils & Films

• Rigid Packaging

Boxes & Cartons

Trays

Tubes

Containers & Jars

Bottles

Cans

Blisters

By End-User

• Food & Beverage
• Pharmaceuticals
• Personal Care & Cosmetics
• Homecare Products
• Electronics
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In April 2023, ITC Savlon, a major player in the FMCG sector, made a significant announcement regarding its soap packaging. The company introduced a sustainable packaging solution for its Savlon Glycerin Soap, making it the first in its category to use 70% recycled plastic material in the PET film of the soap wrapper. It moves aligns with ITC Savlon's vision of Sustainability 2.0 (S2) and represents a breakthrough in embedding sustainability into the daily routines of Indian consumers.
• In February 2023, PulPac, a prominent developer of innovative manufacturing technology for fiber-based packaging and single-use products, joined forces with PA Consulting Group to introduce a new initiative known as The Bottle Collective. The initiative aims to reduce the usage of single-use plastic bottles across various industries, including food, beverages, consumer health and FMCG.
• In April 2023, Marks & Spencer (M&S) launched a new initiative to introduce recyclable packaging for its rice, grains and pulses range, as part of the company's goal to ensure that 100% of its food packaging is easily recyclable by 2025. It moves aligns with M&S's commitment to transform its product manufacturing and sales practices, aiming to reduce plastic usage significantly. The new packaging designs are expected to eliminate around 5.5 million units of plastic and contain 90% less plastic by weight.

Why Purchase the Report?

• To visualize the global FMCG packaging market segmentation based on type, material, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of FMCG packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global FMCG packaging market report would provide approximately 61 tables, 61 figures and 210 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies