Global Next-Generation Packaging Market - 2023-2030

Overview

Global Next-Generation Packaging Market reached US$ 27.4 billion in 2022 and is expected to reach US$ 45.8 billion by 2030, growing with a CAGR of 7.1% during the forecast period 2023-2030.

The global next-generation packaging market has witnessed significant growth and transformations over the years, with various factors influencing its dynamics. The automotive landscape is evolving at an extraordinary pace, driven by the need to reduce carbon emissions, dependence on fossil fuels and mitigate the impact of climate change.Electric vehicles, powered by lithium-ion batteries, have emerged as a promising solution to these challenges.

However, the lithium-ion batteries that power electric vehicles are sensitive to temperature fluctuations. Automotive battery thermal management system is designed to maintain the battery's temperature within an optimal range, ensuring its safety and efficiency while extending its operational life. As automakers globally ramp up their electric vehicle production, the demand for high-performance battery thermal management systems has soared.

The active packaging, accounts for over 1/3rd of the market share. Similarly, the Asia-Pacific dominates the next-generation packaging market, capturing the largest market share of over 1/3rd. Growing anti-counterfeiting features and the increasing focus on sustainability all act as major reasons behind the region's growth.

Dynamics

E-commerce Boom boosted by the Pandemic

The rapid growth of e-commerce, further accelerated by the COVID-19 pandemic, is another driving force behind next-generation packaging. The U.S. Census Bureau reported that e-commerce sales in U.S. grew by 32.4% in 2020, accounting for 14% of total retail sales. The respective trend necessitates packaging that is not only protective but also optimized for cost-effective shipping.

Innovations include slimmed-down packaging to reduce waste and innovative cushioning materials that protect fragile items while being eco-friendly. Amazon's "Frustration-Free Packaging" program is a prime example, focusing on reducing packaging waste and making it easier for consumers to open their packages.

Technological Advancements and Implementations

The integration of technology into packaging is transforming it into a dynamic, interactive component. Smart packaging solutions have gained momentum, offering benefits like product tracking, freshness indicators and user engagement. According to data, the global smart packaging market is projected to reach US$ 45.3 billion by 2025.

Product launches in this sector include QR code-based traceability systems, which enable consumers to access detailed information about a product's journey from manufacturing to delivery. Such advancements are not only enhancing the consumer experience but also aiding in supply chain management and counterfeit prevention.

Sustainability Imperative

One of the most significant drivers of next-generation packaging is the urgent need for sustainable solutions. Governments and environmental organizations globally are pressuring industries to reduce their environmental footprint. According to United Nations Environment Programme (UNEP), global plastic production reached 368 million metric tons in 2019. In response to this, sustainable packaging options are gaining traction.

Innovations in sustainable packaging include biodegradable materials, recyclable plastics and reusable packaging. Notably, in 2021, Coca-Cola introduced a paper bottle prototype, which could revolutionize the beverage industry by replacing traditional plastic bottles with fully recyclable paper-based alternatives. Governments are also incentivizing sustainable packaging practices through regulations and tax incentives.

Regulatory Hurdles and Lack of Consumer Education and Acceptance

Government regulations can both drive and impede the adoption of next-generation packaging. While regulations promoting sustainability can be beneficial, they can also create challenges for companies in terms of compliance and adapting to new standards. For instance, the introduction of stricter regulations regarding single-use plastics in various countries has forced companies to rethink their packaging strategies.

Further, consumers play a pivotal role in the success of next-generation packaging. However, they often lack awareness of the environmental impact of traditional packaging materials and the benefits of sustainable alternatives. Government agencies and companies need to invest in consumer education to drive acceptance of these new packaging solutions. According to a report by the European Commission, only 47% of Europeans feel well-informed about how to properly recycle.

High Initial Investment Costs

One of the primary challenges faced by companies venturing into next-generation packaging solutions is the substantial upfront investment required. Such investments are necessary for research and development, the acquisition of new machinery and technology and the establishment of eco-friendly manufacturing processes.

According to United Nations Industrial Development Organization (UNIDO), the capital investment required to transition to sustainable packaging practices can often be a significant barrier for smaller players in the market. Therefore, high initial investment costs restricts the market for next-generation packaging, stunting its growth and sales.

Segment Analysis

The global next-generation packaging market is segmented based on type, function, technology, material, application and region.

Rising Consumer Demands for Convenience, Sustainability and Product Integrity

Active packaging refers to a category of packaging that goes beyond traditional containment. It actively interacts with the product it encloses to extend shelf life, improve freshness, monitor quality or enhance safety. The aformentioned innovation-driven sector has gained momentum due to rising consumer demands for convenience, sustainability and product integrity. Active packaging can be found in various forms, including oxygen scavengers, desiccants, antimicrobial films and time-temperature indicators.

One of the primary drivers of active packaging's growth is consumers' increasing demand for fresher and safer products. Consumers are more conscious of the quality and safety of the products they purchase, particularly in the food and pharmaceutical industries. Active packaging technologies, such as oxygen scavengers and antimicrobial films, help maintain product freshness and reduce the risk of spoilage or contamination.

Sustainability is another critical factor propelling the active packaging market. Government agencies, such as the Environmental Protection Agency (EPA) in U.S., have been advocating for reduced packaging waste and environmentally friendly alternatives. Active packaging can help extend product shelf life, reducing food waste and the need for excessive packaging materials.

As we move forward, it is expected that active packaging will continue to evolve, incorporating cutting-edge technologies to meet the ever-changing demands of consumers and regulatory bodies. The respective dynamic and innovative sector will likely play a crucial role in shaping the future of next-generation packaging across various industries.

Geographical Penetration

Growing Emphasis on Sustainability, Convenience and Product Differentiation

The Asia-Pacific has emerged as a hotbed of innovation in the global packaging industry, with a growing emphasis on sustainability, convenience and product differentiation. One of the primary drivers of growth in the Asia-Pacific next-generation packaging market is the increasing focus on sustainability. As consumers become more environmentally conscious and demand greater convenience, businesses in the region are likely to further invest in innovative packaging solutions.

Further, counterfeit products remain a significant concern in the Asia-Pacific. Governments across the region have introduced stringent regulations aimed at reducing counterfeit products. As a response, many companies have introduced next-generation packaging solutions with built-in anti-counterfeiting features, including holographic labels, tamper-evident seals and blockchain-based traceability.

Moreover, in the food and beverage sector, ensuring the safety and freshness of products is paramount. Advanced packaging technologies such as modified atmosphere packaging (MAP) and active packaging have gained traction in Asia-Pacific, extending the shelf life of perishable goods. All the aforementioned factors contribute to the dominance of the region.

Competitive Landscape

major global players in the market include: Amcor plc, Sealed Air, Klockner Pentaplast, MicrobeGuard Corporation, TOPPAN INC., BALL CORPORATION, DuPont de Nemours, Inc., R.R. Donnelley & Sons Company, Vesta and Amerplast.

COVID-19 Impact Analysis

The COVID-19 pandemic has disrupted industries globally and the packaging sector is no exception. As the pandemic swept through the world, it triggered significant changes in consumer behavior, supply chains and manufacturing processes. The pandemic ushered in a new era of consumer behavior marked by increased online shopping and heightened hygiene awareness.

As people opted for contactless shopping, e-commerce experienced a boom, leading to a surge in the demand for packaging materials suitable for shipping and protecting goods. According to U.S. Census Bureau, e-commerce sales in U.S. reached US$ 791.7 billion in 2020, a significant increase from US$ 601.7 billion in 2019. The trend was mirrored in many other countries, driving the need for packaging solutions that could ensure product safety during transit while minimizing waste.

With heightened awareness of health and hygiene, consumers began scrutinizing packaging materials and their environmental impact. There was a growing demand for sustainable, eco-friendly packaging solutions that also prioritized product safety. The respective fact led to the rise of next-generation packaging materials that are not only environmentally friendly but also equipped with features like antimicrobial coatings to enhance product safety.

Russia-Ukraine War Impact Analysis

Next-generation packaging is a rapidly evolving field within the packaging industry. It involves the integration of innovative technologies and materials to enhance product packaging in terms of sustainability, functionality and consumer engagement. The Russia-Ukraine war has had far-reaching consequences across various industries and geopolitical landscapes. Among the industries affected, the global next-generation packaging market has also experienced notable shifts and challenges.

The Russia-Ukraine war has disrupted global supply chains, affecting various industries that rely on materials sourced from the region. In the packaging industry, this disruption has been felt through the scarcity of raw materials such as polymers, resins and additives used in the production of next-generation packaging.

Further, the scarcity of raw materials has led to a significant increase in their prices. The rise in material costs has a direct impact on the production costs of next-generation packaging. Government sources in various countries have reported price hikes for key materials, including plastic resins and specialty chemicals.

Moreover, the development of next-generation packaging often relies on the availability of cutting-edge materials and technologies. The conflict in Eastern Europe has created challenges for research and development efforts in the packaging sector. Many companies that were sourcing innovative materials from the region have had to reevaluate their supply chains and seek alternative sources.

By Type

• Active Packaging
• Intelligent Packaging
• Modified Atmosphere Packaging

By Function

• Moisture Control
• Temperature Indicators
• Shelf-Life Sensing
• Product Tracking
• Others

By Technology

• Scavengers and Susceptors RFID Tags
• QR Codes
• NFC Tags
• Coding & Markings
• Sensors & Output Devices
• Others

By Material

• Plastic
• Paper
• Corrugated Board
• Others

By Application

• Food
• Beverages
• Personal Care
• Healthcare
• Logistics & Supply Chain
• Consumer 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 2020, Lush, a cosmetics company, launched a range of "naked" shower gels wrapped in edible packaging made from seaweed. Customers could simply use the product and then consume or compost the packaging.
• In 2022, Procter & Gamble (P&G) introduced refill pouches for its popular cleaning brands, including Tide and Swiffer. The flexible pouches reduce plastic waste by up to 75% compared to traditional rigid plastic bottles.
• In 2021, beverage company Diageo launched a limited-edition Johnnie Walker Blue Label Scotch whisky with a smart bottle cap. The NFC-enabled cap allowed consumers to access product details and authentication through their smartphones.

Why Purchase the Report?

• To visualize the global next-generation packaging market segmentation based on type, function, technology, material, application 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 next-generation 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 next-generation packaging market report would provide approximately 77 tables, 87 figures and 223 Pages.

Target Audience 2023

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