by Market Overview:
Rigid packaging refers to packaging solutions made from various materials like plastics, metal, glass, wood and paperboard. These materials provide durability, resistance to damage and offer product safety during transportation and storage. They are ideal for packaging food & beverages, pharmaceuticals and other consumer goods products. Rigid packaging provides excellent barrier protection against moisture, gases, light, odor and microbes. The rigidity enables it to retain its shape and provide effective product protection compared to flexible packaging.
The global Rigid Packaging Market is estimated to be valued at US$ 693,808.32 Mn in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends witnessed in the rigid packaging market is brands and manufacturers increasingly promoting sustainable and eco-friendly packaging solutions in response to rising environmental concerns. There is a shift towards use of recyclable, reusable and compostable rigid packaging materials like paperboards and bioplastics. Brands are focusing on smaller pack sizes, lightweight designs and optimizing materials to reduce plastic usage. Advances in recycling technologies are also supporting the circular use of rigid packaging waste. Sustainable rigid packaging plays an important role in enabling a circular economy.
Porter’s Analysis
Threat of new entrants: The rigid packaging market requires high initial capital investments for setting up production facilities. This poses significant barriers for new companies to enter the market.
Bargaining power of buyers: The rigid packaging market has several buyers in food & beverage, pharmaceuticals, consumer goods, and other industries. However, the bargaining power of individual buyers is low as they have no influence over prices set by large rigid packaging manufacturers and suppliers.
Bargaining power of suppliers: A few large multinational companies dominate the global supply of rigid packaging materials such as plastics, paper, and metals. This provides significant bargaining power to suppliers in the market.
Threat of new substitutes: Alternative flexible packaging materials pose a threat to rigid packaging. However, rigid packaging is still preferred for certain types of products and applications that require durability and strength.
Competitive rivalry: The rigid packaging market is highly fragmented with the presence of numerous global and regional players. Intense competition exists among players to gain market share through product innovation, capacity expansion, and mergers & acquisitions.
Key Takeaways
The global rigid packaging market is expected to witness high growth, exhibiting CAGR of 3.3% over the forecast period, due to increasing demand from food & beverage industry for packaging of canned foods, bottles, and jars.
Regional analysis: North America dominates the global rigid packaging market currently. Growing demand for packaged and processed food in countries like the US and Canada is supporting market growth. Asia Pacific is expected to be the fastest growing region due to rising disposable incomes, increasing consumer spending on packaged goods in countries like China, India.
Key players operating in the rigid packaging market are Amcor Limited, DS Smith Plc., Holmen AB, Plastipak Holding, Berry Plastics Corporation, Reynolds Group Holdings Limited, Sealed Air Corporation, Resilux NV, Sonoco Products Company, and Silgan Holdings. Key players are focusing on new product launches, expansion into fast growing markets and mergers & acquisitions to gain market share.
