by Rigid packaging offers protection and durability for a wide range of products from food and beverages to pharmaceuticals and industrial supplies. Rigid plastic containers are used for packaging liquids and solids, while rigid cardboard boxes provide protection for delicate items during shipping. The growth of e-commerce has significantly increased demand for rigid packaging that can withstand distribution and ensure item safety.
The global Rigid Packaging Market is estimated to be valued at US$247 billion in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Demand for sustainable rigid packaging materials is on the rise due to growing environmental concerns. Major packaging manufacturers are investing in research to develop biodegradable and recyclable rigid containers made from renewable resources like paper, sugar cane, and bamboo. As plastic packaging faces bans and single-use restrictions, compostable bio-polymer rigid cartons and trays are gaining popularity. Manufacturers also focus on lightweight designs to minimize material usage without compromising strength. Customizable digital printing technology allows inclusion of marketing messages on rigid boxes and shells. Personalization enhances brand engagement for e-retailers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the rigid packaging market is fragmented with many local and regional players. However, high capital requirements and stringent regulations restrict new players from entering easily.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many established players offering similar products. Buyers can negotiate on price as products are commoditized.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for raw materials. However, suppliers may negotiate on price if they have differentiated materials or technologies.
Threat of new substitutes: The threat of new substitutes is low as rigid packaging has well-established applications and there aren’t suitable substitutes that can provide similar functioning.
Competitive rivalry: Competition is high among fragmented players. Players compete based on product quality, pricing, and innovation.
Key Takeaways
The global rigid packaging market is expected to witness high growth. The global Rigid Packaging Market is estimated to be valued at US$247 billion in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030.
The Asia Pacific region dominated the market in 2023, accounting for around 45% share, owing to strong demand from industries such as food and beverages in China and India. The rigid packaging market is projected to grow the fastest in the Asia Pacific region during the forecast period. Countries such as China, India, Japan, and South Korea are major contributors to the regional market growth. Wide availability of raw materials and cheap labor costs have encouraged manufacturers to set up production bases, augmenting market expansion.
Key players: Key players operating in the rigid packaging market are Amcor PLC, Reynolds Group, Berry Global Inc., DS Smith PLC, WestRock Company. Key players operating in the rigid packaging market are Amcor PLC, Reynolds Group, Berry Global Inc., DS Smith PLC, WestRock Company. They focus on new product development and mergers & acquisitions to gain market share.
