The Global Single-Use Packaging Market is expected to grow at a high CAGR of 5.20% during the forecasting period (2022-2029).
The Single-Use Packaging market is increasing due to price durability and resistance in the packaging material. Additionally, fewer raw material requirements make the single-use packaging less expensive than other packaging solutions such as rigid packaging, re-usable packaging, and others.
The concept of single-serve meals in taking away orders and snack products are becoming a trend in the food-ordering businesses. Moreover, buyer preference towards easily accessible food, nutritional consciousness and inclination towards freshness, and lessening of left-overs are the fundamental drivers that will develop product demand. Growth in eating & drinking at workplaces, schools, and travelling also enhances the growing demand for the single-use packaging market during the forecast time frame.
On the other hand, the government and the related regulatory authorities' growing inventiveness to curtail the plastic left-over disposal into the environment and curb its imprint is projected to limit the growth of the single-use plastic packaging market over the forecast period.
The global Single-Use Packaging market is estimated to reach US$ XX billion by 2027 from the recorded market size of worth US$ XX billion in 2019, growing at a CAGR of 5.80% during the forecast period.
The growing requirement for small-sized and more comfortable to carry packages, unique appearance, and robust pictorial influence would contribute to the growth of the single-use packaging market during the analysis period.
The increase in the acceptance of single-use packaging by the hypermarkets is projected to drive the market growth over the analysis time frame. For instance, according to the Department for Environment, Food, and Rural Affairs (DEFRA), in the fiscal year 2018-2019, Tesco provided 121 million bags recording the largest number of single-use plastic carrier bags issued buyers. Additionally, Asda provided 106.89 million single-use plastic carrier bags to its customers.
The aforementioned factors are increasing the usage of single-use plastic bags, enhancing the use of plastic material type market in the single-use packaging market during the forecast period.
Furthermore, a smaller amount of manufacturing overhead costs and less raw material requirement make single-serve packaging less costly than other packaging forms such as multi-serve packaging. The raw materials used for the manufacturing of single-use plastics include Polypropylene (PP), Polyethylene (PE), Poly Vinyl Chloride PVC), Polystyrene (PS), and others. The price of these materials is relatively low due to their availability in abundance.
This makes the cost of packing, printing, and shipping single-serve packaging is less than the price of rigid packaging solutions. Thus, the cost-efficiency of single-serve packaging over other forms of packaging is a significant factor responsible for the market's growth.
However, the growing number of severe guidelines on curbing single-use packaging usage is expected to hamper the market growth.
For instance, in April 2019, New York enforced a state-wide prohibition on single-use plastic bags, and the law got into action in March 2020. Besides, Hawaii proposed a bill that would forbid restaurants and government agencies from using plastic items such as bottles, straws, utensils, and foam containers, expected to be in action by 2022.
Single-Use Packaging Market Segment Analysis
Single-use packaging market based on the material type used for production, includes plastics, paper & paperboard, and glass. The growth of single-use packaging solutions is contributed by the increasing requirement for flexible packaging resolutions such as stick packs, pouches, and sachets. Its capability to keep food fresh for a longer time enables it to be an apt food retailer option. Customers switching to online food delivery generates a requirement of quality, comparatively inexpensive, and convenient food packaging services.
To further evident the demand, as per the Flexible Packaging Association, the U.S. recorded US$ 135 billion packaging transactions of which a major part was held by flexible packaging solutions forming a sub-segment of the plastics materials type of the single-use packaging market. These provide several benefits compared to rigid packaging solutions. They are stored conveniently, easy to open, and highly adjustable for resealing. These products exhibit attractive shelf-life, use fewer raw materials, and provide improved transport features. The majority of the presently used flexible packaging materials include polyethylene (PE), polyethylene terephthalate (PET), and polypropylene (PP), which is easily decomposable compared to its counterparts and thereby should increase the product demand.
Based on the end-user industry, the market can be bifurcated into food & beverages, pharmaceuticals, personal care & cosmetics. Food & beverage, in addition to the pharmaceutical industry, is expected to hold a major market share in the single-use packaging market based on the consumption rate and demand for fresh and comfortable packaging solutions by the ultimate consumers. These aspects have enabled packaging producers to develop new product technologies that offer features such as easy to unlock/unzip, single-hand usage, serving control, and compactness. This promotes the growth of the product in the food and beverages end-user market.
Single-Use Packaging Market Geographical Analysis
Asian countries, including India, China, Japan, Thailand, and South Korea, have a massive requirement for convenience and packaged food; the demand is ever-growing due to the busy routine witnessed among the different types of buyers. An upsurge in typical pay-out and consciousness for consuming a healthy diet is anticipated to boost the single-use packaging market demand in the Asia-Pacific region. Furthermore, establishing free trade agreement in the ASEAN region is expected to enhance growth prospects for single-use packaging manufacturers/suppliers in the area.
North American single-use packaging market is projected to lead the market, which can be attributed to systematized retail stores and outlets. This factor enables the end-user industry to cater to their ultimate consumers' demand as they have organized data of their consumers. Furthermore, single-use packaging being a recent and state-of-the-art trend, the market is yet to be explored, and manufacturers have high growth prospects to spend on this unexploited segment. The speedy introduction of equipment and its fragmented market nature causes healthy competition driving the market's growth.
Single-Use Packaging Market Competitive Landscape
Some of the key industry players offering single-serve packaging solutions include Amcor, Bemis, TC Transcontinental, Tetrapak, and T.H.E.M. Most of these companies have a wide presence in the packaging industry and looking forward to establishing their regional presence by joining hands with local players.
As the industry is highly fragmented and small-sized manufacturers find it hard to strategize for sustaining in the market, adopting strategies such as mergers & acquisitions (M&A), partnership agreements & divestments should drive the product growth. For instance, in 2018, Amcor acquired Bemis Co. by signing a contract of US$ 6.8 billion. This acquirement led Amcor to magnify its geographical presence in the U.S. along with the attainment of its technical competence. Furthermore, Amcor also acquired a China-established packaging company Hebei Qite Packaging in 2016.
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