The "Global Tube Packaging Market" is predicted to reach a high CAGR of 6.2% during the forecast period (2022-2029).
A tube is a hollow and cylindrical container, made up of plastic, aluminum or paperboard and is primarily used for containing viscous liquids such as ointment, toothpaste and adhesive among others. During manufacturing and filling processes, both ends of the tube are treated in a different way. There is an oval orifice on one end of the tube body, which can be closed by caps and closures. The other end is folded or sealed after addition of contents. Tube packaging containers are extruded and customized with printing, labeling, punching, slicing, crimping and other fabrications in order to create a functional and unique package. Some of the key driving factors for tube packaging market are significant growth in packaging industries coupled with innovative packaging and excellent barrier properties and trending mindset of end-users towards sustainable packaging among others. Moreover, this packaging technique has a wide range of application areas in different segments of the industry which increases the scope of its applications.
Source: DataM Intelligence Analysis (2021)
Growth of the flexible packaging industry
The growth of the flexible packaging industry is a major driver of the tube packaging market. According to the Flexible Packaging Association, the US flexible packaging revenue was around USD 31.8 billion in 2018, and the sales are projected to grow at a rate of 8.1% to reach USD 293.03 billion by 2022. Flexible packaging is the second largest packaging segment in the US, having share of 19 % of the total packaging market valued at USD 170 billion. The industry is highly influenced by the economic growth of various industries such as cosmetics, toiletries, and pharmaceuticals. Flexible tubes are in demand due to their comfort of usage and usefulness. Consumers prefer flexible tubes for their high-end appearance and cost-effectivity, and also lessen shelf space compared to bottles, jars and it is easier to transport. Moreover, flexible tubes offer vital sustainability and appearance benefits to both manufacturers and consumers. Furthermore, rising demand for cosmetics products is driving the growth of tube packaging market. Due to growing demand for cosmetic products in developing countries and a boost in customer perception is encouraging the manufacturers to produce innovative and handy packaging products.
The market for tubes faces competition from alternative packaging systems such as pouches, sachets, and packets. Tubes are a preferred choice when a substitute is unnecessary. They are mainly preferred when the product is paste-like or thick liquid, whereas in case of liquid products, they are not preferred. Tubes are considered among the best options to pack products with paste-like consistency due to the ease of filling the content into the tubes and the facility to undergo all types of printing processes at a lower cost. Also, sustainable packaging is gaining popularity in the market. Manufacturers are thriving to eliminate the use of plastic packaging. In 2019, the University of Arts London post-graduate Mi Zhou developed a range of toiletry bottles that can melt away completely when no longer useful. The new innovative and sustainable packaging solutions act as a challenge for the tube packaging market.
Plastic is dominating the global market owing to its superior functional befefits over other other materials
By material, the plastic tubes segment held significant share of the global tube market and is expected to grow at a steady rate over the forecast period. The dominance is due to its low cost, lightweight, flexibility and durability among several other factors. In addition, it is odorless and offers a pleasant appearance. The usage of plastic tubes in various industries that include cosmetic and personal care, food, and pharmaceutical, among others, leads to fewer transportation costs and energy waste. This type of packaging also ensures product safety and prolongs shelf life. As convenience and hygiene are gaining importance across regions, the demand for plastic tubes is propelling, specifically in the cosmetic industry. The European Union (EU) and the American Chemical Council’s Plastics Division recently announced the target of 100% use of recyclable, reusable and compostable plastics by 2025 and 2040 in their regions. These regulations are expected to shape the plastic tube packaging industry in the future. However, over the last decade, the environmental impacts of plastic have resulted in a slowdown of the segment.
Asia Pacific is expected to dominate the global tube packaging market during the forecast period
The population in Asia-Pacific is increasingly improving its lifestyle and living standards. This factor coupled with the rising trends in cosmetic and pharmaceutical products and awareness for health and hygiene is driving the market in the region. Apart from demand cosmetics demand, Asia-Pacific countries are significantly exporting cosmetic products to the US. According to the International Trade Administration, over 20% of U.S. cosmetic exports are via Asian countries. Moreover, the demand for healthcare and hygiene in the country is also high. In China with a population of 1.37 billion, the oral disease has a large burden on the government healthcare system and is an even greater economic burden on individuals. Periodontal diseases are common in India as well. These factors have resulted in an increased demand for toothpaste and other oral care products that use tube packaging. Besides, China accounted for 52% of the world’s plastic scrap imports in 2018, according to the Institute of Scrap Recycling Industries. This emphasis on plastic recycling is also estimated to expand the plastic tube packaging sector, thereby, supporting the growth of tube packaging.
Source: DataM Intelligence Analysis (2021)
The global tube packaging market is consolidated with players such as Amcor, Bemis, and Tetrapack among others. The competitive rivalry among the global manufacturers is expected to increase over the forecast period. Most of the companies offer standard as well as customized plastic, aluminum, and laminated tube packaging solutions. Increasing demand for innovative products like biodegradable and recyclable tubes is expected to intensify the competition over the forecast period. The market players have been identified to adopt a powerful competitive strategy, characterized by acquisitions, mergers and acquisitions, and a strong emphasis on R&D. For instance,
COVID-19 Impact: Positive impact on the tube packaging market
The global tube packaging market is expected to witness a slight decrease in its growth rate in 2020-2021, as the packaging industry witness a decline in its production. However, there seems an increase in the demand for tube packaging for oral care, food & beverage, and pharmaceutical applications for product packaging, during COVID-19. The demand for tube packaging in the pharmaceutical industry, is expected to remain robust as hospitals, drugs, and PPE manufacturers are responding to the crisis. The demand for household cleaning products, healthcare, and medical goods is not expected to decrease dramatically, and retail distribution for these types of products through online delivery can be expected to increase.
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