Published: Mar, 2018
The global liquid packaging market was valued around US$ 394 Bn in 2016. The market is anticipated to expand at a CAGR of above 4% between 2017 and 2025, according to a new report published by Transparency Market Research (TMR) titled “Liquid Packaging Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017–2025”. Expansion of the global liquid packaging market is driven by the increase in consumption of beverage, along with an increase in focus on brand image through innovative packaging. The liquid packaging market in Asia Pacific is expanding at a CAGR of above 5% owing to the extensive usage of liquid packaging in manufacturing beverage bottles in the region, coupled with favorable government policies for manufacturers, and the shifting of the production facilities by major players due to the low labor and operating costs.
Increase in Beverage Consumption to Drive Expansion of Liquid Packaging Market
The food & beverage industry has been a key driver of the packaging industry in the Asia Pacific. Expansion of the packaged food industry is anticipated to boost the demand for liquid packaging during the forecast period. Additionally, rise in consumption of aerated drinks is likely to drive the liquid packaging market in the near future. Increase in focus on health and fitness is estimated to propel the demand for bottled water in developed countries. This trend is likely to continue during the forecast period, making the expansion of end-use industries a key driver of the liquid packaging market. Increasing focus on health and hygiene is driving the consumption of bottled water in developing countries such as India, China, and countries in GCC. Increase in the demand for packaged drinking water is estimated to propel the global liquid packaging market.
Increase in Focus on Brand Image through Innovative Packaging
Brand managers are under pressure to develop new products with differentiation owing to an extremely competitive and fast-moving consumer market. Packaging design is a key driver for sales, as consumers have become brand conscious. Certain factors such as need for innovative packaging design in order to attract consumers and the need to differentiate products from others in a saturated product category have become important for a brand’s long-term success. Minimalistic packaging design that is elegant and simple and creation of appealing aesthetics by eliminating non-essential content are expected to be key trends in the next few years, For Instance, the alcoholic beverage company Jim Beam redesigned the packaging for its complete product range in 2016. The new packaging helped the company convey its values to customers and establish its brand image in the alcoholic beverages market. Additionally, the rise in demand for sparkling water is also anticipated to drive the liquid packaging market. In February 2018, Nestle redesigned the packaging of its six regional brands of sparkling water with a proprietary new bottle and cans.
Rigid packaging, Plastics, and Modified Atmosphere Packaging Segments to Dominate the Global Liquid Packaging Market
The liquid packaging market has been segmented based on packaging type, raw material, technique, and end-use industry. Based on packaging type, the liquid packaging market can be classified into flexible and rigid. The flexible packaging segment can be further sub-segmented into films, sachets, pouches, and others. While, the rigid packaging segment can be further split into paperboard, bottles, cans, drums & containers, and others. Rigid packaging was the dominant segment, accounting for more than 88% share of the market in 2016, in terms of value. In terms of raw material, the liquid packaging market can be divided into plastic, paper, metal, and glass. Plastics which encompasses materials such as PET, PP, PE, and others was the dominant segment, accounting for about 50% share of the market in 2016. In terms of technique, the liquid packaging market has been segregated into aseptic packaging, modified atmosphere packaging, vacuum packaging, and intelligent packaging. Modified atmosphere packaging was the dominant technique segment, accounting for a major share of the market in 2016.
Rise in Demand for Sparkling Water to Fuel Expansion of Food & Beverage End-use Industry Segment
In terms of end-use industry, the market can be divided into food & beverage, personal care, pharmaceuticals, chemicals, household care, petrochemicals, and others. The food & beverage segment dominated the liquid packaging market in 2016. The trend is expected to continue during the forecast period. The food & beverage segment is likely to be followed by the pharmaceutical segment, in terms of market share, during the forecast period. The segment accounted for 20% share of market share in 2016. The food & beverage segment is anticipated to expand at a significant growth rate during the forecast period. Expansion of the segment is attributed to the increasing focus on health and hygiene, which is driving the consumption of bottled water in developing countries such as India, China, and countries in GCC.
Large Patient Pool in Developing Countries such as China, India, Brazil, and GCC to Create More Opportunities in the Market
In terms of geography, the global liquid packaging market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific witnessed a significant demand for liquid packaging in 2016, accounting for more than 37% share of the market in 2016. This is due to the expansion of food & beverage and pharmaceutical sectors, favorable government policies for manufacturers, and the shifting of the production facilities by major players due to the low labor and operating costs. The liquid packaging market in Europe is likely to contract marginally during the forecast period. This is due the economies of countries in Europe are in the recovery phase and the region is a mature market for liquid packaging. The market in North America is expected to expand at a moderate growth rate during the forecast period. The significant contribution from the U.S., which is considered to be a prominent market for liquid packaging, and the increasing usage of paper products in the region are expected to drive the demand for liquid packaging in North America in the near future.
Semi-consolidated Market with 3-4 key Players Operating in the Liquid Packaging Market
Key players covered in this report include Tetra Laval International S.A., Comar LLC, Evergreen Packaging Inc., Liqui-Box Corporation, BillerudKorsnäs AB, International Paper Company, Klabin Paper, Nippon Paper Industries Co., Ltd., Smurfit Kappa Group, The DOW Chemical Company, and Mondi PLC. Companies operating in the global market for liquid packaging are focusing on in-licensing and collaboration agreements in order to launch new products in emerging markets such as Asia Pacific, and Latin America. For instance, in November 2017, BillerudKorsnäs AB developed a new polymer reinforced paper called SteriKraft Protect AR in order to meet the increased demand for higher performance medical device packaging systems due to the ISO regulation for packaging of terminally sterilized medical devices.
The global liquid packaging market is segmented as follows:
Global liquid packaging market, by packaging type
- Drums & Containers
Global liquid packaging market, by raw material
Global liquid packaging market, by technique
- Aseptic Packaging
- Modified Atmosphere Packaging
- Vacuum Packaging
- Intelligent Packaging
Global liquid packaging market, by end-use industry
- Food & Beverage
- Personal Care
- Household Care
Global Liquid Packaging Market, by Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of MEA
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