PVC Packaging Materials Market ? Size, Share, Outlook, and Opportunity Analysis,

Posted by Pareesh on July 12th, 2018

Market Dynamics

PVC packaging requires less fuel to produce as compared to that of other packaging materials such as metal and glass. According to Plastics Europe, the energy required for PET (polyethylene terephthalate) and HDPE (high density polyethylene) was 82.7 GJ (gigajoule) per ton and 76.7 GJ per ton whereas, for PVC was 56.7 GJ per ton. Furthermore, it also protects against contamination by helping to prevent the spread of germs during manufacturing and distribution. These factors are propelling the PVC packaging materials market growth.

Growing demand from processed food is also expected to drive growth of PVC packaging market. This is owing to high use of PVC packaging in processed foods, due to its aforementioned properties. According to U.S. Department of Agriculture, Foreign Agricultural Service, in Germany, the processed food and drinks market was valued at US$ 190 billion in 2016 and the food industry represented the third-largest processing industry in Germany.

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However, use of PVC packaging has been restricted in various countries such as Spain, Canada, Czech Republic, and South Korea, owing to health risk associated with the use of it. This is expected to hinder growth of PVC packaging materials market. According to Legislative Council, State of California, the California Assembly passed bill no. AB 1329, which prohibits a retail establishment from selling, distributing or importing a flexible or rigid polyvinyl chloride packaging container.

Market Trends

Among end-use industry, the food and beverages segment is expected to witness a significant growth in the near future, owing to increasing growth of this industry. According to U.S. Census Bureau, in the U.S., the total food sales in 2016 was US$ 1,594.06 billion. Furthermore, increasing consumer spending on food and drink results in growth of this segment. According to Department for Environment Food & Rural Affairs, the total consumer expenditure on food, drink and catering increased by 0.9% in 2014 to US$ 231.10 billion.

The rigid packaging application segment is expected to show a significant growth in the global PVC packaging materials market over the forecast period. According to Coherent Market Insights’ analysis, the global rigid packaging market was valued at US$ 529.97 billion in 2016 and is expected to exhibit a CAGR of 4.05% during the forecast period (2017–2025).

Key manufacturers are focusing on launching new products and plant expansion to expand their product portfolio and to cater to increasing consumer demand. For instance, in February 2018, Westlake Chemical Corp. announced plans to expand their Geismar polyvinyl chloride plant to boost its annual volume of PVC products.