Industrial Packaging Market to Worth .25 bn USD by 2024
Posted by Monali Raghuwanshi on March 4th, 2020
The rise of wearable technology and increasing interest in smart gadgets are leading to a growth in the electronics market which in turn, is creating demand in the global industrial packaging market. Another market that is leading to growth in industrial packaging market is pharmaceuticals. With new medicines hitting the market and more yet to hit the market (10 major drugs lost patent in 2018, few more are up for expiration over the coming years). To add to this are new players entering the generic market. Besides there is an increase in the incidence of chronic diseases expecting. This again would create demand for suitable industrial packaging.
As per a Transparency Market Research report, these factors would contribute to the growth in Global Industrial Packaging Market at CAGR of 4.1% CAGR during 2016-2024, taking the market worth to an impressive USD 73.25 bn.
Competition to Intensify
The already fragmented global industrial packaging market is set to witness new players entering the landscape, making it more competitive. Prominent players include Smurfit Kappa Group PLC, Cascades Inc., Sonoco Product Co., International Paper Co., and Greif Inc. To maintain a firm grasp on market share, most players resort to strategic partnerships and collaborations.
North America to Dominate Growth
As per TMR’s report, while the North American region will experience notable growth owing to great technological advancement in packaging technique and automation, it will forego some of its manufacturing advantage to the Asia Pacific (APAC) region due to Vietnam, India and China upping the ante. Few other factors that would work in the favour of APAC are low labor costs and increasing industrialization. Rise in OEM and drug production in the countries of this region will fuel growth further. Besides, there is much scope for foreign direct investments encouraged by governments such as that in India. However, United States will continue leading the market in terms of manufacturing.
Prominent Opportunities of Growth in Plastic Industrial Packaging Segment
Development in technology along with increase in investment in research and development across sectors such as chemicals, pharmaceutical, construction and electronics will lead to increased demand for industrial packaging material. Construction output alone is expected to grow by a stellar 85% by 2030. The market value for this sector is supposed to reach USD 15.5 trillion by the end of the said period. About 57% of this share will belong to China, US and India. By the end of 2024, consumer electronics market is expected to reach to USD 1700 bn (approx.).
As per IQVIA Institute for Human Data Science, pharma spending is set to reach a USD 1.5 trillion by 2023. Against this backdrop, industrial packaging market will be seeing demand for durable, weather resistant and extremely safe packaging. One of the segments it will boost therefore is that of plastic packaging. With the introduction of bioplastics, the segment will flourish.
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About the AuthorMonali Raghuwanshi
Joined: July 12th, 2019
Articles Posted: 193
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