Smithers Pira Reports on Global Packaging Market
- Published: January 14, 2014
LEATHERHEAD, SURREY, UK | Global packaging sales are projected to rise by 3% in real terms to $797 billion in 2013 and grow at an annual rate of 4% to 2018, according to a new market report by Smithers Pira.
The Future of Global Packaging to 2018 provides a detailed five-year forecast of the global packaging market that includes more than 500 tables and figures.
The report says sales of packaging are concentrated in Asia, which accounted for 36% of the total in value terms in 2012. North America and Western Europe totaled shares of 23% and 22%, respectively. In 2012 Eastern Europe was the fourth largest consumer of packaging with a global share of 6%, followed by South and Central America with 5%. The Middle East represents 3% of the global demand for packaging, while Africa and Australasia each have a 2% share. This segmentation of the market is expected to change significantly by 2018, the report concludes, as Asia is predicted to represent more than 40% of global demand, while North America and Western Europe lose out noticeably.
The study explores the many reasons for this expected growth, including technical developments, cost per package, sustainability initiatives, and, perhaps most importantly, the growth of the consumer class in Asia-Pacific, South and Central America, and Eastern Europe.
The growth of global packaging sales is being driven by a number of trends, depending on various geographical regions. In China, India, Brazil, Russia, and other emerging economies, packaging demand is being driven by growing urbanization, investment in housing and construction, the development of retail chains, and the growing healthcare and cosmetics sectors.
In terms of economically developed markets, a number of key social and market trends have been having a major impact on developments in packaging over recent years. These include: the trends towards smaller households and accompanying rise in demand for more, smaller pack sizes, the increasing requirement for convenience among consumers, and the growing number of men interested in health and beauty products.
The study says all end-use sectors registered growth in value terms during 2012. Medium-term forecasts for food packaging demand indicate a potential growth rate of 3.4% on average to 2018, by which stage it will be valued at about $284 billion. Consumption of drinks packaging over the period is projected to increase at a rate of 3.3% on average per annum until 2018, reaching a value of $102 billion.
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