Composite Packaging Market Size

Composite Packaging Market Overview

Composite Packaging Market Size was valued at USD 85.59 billion in 2023. The Composite Packaging industry is projected to grow from USD 89.02 Billion in 2024 to USD 126.11 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.45% during the forecast period (2024 - 2032). From the market scenario, it is marked that the packaging material is made up of hybrid material having multiple characteristics. The right strength, protection, durability, ease of handling, and ease of transportation helps in boosting the market. Some of the additional features of the packaging are enhancement of shelf life of the packaging materials, rise in strength to weight rise, and some of the barrier that provides huge protection.

Holmen, a manufacturer of paperboard and innovative papers, launched Invercote Touch in May 2024 for high-end premium packaging solutions. The uncoated paperboard belonging to the Invercote range provides a tactile experience while maintaining superior printability and specifications. It does not contain any pigment coatings, making it supportable for non-coated printing properties and a multi-layered baseboard that is claimed to have excellent converting properties. Additionally, Invercote Touch incorporates the strength and stiffness possessed by other Invercote products. According to Holmen Invercote Packaging and Graphics product manager Edvin Thurfjell: “Invercote Touch is an exclusive combination of uncoated paperboard where its look and feel is key, as well as other features that make Invercote so suitable for exceptional packaging.”

Competitive Landscape

Globally it is marked that the competitors playing in the market are Amcor Limited of Australia, DS Smith PLC of United Kingdom, Mondi Plc of Vienna in Europe, Smurfit Kappa Group of Dublin in the United States, Sonoco Products Company of United States, Crown Holdings of United States, Sealed Air Corporation of United States, Universal Packaging Limited present in New Zealand, Najmi Industries in India, Sota Packaging Pty Limited of Australia. These companies plan various strategies which will help in raising their demand for their materials. These key players will merge, build partnerships, and acquisitions which will help and bring them to the top-notch.

In March 2024, PepsiCo, along with partners within its flexible food packaging supply chain, introduced new luxury snack packets comprising 50% post-consumer recycled plastic. The new pack meets strict food-contact requirements and was introduced last year in relation to PepsiCo’s Sunbites brand in the UK and Ireland. This process produces plastic waste into food-grade packaging through advanced recycling process techniques. This method complements mechanical recycling processes and conforms to European regulations on sensitive/medical device packaging.

Market Dynamics

• Drivers - adopting a new lifestyle, the rise of market value, and the indisposable income are the major factors driving the composite packaging industry. The rise in the e-commerce sector globally is expanding the business of composite packaging. Moreover, its demand is marked nowadays because people are pretty much more dependent on online shopping where the products there require proper packaging. Much more advanced drugs are being manufactured on the initiatives of the government and the World Health Organisation. These drugs require proper packaging to protect them from being infected thus leading to the rise in demand for composite packaging.

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  Opportunities- 

  
  use of premium consumer materials provides huge opportunities for growth. The demand for retail business, the rise of transportation facilities, and the enhancement of the demand for logistic business drive the growth and size of the industry. Development and launching of the new product will surely bolster up the demand of the market.

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  Challenges- 

  
  The most challenging factor was during the time of COVID. This pandemic has affected the production of vehicles which declined the growth curve of the composite packaging market at a high rate. If in case carbon dioxide is emitted from these packaging materials then the environment will surely be hampered. This has made many different countries put forward several environmental rules thus intending us to use lightweight and fuel-efficient motorbikes and other vehicles.

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  Cumulative growth- 

  
  the product performing at a good quality along with the increasing demand from end-users industries steers up the market growth.

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  Restraints- 

  
  these composite packaging materials are being manufactured from chemicals that may be harmful to people’s health. The recycling of this packaging material is slightly complex which acts as a great restraining factor for composite packaging market size. Variation in the price of the packaging materials and the numerous laws and regulations so imposed by the government and the World Health Organisation hampers the growth of the industry. Deficient of advanced methodologies have hampered the production of raw materials.

Market Segmentation

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  By type- 

  
  it is also marked that the market is classified according to the type of material, various types of packaging design, application, and the region. Based on material, the composite industry is divided into plastic, paper, cardboard, and many more. Some of its examples are plastic aluminum composite packaging, composite packaging made up of cardboard polyethylene, paper polyethylene packaging so adopted, plastic paper aluminum composite packaging, and composite packaging of paper aluminum. Based on end-users the composite industry is also categorized into food and beverage, industry, own care, medicals and clinics, and many others. The food and beverage segment occupies the highest CAGR of 5.23% till the year 2023 and is expected to grow fast and covers the majority of the market share during the forecast period. During this period, the demand for cold drinks, milk, fruits, snacks, food boosting immunity, and some other confectionery products. Growth in the food and beverage sector is also marked due to the convergence of people towards these food products and the rise in indisposable economic composite packaging revenue.

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  By technology- 

  
  day to day technology started advancing at a high rate. It led to the launching up of novel green composite packaging materials which are easily recyclable and will help in boosting the demand of the market. Technology has also offered certain integrated solutions which give full safety to the products. It has also increased its functionality and has increased quality. Technology has adopted certain market trends that provide additional benefits thus contributing towards the growth. These services include printing, color, etc which satisfy the value chain requirement of the customers. The putting forwarding of these techniques has made the key players occupy a major composite packaging market share.

Regional Analysis

It has been marked that the Asia Pacific region occupies the largest composite packaging market share globally. Asia Pacific market projects at a faster pace followed by the North American and European markets. The expansion of market size is due to its growth in population along with economic expansion and the change in their present lifestyle. Due to the modern standard of living the regions of China and India are expected to occupy the topmost position of the market. With the rise in disposable income along with the rapid growth of population in China and India, the rise of market value is also marked. With the widespread population, the rise in demand for food, cosmetics, and the demand for pharma products made these regions more popular for composite packaging. The European region is regarded to occupy the second most composite packaging market with having some of its common reasons as that of the above. Moreover, this region is very much popular for its innovative packaging standards, use of environmentally friendly materials, and modernized packaging designs which are smarter enough for increasing the composite packaging market value and composite packaging market size. Some of the Middle East and African regions also show such demand for these raw materials. Some of this region includes Saudi Arabia, South Africa, United Arab Emirates, Qatar, and Israel. It has been marked that the Latin American regions have also shown such advancement. Some of them include Brazil, Mexico, and Colombia.

Corona, a global beer brand, announced in June 2022 about launching a 100 percent biodegradable compostable six-pack made from 100% barley straw in India. Corona’s new six-pack made from 100% barley straw aligns with this year’s World Environment Day theme of ‘Only One Earth’, focusing on “Living Sustainably in Harmony with Nature”.

August 2023 sees the introduction of the BioPharmaPro family of innovative products, materials, and services for fluid path single-use equipment by Trelleborg Healthcare and Medical to speed up the progress of life-changing cures. Trelleborg Healthcare & Medical’s BioPharmaPro range, which builds on a tradition of originality, presents solutions developed from an extensive array of materials such as silicones, other elastomers, thermoplastics, composites that can be used in manufacturing tubing, custom molded components, processing columns and even complete assemblies and more.