The global rigid packaging market features a highly fragmented vendor landscape, wherein the leading players cumulatively account for a nominal share of the overall market and small- and medium-scale unorganized players across regional pockets pose a huge threat to the growth prospects of big companies, observes Transparency Market Research in a recent report.
Leading vendors such as Crown Holdings, Ball Corporation, ALPLA Werke Alwin Lehner GmbH & Co KG, Reynolds Group, and Tetra Pak have focused their strengths and resources on consolidating the market by acquiring small and strong players in key regional markets. Material and design innovation also receive much focus from companies wishing to establish their stronghold in the highly competitive market.
Transparency Market Research states that the global rigid packaging market will exhibit a moderate CAGR of 3.2% over the period between 2016 and 2024, rising from a valuation of US$589.1 bn in 2016 to a revenue opportunity of US$755.9 bn by the end of 2024.
Asia Pacific to Remain Most Promising Regional Market
In terms of the materials used to manufacture rigid packaging products such as boxes, trays, containers, and jars, products made from paper and paperboard are currently responsible for the dominant share of revenue of the global market. Products made from paper and paperboard accounted for over 72% of the overall market in 2015 and are expected to remain the most popular as well as the most lucrative over the report’s forecast period.
In terms of geography, the market in Asia Pacific is expected to account for the dominant share of the global rigid packaging market in 2015. The region is also expected to remain the most promising market for rigid packaging, registering a 3.8% CAGR over the report’s forecast period. A massive rise in the convenience food industry and the presence of several large and small players are the prime factors expected to keep Asia Pacific at the top of the global rigid packaging market over the report’s forecast period.
Promising Demand from Pharmaceutical and Food and Beverage Industries to Drive Growth
In the past few years, the market for rigid packaging has massively expanded owing to the rising demand for a variety of rigid packaging products around industries such as pharmaceuticals and packaged foods and beverages. In emerging economies, especially, the massive rise in urban populations, busy lifestyles, changing consumption habits, and increased disposable incomes have popularized packaged foods and beverages. For the busy population prioritizing convenience of eating above all, products made from rigid packaging such as boxes, trays, and cans, which allow eating directly out of them, have become highly popular. This trend is expected to prove beneficial to the overall development of the rigid packaging market.