World Market for Packaging

Delivery

This report comes in PPT.

Key Findings

2023 saw softer packaging growth, especially in food and drink, as consumers’ cost-of-living pressures persisted

The consumer packaging industry saw retail unit volume increase by 1.4% in 2023, with demand exceeding 4 trillion packs for the first time. Cost-of-living and business pressures continue, with volume growth aided by the deployment of adapted pack types and sizes to alleviate the impact of inflation and higher operating costs, and improve affordability.

Asia Pacific is the largest region and mostly offers a robust outlook

Packaging growth in Western Europe and North America was fairly flat, as inflation and geopolitical instability slowed consumer spend, while Asia Pacific consolidated on its regional leadership – China slowdown an outlier; India leads growth with strong drinks dynamics. Healthy lifestyle choices and essential safety of bottled water are key to PET bottle buoyancy.

Pouches are the growth highlight, while glass is hit by depressed spending on alcohol

Packaging’s winners and losers: pouches saw dynamism in 2023, with sales increasing by 4%. Its lightweight efficiency has seen it displace some rigids as a value pack and eco-solution, with mono-material specifications and recyclate use also growing. Glass was the weak spot, hit by a fall in spend on alcohol, although this was partly offset by 3% rises in soft drinks and beauty.

Pack circularity will be most influential in shaping the future of packaging; reducing waste is key

Two thirds of consumers are worried about climate change, and consider packaging a core action area to reduce climate impact. Prioritising pack design for recyclability, backed by collection and recycling, is necessary to reduce waste. Regulatory intervention is set to propel action, targeting recyclability and re-use. Inadequate progress risks costs from taxation, bans and reputation loss.

Paper and metal challenge plastic with their sustainability narratives

Paper-based substrates and metal packaging hold lead roles as plastic replacement challengers, offering materials that enjoy strong collection and re-use rates. Product consumption successes are another factor contributing to good fortunes. Metal beverage cans are forecast to record CAGRs of 5% or above globally over 2023-2028 in energy drinks, RTDs and imported lager.