The packaging industry will touch the $980 million mark by 2022, thanks to its steady growth rate of 2.9% every year.
So what factors lead the industry to this enormous growth?
It may be due to changing lifestyles which in turn has created huge demand for unconventional packaging products across the various segments of the packaging industry.
Packaging companies are required to expand their lineup as well as offering multiple product lines to meet the rising demands of their customers. Major growth factors include technology advancement, complex product production and heavy investments into research and development.
Here are the factors that have contributed to the huge growth of the packaging industry.
Ever Increasing Demand for Blister Packaging:
Blister packaging is one of the key factors behind this enormous growth over the years. Counted among one of the most commonly used packaging products for consumer goods, foods and OTC drugs, demand for these simple yet durable products will only increase demand over the years.
After all, blister packaging offers strong protection from damages, humidity, and contamination.
Explosive Growth of Flexible Packaging in GCC Region:
GCC region or Gulf Cooperation Council is composed of six Middle Eastern nations like the UAE, Qatar, Bahrain, Saudi Arabia, Kuwait, and Oman. These nations have seen the huge demand for flexible packaging over the years. In fact, the market for flexible packaging products in the GCC region has been estimated at US$1.6 Billion.
Flexible packaging is made from flexible and easy to manipulate materials lacking hard structure. Unlike plastics, they are not hard and can be shaped to the contour of the products contained within. From pouches, liners, aluminum foil, bags and pouches, flexible packaging is available in many types.
There is a huge demand for flexible packaging in these Middle Eastern nations due to the boom in the industries related to retail items, end-user products, OTC drugs, and perishables. The other driving factors are ever increasing urbanization, settling of expats, and changes in food consumption. And the biggest one is the skyrocketing growth of supermarkets in these nations.
Huge Demand for Traditional Packaging Materials:
Besides blister packaging and flexible packaging, the traditional packaging materials have always been in constant demand, including paper, aluminum, and glass. Amidst the arrival of new packaging, conventional packaging is continued to be staples.
The Rise of Luxury Packaging:
Luxury packaging, as the name implies, is used for luxury brands and make them look expensive. It unleashes the vibes of quality, impact, and sophistication. Apart from having aesthetic appeal, this packaging type is required to be highly functional.
Luxury packaging is expected to go as higher as 9.9 billion tons with a growth of 3.1%.
Inclination towards Sustainable Packaging:
According to one study, sustainable packaging can be USD 400 million by 2024. Also known as green packaging market, the growing end-users’ concerns are behind this growth. The packaging is defined as “the development and use of packaging which results in improved sustainability. This involves increased use of life cycle inventory and life cycle assessment to help guide the use of packaging which reduces the environmental impact and ecological footprint.”
Today’s consumers are aware of environmental concerns, encouraging them to buy eco-friendly products. If your product comes in sustainable packaging, informed customers will be more likely to buy it.