The packaging resins market is expected to register a CAGR of over 5% during the forecast period. The growing e-commerce industry, and cost effectiveness and increased shelf-life of products have been driving the market growth. On the flip side, the rising environmental concerns related to plastic disposal, and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The growing demand for sustainable packaging solutions and innovation of modern packaging technologies are likely to provide ample opportunities for the growth of the packaging resins market over the forecast period.
- The food and beverage segment is expected to dominate the packaging resins market over the forecast period.
- The Asia-Pacific region dominated the packaging resins market, and it is also expected to be the fastest-growing regional market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Food and Beverage Segment to Dominate the Market Demand
- The food and beverage segment stands to be the dominating segment among applications, where packaging requirement is widely driven by a growing need to increase the shelf life of products, thus, protecting food products for longer periods.
- The packaging is one of the key aspects considered by the firms engaged in the food and beverage industry, in order to ensure compatibility of packaging material with food, the durability of food, the safety of human health, and attractiveness of the packaging.
- The increase in the aging population, growing demand for convenient packaging, growth of the e-commerce business, the growing online food delivery market, and the packaging of products in different sizes and quantities are some of the market conditions that have been boosting the demand for flexible packaging globally.
- Hence, with such factors driving the demand for flexible packaging material, the consumption of packaging resins has also been increasing across the world.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region represents the largest market, and it is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.
- Factors, such as the rising disposable income, increasing consumer expenditure, and growing population, have been driving the demand for FMCG goods, which in turn, have been driving the packaging requirements in Asia-Pacific.
- Furthermore, the growth in the production of beauty and personal care products in countries, like Japan, India, China, and ASEAN Countries, has been further driving the packaging demand in the region.
- China stands to be the second-largest market for beauty products in the world, after the United States. Considering the growth prospects for the cosmetics industry in China, international cosmetic brands entered the market, which led to intense competition in the domestic cosmetic industry.
- However, such intensified competition and growing cosmetic production in the country have been further driving the packaging demand.
- Hence, all such market trends are expected to drive the demand in the packaging resins market in the region during the forecast period.
The packaging resins market is partially fragmented in nature. Some of the prominent players operating in the market are Borealis AG, INEOS, Lyondellbasell Industries Holdings BV, SABIC, and Sinopec Corporation, among others.
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