After the turmoil of Covid and the post Covid upheaval experienced throughout the global economy the global packaging market is expected to grow from USD 1.10 trillion in 2023 to USD 1.33 trillion by 2028.
The news that the global packaging market is expected to grow with an compound annual growth rate (CAGR) of 4% during the next 4 years to 2028 may not seem like headline numbers, considering the global rate of inflation is 6.5%.
However, the global packaging market is one of the largest global markets and whilst in real terms there maybe a decline once inflation is factored in, that one of the worlds biggest markets is still experiencing growth under sustained, challenging conditions, bodes well for the global economy. As without growth to this market, global recessionary pressures would be much much higher.
For comparison, although the global defence market rose by a steeper compound annual growth rate (CAGR) of 7.9% so far for 2023, on the back of the war in Ukraine the global defence market still only stands at some $577bn, i.e. 52% of the total market size of the global packaging market.
According to Mordor Intelligence, the global packaging business has experienced consistent growth over the last decade due to “substrate choice changes, expansion of new markets, and changing ownership dynamics. Traditional packaging may continue to be replaced by flexible packaging, high-barrier films, and stand-up retort pouches may challenge rigid pack formats like metal tins and glass jars for a wide range of food products.”
Although recent headlines from the US and UK highlight consumers switching branded products for supermarket own labels, due to higher price rises amongst branded products, the overall impact of this switch from brand to own label isnt likely to have an effect on the macro flexible packaging market, just a shift in volume from one client to another.
As such, the output and therefore the market growth is expected to continue.
According to the Flexible Packaging Association, flexible packaging is mainly used for food, which accounts for more than 60% of the total market. Since it could incorporate new solutions for various packaging issues, the flexible packaging industry is experiencing robust growth.
Although the rate of growth has slowed since the Covid pandemic (see Global Packaging Market to Grow 5.5% in 2021 despite COVID-19 Pandemic), given the current economic conditions, to achieve any growth is a big win for the Global Packaging Market, and the wider global economy for that matter.
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