Market Trends of FMCG Packaging Industry
Beverage is Expected to Hold Major Share
- In recent years, the fast-moving consumer goods (FMCG) market has witnessed a notable evolution in packaging trends. A primary catalyst for this shift is the heightened emphasis on sustainability. As consumers grow increasingly aware of the environmental ramifications of their purchases, they actively seek brands that prioritize sustainable packaging. Consequently, there has been a surge in the adoption of eco-friendly packaging materials, including biodegradable plastics, recycled content, and compostable substances.
- Major FMCG players are making plastic reduction a key target, as 75% of consumers prefer environmentally friendly packaging. With plastics accounting for 3.4% of greenhouse gas emissions globally, cutting their use in packaging is essential to global carbon emission reduction efforts. To do this, major FMCG players, including Kraft Heinz, PepsiCo, and Coca-Cola, are making plastic reduction a key target, alongside increasing the use of recycled plastics in the supply chain.
- In addition to sustainability concerns, the FMCG market's packaging trend is increasingly influenced by the growth of e-commerce and the demand for shipping-resilient packaging. With growing number of consumers embracing online shopping, brands are prioritizing packaging materials and designs that safeguard products during transit. Consequently, there has been a surge in the use of robust packaging solutions, including corrugated boxes, pillow pouches, bubble wraps, and padded envelopes.
- Beyond sustainability and e-commerce trends, the FMCG market is experiencing a heightened demand for eye-catching packaging. As a result, brands are increasingly adopting bold colors, unique shapes, and creative graphics in their designs and materials to differentiate themselves and attract consumers.
- According to Krones, the amount of packed water consumed worldwide is currently at 472 billion liters, making it the most popular beverage. Dairy products ranked in second place, followed by milk in third place. The rising use of packaged beverages, especially bottled water, shows that producers must produce more packaged goods regularly.
- This increased manufacturing volume drives the need for FMCG packaging materials such as bottles, cans, cartons, and pouches. According to Krones report, alcoholic beverage consumption is more than 72 billion liters, making it the world's most consumed packaged beverage.
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North America is Expected to Hold Significant Market Share
- The United States is anticipated to lead the North American FMCG packaging market due to its large population and substantial client base for the local industry. In North America, the United States is one of the main regions expanding due to increased transportation of goods, import and export activity, and governmental environmental safety regulations. Consumers changing preferences for biodegradable and sustainable packaging materials are expected to influence market demand.
- Several leading packaging companies, including Graphic Packaging International, WestRock, Sonoco Production Company, International Paper Company, and Packaging Corporation of America, have established their presence in the United States.
- During the forecast period, the FMCG packaging market is expected to thrive, buoyed by surging demands for fresh produce, bulk packaging, storage needs, and regional international trade activities.
- In addition to this, Canada's e-commerce infrastructure is not only advanced but also seamlessly integrated with the United States system. Major players like Amazon, Wal-Mart, Canadian Tire, Costco, Best Buy, Hudson's Bay, and Etsy dominate Canada's online marketplace. In the United States, the rise in e-commerce spending is fueled by seamless home delivery, retailers' omnichannel strategies, and tailored consumer experiences.
- For Canadian consumers, the Internet serves as the primary ordering platform. Over the past decade, online sales have outpaced traditional retail growth. To bolster both B2B and B2C interactions, most Canadian retailers have adopted mobile technology and online systems. This will bolster the demand for FMCG secondary packaging such as bubble wraps, cardboard boxes, and padded envelopes in the country.
- In April 2023, Tetra Pak partnered with The Walt Disney Company to infuse Disney and MARVEL magic into popular milk drink categories. Under Coop's Qualité & Prix brand in Switzerland, beverage cartons will feature eighty Disney and MARVEL-themed graphics on products like ambient white milk, fresh white milk, flavored milk, and protein drinks.
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