Package Printing Heads to the Trillion Dollar Tier
Booming global demand will drive expansion in the world packaging market across the next five years, according to the latest analysis from Smithers Pira. In its flagship report, The Future of Global Packaging to 2020, data charts how a market value forecast at $839 billion in 2015 will undergo healthy year on year growth at 3.5 percent, rising to $975 billion by 2018 and reaching $998 billion in 2020.
Several other leading analysts are also forecasting significant growth. While the scopes of their reports differs, with some addressing worldwide trends and others U.S. only, the tone and messages put forth are universally optimistic. Estimates range a bit, but not too widely.
For example, the Economist Intelligence Unit study Worldwide Market for Print: Identifying Global Opportunities concludes, “Package print is projected to account for 43 percent of the printing market in 2017.” It further observes, “Largely, the demand for packaged goods allows corrugated print to remain in control of the global print market; however, flexible packaging, labels and tags will see a fair share of the spotlight, due to the increased demand for customized products paired with the growing rate of diversification in print products.”
Similarly, Technavio’s market research analysts predict the global printing market for packaging to grow steadily at a CAGR of 5.6 percent during the next three years. Corrugated’s CAGR comes in at 5.04 percent, with flexible packaging’s estimate being 5.38 percent. Technavio maintains, “Packaging in terms of design, color and ingredients plays a significant role in attracting customers. Also, the convenience of carrying, using and disposing of the package is essential. Hence, in an extremely competitive market, it is of prime importance for the manufacturers to create shelf appeal and visibility of their products, which has resulted in [them] increasing their focus on proper packaging to create brand awareness and attract customers.”
Delving deeper into detail, Technavio says, “During 2015, the flexographic printing packaging segment dominated the global printing market, accounting for close to $150 billion. Factors such as technological advancements in plate technology, anilox rolls, inks, methods to mount plates, curing/drying systems, and augmented demand for paperboard packaging and flexible packaging will aid in the growth of this market segment during the forecast period.” It continues, “Analysts estimate the Americas to be the largest printing market for packaging. Factors such as a developed economy and high standard of living will contribute to the growth of this market. Also, the increasing competition among vendors and growth of major industries in the Americas is expected to equate to approximately $233 billion until the end of 2020.”
NOVONOUS estimates that global packaging market will achieve a CAGR of 5.1 percent till 2020. It explains, “As per the current market state, rigid plastic, corrugated and solid board occupies the highest share, in terms of the type of packaging that’s employed, which is 20 percent and 18 percent, respectively. However, with the rise in the fraudulent handling of goods, the smart packaging space is also expected to rise, which also helps improving the operational efficiency.”
Factoring geography into the equation, Smithers Pira explains, “Sales of packaging are concentrated in Asia, which accounted for 36 percent of the total value. North America and Western Europe totaled shares of 23.5 percent and 22.5 percent, respectively. Eastern Europe was the fourth largest consumer of packaging with a global share of 6 percent, closely followed by South and Central America with 5 percent. The Middle East represents 3 percent of the global demand for packaging, while Africa and Australasia each has a 2 percent share.” By 2020, Asia will be responsible for 40 percent of sales, with both North America and Western European volumes falling as a result.
Freedonia Group maintains, “Demand for packaging in the U.S. is forecast to total $175 billion in 2020, representing 3.5 percent annual growth from $147 billion in 2015. Gains will be supported by increases in nondurable goods output and growth in consumer spending.”
It notes, “Food packaging demand is projected to reach $46.5 billion in 2020, remaining the largest market segment. Gains are expected to mirror increases in domestic food production. Pharmaceutical packaging demand is expected to rise 5.4 percent per year to 2020, the fastest pace among the leading markets. Advances will be driven by increases in pharmaceutical shipments.”
Freedonia projects that shipments of paper based packaging will represent $76.6 billion in 2020, remaining the largest market segment. Plastic packaging shipments are expected to climb 3.9 percent per year to 2020, the fastest pace of any material segment. It also observes, “Factors that impact packaging demand include: consumer spending levels, population growth, household size, environmental concerns, government regulations, international trade patterns and advancements in packaging materials.”
Looking to the future, Freedonia believes, “Technologies, such as digital and three dimensional (3-D) printing, will expand their presence in packaging, as they enable users increased customization and variation without the volume of requirements of traditional packaging production processes. Technological innovations will also continue to broaden the functionality of packaging beyond product protection, identification and marketing.”