Rise in population, income level, and higher disposable income are the
reasons for growing demand of liquid packaging in Asia-Pacific
The market size for liquid
packaging is projected to reach USD 370.75 billion by 2021, registering a CAGR
of 5.4% between 2016 and 2021. Growing demand for liquid packaging from the major
end-use industries such as food & beverages, non-food, and industrial segment
in emerging economies is driving the market.
New product development is the key strategy adopted by industry
players to boost their growth in the liquid packaging market. This strategy
accounted for a share of 30.0%, between 2011 and 2016, of all the growth
strategies adopted by the market players. Rising demand for liquid packaging across
various industries and new product developments by market players to expand
their product portfolio is paving the way to fulfilling the ever changing
demand from consumers. Besides new product developments, companies are
investing in expanding their liquid packaging equipment manufacturing facilities
in emerging regions across globe. Both merger & acquisitions and
partnership/agreements/collaborations accounted for a share of 26.0% of all the
developments witnessed between 2011 and 2016. Companies are also focusing on expansions
since the last three years. This strategy accounted for 18.0% of all the
strategic developments in the market.
North America was the most active region from 2011 to 2016, in terms
of strategic initiatives. Companies such as The Dow Chemical Company (U.S.),
International Paper (U.S.), Tetra Pak International S.A. (Switzerland), Smurfit
Kappa (Ireland), Mondi Plc. (Austria), and Sidel (Switzerland) made several mergers
& acquisitions and new product launches in the region to expand their production capacity and
portfolio for liquid packaging.
Major manufacturers such as The Dow Chemical Company (U.S.),
International Paper (U.S.), Tetra Pak International S.A. (Switzerland), Smurfit
Kappa (Ireland), and Mondi Plc. (Austria), Sidel (Switzerland), BillerudKorsnäs
(Stockholm), Evergreen Packaging (U.S.), Elopak (Norway) and Weyerhaeuser
Company (U.S.) are profiled in this report. These companies have adopted both
organic and inorganic growth strategies.
The Dow Chemical Company, International Paper, Tetra Pak
International S.A., Smurfit Kappa, Sidel, and Mondi Plc. are the most active
players in the global liquid packaging market.
Sidel is the most active player in the liquid packaging market. It
accounted for the largest share of all the developmental activities undertaken
in the liquid packaging market. As part of its strategy, the company focuses on expanding its liquid
packaging business by investing in expansion activities and
partnership/collaborations, specifically in emerging countries. The company invested to expand in India, Myanmar, Mexico, Argentina,
Ethiopia, and others for liquid packaging market.
Another company that has established a strong foothold in the liquid
packaging market is The Dow Chemical Company (U.S.). The company is focused on
both organic and inorganic growth strategies. It also focuses on investing in
R&D to develop innovative products and new technologies. In addition to
this, the company collaborated with Takigawa Corporation (Japan), Darplus (Colombia),
and Ampac (U.S.) to permit them to utilize its patented
packaging technology called PacXpert.
The market size for liquid
packaging is projected to reach USD 370.75 billion by 2021, registering a CAGR
of 5.4% between 2016 and 2021. Asia-Pacific is the leading
market for liquid packaging, in terms of value, and the trend is projected to
continue till 2021. Countries in this region such as China, India, Japan, South
Korea, Malaysia, Thailand, and Indonesia are witnessing a gradual increase in
the use of liquid packaging in the end-use industries, namely, food &
beverages, non-food, and industrial segment.
China leads the Asia-Pacific liquid packaging market due to the rise
in the population and the rising economy. It is projected to be the
fastest-growing market in the global liquid packaging market. Rapid development
in the food & beverages industry in major economies, namely, China, India,
and Japan, is vigorously pushing the demand for liquid packaging. Also, with growing
health awareness and rising disposable income, the country is expected to
remain the main hub for consumption of liquid packaging during the forecast
period.
The growth of liquid packaging is mainly due to the increasing
demand for these materials in packaging industry for various end-use industries such as food
& beverages, non-food and industrial segment. Food & beverages is one
of the fastest-growing end-use industries for liquid packaging products.
Demands for reliability, good sealability, visual attractiveness, and good
barrier properties along with long shelf life are essential for liquid packaging,
thus driving the need of liquid packaging products in the food & beverages
industry. In addition, governments of major economies, namely, the U.S.,
Germany, China, India, Brazil, and others are investing heavily in the liquid packaging
sector and are focusing on health issues and use of renewable sources. The use
of PET bottles for packaged drinking water and use of good quality and hygienic
food packaging is also driving the market.
Polyethylene is projected to be the fastest-growing resin type used
in the manufacturing of liquid packaging types globally. The use of high
density polyethylene (HDPE) for PET bottles is gaining importance in the global
liquid packaging market. The use of low density polyethylene (LDPE) for milk
cartons and making polyethylene coated board is another factor driving the
market. Packaging types manufactured using polyethylene further have considerable
potential in the area of packaging liquids in non-food and industrial segments.
Liquid packaging is used largely for different applications across various packaging
applications placed in several end-use industries, ultimately driving the
market.
Flexible liquid packaging is the fastest-growing type of liquid
packaging. Increasing benefits of flexible liquid packaging over rigid liquid
packaging is causing a shift of the consumers towards flexible liquid
packaging. Flexible liquid packaging is preferred as it is cost-effective,
environment–friendly, and less prone to damage. Flexible liquid packaging is
used in packaging of liquid products such as milk, sauces, soups, beverages,
dairy products, spirit, wine, and others. It is also used in applications
across various other non-food industries such as including medical &
pharmaceutical, beauty & personal care, household care, and others, thus
significantly driving the liquid packaging demand globally.
