Where packaging is likely to grow

4.3% CAGR increases in volume and increasing demand for PET bottles, especially in the bottled water category, are just two of the predictions for the Asia Pacific region in a recent PMMI, the Association for Packaging and Processing Technologies, market research study.

Sponsored by the Australian Packaging & Processing Machinery Association (APPMA), the newly released Global Packaging Trends Report for 2015 is a market research study highlighting future packaging demand, product categories and opportunities for growth in packaging among fast-growing and maturing world economies.

Growing consumer awareness of health and wellness, stronger influence of recycling and environmental issues and increasing disposable income and purchasing power are major influencers in all regions.

Other important regional trends include urbanisation, convenience, smaller pack sizes, branding strategies, internet retailing and premiumisation.

Globally, flexible plastic remains the dominant pack type with PET bottles in second place. Pack types such as brick liquid cartons and PET bottles will register the highest growth rates.

“These trends are affecting packaging because they’re driving consumers’ purchasing choices,” said Mark Dingley, chairman, APPMA.

“Recyclability and re-usability of packaging are dominant trends and the report is predicting that this will continue as PET and glass bottle usage increases.”

Packaging markets in the Middle East and Africa are anticipating 5.3% CAGR growth in volume, but forecasts for Western Europe and North America land at the other end of the spectrum, with 0.4% and 0.5%, respectively.

The expansion in the Middle East and Africa is the result of increasing exposure to modern lifestyles, and is manifesting in growth opportunities available for packaging of carbonates, biscuits, and yoghurt and sour milk products.

North America, on the other hand, is a mature market, but consumers are developing growing interest in several categories. These include healthy categories such as bottled water, and areas of innovation, such as confectionery.

Globally, the report notes flexible plastic remains the dominant pack type, accounting for 29% of the market, while PET bottles (12%) will be among the fastest growing, with 4.7% CAGR. Bottled water is expected to add 135 billion units through 2019, accounting for 54% of the absolute volume growth in PET bottle use. While beverage packaging drives growth in PET and glass, categories such as confectionery and biscuits prop up flexible packaging use.

An Executive Summary is available: please email the APPMA on appma@appma.com.au.