Rigid Packaging Containers Market

2020 Analysis and Review of Global Rigid Packaging Containers Market by Product Type – Bottles & Jars, Cans, Jerry Cans, Drums, Kegs, and Clamshells for 2020 - 2030

Rigid Packaging Containers Market Outlook & Key Findings

  • Rigid packaging containers market is projected to reach over US$ 235 Bn in the next 5 years
  • Consistent demand for rigid packaging containers for contamination-free storage of both industrial and non-industrial goods uplifts market growth 
  • Rigid packaging containers market projected to expand at CAGR of 4.0% during the forecast period
  • Asia Pacific and Europe are anticipated to dominate with market value share by approximately 65% in the global rigid packaging containers market by 2030
  • Uptake of rigid packaging solutions sprint toward using recycled and recyclable materials as consumer consciousness shifts

Durability of Plastic to Remain Critical to its Use in Rigid Packaging

The critical role of plastic in packaging has taken a leap forward with increasing manufacturing activities with affordable labor in economies in East Asia and South East Asia. The increasing production of chemicals, paints, electronics and electrical parts, and others has been a result of booming international trade.

Needless to say, this has upped the demand for drums required for packaging, which are made out of rigid packaging materials such as plastic. End users will show a high demand in the coming decade as trade improves. Exceptional durability, light in weight quality, and recyclability have this form of rigid packaging widening application through the years.

Analysts at FMI predict this trend to continue despite the heated conversations around the usage of plastic.

Design Innovation to Remain Sustainable Emerges as a Key Trend

The rigid packaging containers have drawn a lot of flak for their diabolic contribution to landfills. In the light of this, vendors are focusing on using more of bio-based polyethylene (PE) resin coating that is made from sugar cane as a barrier to moisture and vapor and paperboard that includes 30% recycled fiber and 66% less PE coating.

Using materials that are genuinely eco-friendly is also projected to help reduce the carbon footprint involved in recycling of plastic. Design innovation to make packaging containers more in tune with changing consumer perspective, especially across the food and beverages segment, is expected to play a critical role in encouraging the shift toward sustainable packaging solutions.

Rigid packaging containers are used for drums, bottles, cans and others as per the end use industry packaging needs. Manufacturers are emphasizing on making the material lightweight and easy to use to reduce the overall cost of transportation as well.

For instance, Amcor plc.’s PET round bottle, which is portable, temper evident, lightweight, recyclable, provide shatter resistance, and suitable beverage packaging applications. Also, SCHUTZ GmbH & Co. KGaA designed tight head plastic drum, which offers greater impact strength at lower temperature, excellent chemical & stress crack resistance, and significant stacking ability.

Rigid Packaging Containers Market: Regional Analysis

North America is severely affected with COVID-19, which has drastically hindered the usage of rigid packaging containers. Moderate shutdowns in production plants coupled with labor strikes and job cuts are anticipated to slow down the growth rate for rigid packaging containers in the region.

In terms of consistency in demand Asia Pacific region is dominating the global rigid packaging containers market. This is attributable to the rapid expansion of food and beverages industry and economic transformation in this region. As the major players headquartered in Europe and North America, the barrier to entry and competitiveness for new entrants is considerably high in these regions.

Asia Pacific is expected to return to supply chain normalcy due to availability and production of raw materials in the region. This regional market is expected to offer potential value-creation opportunities during the forecast period.

On the other hand, Europe is the third-most affected region by coronavirus outbreak and the second-largest user of rigid packaging containers. Italy, Spain, France, Germany, Russia, and United Kingdom being the most- effected countries are set to experience sluggish growth till situation resolves.

Awareness About Efficient Plastic Waste Management Brings New Perspective to Rigid Packaging

Prominent rigid packaging containers manufacturers such as Pactiv LLC, and Berry Global Group, Inc. are enhancing their sustainable packaging product range by designing and manufacturing plastic bottles, jars, and clamshells made from recycled plastics. In May 2020, Greif, another leading rigid packaging manufacturer launched plastic drums made of post-consumer resin (PCR) encapsulated with virgin resin.

With about 60-70% of plastic products converted into plastic waste in a short span, recycling plastic has become crucial for packaging companies. Companies are focusing on reducing their carbon footprint, which is making a paradigm shift in rigid packaging market, which is witnessing high adoption of recycled materials.

For instance, companies such as Unilever and Danone have definite timeliness for turning all their plastic packing into recyclable, reusable, and compostable material by 2025. The efforts taken by companies to build a circular economy around their packaging solutions is expected to create a win-win solutions for consumers and producers.

End users across the globe prefer recyclable and recycled plastic packaging products, attributable to the increasing awareness related to the need for proper management of plastic waste. All these factors are projected to offer lucrative opportunities to prominent packaging manufacturers to design and manufacture highly recycled and recyclable rigid packaging containers during the forecast period.

COVID-19 Slowdowns Demand for Rigid Packaging Containers as an Immediate Response

COVID-19 has disrupted the supply chain of manufacturing industries, worldwide, impacting the packaging industry as well. Discontinuation of production in multiple regions such as North America, Europe, and Asia Pacific, which account for a significant usage of rigid packaging containers, has affected the market severely.

Problems such as shortage of raw materials and hurdles in sourcing material for manufacturing rigid packaging containers such as polyethylene terephthalate, polypropylene, polyethylene, and others have severely impacted production of rigid packaging containers.

Also, absence of workers in manufacturing plants with strict lockdowns and continuously changing financial conditions & tariffs in many countries due to COVID-19 pandemic have affected the demand and supply of various good that require rigid packaging containers for packaging.

The demand for rigid packaging containers will be sluggish till next two quarters of 2020. However, with new measures to restrict infections, restoring supply chains, and stabilizing e-commerce, rigid packaging containers market is expected to get back on its feet by the start of 2021.

High Preference for Environment-friendly Packaging to Bolster Market Growth

Rising demand for eco-friendly packaging has led to an increase in demand for metal cans, which are easily recyclable. Cans made from aluminum and steel are 100% recyclable, which tend to retain their quality despite. This attribute makes their recycling profitable for manufacturers as well.

Unlike other conventional packaging format, steel and aluminum cans do not pose a threat to the environment, as most of it goes into recycling. Furthermore, according to the new report published by Aluminum Association, Can Manufacturers Institute (CMI), and Institute of Recycling Industries (ISRI), aluminum cans are the most recycled and highest value food & beverage container in the market. Rising preference for such environment-friendly rigid packaging solution across the globe is ultimately fueling the rigid packaging containers market growth, significantly.

Rigid Packaging Containers: Competition Landscape

The global rigid packaging containers market is fragmented in nature with key manufacturers focusing on providing tailored solutions as per the end-use industry demand. The leading manufacturers operating in the global rigid packaging containers market are focusing on maximizing production volume, expanding their reach globally, and diversifying their product portfolio.

For Instance, in 2016, Ball Corporation, one of the leading beverage can manufacturers acquired Rexam PLC, a manufacturer of aluminum and steel cans for carbonated soft drinks, energy drinks, beer, and other beverages. This acquisition enabled Ball Corporation to maximize its production volume of beverage cans.

Some of the key players in the rigid packaging containers market are-

  • Grief, Inc.
  • Amcor Plc
  • Berry Global Group, Inc
  • Silgan Holdings, Inc
  • Sonoco Products Company
  • Mauser Packaging Solutions
  • Ball Corporation
  • Crown Holdings, Inc
  • Pactiv LLC
  • SCHÜTZ GmbH & Co. KGaA

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report

Rigid Packaging Containers: A Sturdy Future Ahead

The growth trend of the rigid packaging containers market is likely to be upward in the coming decade. Though Y-o-Y growth is steady, market is projected to record 4.4% growth from 2022. Prominent industries such as food, beverages, healthcare, personal care, and others are significantly dependent upon rigid packaging containers such as bottles, jars, cans, and drums to pack, store, and transport the goods.

New environmental regulations and end user industries approach towards sustainable rigid packaging containers such as plastic and steel drums, jerry cans, kegs have led manufacturers to update their recycling program and manufacture highly sustainable rigid packaging containers.

Leading rigid packaging containers manufacturers such as Mauser Packaging Solutions, Crown Holdings, Inc., and Ball Corporation are introducing highly recycled and recyclable plastic drums and aluminum and steel cans.

As per the Beverage Can Makers Europe (BCME), the average recycling rate for aluminum is more than 65% and 43% for polyethylene terephthalate (PET) plastic. Rising preferences for sustainable packaging solutions including rigid packaging containers will offer gratifying opportunities for the manufacturers in upcoming years. 

Market Taxonomy

By Product Type

  • Bottles & Jars
  • Cans
  • Jerry Can
  • Drums
  • Kegs
  • Clamshells

By Material

  • Plastic
    • Polyethylene Terephthalate (PET)
    • Polyethylene (PE)
    • Polypropylene (PP)
    • Others Plastic
  • Metal
    • Steel
    • Aluminum
    • Other Metals

By Capacity

  • Up to 5 Litre
  • 5 to 20 Litre
  • 20 to 50 Litre
  • 50 to Above

By End Use

  • Food
  • Beverages
  • Homecare Products
  • Personal Care Products
  • Healthcare Products
  • Electronics & Electrical
  • Industrial Goods
  • Others

By Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • MEA

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