Industrial Packaging Market Size, Share, Forecast, & Trends Analysis by Type (Secondary, Tertiary), Material (Plastic, Metal, Wood, Paperboard), Sector (Retail & E-Commerce, Food & Beverage, Chemicals, Pharmaceuticals, Automotive & Transportation), and Geography - Global Forecast to 2031

Industrial Packaging Market Size & Forecast

The Industrial Packaging Market is expected to reach $102.4 billion by 2031, at a CAGR of 4.6% from 2024 to 2031. The growth of the industrial packaging market is driven by the rising demand for sustainable packaging solutions in the chemical industry and the emergence of sustainable and recyclable packaging materials. However, fluctuations in raw material prices may restrain market growth. Furthermore, the increasing focus on packaging design and prototyping services is anticipated to create growth opportunities for market players.

Industrial Packaging Market Growth Drivers

• Rising Demand for Sustainable Packaging Solutions in the Chemical Industry

The chemical industry, known for its heavy reliance on packaging to store and transport hazardous and non-hazardous materials, is experiencing a surge in demand for sustainable packaging solutions. Stringent government regulations on waste, emissions, and environmental impact are prompting chemical manufacturers to embrace more sustainable packaging practices. As a result, the chemical industry is setting sustainability targets to reduce carbon footprints and promote environmental responsibility, driving the adoption of packaging materials that are recyclable, reusable, or derived from renewable resources.

Furthermore, rising environmental concerns, organizations' sustainability objectives, and the need for waste reduction and resource conservation are compelling several chemical manufacturing companies to implement strategies to address these factors.

Some of these strategies include:

• Using Recyclable and Reusable Packaging: Companies are opting for materials that can be recycled or reused, such as metal drums, intermediate bulk containers (IBCs), and other durable packaging solutions.
• Reducing Packaging Material: This approach involves designing packaging that uses fewer materials while maintaining safety and compliance standards.
• Collaborating with Sustainable Packaging Providers: Companies are partnering with suppliers who specialize in sustainable packaging to access new technologies and innovations.

• Emergence of Sustainable and Recyclable Packaging Materials

In response to the rising environmental concerns and the need for resource efficiency and waste minimization, numerous packaging solution providers are progressively turning to sustainable and recycled packaging materials. In recent years, governments have been enforcing stricter regulations concerning packaging waste and environmental impact. These policies frequently promote or require the utilization of recycled or sustainable materials in packaging. As a result, companies across various industries are establishing ambitious sustainability objectives to reduce their carbon footprints through the adoption of sustainable and recycled packaging.

Some examples of sustainable and recyclable materials are as follows:

• Recycled Plastics
• Bioplastics
• Compostable Materials
• Recycled Paper and Cardboard
• Bamboo and Renewable Resources

The increasing demand for sustainable and recyclable packaging materials has prompted several industrial packaging providers to launch innovative packaging solutions using recycled materials. For instance, in October 2023, Berry Global Inc. (U.S.) launched its 20 and 25-liter containers containing 35% recycled material. These containers have received UN Approval for the transportation of hazardous goods for five out of the six model liquids in the UN assessment. The addition of these new containers to the company's popular Optimum range will assist companies in achieving their sustainability objectives while meeting consumer demands for more eco-friendly packaging solutions.

Industrial Packaging Market Trends

• Increasing Adoption of Biodegradable Materials for Packaging

In recent years, the use of biodegradable materials in packaging has increased due to the rising global awareness of environmental issues like plastic pollution and climate change. Governments worldwide are enacting stricter regulations and policies to curb plastic waste and promote sustainable packaging solutions. These regulations incentivize the adoption of biodegradable materials while imposing restrictions on single-use plastics. As a result, numerous companies are embracing sustainability as a core value and actively seeking biodegradable packaging options to align with their corporate social responsibility goals.

Moreover, ongoing technological advancements have facilitated the production of biodegradable packaging materials that are both cost-effective and environmentally friendly, further increasing the demand for such packaging solutions. These factors collectively drive the adoption of biodegradable materials for industrial packaging. Additionally, the logistics industry is increasingly utilizing biodegradable material-based packaging for shipping and transporting goods, emphasizing waste reduction and minimizing adverse environmental impacts throughout the supply chain.

Industrial Packaging Market Opportunity

• Increasing Focus on Packaging Design and Prototyping Services

The increasing focus on packaging design and prototyping services is prompting packaging suppliers to offer additional support for customers seeking to enhance their packaging. This added service is particularly beneficial for small and medium-sized companies with limited dedicated creative staff. Additionally, with the ongoing technological advancements in industrial packaging, numerous companies are expanding their offerings to include services such as graphic design, package structural design, and container engineering.

Many packaging manufacturers are launching platforms for customized packaging prototypes. For instance, in February 2024, Sappi Europe SA (Belgium), a packaging manufacturer, launched a new digital platform aimed at assisting brand owners and packaging design agencies in creating customized packaging prototypes. Thus, the growing emphasis on packaging design and prototyping services is anticipated to offer significant growth opportunities for market players.

Industrial Packaging Market Analysis: Key Findings

By Type: in 2024, the Secondary Packaging Segment to Dominate the Industrial Packaging Market

Based on type, the global industrial packaging market is segmented into secondary packaging and tertiary packaging. In 2024, the secondary packaging segment is expected to account for the larger share of 70% of the global industrial packaging market. The large market share of this segment can be attributed to the increasing adoption of secondary packaging among businesses as it facilitates easy handling, stacking, and storage of multiple products. It acts as a protective buffer during shipment, safeguarding the primary packaging. Furthermore, the tamper-evident seals or features incorporated into secondary packaging offer an additional layer of security, ensuring product integrity. Additionally, secondary packaging provides additional space for the inclusion of essential information and labeling, ensuring compliance with regulatory standards and industry regulations.

Moreover, numerous companies are collaborating to offer sustainable secondary packaging solutions. For instance, in August 2022, Mondi plc (U.K.) partnered with Essity AB (Sweden) and Dow Chemical Company (U.S.) to develop recyclable secondary packaging for Essity's feminine care products, incorporating renewable materials and post-consumer recycled content.

Moreover, the secondary packaging segment is projected to register a higher CAGR during the forecast period of 2024 to 2031.

By Material: in 2024, the Plastic Segment to Dominate the Industrial Packaging Market

Based on material, the global industrial packaging market is segmented into plastic, wood, metal, paperboard, and other materials. In 2024, the plastic segment is expected to account for the largest share of 51% of the global industrial packaging market. This segment's large market share can be attributed to several factors: the lightweightness of plastic reduces shipping costs and energy consumption during transportation, its versatility allows it to be molded, shaped, and colored into a wide range of designs and forms, enabling custom packaging solutions across various industries, and its compliance with food and pharmaceutical safety regulations ensures industry adherence to strict standards. Additionally, plastic's corrosion resistance makes it an ideal choice for packaging in corrosive environments or for items prone to rusting.

However, the metal segment is projected to register the highest CAGR during the forecast period of 2024 to 2031. The growth of this segment is driven by the increasing adoption of metals such as aluminum and steel in industrial packaging due to their higher durability compared to other materials like paper and plastic. Additionally, the rising utilization of metals such as aluminum and steel is attributed to their excellent barrier properties, effectively protecting products from moisture, air, light, and contaminants. Moreover, metal packaging is designed to seamlessly integrate with automated machinery and processes, thereby facilitating efficient production and packaging lines.

By Sector: in 2024, the Retail & E-Commerce Segment to Dominate the Industrial Packaging Market

Based on sector, the global industrial packaging market is segmented into food & beverage, retail & E-Commerce, pharmaceuticals, building & construction, chemicals, petroleum, electrical & electronics, automotive & transportation, industrial machinery & equipment, and other sectors. In 2024, the retail & E-Commerce segment is expected to account for the largest share of 24% of the global industrial packaging market. This segment's large market share can be attributed to the growing demand for well-designed secondary packaging in the retail & E-Commerce sector, which enhances brand identity and makes products more recognizable and appealing to consumers. Additionally, the packaging provides an extra layer of protection for products during transportation, handling, and storage.

Moreover, the retail & E-commerce segment is projected to register the highest CAGR during the forecast period of 2024 to 2031.

Geographical Analysis

In 2024, Asia-Pacific is expected to account for the largest share of 46% of the global industrial packaging market. Asia-Pacific's significant market share can be attributed to the presence of prominent players in the region providing industrial packaging solutions for various sectors, the increasing use of packaging in the retail & E-commerce, food & beverage, and pharmaceutical sectors, the rising demand for eco-friendly packaging solutions, the continuous technological innovations enhancing the efficiency and effectiveness of industrial packaging products and services in the region, and the growing adoption of sustainable materials for industrial packaging driven by supportive government policies, regulations, and incentives.

Furthermore, the rising adoption of sustainable packaging materials has prompted numerous packaging solution providers to expand their offerings to meet the growing demand in the region. For instance, in December 2022, Amcor Group GmbH (Switzerland) opened a packaging plant in China, enhancing Amcor's capacity to meet the increasing customer demand across Asia-Pacific. This new facility will specialize in producing flexible packaging solutions for food and personal-care products.

Moreover, the market in Asia-Pacific is projected to register the highest CAGR of 6% during the forecast period of 2024 to 2031.

Industrial Packaging Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the industrial packaging market are Greif, Inc. (U.S), Amcor Group GmbH (Switzerland), Berry Global Inc. (a subsidiary of Berry Global Group, Inc.) (U.S.), WestRock Company (U.S.), Mondi plc (U.K.), Crown Holdings, Inc. (U.S.), Smurfit Kappa Group (Ireland), Oji Holdings Corporation (Japan), DS Smith Plc (U.K.), Sonoco Products Company (U.S.), International Paper Company (U.S.), Orora Limited (Australia), Sigma Plastics Group (U.S.), MAUSER Packaging Solutions (U.S.), Global-Pak, Inc. (U.S.), and Ficus Pax Private Limited (India).

Industrial Packaging Industry Overview: Latest Developments from Key Industry Players

• In November 2023, Amcor Group GmbH (Switzerland) signed an agreement with NOVA Chemicals Corporation (Canada) to procure mechanically recycled polyethylene resin (rPE) for incorporation into flexible packaging films. Increasing the use of rPE in flexible packaging applications indicates Amcor's dedication to advancing packaging circularity.
• In August 2022, BASF SE (Germany) and Nippon Paint Co., Ltd. (China) jointly launched an eco-friendly industrial packaging solution. Leveraging BASF's water-based acrylic dispersion Joncryl High-Performance Barrier (HPB) as the barrier material, this innovative packaging material is intended for use with Nippon Paint's construction dry mortar products.

Industrial Packaging Market Research Summary

Key questions answered in the industrial packaging market report: