Europe Consumer Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The European consumer packaging market is expected to register a CAGR of 4. 13% over the forecast period 2022-2027. Technological innovation, sustainability trepidations, and attractive economics are among the reasons for the remarkable growth of consumer packaging.
New York, May 19, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Europe Consumer Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06279509/?utm_source=GNW
Key Highlights
Packaging for the consumer goods industry plays a key role in making the product aesthetically appealing to the potential buyer and delivering products to the consumer in a sufficiently sophisticated, safe, convenient, and appropriate manner. According to Pro Carton, more than half of Europeans said that the covid-19 is the biggest issue facing them today, and climate change was rated the second most important issue. Almost half of the European consumers surveyed strongly agreed that COVID-19 has made them more concerned about the environment and are more focused on sustainable packaging.
Plastic packaging has become popular among consumers over other products, as plastic material is lightweight and unbreakable, making them easier to handle. Even major manufacturers prefer to use plastic packaging, owing to the lower cost of production. Moreover, the introduction of polymers, such as polyethylene terephthalate (PET) and high-density polyethylene (HDPE), is expanding the applications of plastic packaging. However, ways of reducing the amount of environmentally harmful polymers used in packaging are especially one of the most researched areas in the consumer packaging market presently.
Further, the European Union is pioneering the plastic market with its drive toward circular economy principles. It is particularly focused on plastic waste, as the high-volume, single-use item plastic packaging has come under scrutiny. Multiple strategies are being advanced to address this issue, including substituting alternative materials, investments toward the development of bio-based plastics, designing packaging to make it easier to process in recycling, and improving the recycling and processing of plastic waste.
From the beginning of 2021, the European market has been witnessing an increase in PET raw material prices. A sharp increase in PET prices was driven by PET supply tightness in Europe, stemming from high freight rates from Asia and shortages of raw materials. Furthermore, the premium for recycled PET (RPET) clear flakes over virgin PET in Northwest Europe reached a record high in June 2021. Virgin PET prices were pressured by supply and demand and weak buying interest, which resulted in a lack of ability to consume improved supply. Such fluctuation in the prices of raw materials has challenged the market growth significantly.
Although the price difference between recycled and virgin plastic has been growing in recent months, COVID-19 has further accelerated this disparity. As a result, the cost of food-grade recycled PET is almost double in price when compared to virgin PET currently, which is causing a lot of substitution pressure. According to the Brussels-based Plastic Recyclers Europe (PRE) organization, the demand for plastic scrap was dramatically affected by COVID-19. Moreover, most of Europe’s plastic recycling industry is closing production due to the current market developments. The factors contributing to the closing of production include the lack of demand due to the closure of converting plants, the record low prices of virgin plastics, and the decreased activity globally.
Key Market Trends
Growing Utilization of Distribution Channels, Such As Convenience Stores and E-commerce to Drive the Market
In Europe, retail and online sales have been increasing effectively. To keep safe, many people began purchasing more food and preparing it at home rather than eating at restaurants.
According to CBI - Ministry of Foreign Affairs (EU), Europe is forecast to be the world’s largest importer of processed fruits and vegetables, accounting for approximately 40% of the worldwide supply. Around 30% of the processed fruit and vegetable trade in Europe comes from developing countries. Furthermore, the majority of intra-European commerce is made up of re-exports of processed fruits and vegetables from developing nations. Imports of processed fruit and vegetables into Europe are predicted to grow at a rate of 2 to 3% per year over the next five years, depending on product categories.?
Further, according to Appinio, a substantial percentage of consumers in the United Kingdom have reported changes in their internet buying habits over the past year.
The growth in food packaging and the ever-increasing demand for corrugated packages in growing e-commerce shipments are the primary drivers of the market study resulting from the COVID-19 outbreak. In e-commerce portals, demand has sharply increased for packaging for groceries, healthcare products, and e-commerce shipments.
The shift toward e-commerce growth means expanding order mix, greater complexity, and more packaging diversity. Labor and seasonality also affect fulfillment operations’ ability to meet orders, complicating packaging and resulting in increased damages. Further, network shipping constraints, coupled with increasing costs, are expected to continue. To compete effectively, more customization and unique solutions will be needed to achieve customer loyalty.
In April 2022, Pregis invested in a new 1960 square meter (21,000 square foot) customer experience facility in Europe designed to provide a holistic solutions approach to protective packaging challenges and reduce costly waste incurred by damaged products.
Poland to Have Significant Market Growth
Poland is one of the significant markets for the European consumer packaging vendors, owing to the high rate of investment in advanced and innovative packaging across the various end-user industries and the company’s growing focus on lightweight, portable, flexible, and environmentally friendly packaging.
The country has witnessed multiple investment activities by various market players in accordance with the rising demand for consumer packaging in various industries, like food and beverages.
In February 2021, Uflex limited opened its brownfield BOPET film line in Poland with a capacity of 45,000 TPA. The trial run for its BOPP plant in Hungary and BOPET plant in Nigeria have already commenced, and both the plants are expected to be commissioned soon.
The earlier capacity of the group’s packaging films plant in Poland was 30,000 TPA, and an additional 10.4-m BOPET line of 45,000 TPA getting commissioned, making Flex Films one of the largest BOPET manufacturers in the European Union.
Many Poland packaging companies are also expanding their geographical presence in the market by opening new manufacturing units, which is expected to expand the scope of the region’s flexible packaging market. For instance, Plast-Box Group, one of Poland’s and Europe’s prominent producers of plastic packaging, has opened a new warehouse and logistics center near Warsaw with a total area of over 3,800 square meters.
DS Smith has been building a new corrugated packaging plant in Be?chatów, a town located south of ?ód? in central Poland, since 2021. Commissioning of the new plant, including a new corrugator geared for an annual production of 180,000 sq. m, is set for the end of June 2022. This is the 6th Corrugated Packaging plant of DS Smith in the country.
Competitive Landscape
The consumer packaging market in Europe appears to be fragmented due to the presence of a large number of vendors. This industry research report offers information about the competitive environment among players in this market space and offers an analysis of key consumer packaging companies and their products.
April 2022 - Tetra Pak launched tethered caps on carton packages in collaboration with leading beverage producers. According to the company, the new caps, introduced by BBL in Ireland, Cido Grupa in the Baltics, LY Company Group and Lactalis Puleva in Spain, and Weihenstephan in Germany, have been designed to prevent litter and accelerate the transition to renewable materials.
January 2022 - Huhtamaki announced that it had acquired full ownership of its Polish joint venture company Huhtamaki Smith Anderson sp. z o.o. from Smith Anderson Group Ltd (SA). The company manufactures and sells foodservice paper bags in Eastern Europe at Huhtamaki’s facility in Czeladz, Poland.
January 2022 - Amcor announced the addition of new, more sustainable high-shield laminates to its pharmaceutical packaging portfolio. The new low carbon, recycle-ready packaging options deliver on two fronts, providing the high barrier and performance requirements needed for the industry while supporting pharmaceutical companies’ recyclability agendas.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06279509/?utm_source=GNW
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