Decrease in Sales of Passenger Cars to Limit Growth of Industrial Packaging Market in the Automotive Sector

 

Industrial packaging is the art, science and technological process of protecting or packaging goods for sale, distribution, storage and use in a manufacturing or industrial setting. The term 'packaging' itself is derived from the Latin 'castus' which translates into 'to package'. Packaging refers to the method of creating, evaluating, developing, and designing packaging materials for the purpose of packaging products in an appropriate manner. The term 'packaging' can be broadly defined as the procedure in which goods are assembled in a suitable manner with the help of containers, bags, containers, or cases.

Industrial packaging refers to a number of processes that involve the use of packaging materials for the production of goods and other industrial needs. The primary purpose of industrial packaging is the safeguarding and preservation of the products that are to be distributed in the market. It is used as a tool for improving the efficiency and effectiveness of the production and distribution of goods. In the present scenario, packaging has become a very important part of our lives.

Market Dynamics

Significant growth in the fast moving consumer goods (FMCG) sector is expected to aid in growth of the industrial packaging market. For instance, according to India Brand Equity Foundation, FMCG market in India is expected to grow at a CAGR of 27.86 per cent and is expected to reach US$ 103.70 billion by 2020 from US$ 52.75 billion in FY18.

Decrease in sales of passenger cars is expected to decline demand for industrial packaging in the automotive sector, thereby hindering growth of the industrial packaging market. For instance, according to the Society of Motor Manufacturers and Traders, the new car registrations in the U.K. decreased by 44% in March 2020 compared that in March 2019.

Among categories, the chemicals & pharmaceuticals segment is expected to witness significant growth in the industrial packaging market, owing to increasing investment in the pharmaceutical sector. For instance, according to The European Federation of Pharmaceutical Industries and Associations’ Key Data 2019, the pharmaceutical sector in Europe invested US$ 19, 509 million in 2000, which increased to US$ 39,895 million (est.) in 2018.

Competitive Analysis

Major players operating in the industrial packaging market include, Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe and B.A.G. Corp.

January 2020: Danimer Scientific, a developer and manufacturer of biodegradable materials, and Columbia Packaging Group (CPG), a producer of custom plastic bags and flexible packaging, announced a partnership to create compostable bags, film, and roll-stock for the flexible packaging market.

Growing trend of go-green around the globe is uplifting the growth of biodegradable packaging market

 

Biodegradable packaging offers consumers a lot of advantages, especially when it comes to cost-effectiveness. Non-biodegradable or paper-based packaging has become less common as eco-friendly alternatives have risen in popularity, especially as more products are being manufactured using ingredients from nature. The greatest advantage of this type of packaging is that they are a very low-cost solution to the disposal of household and office goods. Paperboard is often used in these types of packages, which can be composted

Growing demand for eco-friendly packaging solution is a prime factor driving the growth of the biodegradable packaging market. Shifting focus towards recyclability and sustainability coupled with the increasing government initiatives for promoting the use of efficient packaging are other major factors driving the growth of the market. Moreover, increasing ban on plastic usage across various countries in order to reduce ocean pollution is also projected to foster the growth of the biodegradable packaging market. The European Parliament has voted to ban single-use plastic to reduce the use of plastic food containers and plastic lids for hot drinks. By 2025, plastic bottles should be made of 25% recycled content, and by 2029 90% of them should be recycled.

North America is projected to gain significant growth over the forecast period and this is attributed to the increasing launch of the innovative eco-friendly packaging solution. For instance, in October 2020, Softbox, a global innovator, and provider of temperature control packaging solutions for the pharmaceutical, life science, and cold chain logistics industries, recently launched its newest innovation --- Tempcell™ ECO -- in the U.S.

Key Developments:

1.      In January 2021, KM Packaging has launched a new range of compostable products. The C-Range of bio-plastic packaging materials includes shrink wrap, stretch wrap, adhesive tape, nets, and bags.

2.      In July 2019, Nestlé launched new biodegradable snack packaging in an efforts to make all packaging recyclable and reusable by 2025

3.      In January 2021, SpruceGel has launched compostable bags to provide sustainable packaging solutions that would biodegrade within six months since the cloth bags sold in the market have polypropylene which is harmful to the environment

4.      In January 2020, Lavazza Professional has launched a new recyclable and biodegradable product, KLIX Eco Cup – produced by using paper sourced from sustainably managed forests.

5.      In August 2020, Quadpack has launched a new biodegradable, industrially compostable, and microplastics-free range of jars for skin care and other cosmetic products

Global Liquid Packaging Carton Market is expanding rapidly with Industry Leader Stora Enso Introduced its New Natura liquid packaging with micro-fibrillated cellulose (MFC)

Liquid Packaging Cartons are employed for the safe storage of liquid goods by reducing the likelihood of damaging the merchandise while preserving their freshness and quality. Cartons are available in various sizes, shapes, and colors to suit individual requirements and can be customized according to individual preferences. Liquid Packaging Cartons have rapidly gained a reputation of being one of the most convenient packaging options available in the market. Today, nearly all the leading brands across all segments utilize these packaging systems for distributing their wide range of products. Let us check out some of the most popular ones.

Increasing demand for eco-friendly packaging is expected to drive the growth of the global liquid packaging carton market. Consumers are increasingly demanding eco-friendly packaging options due to rising awareness regarding the negative impact of plastic packaging. Rectangle liquid packaging cartons are recyclable in nature and preserve the product inside them for a longer period. Besides, they are far more convenient than glass packaging and easier to handle. For instance, in June 2017, Nippon Paper Industries Co. Ltd. introduced new shape carton packaging for chilled liquids with closure in both standard and mini carton size. Thus, these factors are expected to drive the growth of the global liquid packaging carton market growth. Moreover, changing consumer lifestyles and preferences are expected to boost the global liquid packaging carton market growth in the near future.

However, increasing demand for glass packaging is expected to hinder the global rectangle liquid packaging carton market growth in the near future. Among regions, North America is expected to witness significant growth in the global liquid packaging carton market. This is owing to early consumer acceptance of packaged food products in the region. The Asia Pacific is expected to register a robust growth rate, owing to increasing disposable income in the region. According to the Organisation for Economic Co-operation and Development (OECD), Japan’s household gross adjusted disposable income in 2010 was US$ 26,356, which increased to US$ 30,599 in 2015.

Major companies operating in the global liquid packaging carton market are Tetra Laval, Bihai Machinery, SIG Combibloc, Xinju Feng Pack, ELOPAK, Weyerhaeuser, Greatview, Stora Enso, Evergreen Packaging,   Packing, and Nippon Paper.

For instance, in June 2019, Stora Enso, a Finnish manufacturer of paper and forest products introduced its New Natura liquid packaging with micro-fibrillated cellulose (MFC).

Increasing Demand for Release Liners in End-Use Industries to Augment the Release Liners Market Growth

 

Release liners are used to prevent a sticky surface from prematurely adhering. Release liners can be poly-coated-paper-based, film-based, and paper-based or sometimes contain unique substrates such as metalized films as their base. Release liners are coated (usually with silicone) on one or both sides with a release agent to provide a release effect against any type of viscous material such as mastic or an adhesive. Release liners are widely used in medical applications such as metalized films/papers as their base. Industrial application of liners covers roofing shingles, weatherproofing, and insulation products. Moreover, it plays an important role in the applications of self-adhesive products.

The increasing demand for industrial labels is primarily driving the growth of the release liners market. Labels account for a substantial share in the overall packaging industry. Furthermore, technological innovations such as bar codes, QR codes, RFID, and NFC display prices, details, instructions, and discount offers or coupons, as well as growing digitization, will further augment the release liners growth. Moreover, increasing demand/consumption of packaged food or the growing popularity of packaged food due to its large-scale benefits, including instant cooking, eating convenience, and the ready-to-eat alternative is also expected to propel the growth of the release liners market.

Apart from this, rapidly emerging/expanding pharmaceutical, cosmetic, personal care products, and automobile industries are also expected to boost the market growth. However, stringent government regulations regarding environmental sustainability are expected to restraint the growth of the market. The majority of the release liners are made of PVC and HDPE materials which are hazardous to the environment and can also affect human health. Strict FDA regulations and EU regulations have banned harmful materials such as PVC. In terms of geography, the market is divided into six regions, such as North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

In 2018, Asia Pacific dominated the market, accounting for 32.0% of the market share in terms of revenue, followed by North America and Europe, respectively. Moreover, key players in the market are adopting various strategies (such as the development of next-generation release liners, expansion of production facilities, etc.) to meet the increasing demand for release liners. For instance, in 2017, Twin Rivers launched the next-generation of Alliance Release, a base paper used in the production of silicone-coated release liners. Moreover, in July 2018, ITASA opened a new production facility for silicone paper and film in Mexico to position itself in the emerging release liners market.

Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger×

Anti-counterfeit Packaging Market Continues to Expand as E-commerce Giant Amazon Joins Hands with the U.S. Government to Curb Entry of Counterfeit Products in Country’s Supply Chain

 

Anti-counterfeit packaging solutions such as radio-frequency identification (RFID), forensic techniques, 2D barcodes, holograms, and more are used to protect customers from counterfeit products. Secure packaging plays a key role in preventing the counterfeiting of any product. Anti-counterfeiting packaging provides a secure and safe packaging solution to the product, in order to eliminate infringement and counterfeiting. 

Stringent laws and regulations enforced by governments are expected to drive growth of the global anti-counterfeit packaging market during the forecast period. The government of many countries has enforced stringent regulations and laws to curb the counterfeiting of products. Furthermore, in September 2020, the International Trademark Association (INTA) announced to step up its efforts to combat counterfeit products with new laws under consideration. Moreover, in December 2019, in the U.S., the SANTA Act (Stopping All Nefarious Toys in America Act) was introduced that set requirements for online marketplaces selling toys to verify seller information and disclose it to consumers. Such stringent laws are expected to drive growth of the global anti-counterfeit packaging market during the forecast period. Furthermore, rising focus of manufacturers on brand protection is expected to boost the global anti-counterfeit packaging market growth over the forecast period.

However, massive initial costs coupled with high R&D investment and the existence of technologies that are non-deterrent to counterfeits is expected to hinder the global anti-counterfeit packaging market growth in the near future. Besides, increasing demand from emerging economies coupled with availability of remote authentication of products technology can present lucrative growth opportunities in the global anti-counterfeit packaging market. Among regions, Asia Pacific is expected to witness significant growth in the global anti-counterfeit packaging market during the forecast period. This is owing to rapid development of application industries. China holds the dominant position in the Asia Pacific regional market, owing to presence of major pharmaceutical companies.

Key players operating in the global anti-counterfeit packaging market are Avery Dennison Corporation, Impinj, Inc., CCL Industries Inc., 3M Company, Savi Technology, Inc., Zebra Technologies Corporation, Authentix, Inc., Sicpa Holding SA, E.I. Du Pont De Nemours and Company, Applied DNA Sciences Inc., and Tracelink Inc.

For instance, in November 2020, Amazon partnered with the U.S. Government’s National Intellectual Property Rights Coordination Centre (IPR Centre) to prevent fake goods from entering the country. This joint operation will analyze data and conduct targeted inspections at the U.S. ports of entry, in order to prevent entry of counterfeit products in the U.S. supply chain.

Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger×

Pallet Market Growing Rapidly as Major Industry Leader Leap India announces to deploy more pallets to cater demand from food, e-commerce and logistics customers

 

A wooden pallet is an industrial structure that facilitates the mechanical handling of materials by forklift, front loader, truck, etc. They are typically made of either wood or plastics. A plastic pallet is those that are usually made out of polyurethane plastic material. Both kinds of pallets have their own set of advantages and disadvantages. Wooden pallets are more popular and available in various sizes. Plastic pallets, on the other hand, are less expensive than wooden ones. They are also available in various colors and designs to suit the needs of the customers. Wooden pallets, on the other hand, are heavier and do not move as easily as plastic ones. Wooden pallets are also sturdier than their plastic counterparts.

Increasing adoption of innovative pallets is expected to drive growth of the global pallet market during the forecast period. Adoption of innovative pallets has increased significantly over the years. Many companies have started adopting radio-frequency identification (RFID) tags for product tracking, typically in plastic pallets. Each tag contains specific information and can be located anywhere in the warehouse efficiently. Many warehouse management companies and vendors have started using pallets with RFID tags, in order to avoid damage of pallets as well as loss. Furthermore, many vendors have started adopting robots for processes such as pallet dismantling, pallet nailing, and pallet repair. In such cases, RFID tags can help to accurately measure the impact, temperature, and humidity to ensure safety, especially in the food supply chain. Thus, these factors are expected to drive growth of the global pallet market during the forecast period. Furthermore, increasing demand for plastic pallets across numerous industry verticals including logistics and shipment is expected to boost the global pallet market growth over the forecast period.

However, high initial and maintenance cost of pallets, especially wooden pallets is expected to restrain growth of the global pallet market during the forecast period. Among regions, Asia Pacific is expected to witness significant growth in the global pallet market during the forecast period. This is owing to increasing demand for wooden and plastic pallets across the region. Emerging economies such as India and China are holding a dominant position in the region. Furthermore, Middle East & Africa is expected to register a robust growth rate over the forecast period, owing to increasing demand for plastic pallets in the transportation and logistics sector.

Key companies operating in the global pallet market are Brambles Ltd., Schoeller Arca Time Materials Handling Solutions Ltd., CABKA Group GmbH, The Supreme Industries Ltd., Ergen Plastic Industries, Greif Inc., Sintex Plastics Technology Ltd., LEAP India Pvt. Ltd., Nilkamal Ltd., and Nefab AB.

For instance, in December 2019, Leap India announced to expand the number of pallets on lease for customers. 

Enable GingerCannot connect to Ginger Check your internet connection
or reload the browserDisable in this text fieldEditEdit in GingerEdit in Ginger×