FMCG Packaging Market Assessment, Size, Volume, Value, Share, Growth, Trends, Competition, Capacity, Industry Analysis, Actionable Insights Report; By Packaging Type, By Material Type, By End-User Vertical, By Region and By Country; Outlook and Forecasts, 2023 – 2030

Report Summary

What is FMCG Packaging Market Size and Growth?

According to the report, the Global FMCG Packaging Market size reached a valuation of US$ 700 billion in 2022, with a projected growth rate of 5% CAGR until 2030. This market accounts for approximately 70% share within the global packaging market in terms of consumer segments. Projections based on forecasting models indicate that the Global FMCG Packaging Market is poised to achieve a valuation of around USD 950 billion by 2030.

Fast Moving Consumer Goods (FMCG) packaging includes a wide variety of packaging materials and designs specifically tailored to products characterized by rapid turnover and high volume. These products range from food, beverages, personal care items, household goods, and various other packaged goods targeting consumer segments.

The core functions of FMCG packaging encompass product protection during storage and transportation, communication of vital product information to consumers, product differentiation, and the enhancement of product appeal. Common FMCG packaging types include plastic bottles, aluminum cans, cardboard boxes, flexible packaging such as pouches and bags, as well as glass jars and bottles, among others.

Sustainability is a growing trend, with environmentally friendly materials increasingly integrated in FMCG packaging. Functionality remains vital, with features such as easy-open mechanisms and resealable closures to enhance user convenience. The fine balance between aesthetics and functionality is critical in the crowded marketplace while maintaining product safety. Some of the standout products in FMCG Packaging include standup pouches, laminated pouches, zipper pouches, cling film, BOPP sacks, extrusion laminates, and others.

The FMCG packaging market witnessed robust growth, driven by a combination of factors. One of the key drivers is the growing global consciousness regarding sustainability and the advantages of user-friendly packaging. This shift towards eco-friendly materials and innovative solutions such as smart labels is reshaping FMCG packaging industry landscape. Furthermore, the surging demand for packaged goods across diverse sectors has triggered a pressing need for advanced FMCG packaging solutions. Consumers today expect packaging to offer both convenience and enhanced product quality, making top-tier packaging an essential aspect of market expansion strategy.

The explosive growth of online sales channel has also fueled the demand for efficient packaging to meet the unique requirements of e-commerce while simultaneously addressing concerns about waste reduction. Lifestyle changes, the popularity of ready-to-eat meals, product downsizing, and heightened consumer awareness regarding product authenticity are all contributing positively to the FMCG packaging market growth.

What are the Growth Drivers, Restraints, and Opportunities in FMCG Packaging Market?

E-Commerce Expansion Driving FMCG Packaging Market Growth

The remarkable growth of the e-commerce sector stems from a clear shift in consumer preference, moving away from traditional brick-and-mortar stores toward online retailers. The increasing ubiquity of mobile devices has further accelerated this ongoing transition. Moreover, the increasing popularity of home delivery services for food and groceries, influenced by urbanization and evolving lifestyles, is contributing to this market surge. The escalating demand for convenient ready-to-eat and frozen foods is expected to further boost the industry.

Online platforms offer a wide range of products, from food and electronics to personal care items, all available in one virtual marketplace. These diverse products require various packaging formats to ensure safe transit. Additionally, online platforms empower brands to customize packaging to align with consumer preferences, special occasions, or promotional events. Furthermore, e-commerce packaging solutions are optimized for space utilization in warehouses, delivery vehicles, and last-mile delivery. This trend is anticipated to sustain sales growth in the FMCG packaging market throughout the forecast period.

Evolving Consumer Demand for Food & Beverages Propels Growth in FMCG Packaging Market

The FMCG packaging market is experiencing significant growth, driven by robust demand for food and beverages, particularly bakery products. Additionally, the increasing consumer preference for nutritious and organic foods has played a pivotal role in propelling the FMCG packaging market forward. Numerous manufacturers have responded by introducing innovative packaging solutions aimed at preserving the nutritional content, taste, and visual appeal of packaged food items. Moreover, the surging demand for bakery products has created a dynamic environment within the FMCG packaging industry, characterized by adaptability and flexibility to meet the evolving needs and preferences of consumers.

Growing Demand for On-The-Go Packaging and Intelligent Packaging Solutions Boosting FMCG Packaging Market Growth

In recent times, there has been a notable upswing in consumer demand for convenient, on-the-go packaging solutions, designed for ease of use and portability. This surge in demand encompasses single-serve, portion control, resealable, and microwavable packaging options. In response, companies are innovating packaging solutions that not only meet these criteria but also prioritize ease of disposal, ultimately enhancing the overall consumer experience.

Intelligent packaging provides consumers with a value-added experience, offering comprehensive product information, including details about product quality and shelf life. Leveraging touchless codes such as QR codes, barcodes, and indicators for temperature and moisture, consumers can swiftly access vital information, expediting their purchasing decisions.

Conversely, active packaging methods such as Modified Atmospheric Packaging (MAP) and Vacuum Atmospheric Packaging (VAP) extend the shelf life of consumable products. Smart packaging not only ensures product freshness but also creates opportunities for brand recognition among marketers. These innovations boost efficiency and precision in the packaging process, enabling the production of consistently high-quality goods. As a result, various industries, including food & beverages and pharmaceuticals, are making the switch from traditional packaging formats to intelligent packaging to meet evolving consumer preferences.

Eco-Friendly and Sustainable Solutions Fueling FMCG Packaging Market Growth

Sustainability has emerged as one of the paramount concerns within the FMCG industry, as consumers increasingly favor eco-friendly and sustainable packaging choices, including biodegradable materials, recyclable packaging, and reduced package sizes.  In response to this consumer demand, numerous companies are heavily investing in research and development to pioneer innovative packaging solutions. These solutions aim to reduce waste, promote sustainability, and bolster their brand image. The market for sustainable FMCG packaging is poised to drive overall industry growth, catalyzing continuous innovations in green packaging options.

Furthermore, the industry is witnessing a surge in research endeavors aimed at crafting packaging solutions that strike a balance between durability and lightweight design. This surge in innovation aligns harmoniously with evolving consumer preferences for eco-friendly and efficient packaging. This wave of research is predominantly motivated by the need for long-lasting and efficient alternatives to traditional packaging materials.

Challenges and Opportunities - Government Regulations Impact FMCG Packaging Market

Stringent government rules and regulations related to environmental safety are expected to constrain market growth. Plastic packaging, criticized for low recycling rates and increasing environmental impact, is putting pressure on emerging economies and limiting the FMCG packaging market growth. However, the introduction of innovative packaging solutions utilizing sustainable and eco-friendly materials presents growth opportunities within the FMCG packaging market during the forecast period.

What are the FMCG Packaging Market Segmentations and Bifurcations?

FMCG Packaging Market by Packaging Type

• Flexible Packaging
  • Bags & Sacks
  • Foils & Films
  • Pouches & Sachets
  • Stick Packs
  • Others
• Rigid Packaging
  • Bottles
  • Boxes & Cartons
  • Cans
  • Containers & Jars
  • Trays
  • Tubes
  • Blisters
  • Others

Regarding packaging type, the rigid packaging segment dominated the global FMCG packaging market in 2022, capturing around 60% market share. Rigid packaging encompasses packaging solutions crafted from strong and inflexible materials, including glass, metal, and rigid plastics. Its exceptional sturdiness, rigidity, longevity, and upscale aesthetics provide superior safeguarding against environmental elements and physical stresses, rendering it the favored option across numerous end-use sectors.

Rigid packaging finds widespread application in industries demanding extended shelf life and robust barrier protection, including pharmaceuticals, food and beverages, as well as luxury products, among various others.

Rigid packaging solutions frequently integrate distinctive features such as hinged mechanisms, snap on lids, and screw caps to facilitate reusability. FMCG packaging market participants are capitalizing on growth prospects through the introduction of inventive rigid packaging solutions and product innovation. In response to the escalating issue of single-use plastic waste, players are actively launching sustainable and environmentally friendly rigid packaging alternatives.

Flexible packaging has emerged as the fastest growing segment within the FMCG packaging market. This exponential growth can be attributed to several pivotal factors, including its inherent lightweight composition, the capacity to curtail packaging waste, the versatility it offers in terms of design and customization, and its exceptional barrier properties that shield against moisture, light, and oxygen.

The adoption of flexible packaging solutions, ranging from pouches and bags to films, is on a continuous upswing across a diverse range of FMCG products. Notably, flexible packaging proves highly cost-effective while delivering top-notch product protection, rendering it an enticing choice for FMCG industries.

FMCG Packaging Market by Material Type

• Glass
• Metal
• Paper and Paperboard
• Plastic
• Others

In 2022, plastic segment dominated the worldwide FMCG packaging market due to its exceptional lightweight properties, versatility, durability, and cost-effectiveness. Plastic packaging has found extensive applications across a diverse spectrum of FMCG products in various end-user verticals. Furthermore, plastic packaging offers a vast spectrum of options in terms of shapes, sizes, and colors, making it an incredibly adaptable choice suitable for diverse branding and marketing strategies.

The key materials utilized in the production of bottles, jars, containers, pouches, and films within the plastic packaging domain are Polyethylene terephthalate (PET), High-density polyethylene (HDPE), and PVC. Nevertheless, in response to mounting environmental concerns, players are increasingly transitioning towards the use of PET and HDPE, aligning with more sustainable practices and materials.

FMCG Packaging Market by End-User Vertical

• Food & Beverages
• Personal Care & Cosmetics
• Homecare Products
• Pharmaceuticals
• Consumer Electronics
• Others

In 2022, the food and beverages vertical emerged as the dominant end-user segment in the global FMCG packaging market, primarily driven by the extensive utilization of packaging materials across a wide spectrum of food and beverages products including items such as snacks, beverages, processed foods, and fresh produce, among others.

Packaging is in high demand within the food industry, encompassing products such as bakery items, confectionery, and packaged foods. Commonly, beverages such as water, juices, and soft drinks are packaged using PET bottles. The food & beverage industry is characterized by intense competition, where packaging takes on a pivotal role. It serves not only to protect products but also to extend their shelf life, maintain freshness, enhance convenience, and elevate their visual appeal. The industry's commitment to sustainable packaging, reducing food waste, and providing clear product information is in alignment with evolving consumer preferences and global environmental concerns.

What are the Regional and Country Trends in FMCG Packaging Market?

FMCG Packaging Market - Regional Trends and Outlook

• Asia Pacific FMCG Packaging Market
• North America FMCG Packaging Market
• Europe FMCG Packaging Market
• Middle East & Africa FMCG Packaging Market
• South America FMCG Packaging Market

In 2022, Asia Pacific region emerged as the leading region in the global FMCG packaging market, and it is set to maintain its position by exhibiting the fastest CAGR during the forecast period. This dominance is primarily attributed to the robust economies of India and China. These countries have experienced population growth, rapid urbanization, increased disposable incomes, and a growing demand for convenient, on-the-go packaging solutions, all of which contribute significantly to the region's expansion within the global FMCG packaging market.

Furthermore, technological innovations such as smart and active packaging have found fertile ground in the Asia Pacific, introducing more durable and functional packaging options that propel market advancement. The region's escalating e-commerce activities necessitate sturdy and efficient packaging solutions, further boosting market expansion. Regulatory initiatives focused on sustainability and waste management are also reshaping the industry toward eco-friendly solutions, ensuring long-term market sustainability. The combined impact of these factors creates a favorable landscape for sustained growth in the Asia Pacific FMCG packaging market.

Additionally, North America and Europe are poised to be key drivers of growth in the global FMCG packaging market during the forecast period. This is attributed to ongoing packaging innovations and evolving consumer preferences in these regions.

How is the Competition Scenario in FMCG Packaging Market?

FMCG Packaging Market - Competitive Landscape and Trends

Despite the current market conditions showing a moderated demand for FMCG packaging in comparison to pre-pandemic levels, leading industry players are strategically positioning themselves for a promising long-term outlook. These major stakeholders are taking proactive measures, including diversifying their product offerings and forging partnerships to bolster their market presence. Significant investments are being made in research and development, with a focus on innovative packaging solutions that prioritize both environmental sustainability and user-centric design. Key areas of attention include the reduction of packaging waste, the utilization of eco-friendly materials, and enhancements in product functionality and aesthetics.

Furthermore, players are harnessing advanced technologies such as smart packaging and digital printing to elevate brand visibility and engage consumers effectively. Strategic collaborations with suppliers, packaging manufacturers, and retailers are also expanding market reach and enabling customized solutions. Driven by the growing consumer demand for convenience and sustainability, FMCG packaging players are adapting new strategies to remain competitive and meet evolving expectations in the market.

Moreover, businesses are optimizing their supply chains and integrating advanced technologies to achieve cost-effective, superior-quality product manufacturing. This dynamic landscape is fostering increased competitiveness, with new entrants seeking to disrupt established norms and incumbent players exploring consolidation through mergers and acquisitions. These dynamic activities among key players are expected to rejuvenate the FMCG packaging market, fueling healthy competition and catalyzing industry growth.

Some of the key players operating in the FMCG packaging market include Amcor, American Packaging Corporation, Aptar, Ardagh Group, Ball Corporation, Berry, Bomarko, CCL Industries, Constantia Flexibles, Crown Holdings, DS Smith, Graham Packaging, Huhtamaki, Mondi Group, Mpact, Nampak, Novelis, Owens-Illinois, Reynolds Packaging, Sealed Air (SEE), Sonoco, Stanpac, Tetra Pak, Toyo Seikan Group, UFlex, Veritiv Corporation, WestRock Company, and several others.

Report Scope

FMCG Packaging Market Developments

• In May 2023, Sealed Air Corporation unveiled its rebranding as SEE® as part of its corporate transformation. SEE® signifies a market-oriented, customer-centric solutions company, emphasizing Sealed Air's commitment to partnering with customers to provide packaging solutions that incorporate Automation, Digitalization, and Sustainability, delivering substantial value to their businesses.
• In May 2023, ExxonMobil, Peel Plastic Products Ltd., and Berry Global Group, Inc., announced a collaboration to integrate certified-circular polymers from the International Sustainability and Carbon Certificate (ISCC) PLUS into pet food packaging for renowned household brands.
• In April 2023, Tetra Pak joined forces with The Walt Disney Company to infuse Disney and MARVEL enchantment into popular milk drink categories, featuring eighty Disney and MARVEL-inspired graphics on beverage cartons under the Qualité & Prix brand from Coop in Switzerland, spanning ambient white milk, fresh white milk, flavored milk, and protein drinks.
• In December 2022, Amcor inaugurated its state-of-the-art manufacturing facility in Huizhou, China. This expansive 590,000 square foot plant, representing an investment of approximately USD 100 million, stands as China's largest flexible packaging facility by manufacturing capacity. It bolsters Amcor's capacity to meet the surging client demand across the Asia-Pacific region.
• In October 2022, Berry Global partnered with Cosmos Corporation to produce a new line of squeezable tubes for Cosmos' Texture Theory brand, debuting in approximately 6,000 Dollar General locations in July.
• In April 2022, Amcor unveiled more sustainable pharmaceutical packaging, featuring new high shield laminates that are recycle-ready, offering robust barrier properties and performance.
• In April 2022, Ball Corporation and Novelis increased the recycled content of the Ball Aluminum cup to 90%, offering a sustainable packaging solution with infinite recyclability across various industries, including sports and entertainment, retail, food service, and beverages.
• In January 2022, PFF Group introduced IMPACT-T, a fully recyclable food packaging product that uses less plastic than PET packaging and enables increased use of post-consumer recycled (PCR) material, optimizing resource utilization.
• In November 2021, Parksons acquired Manohar Packaging, strengthening its presence in the food and beverages segment and expanding its footprint in West and North India.
• In September 2021, Ball Corporation announced the establishment of a new U.S. beverage can plant in Nevada to meet the growing demands of strategic customers, catering to their portfolio of infinitely recyclable aluminum containers.
• In August 2021, Huhtamaki acquired the sustainable, flexible packaging supplier Elif Holding A.S., adding scale to strategic geographies and supporting Huhtamaki's progress towards its sustainability goals.
• In January 2020, Amcor partnered with Moda's vacuum packaging solutions in North and Latin America, offering operational improvements and cost savings by integrating their shrink bags and roll stock film for meat and cheese with Moda's system.