The global Composite Packaging Market size was valued at USD 2.72 billion in 2019 and is anticipated to grow at a CAGR of 5.4% during the forecast period. Increasing demand for better packaging due to the growth of the e-commerce industry as well as rising inclination towards premium packaging are some of the factors driving the composite packaging market growth. The growth of the end user industry especially in regions such as Asia Pacific is also expected to fuel market growth.
Composite packaging is manufactured by utilizing full surfaces of two or more materials. The materials are selected so as to increase the durability, stress load, elasticity of the overall pack. Some of the combinations prevalent in the overall composite packaging industry include Plastic-aluminum, Cardboard-polyethylene, Paper-polyethylene Plastic-Paper-Aluminum, Paper-aluminum composite among Cardboard.
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Customization is an important parameter benefitting the composite packaging industry growth across the globe. Composite packaging materials are highly customizable and can be manufactured according to the end use application needs. In addition, these packing types provide the flexibility to select the manufacturing materials as well as their combination to suit application needs. Customers thus greatly benefit from this factor as they can select packing based on their needs such as gloss percentage, ink to be used for printing, matt percentage, metallized films, transparency, cold seal among Cardboard.
Advanced manufacturing methods guarantee that the overall performance of the composite packaging does not vary even under extreme conditions and also result in prolonged service life. As two or materials are combined, it significantly increases the performance as compared to single material packing. Though the cost increases a bit, but the additional cost is offset by the additional benefits. These composite packaging can also meet needs such as vacuum packing, ability to get sterilized at high pressure as well as high temperature, requirements of inflatable packaging among Cardboard.
The market is primarily segmented based on type, by application, and by Geographic region.
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Versatility of plastic material and its ability to combine with other materials is a factor benefitting the growth of the plastic type market segment growth. Companies have focused to make their Types more sustainable and environmentally friendly. Companies have developed composite packing solutions combining plastic and bamboo. This novel combination finds usage in applications such as cosmetics, as well as food & beverage industry. Such trends are benefitting the segment growth thus proving beneficial for the overall market.
Paper is widely preferred material for composite packaging mainly in food & beverage as well consumer goods industry. The material is widely being preferred due to its high biodegradability index. Advanced materials such as those with a dispersion of nanocoating have been developed that facilitate easy decomposition of the overall materials. Governments across the globe are concentrating more on promoting biodegradable material usage as well as recycling. Paper fits both these criteria. Such trends are benefitting the market growth of the segment.
The growth of the e-commerce industry has greatly benefitted the food & beverage industry as well as the consumer goods industry. There has been a rising trend across the globe to utilize e-commerce for ordering Types belonging to these industries. Due to this scenario. Composite packaging is witnessing rising demand from these applications. Furthermore, the cost effectiveness as well as the durability of the composite packaging is also benefitting the demand from particularly consumer goods segment.
Composite packaging can be manufactured and customized in such a way that they suit the complex requirements of the Plastic goods industry. Companies offer the choice of material selection to their clients so as to ensure that the Plastic goods arrive in optimum condition at their respective destinations. They also offer customization services pertaining to insulation, assembly, stress levels, etc. Such trends are benefitting the growth of demand of composite packaging from Plastic goods segment. Some of the other features of the Type that are proving beneficial for rise in demand from Plastic goods industry are reduced damage rates, increased productivity due to delivery of assembled packaging, inventory as well as administrative cost savings, high customer satisfaction levels among Cardboard.
Asia Pacific is expected to witness the highest growth rate over the forecast period. Improving economies of China, India, Indonesia, Malaysia and Vietnam are contributing strongly to the regional market growth. The growing number of food processing industries, emergence of India and China as manufacturing hubs has contributed to the growth of the regional market growth. Rising disposable income, rising penetration of e-commerce, high rate of urbanization is some of the factors benefitting the rising demand for composite packaging from consumer goods in the region.
High presence of market participants, and inclination towards green practices are some of the factors benefitting the growth of the composite packaging industry in North America. Competitors have introduced novel Type portfolio in the region which is further benefitting the regional market growth. Europe is expected to witness low growth rate as compared to other regional markets. The regions of Middle East & Africa as well as Central & South America are expected to witness significant market growth over the next six years.
Companies have to take additional efforts in order to gain market share. Other than developing superior types they offer additional services such as supplying material in heavy duty board grades or in other forms of packing that are in line with the value chain as well as life cycle requirements of the client. Some of the companies also provide high quality printing options to their clients as well as the option to ship the client in a pre-assembled form. These market participants also provide the option to incorporate polystyrene, timber, foam, plastics, and other materials.
Some of the leading players in the composite packaging market include Amcor, DS Smith, Mondi, Smurfit Kappa, Sonoco, Mondi Plc., Crown Holdings, Sealed Air Corporation Universal Packaging Ltd, Najmi Industries, Sota Packaging Pty Ltd., among others. Companies are eyeing rising market opportunities in developing regions such as Middle East & Africa as well as Asia Pacific. In order to develop their market share, these companies are trying to increase their footprints in such regions. Development of novel Types, development of distribution channels, and continuous R & D activities are some of the key scenarios of the market.