The global packaging market continues to grow, and despite the impact of COVID-19 coronavirus, strong economic growth is continuing to increase demand worldwide. In this blog, we’ll look at a few trends that are likely to affect the European market, in particular, and what this may mean for companies in the packaging industry.
The Flexible Packaging Market Will Continue To Grow At A Rapid Pace In Europe
Worldwide, the CAGR (Combined Annual Growth Rate) for the packaging industry is predicted to be 2.8% from 2019 to 2024, resulting in a growth from $917 billion to $1.05 trillion USD.
During this same period, though, flexible packaging in Europe is predicted to grow at a much higher rate of over 4%, thanks to a demand for lightweight products, eCommerce growth, an emphasis on sustainability, and higher adoption rates for flexible packaging among major consumer product manufacturers in Europe.
Sustainability Must Be A Focus
The European Union released its SUP Directive (Single-Use Plastics Directive) in 2019, which aims to reduce the production and consumption of single-use plastic products. This may be the first step in a more significant regulatory overhaul, and packaging manufacturers in Europe should keep a close eye on further legislation affecting single-use plastics.
Europe Continues To Be A Market Leader In Bioplastics
Europe ranks the highest in research and development of bioplastics derived from corn and other plants, and also has the largest market for bioplastics with the highest demand. In addition to this, about 26% of all global bioplastics production is located in Europe. America has only 17% of the market share, with Asia leading at 46%.
eCommerce Will Change How Products Are Packaged
In some ways, eCommerce has reduced the need for products with “shelf appeal.” A rise in eco-friendly, minimal packaging such as Amazon’s “Frustration Free” packaging reflects this change – customers opt for reduced, easy-open packaging because the product is distinguished by photos and online descriptions rather than a box.
At the same time, eCommerce is also increasing demand for things like custom-printed boxes and other packaging materials. Thanks to COVID-19, demand for eCommerce has only increased in 2020 – and will continue to do so in 2021. Packaging companies should be aware of this trend – and think of ways to adapt.
Know What To Expect In Europe With These Packaging Trends
While we can’t predict the unexpected, these four trends seem very likely to drive innovation and growth in Europe in the near future. For more information about how TGW International can help you create better packaging with custom machine knives, contact us now.