Market Overview:
Next generation packaging refers to innovative packaging solutions that provide enhanced product protection, extend shelf life, enable product differentiation, and improve supply chain efficiency. Efficient next generation packaging solutions use materials like bio-based and recyclable plastics, active and intelligent materials. They enable tamper-evidence, added product safety, enhanced visual communication and interactivity. These advanced packaging solutions are increasingly being adopted across food and beverage, pharmaceuticals, industrial goods and e-commerce sectors in response to the demand for sustainability and functionality.
The global Next Generation Packaging Market is estimated to be valued at US$ 54.84 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The next generation packaging market is driven by the rising demand for sustainable and active packaging solutions. Consumers are increasingly preferring eco-friendly packaging made from recyclable and compostable materials. There is also a growing demand for intelligent and interactive packaging that provides time-temperature indicators and utilizes technologies like QR codes for enhanced product engagement and tracking. Innovation in active and intelligent packaging materials that absorb moisture, emit antimicrobial agents and track freshness digitally is gaining traction. Implementation of track and trace technologies and automated packing lines for inventory management and supply chain efficiency is another key trend in the next generation packaging market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the next generation packaging market is low to medium as the market is moderately consolidated with a large capital requirement for establishing manufacturing facilities. However, the growing demand is opening up opportunities for small players.
Bargaining power of buyers: The bargaining power of buyers in the next generation packaging market is high due to the fragmented nature of buyers and availability of substitutes. Buyers can negotiate on price and switch between packaging formats easily.
Bargaining power of suppliers: The bargaining power of suppliers in the next generation packaging market is medium to high due to a limited number of raw material suppliers and differentiated quality of materials. Changes in supplier’s strategies might affect costs.
Threat of new substitutes: The threat of new substitutes in the next generation packaging market is medium as substitute products can be used as alternatives for next generation packaging. However, technological advancements are decreasing the substitutability.
Competitive rivalry: The competitive rivalry in the next generation packaging market is high owing to the presence of several global and regional players competing in terms of quality, price, and innovation.
Key Takeaways
The Global Next Generation Packaging Market Size is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing demand for packaged food and beverages.
Regional analysis: North America dominates the next generation packaging market currently. However, Asia Pacific is expected to grow at the fastest pace during the forecast period due to rapid industrialization and increase in consumption of packaged goods in countries like China and India.
Key players: Key players operating in the next generation packaging market are Amcor Limited, WestRock Company, Sonoco Products Company, Sealed Air Corporation, Stora Enso Oyj, Bemis Company, Inc., MULTIVAC, WS Packaging Group, Inc., Active Packaging Ltd., and ULMA Packaging, S.Coop. Amcor and WestRock are the largest players, while Active Packaging and ULMA Packaging are emerging players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
