Next Generation Packaging Is Estimated To Witness High Growth Owing To Increased Demand for Sustainable Packaging

Market Overview:
Next generation packaging refers to innovative packaging solutions that provide enhanced protection, enable traceability and transparency, extend shelf life, and are more sustainable than traditional packaging materials. Products in this market include active, intelligent, sustainable and eco-friendly packaging solutions made from materials like recycled plastics, bio-based plastics, and biodegradable polymers. These packaging types are increasingly being adopted across industries like food, pharmaceuticals, consumer goods and industrial goods to reduce waste and meet consumer demand for sustainable options.

The 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 Dynamics:
Growing demand for sustainable packaging- There is significant consumer demand for sustainable packaging made from recycled and biodegradable materials. Rising environmental concerns are forcing brand owners to switch to next generation packaging with lower carbon footprint. Various government regulations worldwide are also pushing packaging manufacturers to reduce the usage of single-use plastics and virgin materials.
Increased focus on productivity & supply chain efficiency- Next generation smart and active packaging solutions enable tracking of products throughout the cold chain, detect contamination, monitor freshness, and automate handling with technologies like RFID and sensors. This helps companies improve supply chain visibility, reduce wasted inventory, and gain productivity benefits. These factors are expected to drive higher adoption of next generation packaging technologies over the forecast period.

SWOT Analysis
Strength: Next Generation Packaging has high barrier properties and acts as an effective moisture barrier to increase shelf life of products. Its lightweight and compact size makes transportation and logistics more efficient. It is increasingly being adopted across industries like food and beverages, pharmaceuticals, personal care due to innovative designs and enhanced functionalities.

Weakness: High costs associated with research and development of new environment friendly materials. Dependency on crude oil prices increases production costs.

Opportunity: Growing e-commerce sector increases demand for effective packaging solutions. Rise in single serve and on-the-go packaging formats present opportunities. Regulatory push for sustainable packaging presents scope for biodegradable and recyclable materials.

Threats: Stringent environmental regulations around the world increase compliance costs. Substitutes like reusable packaging pose competition.

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 smaller pack sizes and sustainable packaging options from consumers and regulations.

Regional analysis

The North American region currently dominates the market due to large scale investments in R&D of new materials by companies. Asia Pacific is expected to be the fastest growing region exhibiting a CAGR of over 8% owing to growing e-commerce, food processing, and pharmaceutical industries in countries like China, 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.