Composite Packaging Market Size, Share & Industry Analysis, By Material (Plastic, Paper & Paperboard, Metal, and Others), By End-use (Food & Beverages, Healthcare, Consumer Goods, Logistics & Transportation, and Others), and Regional Forecast, 2024-2032

The global composite packaging market size was valued at USD 49.00 billion in 2023 and is projected to be worth USD 51.68 billion in 2024 and reach USD 83.44 billion by 2032, exhibiting a CAGR of 6.17% during the forecast period. North America dominated the composite packaging market with a market share of 32.04% in 2023. Moreover, the composite packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 23.47 billion by 2032, driven by the rising shift towards eco-friendly and recyclable materials.

Composite packaging is a cost-effective packaging solution that combines different materials such as corrugated cardboard, aluminium, foams, and others. The rising demand from varied end-use sectors such as logistics, food, healthcare, consumer goods, and e-commerce is majorly driving market growth. This packaging also offers additional benefits such as durability, convenience, low cost, and flexibility, which makes it an ideal solution for packaging various goods.

The outbreak of the COVID-19 pandemic disrupted several end-use industries and caused major changes that are expected to have ripple effects in the upcoming years as well. Throughout the imposed shutdown globally, there was a remarkable surge in demand for delivery orders for both groceries and takeout food products.

Composite Packaging Market Trends

Substantial Growth in the E-commerce Sector Emerges as a Key Market Trend

The rise of the e-commerce sector has been notable, altering the purchasing behavior of consumers and the development of several businesses. In recent years, e-commerce sales have grown tremendously and have driven a surge in demand for a cost-effective packaging solution. The substantial growth in the e-commerce industry is thus booming as a trend in the composite packaging market. Such packaging solutions have gained popularity in recent years owing to their versatility and durability.

In addition, composite packaging solutions are a cost-effective alternative to other packaging solutions as they are lightweight. They also eliminate shipping costs and can be manufactured in large quantities at a lower cost. Consumers majorly tend to shop online for various electronics, household, and food items, owing to which the growth of the e-commerce sector is accelerating. Hence, the increasing demand for such packaging solutions by the e-commerce sector is emerging as a key trend, boosting the market growth for composite packaging.

Composite Packaging Market Growth Report

Augmenting Demand for Customized Packaging Products to Propel Market Growth

Customization is an important factor boosting the demand for composite products. Composite materials used for packaging are highly customizable and can be developed according to the customer and end-use industry needs. In addition, such packing solutions provide the flexibility to pick the desired manufacturing materials and the suitable combination according to the needs. The rapidly augmenting demand for customized packaging solutions is thus a major driver behind the global composite packaging market growth.

Moreover, customers can highly benefit from customization options in terms of transparency, inks, gloss & matt percentage, metalized films, cold sealing, and several other parameters, which rapidly drive the demand for composite products. In addition, the continuous advancements in technologies such as extrusion lamination and co-extrusion and the introduction of high-performance materials with enhanced barrier properties boost market growth. Hence, the augmenting demand, especially from industries where product integrity and safety are important, such as pharmaceuticals, electronics, and chemicals, drives market growth.

Growth in the Food & Beverages and Retail Industries to Accelerate Market Growth

The composite products used for packaging have experienced crucial demand from the food & beverage and retail industries. This packaging is majorly used in food & beverage products, such as snacks, ready-to-eat meals, dairy & bakery products, and many others. Composite materials provide crucial barrier protection against light, gas, and moisture, further preserving the freshness and quality of food items.

Moreover, the increased utilization of composite tubes and cans for food & beverage packaging and the rapid growth in the food and retail sector drive the market growth. In addition, the rising utilization of composite tubes or boxes, especially for attractive retail packaging, further drives market growth. Furthermore, the growing consumption of packed food and the need for rigid packaging are also studied to enhance the market growth over the forecast period.

RESTRAINING FACTORS

Difficulty in Recycling Composite Materials May Hamper Market Growth

While the composite materials used for packaging offer numerous potential benefits, their sustainability and recyclability have posed major concerns for environmental experts. According to the process, each layer of the composite product packaging should be departed, classified, and then recycled.

However, consumers are barely aware of the process, and the existing recycling facilities worldwide are under-equipped to handle such packaging due to a lack of profitability. Hence, the recycling of these packaging solutions is quite difficult, thus restraining the market growth. Many composite products are directly transported to landfills or just incinerated, further emerging as a threat to the environment. In addition, the rising consumer awareness regarding the use of plastic and its harm to the environment further limits market growth.

Composite Packaging Market Segmentation Analysis

By Material Analysis

Excellent Barrier Properties of Plastic to Drive Segment Growth

In terms of material, the market is classified into plastic, metal, paper & paperboard, and others.

The plastic is the dominating segment and is projected to attain significant growth during the projected period. The material offers excellent barrier properties against moisture, gases, and light, further maintaining the freshness and quality of the packaged products. Plastic also provides various benefits, such as durability and flexibility, and its lightweight nature boosts its demand for manufacturing composite products for packaging.

Such essential properties of the plastic material also make it ideal for packaging products that require extra protection during transportation & storage. Furthermore, the innovative combinations developed with the use of plastic material aid its utilization in applications in homecare, cosmetics, and the food & beverage sectors.

The paper & paperboard is the second-dominating material segment. Utilization of paper increases the shelf life of food items, preserves the taste and aroma, and eliminates the risk of spillage, thus driving segmental growth.

By End-Use Analysis

Accelerating Demand for Food & Beverages to Contribute to the Segment Growth

Based on end-use, the market is classified into healthcare, food & beverages, consumer goods, logistics & transportation, and others.

The food & beverages is the dominating segment and is projected to grow vigorously in the forthcoming years. The use of this packaging helps extend the shelf life of food & beverage products, further reducing the risk of product damage during storage & transportation. It also boosts the convenience of the packaging for its key consumers, leading to segmental growth. Moreover, the augmenting demand for cold drinks, fruits, snacks, milk, immunity-boosting items, and confectionery products is propelling the demand for such packaging in the food & beverages sectors.

The consumer goods is the second-leading segment. The rising demand for multi-material packaging for household products is fostering the segmental growth.

REGIONAL INSIGHTS

The market for composite packaging is analyzed across Europe, the Middle East & Africa, North America, Asia Pacific, and Latin America.

North America holds the dominating global composite packaging market share. Rising consumer preferences for environmentally friendly packaging solutions in North America are majorly thriving the market growth in the region. In addition, the presence of numerous leading market players and innovative product portfolios offered by them boost regional growth.

Europe is the second-dominating region and is slated to grow rapidly during the forecast period. The region is well-known for its innovative packaging standards, major use of sustainable packaging materials, and modernized packaging solutions, which contribute to the market growth. In addition, the rising demand for various food & beverage products such as bakery & confectionery, dairy, and others in the region drives the need for such packaging solutions.

Asia Pacific is the third-leading and the fastest-growing region. The region’s rapid growth can be attributed to the rising demand for composite products from the healthcare, logistics, and e-commerce sectors. Moreover, the thriving growth in the electronics sector also drives the market growth.

Latin America is poised to experience moderate growth during the forecast period owing to the substantial rise in the food & beverages sector in the region.

List of Key Companies in Composite Packaging Market

Leading Players Focus on Offering Advanced Packaging Solutions to Strengthen Their Position

The global composite packaging market has a highly competitive and fragmented structure. A few significant companies are dominating by providing innovative packaging solutions in the packaging industry. These major players constantly focus on expanding their customer base across regions by innovating their existing product range.

Major players in the composite packaging industry include Amcor, DS Smith, Mondi, Smurfit Kappa, Sonoco Products Company, Crown Holdings, and others. Many other players in the market are emphasizing market scenarios and providing advanced packaging solutions.

List of Key Companies Profiled:

• Amcor (Switzerland)


• DS Smith (U.K.)


• Mondi (U.K.)


• Smurfit Kappa (Ireland)


• Sonoco Products Company (U.S.)


• Crown Holdings (U.S.)


• Tetra Pak International (Switzerland)


• Coveris Holdings (U.K.)


• Constantia Flexibles (Austria)


• NPP (Ireland)


• GWP Packaging (U.K.)


• Zipform Packaging (Australia)


• Envirocore CC (South Africa)


• Canfab Packaging Inc. (Canada)


• SUPERPACKS Business Solutions LLP (India)

KEY INDUSTRY DEVELOPMENTS:

• November 2023 – Sonoco declared the purchase of Amcor Packaging’s composite can operations at an undisclosed price. Acquiring Amcor’s composite can plants will strengthen Sonoco’s position in the Asia Pacific market.


• July 2023 – The Mitsubishi Chemical Group ("the MC Group"), Toppan Inc. (“Toppan”), and Kyoeisha Chemical Co., Ltd. (hereinafter "Kyoeisha Chemical") signed an agreement to jointly develop a material recycling production process. The material recycling technology to be developed in this process will enable plastic composite packaging materials to be peeled, deinked*2 and separated for extraction as resins of different materials.


• June 2022 – Corona India announced the launch of an innovative 100% biodegradable and composite packing with the utilization of barley straw. Such an innovative circular form of packaging solution reaffirms the company’s larger goal of preserving and protecting nature.


• September 2020 – SABIC, a global leader in diversified chemicals, launched a sustainable packaging solution for frozen food that combines a new polyethylene (PE) grade with innovative film production technology.


• March 2019 – Rapak, part of DS Smith Plastics, announced its investment in a new production line for bag-in-box packaging in northeast Bulgaria. Rapak's new bag-in-box production line offered manufacturing flexibility, enhanced operational efficiencies, and eliminated ordering lead times for its customers.

REPORT COVERAGE

The research report provides detailed market analysis and focuses on key aspects, such as top market players, competitive landscape, product/service types, market segmentation, Porter's five forces analysis, and leading segments of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market intelligence and growth in recent years.

Report Scope and Segmentation