Next Generation Packaging Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[205+ Pages Report] According to Facts and Factors, the global next generation packaging market size was valued at USD 26.85 billion in 2022 and is predicted to surpass USD 43.98 billion by the end of 2023. The next generation packaging industry is expected to grow by a CAGR of 6.38%.

Market Overview

Next-generation packaging refers to advanced and innovative packaging solutions that include cutting-edge technology, interactive features, and sustainable materials to meet the evolving needs of the end user sectors, environment, and consumers. The next-generation packaging achieves extended shelf life, improves product protection, better consumer engagement, and less environmental impact.

Key Insights

• As per the analysis shared by our research analyst, the global next generation packaging market size is estimated to grow annually at a CAGR of around 6.38% over the forecast period (2023-2030).
• In terms of revenue, the global next generation packaging market size was valued at around USD 26.85 billion in 2022 and is projected to reach USD 43.98 billion by 2030.
• Cultural and demographic shift is expected to positively influence the growth of the global next generation packaging market.
• Based on the packaging type, the active packaging segment accounted for the largest share of the global market.
• Based on the application, the food and beverage sector is expected to lead the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.           

Growth Drivers

• Cultural and demographic shift is expected to fuel the growth of the global market.

There is a significant shift in the cultural and demographic preferences of the people, which is a big reason propelling the growth of the global next generation packaging market. Next-generation packaging design caters to the specific preferences of people in diverse markets to align with the end user’s requirements.

Also, this packaging offers opportunities for brands to connect with consumers and stand out in a competitive market by offering functional, eye-catching, and unique packaging designs that improve the brand identity.

Additionally, these packaging design aligns with health-conscious consumer behaviors like nutritional labeling, portion control, ready-to-consume uses, etc., which is further likely to expedite the growth of the global market. For instance, Analog Devices Inc. in May 2022 announced the launch of a three-axis MEMS accelerometer. It is largely being used in a variety of industrial and healthcare applications.

Restraints

• Cost consideration is likely to hamper the growth of the global market.

Innovative packaging solutions and materials are more expensive than the other traditional options, which is likely to pose a big challenge for businesses with limited budgets. Also, the lack of required infrastructure is another factor that hampers the growth of the next-generation packaging industry.

Advanced packaging technology like QR codes, sensors, and smart packaging need a support infrastructure like mobile apps and digital platforms, and therefore, limited access to advanced technology negatively impacts the growth trajectory of the industries.

Opportunities

• Waste reduction initiatives are likely to offer lucrative growth opportunities in the global market.

Increasing environmental pollution due to plastic and other kinds of waste material is significantly damaging the environment, which in turn drives the need for smart packaging solutions to encourage recycling, minimize waste, and promote a circular economy.

The development of advanced novel materials with better durability, flexibility, and various properties is also anticipated to widen the scope of the next generation packaging industry in the forthcoming years. For instance, Microchip Technology Inc. in May 2022 launched GridTime 3000 GNSS time server. It helps protect power plants and substations in case of bad weather, cyber-attacks, and other critical targeting.

Challenges

• Regulatory landscape is a big challenge in the global market.

Several reasons have their own regulation and a standard associated with packaging materials. These regulations influence the packaging industry in innovation, choices, labeling, recycling, and other subject matters, which is a big challenge in the global next generation packaging market. Consumer acceptance is another obstacle to the growth of the market. Some consumers are still unfamiliar with or resistant to certain packaging innovations, which slow down the growth of the industry.

Segmentation Analysis

The global next generation packaging market can be segmented into packaging type, application, and region.

By type, the market can be segmented into modified atmosphere packaging, intelligent packaging, and active packaging. The intelligent packaging segment can further be bifurcated into sensors, tags, and indicators. The active packaging segment can further be bifurcated into gas emitters, gas scavengers, antimicrobials, and others. The active packaging segment accounts for the largest share of the global next generation packaging market. It swiped around 36% of the total market share in 2022 and is likely to remain dominant throughout the anticipated period.

Active packaging refers to the next generation packaging, which scales beyond the traditional passive packaging with its unique advantages like enhanced safety, extended shelf life, and other additional functionality. It includes modern technologies like antimicrobial agents, moisture control agents, oxygen scavengers, and several others that scale up the potential of active packaging in the next-generation packaging industry. Consumers are increasingly looking for high-quality fresh products.

However, the active packaging solutions help manufacturers align with the flexible demands by maintaining the quality and product freshness during the storage and transportation process, which in turn will boost the growth of the segment. However, the intelligent packaging segment is also likely to grow steadily in the forthcoming years due to its constantly growing demand in the global marketplace.

By application, the market can be segmented into logistics & supply chain, personal care, health care, pharmaceuticals, food & beverages, and others. The food and beverage sector is likely to witness a huge growth rate in the forthcoming years due to the high requirement for innovative packaging solutions in the sector.

Extended shelf life and safety & quality assurance are some of the major factors driving the growth of the segment in the forthcoming years. Next-generation packaging plays a vital role in ensuring food safety and quality. It offers features like barrier films and antimicrobial properties that prevent the contamination of the food products and thereby ensure the integrity of the items.

Also, innovative packaging enhances the overall consumer experience by offering convenient portion control, freshness indicators, interactive labels, and other useful features. The healthcare and pharmaceutical application sector is also likely to grow parallelly in the market due to the exponential growth of the sectors in the global marketplace.

Report Scope

Regional Analysis

• North America is the leading region in the global market.

North America is expected to grow with a high CAGR in the global next generation packaging market because of the advancements in raw materials, functional packaging, technology, and others. Consumers in North America are actively looking for sustainable packaging due to environmental issues. There is a high demand for compostable, biodegradable, and recycled content. The rise in e-commerce has significantly propelled the demand for packaging solutions that protect the items during the storage and transportation process, thereby enhancing the unboxing experience for customers.

Asia Pacific is another leading market in the next-generation packaging industry due to various factors like technology advancements, changing consumer preferences, and rapid urbanization. Asia Pacific is witnessing a boom in the e-commerce sector, which is likely to further foster significant developments in the segment.

The constantly growing food and beverage sector due to the hectic lifestyle of the people is another major reason propelling the growth of the region. Also, the constantly growing middle-class population and changes in the dietary habits of people in the region are likely to further drive the requirement for innovative packaging solutions to ensure the integrity of the packed items.

Europe is also anticipated to witness notable growth in the market owing to the regulatory changes in the region. Moreover, the increasing consciousness of people toward environmental health is another major reason positively impacting the growth of the region. For instance, Qualcomm Technologies Inc. and Viettal Group jointly announced plans to develop the next generation 5G Radio Unit in May 2022. Companies are aiming for the smooth deployment of 5G network services.

Competitive Analysis

The key players in the global next generation packaging market include

• Bemis Company 
• Constantia Flexibles 
• Tetra Pak 
• Huhtamaki 
• Packaging Corporation of America 
• Mondi Group 
• WestRock Company 
• Sonoco Products Company 
• Amcor plc 
• Smurfit Kappa Group 
• Avery Dennison Corporation 
• Sealed Air Corporation

For instance, Dupont, in April 2020, came up with an innovative product named Tyvek 40L in China. Tyvek 40L is an innovative medical packaging product offering a practical solution for packing portable items.

The global next generation packaging market is segmented as follows:

By Packaging Type Segment Analysis

• Modified Atmosphere Packaging
• Intelligent Packaging
• Active Packaging

By Application Segment Analysis

• Logistics & Supply Chain
• Personal Care
• HealthCare
• Pharmaceuticals
• Food & Beverages
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America