The report, the Future of Global Packaging Market and Technology Forecasts to 2016, expects food and drink packaging demand to increase by $43bn (€33bn) by 2016 – with increased demand in emerging markets driving the growth.
"The single biggest end use sector for packaging is the food industry which accounted
for 31% of demand in 2010, totalling more than $206 billion. Growth in this sector
will see 2016 demand up by almost $40 billion to $245 billion, while drinks packaging
consumption will expand by over $13 billion from $74 billion in 2010 to $87 billion
by 2016."
Total global packaging demand is expecting to reach $820bn (€625bn) by 2016, the Pira International report added.
This increased demand for perishable and convenience foods will in-turn boost demand for flexible, rigid and corrugated packaging.
Glass and metal packaging will experience a slow-down in growth over the next few years, the report adds.
Corrugated, rigid packaging growth
Demand for food packaging has seen significant growth in BRIC nations such as China and India, where disposable income and demand for convenience food has increased.
Eastern Europe has witnessed a similar trend.
"The trend towards packaged food and away from unpackaged foods has been a key driver, one that has been heavily influenced by increasing consumer demands for convenience as well as trends in grocery retailing in both developed and emerging markets," Pira International head of market research Nick Waite told FoodProductionDaily.com.
"Major ongoing investments in the cold chain and expansion of modern grocery multiples in emerging markets are boosting demand for packaging in emerging markets.”
According to the report, the US remains the world’s largest packaging consumer, with demand in 2010 standing at around $137bn. China was a close second at $80bn.
The BRIC nations are, however, expected to surpass the US by 2017. The Pira International report also expects India to enter the top ten packaging countries in the next five years with its demand expected to double to $24bn.
Glass, metal packaging slowdown
The board product market, which stood at around $210bn in 2010, currently accounts for the biggest sector of the packaging market.
This is predicted to increase by $40bn to $250bn (€190bn) by 2016.
Rigid and flexible plastic packaging demand is expected to grow to over $200bn (€125bn) and $163bn (€125bn) respectively by 2016, the report forecasts.
Global demand for metal packaging is, however, expected to slow down – decreasing from 15% in 2010 to 14% in 2016.
Glass packaging growth is also expected to slow – increasing from $45bn in 2010 to around $53bn (€40bn) by 2016, the research added.
"Plastic packaging has been for the most part the fastest growing material in the past decade. Much of this has been down to the substitution of glass and metal with plastic as packer-fillers have increasingly opted for lighter-weight packaging materials," Waite added.