Key Trends Driving Growth in Industrial Packaging
Over the next five years, the industrial packaging market is predicted to increase to $66 billion from the 2019 figure of $56.2 billion on a global scale. Industrial packaging wraps and protects around $36 trillion worth of manufactured products as they are transported, whether locally, nationally or globally.
A recent packaging market report conducted by Smithers, a multinational consulting and testing provider, predicts that consistent growth in industrial packaging demand will happen at a CAGR of 3.3% over the next five years. The report, entitled ‘The Future of Industrial Packaging to 2024' takes a comprehensive view of the market and provides analysis of current and next generation technologies and their impact on the industrial packaging industry.
There are key trends emerging from the data that are likely to continue to drive growth throughout the sector, according to the report. These include the introduction of smart technologies, shifts in product innovations, changes in trade agreements on a global scale and more. Let’s take a closer look at some of the core trends and potential challenges to keep an eye on.
Trade and tariff agreements
Across the world, the overview of the manufacturing economy is relatively stable. However, with potential trade and tariff challenges on the horizon due to Brexit, the Chinese/US protectionist issue and NAFTA, for example, it will be worth following the global economy closely to determine the potential impact.
Growth in developing countries
Emerging growth in developing regions and countries is set to continue as demand rises for industrial packaging products. With a lower technical demand in some African, Indian and Asian nations, (and subsequent lower value products) manufacturing economies are predicted to continue to rise in these regions, contributing over the next five years to further global growth. These regions may also face challenges in meeting compliance with international standards.
Although there are no significant regulatory changes on the horizon, the global marketplace is changing, climate change issues are becoming more volatile and political planning could be unpredictable, which could potentially lead to further need for regulatory conditions.
It is predicted that the rise in global interest in packaging materials will not only continue but is likely to accelerate as consumers take more interest in environmental issues. This will lead to greater innovation, particularly within plastics and improvements to raw materials.
A growing trend that the report shows as a key factor is the introduction of smart technologies within packaging. This will include tracking features to secure logistics, Machine Learning and AI protocols and more that offer improved visibility and real-time information.
These are just a few of the most viable trends that could affect the industrial packaging industry and its predicted growth over the next five years. We will continue to keep a finger on the pulse of these and other key trends.
Jacob White packaging machines can be uniquely tailored to suit every requirement, regardless of the size or location of your operations. Our solutions can help to streamline and automate production lines and remain adaptable to the growing needs of the industry.
Talk to us today about how you can increase your preparedness for the predicted growth of industrial packaging and let us help you get ready for the future.