The global packaging resin market size is set to be USD 374.9 billion by 2030, witnessing 7.4% CAGR between 2024 and 2030. This can be attributed to the rising demand for processed and ready-to-eat food, rapidly urbanizing countries, and a high requirement for polymers for pharmaceutical packaging.
A variety of plastics can be used to produce bottles, containers, and films for packaging purposes for different industries. This is achieved by changing their molecular structure, chemical composition, and physical properties as per the necessities of the specific application.
On the basis of material, the highest revenue in the market is generated in the polypropylene category. A thermoplastic polymer, it is extensively used in packaging due to its resistance to chemicals, durability, and flexibility. Moreover, it finds application in both rigid and flexible packaging, such as films and containers.
Polyethylene terephthalate also holds a considerable packaging resin market share. It is used for several packaging applications due to its low weight, durability, and optical clarity. Additionally, it acts as a good barrier against oxygen and carbon dioxide, which is beneficial for food & beverage packaging.
The high-density polyethylene category is expected to showcase a robust CAGR over this decade. HDPE is mostly required for the production of containers, bottles, and caps for beverages, cleansing products, and personal care items. This is because this polymer showcases remarkable resistance to a diverse array of acids and bases. Further, unpigmented HDPE bottles are transparent and offer a strong barrier against the elements, which makes them well-suited for packaging perishable items with a limited shelf life, such as milk.
The food & beverage category is expected to grow at a rate of 7.8% during the forecast period, under segmentation by application. The key factor fueling the market progress in this category is the growing demand for food & beverages due to the increasing degree of urbanization. The growth in disposable income, e-commerce, and online food ordering is another key driver. The necessity for an extended shelf life and long-duration safety of food products has led to the increase in the demand for packaging materials.
Moreover, bioplastic packaging is in high demand, with efforts being made worldwide to reduce the carbon footprint and eradicate the need for extensive waste disposal methods. Above all, the expanding food packaging sector due to the rising popularity of ready-to-eat, ready-to-cook, and on-the-go food products aids the expansion of the market.
The APAC region generated the highest revenue share, of 45% in the market, in 2030, and it is expected to continue being the largest user of packaging resins throughout this decade.
The biggest driver for the market is the growing demand for convenience food from the ballooning population of India, Bangladesh, China, and all other developing countries in the region. Additionally, the region is the world’s largest producer of chemicals and polymers, including for packaging purposes. Sinopec is one of the largest petrochemical companies in China, producing materials such as HDPE, LDPE, and polypropylene for packaging applications.
Further, taking into account the growing demand for eco-friendly packaging, numerous countries in the region are actively exploring biodegradable materials. One of them, polyhydroxyalkanoate can be broken down by microorganisms into its constituents, including carbon dioxide and water. In addition, it can be manufactured from renewable resources, such as plant-based feedstock and microorganisms. It provides good barrier properties against moisture and gases, preserves the freshness of food products, and extends their shelf life.
Some of the key competitors in this market are China Petrochemical Corporation, Exxon Mobil Corporation, BASF SE, SABIC, Dow Chemical Company, LyondellBasell Industries Holdings B.V., Borealis AG., INEOS, Sinopec Corporation, Indorama Ventures Public Company Limited, Reliance Industries Limited, Braskem SA, and Mitsubishi Chemical Corporation.