Global Demand for Rigid Packaging to Reach US$472 Billion in 2016

World demand for rigid packaging is forecast to increase 6.4% per year to US$472 billion in 2016, according to a new study from The Freedonia Group, Inc. Factors contributing to rising demand include growth in global manufacturing output, increased consumer spending on packaged goods worldwide, and demographic trends such as increasing urban populations, as urban consumers tend to use more packaged foods than their rural counterparts.
   The largest markets for rigid packaging are food and beverages, which together represented 64% of total rigid packaging demand in 2011. Healthy gains are expected for plastic bottles and containers as a result of cost and performance advantages, as well as further development of food-grade materials. Rigid packaging demand in pharmaceutical applications is forecast to see above average growth, boosted by rapidly expanding pharmaceutical manufacturing capabilities, especially in Asia.  
   In terms of materials, plastic will continue to account for the largest share of demand and will also see the fastest increases, as plastic containers gain market share at the expense of metal, paperboard, and glass packaging in many applications. Still, metal cans will remain an important segment of the rigid packaging mix due to their durability, long shelf life, tamper resistance, ease of storage, recyclability, and the economic advantages of canned items in controlling food expenditures. Opportunities for paperboard rigid packaging will reflect a competitive price structure, suitability for high quality graphics, and a favorable environmental profile.
   The most rapid increases in demand for rigid packaging will be seen in the world’s developing regions. In particular, the Asia/Pacific region will post the fastest growth and remain the largest market due to its large food and beverage industries. In contrast, market maturity in developed countries (as well as market saturation in bedrock applications such as bottled and canned beers and carbonated soft drinks) will serve to prevent faster gains in rigid packaging demand. Overall, some of the highest growth rates are expected in India, China, and Indonesia, with Brazil, Turkey, Russia, and Mexico also expected to see healthy gains. China alone will account for 46% of global value gains in rigid packaging demand between 2011 and 2016.

World Rigid Packaging Demand (billion dollars, %)
Item    2006    2011    2016    2006-2011 Annual Growth    2011-2016 Annual Growth
Rigid Packaging Demand    265.8    345    471.5    5.4    6.4
North America     73.3    81.5    96.6    2.1    3.5
Western Europe     66.4    72.6    85.5    1.8    3.3
Asia/Pacific    84.9    136.9    216.4    10    9.6
Central & South America    18.9    23.8    32.1    4.7    6.2
Eastern Europe     14.8    19.6    26.1    5.8    5.9
Africa/Mideast    7.6    10.7    14.9    7.2    6.8
Source: The Freedonia Group, Inc.