Packaging outlook is bright for Asia

Food industry will account for most use of packaging, followed by non-alcoholic beverages

According to the latest research by Globaldata, the packaging sector in Asia is expected to grow at healthy CAGRs for the forecast period of 2019-2024. The research covers major markets in Asia, including in Southeast Asia, namely Thailand, the Philippines, Malaysia and Indonesia.

For all the markets, the food industry characterized the most use of packaging. Non-alcoholic beverages come in second for use of packaging. Unique to Japan and South Korea, alcoholic beverages accounts for the third highest use of packaging.

Southeast Asia

The packaging sector in Thailand is expected to reach 74.5 billion units by 2024 at a compound annual growth rate (CAGR) of 2.7% for the forecast period. The sector is majorly driven by growth in the rigid plastics packaging, which is forecast to register the fastest volume CAGR of 3.0% during the same period. The category is closely followed by paper & board packaging, which is expected to record a CAGR of 2.8% during the next five years. In 2019, rigid plastics was the most consumed pack material in Thailand packaging industry that accounted for a market share of 35.8%. It is expected to reach 36.3% by 2024. Glass and flexible packaging were the other popular pack materials.

Meanwhile, the Philippines is expected to reach 69 billion units by 2024 at a CAGR of 3.3%. Similar to Thailand, the sector is majorly driven by growth in rigid plastics packaging, which is forecast to register the CAGR of 6.4%. The category is followed by rigid metal, which is expected to record a CAGR of 4.0% during the next five years.

In 2019, flexible packaging was the most consumed pack material in the Philippines packaging industry and accounted for a market share of 34.9%. It is expected to reach 33.2% by 2024. Glass and rigid plastics were the other popular pack materials.

In Malaysia, the packaging sector is expected to reach 18.5 billion units by 2024 at a CAGR of 3.8% for the forecast period of 2019-2024. The sector is majorly driven by growth in the paper & board packaging, which is forecast to register the fastest volume CAGR of 9.8% during 2019–2024. The category is followed by flexible packaging, which is expected to record a CAGR of 2.7%.

The packaging sector in Indonesia is expected to reach 159.2 billion units by 2024 at a CAGR of 2.4% for the same forecast period. The sector is majorly driven by growth in the flexible packaging, which is forecast to register the fastest volume CAGR of 4.2% during 2019–2024. The category is closely followed by rigid plastics, which is expected to record a CAGR of 1.9%.

Flexible packaging was the most consumed pack material in Indonesia, accounting for a market share of 40.2% in 2019. It is expected to reach 43.8% by 2024. Rigid plastics and paper & board were the other popular pack materials. Market Share: Thailand Food: 44.9% Non-alcoholic beverages: 38.6% The Philippines Food: 39.5%

Non-alcoholic beverages: 37.5% ‘Other industries’: 11.4% Malaysia Food: 60.3% Non-alcoholic beverages: 26.6% ‘Other industries’: 6.5% Indonesia Food: 44.2% Non-alcoholic beverages: 38.3% ‘Other industries’: 15.3%

India & China

The packaging sector in India is expected to increase from 307.8 billion units in 2019 to 422.3 billion units in 2024, at a CAGR of 6.5% during 20192024. Changing lifestyle of consumers along with rising demand for products that offer an ease of convenience are the key attributes prompting the demand for portable packaging solutions.

The sector is majorly driven by growth in the paper & board packaging, which is forecast to register the fastest volume CAGR of 7.8%. The category is followed by rigid metal, which is expected to record a CAGR of 7.1% during the next five years. Interestingly, rigid metal packaging will be the major growth factor in the next five years; forecast to register the fastest volume CAGR of 5.9%. The category is followed by rigid plastics, which is expected to record a CAGR of 2.8% in the same period. According to Anchal Bisht, consumer analyst at GlobalData: “Busier lifestyles along with long working hours among the Chinese consumers is leading to a substantial rise in demand for timesaving, convenient, and easy-to-carry options in food and drinks. Factors such as strong built, recyclability and convenience are driving the usage of rigid metal packaging in alcoholic and non-alcoholic beverages.”

Market Share: India Food: 56.5% Non-alcoholic beverages: 25.5% Cosmetics & toiletries: 3.9% China Food: 43.2% market share Non-alcoholic beverages: 23.9% Other industries: 17.1%

In 2019, flexible packaging was the most consumed pack material in India, aaccounting for a market share of 66.2% in 2019. It is expected to reach 67.3% by 2024. Rigid plastics and paper & board were the other popular pack materials.

The packaging sector in China is expected to reach 1,004.9 billion units in 2024, at a compound annual growth rate (CAGR) of 1.8% during the forecast period. Consumers are preferring and picking time-saving and convenient options in food and drinks, which is driving the demand for innovative packaging options.

Rigid plastics was the most consumed pack material in Chinese packaging industry accounted for a market share of 28.7% in 2019. It is expected to reach 30.1% by 2024. Flexible packaging and paper & board were the other popular pack materials.

Japan and South Korea

The packaging industry in Japan is expected to reach 164.7 billion units in 2024, growing at a CAGR of 0.5% for the forecast period 2019-2024. The sector is majorly driven by growth in the rigid plastics packaging, which is forecast to register the fastest value CAGR of 2.2%. The category is closely followed by flexible packaging, which is expected to record a CAGR of 0.6% during the next five years.

In 2019, rigid plastics was the most consumed pack material in the Japanese packaging sector and accounted for a market share of 31.9%. It was followed by flexible packaging and rigid metal with market share of 25% and 20.5%, respectively. The packaging industry in South Korea is expected to reach 51.7 billion units in 2024, growing at a CAGR of 1.3% during the same forecast period. The industry is majorly driven by growth in the rigid metal packaging, which is forecast to register the fastest value CAGR of 4.5%. The category is followed by glass, which is expected to record a CAGR of 2.0%.

Rigid plastics represented the most consumed pack material in South Korea, accounting for a market share of 36.7% in 2019. It was followed by flexible packaging and paper & board packaging with market share of 18.9% and 16.1%, respectively.

Japan Food: 44.0% Non-alcoholic beverages: 32.8% Alcoholic beverages: 12.0% South Korea Food: 48.0% Non-alcoholic beverages: 26.5% Alcoholic beverages: 12.1%,

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