Secondary Packaging Market Size Anticipated to Attain USD 366.81 Billion by 2032

Secondary Packaging Market Size and Growth (2023 - 2032)

The global secondary packaging market size is estimated to grow from USD 232.85 billion in 2022 to reach an estimated USD 366.81 billion by 2032, growing at a 4.7% CAGR between 2023 and 2032.

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Report Highlights: Important Revelations

• Global secondary packaging sector is poised for growth, starting at a value of USD 232.85 billion in 2022.
• The market is expected to surge, reaching an estimated value of USD 366.81 billion by 2032.
• This expansion is registered at a consistent CAGR of 4.7% over the period from 2023 to 2032.

Secondary packaging refers to additional layers of packaging used to bundle or enclose groupings of products. Its principal functions include increased protection, easier handling, and improved transportation and storage efficiency. Secondary packaging comes in various forms, including cartons, outer packaging, trays, shrink films, and primary package envelopment. One of its key functions is to improve the appeal and value of primary packaging, which is especially important in retail situations where attracting consumers' attention is essential.

Secondary packaging is essential for distribution, display, and branding. During distribution, it protects both the primary packages and the contents contained within. Secondary packaging, for example, is required to safeguard delicate objects such as glass vials from damage during transportation. Secondary packaging serves as a buffer, protecting primary packages from potential damage.

Furthermore, it allows for proper packing within shipping cases, preventing products from shifting during shipment. The structural design of cartons ensures a tight fit for tertiary packaging, maximizing space use. Cartons are also easier to handle than individual items, making the loading and unloading of shipping containers more efficient. The secondary packaging market is critical for improving product safety, presentation, and logistical operations, making it essential in modern supply chains.

Secondary Packaging Market Trends

• Smart packaging increasingly combines storing, protecting, and marketing consumer goods. Each packaging layer contributes equally to meeting manufacturing, distribution, and promotional objectives.
• Automation is the driving force behind emerging secondary packaging advances. Secondary machineries such as case formers, band sealers, and cartooning machines enable a contract packaging company to deploy rapid, consistent, and easily adaptable technology to various applications.
• Minimalist packaging designs are gaining traction in the secondary packaging market, owing to consumer desires for simplicity, utility, and environmental concerns.
• Secondary packaging solutions with convenient features like easy-open seals, resealable closures, and ergonomic handles improve the user experience and consumer satisfaction.

Economic Strength and Infrastructure Pillars of North America's Packaging Dominance

North America leads the secondary packaging market for a variety of compelling reasons. The region has a highly developed economy and advanced infrastructure, allowing for efficient production, delivery, and consumption of commodities. This infrastructure includes efficient transportation networks and well-established supply chain systems, both of which rely significantly on secondary packaging to keep operations running smoothly.

Retail, food and beverage, pharmaceuticals, electronics, and automotive are among the many industries operating in North America. Each has specific packaging requirements to protect products throughout transit, increase brand visibility, and meet regulatory standards.

As a result, there is a significant market for secondary packaging solutions in various geographical areas. Consider the recent debut of a new laundry detergent designed specifically for internet orders in the United States. The reformulated detergent, which is now more concentrated, comes in new packaging designed to minimize total weight during transit. A plastic container fits snuggly inside a rectangular wood shoe or raft, allowing for better handling. This hybrid packaging solution uses less plastic and has a lighter burden than its predecessor, which helps to achieve environmental goals.

Consumer trends in North America highlight the region's importance in the packaging environment. In 2022, paper and paperboard consumption in the region increased by 0.3% to 71.2 million tons, indicating a market comeback following the pandemic. Reopening the Canada-United States border boosted commercial activity, albeit against a backdrop of paper-machine closures caused by cost pressures and altering advertising dynamics. North America's strong economy, broad industrial landscape, commitment to innovation, and changing consumption habits solidify its secondary packaging industry leader position.

For Instance,

• In October 2021, Pharma Packaging Solutions, a top provider of healthcare packaging services with headquarters in Clinton, Tennessee, was purchased by Tjoapack, a contract packaging company based in the Netherlands that caters to the pharmaceutical industry.

Emergence of Asia Pacific as a Key Player in Secondary Packaging

The Asia Pacific region has emerged as a key player in the secondary packaging market. The region's exceptional economic expansion and developing industrial environment are among its most notable features. With rapidly rising economies such as China, India, Japan, and South Korea, the Asia-Pacific area has become a manufacturing and commercial hub, resulting in high demand for secondary packaging solutions.

The Asia-Pacific region has a large and diverse consumer base, with varying interests and purchasing behaviours. As disposable incomes rise and urbanization accelerates in the region, there is a growing demand for packaged goods in industries such as food and beverage, healthcare, electronics, and personal care. This increase in consumption emphasizes the significance of efficient and effective secondary packaging solutions for protecting products in transportation, improving shelf appeal, and meeting regulatory requirements.

The packaging sector in the Asia-Pacific region is rapidly evolving and innovative. Companies are investing in R&D to create sustainable packaging materials, improve packaging designs, and increase packaging automation and efficiency. These innovations are driving growth and competitiveness in the secondary packaging business, establishing the area as a vital participant on a worldwide scale.

For Instance,

• In January 2023, Cosfibel Group, a prominent leader in the fields of luxury gifting, merchandising, and promotional packaging, has been acquired by GPA Global.

Secondary Packaging Market, DRO

Demand:

• Secondary packaging must safeguard primary products while being transported, handled, and stored.

Restraint:

• Balancing expenses with performance, aesthetics, and environmentally friendly goals is critical for remaining profitable in the competitive packaging market.

Opportunity:

• Packaging innovations that improve product protection, brand awareness, and sustainability can help brands stand out and attract customers in the competitive packaging industry.

Paper and Paperboard Challenges Excess Capacity and Market Dynamics

Paper and paperboard materials hold a prominent position in the secondary packaging market, the sector is currently dealing with issues brought on by an excess of paperboard capacity, which has caused major delays in both expansion and rationalization initiatives. The market has been strained by this excess manufacturing capacity, requiring changes to maintain a balance between supply and demand. 

By 2022, 47.5 million tonnes (a 6.4% drop) less paper was used for recycling. The decrease in production of packaging and the extraordinary rise in the cost of gas, electricity, and CO2 are the reasons for this fall. The secondary packaging industry's overall dynamics have been affected by these variables combined, which has forced stakeholders to reevaluate plans and processes.

The amount of paper and paperboard consumed in Europe in 2022 stayed constant at 89.9 million tons in spite of these difficulties. This consumption resilience highlights the region's persistent need for paper-based packaging solutions in spite of the current state of the market.

Stakeholders in the secondary packaging sector will have to strategically overcome these obstacles. This could entail putting policies in place to maximize manufacturing capabilities, look into substitute resources, and adjust to changing consumer demands and legal environments. Through proactive resolution of these concerns, the sector can promote long-term expansion and adaptability to fluctuating market circumstances.

For Instance,

• In October 2023, JK Paper Ltd invested roughly Rs 90 crore to acquire Manipal Utility Packaging Solutions Pvt Ltd. JK Paper announced in a regulatory filing that it had signed into an agreement to buy stock to purchase 100% of Manipal Utility Packaging Solutions Pvt Ltd's shares.

Innovative Applications of Folding Cartons in Secondary Packaging Solutions

Folding cartons are a popular type of secondary packaging because they provide an array of flexibility and utility. Composed of paperboard, they provide a literal blank canvas for detailed physical designs and ornamental embellishments, all while preserving the strength essential to protect your products throughout shipping and display.

Folding cartons work smoothly with radio frequency identification (RFID) technology, which is quickly becoming a popular asset in a variety of retail sectors. This interoperability with RFID technology improves inventory management, promotes supply chain visibility, and increases overall operational efficiency for enterprises.

By leveraging the inherent qualities of folding cartons, businesses can not only enhance the visual appeal of their products but also optimize functionality and sustainability across the packaging lifecycle. Whether through intricate designs, RFID integration, or eco-conscious material choices, folding cartons offer a compelling solution for brands seeking to elevate their packaging strategies in alignment with evolving market trends and consumer preferences.

For Instance,

• In April 2022, Mayr-Melnhof Group (MM), an Austrian cartonboard and folding carton distributor, has acquired 100% of Swedish pharmaceutical packaging company Eson Pac.

Advancements in Secondary Packaging Technology for Healthcare Products

The healthcare industry is a key area in packaging, with secondary packaging playing an important role in protecting various medical products such as drugs, injections, and gadgets. Beyond protection, secondary packaging in healthcare provides ease and utility by addressing essential issues such as drug composition, user instructions, dosing information, storage conditions, and warning signs of potential side effects. This thorough information about healthcare packaging guarantees that healthcare professionals and patients may utilize it safely and effectively.

Healthcare packaging alternatives include folding cartons, blister packs, blister wallets, and others. Each package format serves a distinct purpose customized to the needs of different products, ensuring maximum protection, accessibility, and information transmission. As the healthcare business evolves, secondary packaging plays an important role in improving product safety, usability, and regulatory compliance, ultimately leading to better patient outcomes and overall healthcare quality.

For Instance,

• In April 2022, Tjoapack, a global pharmaceutical contractor packaging firm, has completed the expansion of its Etten-Leur factory in the Netherlands. The expansion comes after the facility received a more than €10 million investment.

Key Players and Competitive Dynamics in the Secondary Packaging Market

The competitive landscape of the secondary packaging market is dominated by established industry, giants such as Amcor PLC (Australia), Ball Corporation (U.S.), Nippon Paper Industries Co Ltd (Japan), Berry Plastics (U.S.), Crown Holdings Inc. (U.S.), Oji Holdings Corp (Japan), Deufol SE (Europe), International Paper Company (U.S.), SCG Packaging (Thailand), Mondi Group (UK), Molins (UK), Owens-Illinois Inc. (U.S.), and Reynolds Group Holdings (New Zealand). These giants compete with upstart direct-to-consumer firms that use digital platforms to gain market share. Key competitive characteristics include product innovation, sustainable practices, and the ability to respond to changing consumer tastes.

Berry offers a variety of PCR (post-consumer recycled) shrink wrap films designed to combine sustainability and performance in a single shrink-wrapping film. The material is intended for secondary packaging in non-food contact applications and has a range of recycled content percentages.

For Instance,

• In January 2024, Pharmaceutical packaging solutions provider Berry Global Healthcare, which specializes in patient-centered design, presented its most recent line of custom and conventional pharmaceutical packaging products at Pharmapack 2024.

Mondi develops novel materials, designs, and technologies with the goal of fostering innovation in secondary packaging solutions. They are able to remain ahead of market trends, enhance product performance, and satisfy changing client expectations thanks to this strategy.

For Instance,

• In August 2022, Leading manufacturer of paper and packaging globally, Mondi, has partnered with Dow and Essity to develop innovative, recyclable secondary packaging for Essity's feminine care products. This packaging uses recycled paper and renewable materials, reducing the amount of fossil fuel-based materials used.

Secondary Packaging Market Player

Secondary packaging leading market players are Amcor PLC (Australia), Ball Corporation (U.S.), Nippon Paper Industries Co Ltd (Japan), Berry Plastics (U.S.), Crown Holdings Inc. (U.S.), Oji Holdings Corp (Japan), Deufol SE (Europe), International Paper Company (U.S.), SCG Packaging (Thailand), Mondi Group (UK), Molins (UK), Owens-Illinois Inc. (U.S.), and Reynolds Group Holdings (New Zealand).

Secondary Packaging Market Segments

By Material

• Paper & Paperboard
• Plastic
• Wood
• Metal
• Others

By Product

• Folding Cartons
• Plastic Crates
• Corrugated Boxes
• Wraps & Films

By End Use

• Healthcare
• Food & Beverage
• Industrial
• Others

By Region

• North America
• Asia Pacific
• Europe
• LAMEA