With evolution in product design, there has been an improvement in an industrial packaging of products. Packaging is done to maintain a quality of the product, extend its storage life and to keep the product safe. Quality packaging and high standards are continually evolving in industrial packaging market to meet the growing demand.
According to the report by Future Market Insights (FMI), industrial packaging market in the Middle East and North Africa (MENA) region is expected to exceed $5,000 million by 2024, registering 5.7% CAGR between 2016 and 2024. The non-oil exports are playing a crucial role in economic development of MENA region. Industries such as automotive, rubber, plastic, agriculture and electronics are anticipated to witness growth in MENA region, in terms of end-use industries.
Key influencers that are impacting the industrial packaging are
- Achieving sustainability with a focus on material reduction and downgauging.
- Adopting recycling process to avoid environmental impact.
- Optimization of pack shape to make effective use of cargo space at the same time ensuring the protection of a product.
With innovative product designs, industrial users are adopting packaging solution on a large scale. Hence with the rise in demand, companies are expanding geographically and through partnerships and mergers and acquisitions.
Technology transforming industrial packaging
Recent technological innovations in packaging is transforming the industrial packaging industry and is also enhancing customer experience. For example, the food industry is using such packaging which changes color when it is not fresh anymore. Electronic modifications are being done in the industrial packaging industry. More such technologies are being introduced such as edible packaging, where the package can also be eaten along with the food in it. The concept of smart packaging is also booming where a package will be able to tell the consumer when the product is good or bad to be consumed. While the anti-microbial packaging is something that acts against bacteria and can even absorb oxygen to keep the food fresh.
Sonoco to acquire Clear Lam Packaging for approx. $170 million
Sonoco, one of the largest diversified packaging provider has signed an agreement to acquire Clear Lam Packaging, a manufacturer of forming and flexible plastic packaging films for approx. $170 million. The acquisition will support Sonoco’s strategy to expand its global Flexible Packaging and Thermoforming Plastics operations to offer services to the fast growing grocery and retail food stores. The acquisition will also provide significant advantages to Sonoco in terms of technology. Cam Lam Packaging has also recently developed new packaging films that expand product shelf life, peel-reseal films for vegetables and fruits, new drinking pouch films, etc.
Stringent regulations on use of plastic in industrial packaging
Owing to the adverse impact on the environment, Government in various countries are imposing rules and regulations on the use of plastic. Moreover, plastic is derived from petroleum products and chemicals are causing harm to the environment. Hence, manufacturers of plastic are modifying the processes to minimize the impact on the environment. However, plastic as industrial packaging material is anticipated to witness higher growth rate due to rise in demand from various industries.
Companies are also taking initiatives to minimize the harmful effects of packaging waste on the environment. For example, Tetra Pak, world’s leading food processing and packaging solution provider won an award by Singapore government for working towards sustainability. The company took various steps such as implementing new equipment that helps in re-usage of packaging waste from the production line. This reduced 15,000 tons of packaging waste.