U.S. Packaging Market generated revenue of $216.2 billion in 2016

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Packaging is a method for preparing items for transportation, warehousing, logistics, sale, and end-use that is coordinated.

The U.S. Packaging Market generated revenue of $216.2 billion in 2016 over the study period 2016-2020. Packaging is a method for preparing items for transportation, warehousing, logistics, sale, and end-use that is coordinated. Packaging also refers to the process of packaging design, evaluation, and production. The wrapping or bottling of products to protect them from damage during transportation and storage is referred to as packaging. It aids in identifying, defining, and advertising a product while keeping it safe and marketable. Food and beverage, cosmetics, and healthcare are just a few of the industries that use packaging solutions. Here, the packaging industry increasingly and continuously develops more sustainable solutions for their products, with an increase in reusable solutions. Because of its benefits, like as long shelf-life and durability, packaging has acquired substantial popularity in a variety of industries. Due to a lack of a comparable level of replacement that is cost-effective in currently existing solutions, the market for packaging solutions is expected to continue to develop. Even though major concerns have been expressed regarding the impact of packaging on the environment in the absence of an active adequate disposal system, demand for packaging in the United States continues to rise. The U.S. was the world’s largest consumer of packaging and was growing rapidly at a rate of 10% in 2019.

Rise in the consumption of food and beverages gave rise to the demand for packaging and the growing trends of e-commerce increased the need for packaging were some of the factors that drove the U.S. Packaging Industry during the historical period of 2016-2020.

U.S. Packaging Market Report Coverage

The report: “U.S. Packaging Market (2016-2020)", by Industry ARC covers an in-depth information on the following segments of the U.S. Packaging Industry.

By Packaging- Plastic, Paper, Metal, Wood, Glass, and Others

Key Takeaways

According to the American Institute for Packaging and the Environment, the U.S. packaging industry contributed $537.91 billion in total economic output to the national economy in 2019. Moreover, soaring demand for the go lifestyle among consumers gave rise to the demand for food options that are easy to grab, hold, eat, or carry. So, in order to meet this need, brands are putting in extra effort into making food packaging portable and thus increasing the demand of the packaging industry in the U.S.
Rising consumption of beverages or sports drinks and the increasing trend of plastic packaging among manufacturers are some of the factors driving the U.S. Packaging Market. However, stringent regulations on plastic packaging are some of the factors impeding market growth.
A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the U.S. Packaging Market Report.

U.S. Packaging Market- Import and Export Volume of Plastics Packaging in (US$ Million) (2016).

For more details on this report - Request for Sample

U.S. Packaging Market Segment Analysis - By Packaging

Plastics held a dominant market share in the year 2016. In the U.S., about 121.4 billion pounds of plastics were produced in 2019. The U.S. plastics industry is the third-largest manufacturing industry in the United States. Plastics are strong and lightweight increasing their usage in packaging purposes as consumers prefer packaging which is portable and easy to carry which further rose its demand in the packaging industry. Owing to its cost-effectiveness and increasing the shelf life of the product, manufacturers are preferring plastic packaging in various industries. Recently, the growing trend of e-commerce gives rise to the demand for plastic packaging owing to its unique properties.

However, Paper is the fastest-growing, during the historical period of 2016-2020. Paper-based packaging such as cardboard, paper bags are made from renewable resources and they are recycled more than any other packaging material in the U.S. Paper packaging is a sustainable, reliable, and cost-efficient way to transport and protect a wide range of products like groceries, medicine, animal feed, and cement which increase its usage in the packaging industry. In 2020, nearly 80% of all mills used recycled paper in order to pack products in the United States.

U.S. Packaging Market Drivers

Rising Consumption of Beverage Products Gives Rise to The Demand for Packaging that Has Aided the Growth of Market

The United States is one of the significant markets for the beverage industry. In the U.S., carbonated soft drinks were the most consumed beverages. In the U.S., the sales of carbonated soft drinks in 2019 picked up by 40% so, the demand for packing beverage products roses which further enhanced the growth of the packaging industry. Recently, the consumption of diet coke rising among health-conscious consumers which increases the need of the packaging industry. Moreover, the rising demand for ready-to-drink products among consumer enhances the growth in the packaging industry. Alcoholic beverage vendors are innovating their packages to attract consumers. Alcoholic beverages hold a significant demand for glass packaging. Owing to the rising demand for liquid products, the need for packaging increases owing to which vendors are increasingly becoming creative to make packaging. According to the United States Department of Agriculture (USDA), the total fluid milk product sales in the country stood at 34,181 million pounds in 2019 so, the demand for packing increased which in turn escalates the market growth.

Growing Demand for Flexible Plastic Packaging Solutions Across Various End-Use Industry is Set to Increase the Market Growth

Flexible plastic packaging solutions have been in high demand across the country's end-user business sectors, including food, retail, consumer goods, medicines, and others. Flexible plastic packaging is considered the right choice, owing to cost-effectiveness as well as increased shelf-life of the product, reducing of packaging, rising demand from end-users, and improvements in global manufacturing activities. The demand for plastic packaging products is likely to be driven primarily by advances in the healthcare, pharmaceutical, and cosmetics markets. According to the Flexible Packaging Association, more than 60% of U.S. consumers are willing to pay more for tangible and functional packaging benefits like product protection, transportation friendliness, and supply chain efficiency, among other things that increase the use of plastic packaging and thus escalating the packaging industry.

U.S. Packaging Market Challenges

Stringent Government Regulation For Usage Of Plastic Is Impeding The Market Growth

The U.S. Food and Drug Administration (FDA) regulates the packaging and labeling of food. The intent of these regulations is to enhance the safety of food distributed throughout the United States and keep consumers informed about the food they're consuming. Recently, The Plastic Waste Reduction and Recycling Act aims to reduce plastic waste which decreases the use of plastic products among manufacturers that further decreasing the growth of the U.S. packaging market.

U.S. Packaging Market Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the U.S. Packaging Market. The top 10- U.S. Packaging Market companies are-

Graphic Packaging International, LLC,
Plastipak Packaging, Inc.,
Classic Packaging,
Acorn Paper Products Co.,
Berry Global Inc.,
Alpha Packaging Inc.,
N-Stock Box Inc.,
Sabert Corp.,
CKS Packaging Inc.,
Silgan Dispensing System Corp.

Recent Developments

In February 2020, Graphic Packaging International, LLC, announced the close of its previously announced acquisition of the Consumer Packaging Group Business from Greif, Inc. and are excited about adding these seven folding carton facilities to the portfolio, as it helps increase in mill-to-converting plant integration levels and further support the customer base in growing markets.
In March 2019, Smurfit Kappa launched an innovative new range of premium papers that are suitable for both digital and flexographic printers. The digester paper was developed to meet the rising demand for a multi-purpose, premium solution delivering high-quality printing results.
In February 2016, Plastipak, a leading global manufacturer of rigid plastic packaging as well as virgin and recycled plastic resin, announce that it completed the acquisition of the business assets of Evolve Polymers Ltd. Evolve is one of Europe’s leading plastics recyclers, based in Hemswell, United Kingdom. This acquisition increases the demand of the packaging industry across the various end-use industry.