Increased demand for packaging solutions from food, automotive, electronics, and e-commerce industries provided significant growth to the Canada Packaging Market. Plastics were the most often used packaging material in 2016 and are predicted to expand at the quickest rate between 2016 and 2020, while paper and board and glass are poised to grow at a comparatively slower pace during the same time period. Packaging solutions are used in a variety of industries throughout the region, including retail, manufacturing, and healthcare. Owing to their high barrier qualities, long shelf-life, and durability, these solutions have garnered a lot of momentum in the Canadian healthcare market. Throughout the research period, the need for packaging solutions will continue to rise. Owing to the increased adoption of flexible packaging techniques across a varied industry, such as retail, pharmaceutical, food, and beverage, Canada is anticipated to develop at a faster rate. Furthermore, the country's retail business is thriving, resulting in increased demand for flexible packaging materials. The Canadian packaging business, on the other hand, is concerned about the region's strict environmental restrictions. Bans imposed on plastic items at the national and state levels are poised to have a significant impact on the market throughout the projected period.
Canada Packaging Market Report Coverage
The report: “Canada Packaging Market (2016 -2020)", by Industry ARC covers an in-depth analysis of the following segments of the Canada Packaging Industry.
By Packaging – Paper, Plastic, Metal, Wood, Glass, and Others.
Key Takeaways
- The Canada Packaging market growth is attributed to the increasing purchasing power of consumers, the growing consumer packaged goods market, and the rise of smartphones. Product developments and technological advances in the market are poised to generate significant investment possibilities for companies.
- The main limitations for the industry are projected to be regulatory and structural guidelines. The key obstacles are projected to be changing demand patterns and developments in alternative technologies, as well as high input costs and environmental concerns.
- A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Canada Packaging Market Report.
Canada Plastic Packaging Market – Import & Export (US$ Million) (2016)
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Canada Packaging Market Segment Analysis- By Packaging
The Canada Packaging market based on packaging type can be further segmented into Paper, Plastic, Metal, Wood, Glass, and Others. In 2016, plastic had the highest proportion of the market. Plastic is becoming more popular in Canada owing to increase demand in the FMCG sector, which could lead to widespread use of plastic bottles and containers in the food, beverage, pharmaceutical, and other industries. Many organisations, on the other hand, are protesting and putting pressure on the government to prohibit the use of plastic products. This pressure could stymie the beverage industry's use of plastic bottles and containers. Regardless of usage, the beverage sector in Canada strives to have 100% of its bottles recycled. The industry created Public Spaces Recycling in collaboration with the government to capture the last mile of recyclables, such as items that are typically collected through curbside recycling programs but are left in recreational facilities, parks, public schools, businesses, and transit stops institutions, and gas stations. Apart from this, the plastic segment is studied to have shown the fastest growth during the study period of 2016-2020. This can be attributed to the adoption of durable, versatile, and approved flexible packaging by the Canadian Food Inspection Agency (CFIA) as food-safe. According to the Ontario Recycling Council, Canada recycles about 9% of its plastics, with the remainder ending up in landfills. Consumers in the country are increasingly opting for recyclable food packaging materials and choose brands that are environmentally conscious, which is driving the market for flexible packaging. Polyethylene demand will eventually decline as it is used by more than half of the sector owing to its cost-effectiveness and low density. Leading suppliers, on the other hand, are turning to recycle to keep their products relevant and competitive in the market against replacements. Furthermore, plastic packaging with golden guidelines and a framework with the goal of driving innovation and scalable activities is to make it easier to recycle plastic packaging by 2020.
Canada Packaging Market Drivers
In The Industrial Sector, There Is A Growing Demand For Plastic That Has Propelled Buyer Pretences.
In the building, automotive, and electrical and electronics industries, rising plastic packaging usage is predicted to fuel demand for packaging over the study period. The increased focus on lightweight and fuel-efficient automobiles is likely to drive up demand for plastics for interior components in the automotive industry. With the improvement in economic conditions, demand is likely to increase. Furthermore, vehicle manufacturers also use plastic packaging in their designs because of severe carbon emission rules and the price sensitivity of some end-users. As local governments around the country change policies to improve the production and effectiveness of medical devices and related healthcare services in areas such as IT convergence, advanced materials, and others in the healthcare industry, the growth of the industry has been instrumental in boosting demand for plastic packaging in 2016.
The Adoption Of Advanced Technologies For Flexible Packaging Is To Drive Market Growth.
Flexible packaging is one of the uses of packaging that offers a wide range of benefits over other types of packaging. Flexible packaging's improved recyclability and biodegradability are now generating demand for adoption. Vendors are integrating modern software to improve the flexibility of packaging machines, which is proven to be beneficial in terms of control and communication. This is also paving the way for smart manufacturing approaches to expand production capacity. With the application of smart manufacturing processes in the packaging sector, performance is expected to improve by 10% to 15% while packing time is reduced. As a result, smart manufacturing techniques are being implemented, as well as a focus on improving the flexibility of packaging machinery, which improves machine performance and increases the use of packaging machines in many industry verticals such as food and beverage, among others.
Canada Packaging Market Challenges
Concerns About The High Cost Of The Machineries for Packaging Are To Impede The Market Expansion.
Pertaining to the surge in raw material prices, enterprises in the Canadian packaging industry are under a lot of financial strain. Furthermore, the extremely fragmented character of this industry limits company profit margins. As a result, large corporations use innovative packaging gear to set themselves apart from small and medium businesses. Small and medium businesses, on the other hand, find it difficult to purchase innovative packaging machinery owing to the high cost. Rather than purchasing the machine, several businesses in Canada opt to rent it. Furthermore, many packaging companies in Canada consider renting to be the most economically viable alternative owing to frequent technology obsolescence. As a result, the market for innovative packaging items shrinks.
Canada Packaging Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Canada Packaging Market. The top 10- Canada Packaging Market companies’ are-
- PakSence
- TemTime Corporation
- Avery Dennison
- R.R Donnelly Son’s & Company
- BASF SE
- Stora Enso
- International Paper
- Thin Film Electronics ASA
- Smartrac N.V.
- Huhtamki Group
Recent Developments
- In December 2020, Amcor PLC announced its partnership with Mars Food. The partnership is aimed to bring breakthrough packaging technology that is to make the pouches for Mars Food’s household brands such as Ben’s Original and Seeds of Change recyclable where infrastructure exists.
- In June 2019, ePac Flexible Packaging announced its expansion into the Canadian market, with its first manufacturing plant in Vancouver. ePac Vancouver is a partnership between ePac Holdings and Smartpak Holdings Ltd, and it is anticipated to serve the Canadian market, with a focus on the Western Canadian provinces.
- In April 2016, Amcor announced the USD 30 million acquisition of Plastic Moulders Limited, a rigid plastics business that manufactures containers and closures for the food and home / personal care markets in North America. The business operates a single plant in Toronto and has sales of approximately CAD 35 million.
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