Europe Plastic Packaging Market 2023-2030

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    EUROPE PLASTIC PACKAGING MARKET

     

    INTRODUCTION

    The plastic packaging market in the word is one of the most established, in-demand markets in the world and has remained so, for centuries since it’s inception into the market as synthetic plastics after the invention of Bakelite, the first plastic made of synthetic components by a Belgian-American chemist Leo Baekeland in New York, 1907.

     

    With the advent of civilization, the industrial revolution, and the exponential rise in population, the demand for plastics has been growing even to the present day. It is estimated that around 80 million metric tonnes of plastic are produced every year in the EU in comparison to world production touching up to 360 million tonnes and 18% of the world’s plastics are produced in the EU.

     

    The EU employs around 1.5 million workers in the plastic industry and it has a turnover of 310 billion euros.

     

    Numbers alone, perhaps won’t justify the scale of dependence that we have on the plastic industry and the economic investment involved in this industry through large MNCs.

     

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    Large, too big to fail, organizations in the oil and gas industry has been pumping in huge investments for generations in this industry and a lot is at stake when it comes to its market share.

     

    The demand side of the demand-supply equation is adjusted by a few major sectors which include the Pharmaceuticals, F& B, Chemicals, and the Consumer Products market which has a huge demand for plastics and this very demand is generated by our over-reliance on ready to eat shelf foods available in the market.

     

    Several insider interviews from industry members have revealed why plastics are so ubiquitous and a preferred compound for the packaging industry which is the largest user of plastic and plastic-based products.

     

    Plastics are light, they are cheap and they are inert which makes it the number one choice for the F&B sector which has to make considerations related to the shelf life of products and has huge implications for even the simplest of storage malfunctions. They say, even money is made of plastic!

     

    EUROPE PLASTIC PACKAGING MARKET DYNAMICS

    The Europe plastic packaging market is divided into two categories based on the kind of plastic on production and use, Rigid plastic packaging, and Flexible plastic packaging with the rigid having the larger share of the market.

     

    Flexible and Rigid are nomenclature for lightweight bags or pouches sealed using heat or pressure and tin cans, plastic boxes, containers which constitutes the Rigid spectrum.

     

    The demand for plastic packaging continues to rise in Europe with tech advancements facilitating an even higher manufacturing efficiency and lowering production costs, Having said that, it is important to understand the impact of the plastics industry on the European market.

     

    Just to put things into perspective, here are a few figures: The EU plastics industry had a positive trade balance of more than 15 billion euros in 2018, it ranks 7th in EU in industrial value-added contribution, provides almost 3 times more jobs as compared to other sectors, recycles almost 9.4 million tonnes of plastic post-consumer waste and the recycling industry is itself an established business which employs a significant portion of the European population.

     

    The present situation of the industry is being tracked and geared towards a damage control mode. The European Plastics Converters (EUPC) is composed of 50.000 SMEs, and it is currently working to mitigate the effects of the coronavirus crisis.

     

    Industries and authorities are directing their full attention to the management of the crisis, and they have put on hold all inessential activities to concentrate on the health and safety of the European citizens during the next 12 months.

     

    What is relevant in the context of the European Union is that the beverage industry plays a huge role in this region with respect to the demand for plastics.

     

    The beverage industry plays an essential role in the European region in driving the demand for single-use plastics. The primary factors driving the beverage industry’s growth in the region include steadily increasing population and per capita income and changing lifestyle.

     

    Factors, such as high disposable income, ease of availability, improvement in a wide variety of living standards, and the presence of domestic as well as international players in the market, are fueling the beverages industry in the region.

     

    For example, consumer spending in Germany increased to EUR 428.5 billion in the last quarter of 2019, from EUR 419.9 billion in the last quarter of 2018.

     

    What is interesting about the European market is that many of the leading brands in Europe have a variety of fruit and sweet-flavored non-alcoholic beverages, and these are the most popular products in the region and these products make up a huge bulk of plastics requirement for storage.

     

     To understand the life cycle of plastic products it is important to know that not all plastic products are the same and not all have the same service life. Some are a product(e.g bottles) and some are parts of an end-user product(parts of cars and electronic devices).

     

    At the end of their life, end-user products become waste and are collected and treated. Germany along with the six largest EU nations make up the bulk of the demand including Italy, France, Spain, Poland.

     

    Also the not so obvious industries, surprisingly have a huge demand, for example, the packaging along with the Building and Construction industry by far represents the largest end-use markets for in-demand plastic converters. The third-largest end-use market is the Automotive industry.

     

     However, it is good to note that the service life of each type of plastic product is different ranging from one to more than 15 years. So, from production to waste, different plastic products have their utility in their respective value chains. Therefore, the amount of collected plastic waste does not necessarily correlate with the plastics demand of the same year.

     

    EUROPE PLASTIC PACKAGING MARKET- THE WAY AHEAD

    It is important to mention that the EU has taken significant steps in the effort to mitigate and reduce plastics usage and have taken a wide range of initiatives to combat litter in the oceans and significantly reduce pollution from the industry. In a few press briefings, the European Commission had issued its agenda for 2030 and 2050.

     

    The EU wants to achieve the target of mitigating all single-use plastic use by 2030 and wants to go net carbon neutral in its energy use by 2050.  As compared to the world recycling rate of only 5 percent for plastics the EU already has a recycling rate of close to 40 percent and is committed to accelerating transformation towards an even more circular and resource-efficient plastic economy.

     

    RECENT TRENDS

     

    Plastic packaging has long been a popular choice for various industries in Europe due to its durability, versatility, and cost-effectiveness.

     

    Some of these recent trends in Europe’s plastic packaging sector.

     

    Increased Emphasis on Sustainable Packaging: Sustainability has become a top priority for consumers, brands, and governments alike. As a response, the plastic packaging industry in Europe has been focusing on developing more sustainable solutions.

     

    This includes the use of recyclable materials, such as PET (polyethylene terephthalate) and HDPE (high-density polyethylene), as well as exploring biodegradable and compostable packaging options.

     

    Additionally, there is a growing interest in lightweight packaging designs to reduce material usage and minimize environmental impact.

     

    Rise of Circular Economy Models: The concept of a circular economy, which aims to minimize waste generation and promote the reuse and recycling of materials, has gained traction in Europe. Plastic packaging manufacturers are adopting circular economy principles by incorporating recycled content into their packaging products. Additionally, they are exploring innovative recycling technologies and collaborating with stakeholders across the value chain to improve collection, sorting, and recycling infrastructure.

     

    Shift towards Alternative Materials: In response to the push for more sustainable packaging options, there has been a growing interest in alternative materials to replace traditional plastics. Bioplastics, derived from renewable sources such as corn or sugarcane, have gained popularity. However, it’s important to note that the sustainability of bioplastics depends on factors such as feedstock sourcing, production processes, and end-of-life management. Other materials, such as paper, cardboard, and glass, have also seen increased usage in packaging applications.

     

    Stricter Regulatory Measures: European governments and regulatory bodies have implemented stringent measures to reduce plastic waste and promote a circular economy. The European Union’s Single-Use Plastics Directive, for example, aims to ban certain single-use plastic products and encourage the use of more sustainable alternatives. Additionally, extended producer responsibility (EPR) schemes have been introduced, holding packaging producers accountable for the collection, recycling, and proper disposal of their products.

     

    Innovation and Technology Advancements: The plastic packaging industry in Europe is embracing innovation and technology to develop more sustainable and functional packaging solutions. This includes the use of smart packaging technologies for improved product safety and quality, as well as the incorporation of active and intelligent packaging features to extend shelf life and reduce food waste. Advanced manufacturing techniques, such as 3D printing and automation, are also being explored to optimize production processes and reduce material waste.

     

    Consumer Education and Awareness: There has been a significant increase in consumer awareness and education regarding the environmental impact of plastic packaging. Consumers are actively seeking products with minimal packaging or eco-friendly alternatives. This shift in consumer behavior is prompting brands and manufacturers to adopt more sustainable packaging practices to meet the evolving demands of their target markets.

     

    In conclusion, the plastic packaging industry in Europe is undergoing a transformative phase driven by the need for sustainability and reduced plastic waste. 

     

    NEW PRODUCT LAUNCH  EUROPE PET PACKAGING

     

    Mars Petcare Europe to Introduce Pet Food Packaging with Food Safe Recycled Content Mars Petcare is getting set to introduce SHEBA pet food pouches made of recycled plastic from cutting-edge recycling methods. 

     

    Mars Petcare makes history by being the first pet food company to use recycled plastic that is safe for human consumption in its wet pet food packaging. Mars Petcare is getting ready to use recycled plastic that is suitable for food in the packaging of its wet pet food as part of its global commitment to increase the amount of recycled material in its plastic packaging.

     

    SHEBA, a popular cat food brand, will be the first to offer the new packaging styles in Europe as part of Mars Petcare’s efforts to provide pet owners with more environmentally friendly options.

     

    The decision was made in the framework of a partnership between Mars Petcare, SABIC, and Huhtamaki to produce and use recycled plastic in pet food pouches utilizing cutting-edge recycling technology (sometimes known as “chemical recycling”).

     

    This innovation was only made possible by the use of sophisticated recycled materials that can be used in food, and it serves as a prime illustration of how crucial this technology is to closing the loophole that prevents plastic waste from being completely circular.In their quest for environmentally friendly pet food packaging, they are happy to report this advancement.

     

    The recycled plastic content in our pet food packaging has increased as a result of their strong collaboration with SABIC and Huhtamaki over the past year.  They have pledged to play their role in advancing a circular economy as part of their Sustainable in a Generation initiative, and part of that commitment involves adapting their packaging to be circular.

     

    Because they can now incorporate recycled material into their SHEBA pouches, they can move faster towards their goals of using 30% on average recycled material in their plastic packaging and 25% less virgin plastic.

     

    Pet Food packaging is said to be one of the most difficult container types to use recycled material in because it requires heat processing to get the greatest quality. Mars Petcare develops a method that could mark a turning point in the pet food industry’s journey towards sustainability by utilizing recycled materials that are ISCC PLUS certified.

     

    Together with its partners SABIC and Huhtamaki, Mars Petcare has been pursuing this circularity goal for plastic packaging through the use of cutting-edge recycling technologies.

     

    Through its TRUCIRCLE plastic portfolio and services, which highlight circular innovations, SABIC is a leader in this field. These include certified circular products made with a feedstock generated from previously challenging-to-recycle used plastic home packaging.

     

    It is a first for SABIC to be able to convert flexible plastic packaging waste back into polypropylene for this difficult application involving direct food contact. With the introduction of this new wet pet food packaging, the Mars Petcare brand is making another step towards realizing its global aim of designing recyclable aluminum trays, cans, and cardboard sleeves.

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2023-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2023-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2023-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2023-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix