Growth rate of packaging industry
In the world
The Vietnam’s packaging market is witnessing strong growth globally, especially in developing markets. This growth depends on many factors, including the boom of e-commerce, rising consumer demand and free trade policies.
According to Market Research Future’s forecast, the compound annual growth rate (CAGR) for the global market for plastic packaging is 3.6%, while that for paper packaging is 4.7% during the period 2023-2030.
In Vietnam
In Vietnam, Mordor Intelligence forecasts the paper packaging market size at $2.6 billion in 2024 and is expected to reach $4.14 billion by 2029, growing at a CAGR of 9.73% during the forecast period (2024-2029). People expect that the paper packaging market in Vietnam will expand significantly during the forecast period, with several companies forecasting sales growth in the coming years. Also, many people expect that the country’s stable economic situation and high urbanization rate will boost the use of paper packaging formats.
In the context of increasingly expanding global trade, the packaging industry plays an important role in protecting products. According to the Vietnam Packaging Association, there are currently about 14,000 enterprises operating in the packaging industry in the country, of which about 9,200 enterprises focus on plastic packaging. This is an area that attracts the attention of many domestic and foreign investors due to its fastest growth rate in Vietnam, information recorded at VietnamPrintPack 2024.
VietnamPrintPack 2024 is an annual exhibition in the packaging industry of Vietnam. This year, the exhibition scale continued to increase to 19,850m2, with 900 booths, gathering more than 362 businesses from 17 countries and territories such as: Australia, China, Denmark, Germany, Hong Kong (China), India, Indonesia, Israel, Japan, Malaysia, Netherlands, Philippines, Taiwan (China), Thailand, United Kingdom, United States and Vietnam.
Experts say that the growth potential of the packaging industry in Vietnam in the coming time is still large, especially in the food and beverage industry. Businesses have also been looking for ways to increase their presence in the global market by improving product quality, reducing production costs and complying with environmental standards.
Industry Challenges
However, Vietnam’s packaging market is facing many risks from plastic waste. According to statistics from the Ministry of Natural Resources and Environment, each year in Vietnam, about 1.8 million tons of plastic waste out the environment, of which 0.28 million to 0.73 million tons out the sea – but only 27% of it is recycled and utilized by facilities and businesses. Large cities such as Hanoi and Ho Chi Minh City alone discharge about 80 tons of plastic waste into the environment every day, but a very small percentage of plastic packaging products are recycled, which has a great impact on the environment and is a significant waste for the economy.
Not to mention, in export markets, especially developed economies in the world, people set stricter environmental regulations for imported goods. Global consumers prioritize using products from businesses that comply with environmental responsibilities, with environmentally friendly and easily decomposable packaging materials.
Green packaging trends
Therefore, in order to integrate with the general trend of the world, the Vietnam’s packaging market is undergoing a very strong transformation towards green development, green production and sustainability. That is also the content that the parties strongly discussed at VietnamPrintPack 2024.
Many large enterprises have actively implemented the use of recycled packaging, such as Coca Cola with bottles made from 100% recycled plastic, helping to reduce more than 2,000 tons of new plastic each year in Vietnam; or Unilever Vietnam has achieved 63% of recyclable packaging, helping to reduce 52% of virgin plastic…
However, for the remaining majority, financial pressure and notably the lack of successors, packaging and printing enterprises are increasingly withdrawing from the market, even tending to “sell themselves” to foreign investors. Among the total of more than 2,000 packaging printing enterprises today, there are more than 400 foreign companies, accounting for more than 1/3 of export orders. Besides, hundreds of other enterprises continue to research the Vietnam’s packaging market to enter in the near future.
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