Growth rate of packaging industry
In the world
The Vietnam packaging market growth is witnessing a powerful surge, positioning the country as a strategic hub in the global supply chain. Driven by the e-commerce boom and rising consumer demand, the industry is evolving rapidly. In this article, Hanpak provides an in-depth look at the latest market statistics, challenges, and the inevitable shift toward green packaging.
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, the packaging industry is witnessing a powerful surge. According to Mordor Intelligence, the paper packaging market size is valued at $2.6 billion in 2024 and is projected to reach $4.14 billion by 2029, growing at a robust CAGR of 9.73%.
This expansion is fueled by:
- Economic Stability: A steady economic climate encouraging long-term investment.
- Rapid Urbanization: Increased consumer demand for modern, convenient packaging formats.
- E-commerce Boom: A critical driver for the domestic and export packaging sectors.
The Dominance of Plastic Packaging & Strategic Investment:
According to the Vietnam Packaging Association, the industry currently hosts approximately 14,000 enterprises. Notably, about 9,200 firms focus specifically on plastic packaging, making it the fastest-growing segment in the country.
The VietnamPrintPack 2024 exhibition further highlighted this potential, featuring:
- Scale: 19,850m² with 900 booths.
- Global Participation: 362 businesses from 17 countries, including the USA, Germany, Japan, and Australia.
Experts emphasize that growth potential remains vast, particularly in the Food and Beverage (F&B) industry, as businesses improve quality and reduce production costs to compete globally.
Industry Challenges: Addressing Plastic Waste and Export Regulations
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.
- Waste Volume: Vietnam discharges 1.8 million tons of plastic waste annually.
- Recycling Rate: Only 27% of plastic waste is currently recycled, leading to significant economic waste and environmental impact.
- Urban Pressure: Major cities like Hanoi and Ho Chi Minh City discharge 80 tons of plastic waste daily.
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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