According to the latest findings from market researcher Lucintel, the global packaging industry is expected to reach an estimated $133 billion in 2017, growing at a CAGR of 5.3 percent over the next five years.
“The global packaging industry witnessed good growth during 2006-2011 and emerging retail developments present a huge opportunity for packaging sectors across various industries over 2012-2017.”
In terms of cosmetics packaging, the report finds the sector likely to gain steady profits as various consumer trends like demand for more premium and innovative packaging, the heightened popularity of male grooming and professional occupations becoming more common, especially in emerging markets - to place the industry's global value alone at $24 billion by the end of 2012.
The U.S., Japan and major European countries are those pinpointed as driving the development of cosmetics packaging while growth within emerging markets in Asia, Latin America, the Middle East and Africa will heighten consumer demand.
APAC dominating the packaging sector…
During the period of 2006-2011, the market researcher notes that Asia Pacific emerged as the highest growth potential region driven by increased income levels and urbanization and that the region continues to “dominate the industry and is expected to retain its leading position during 2012-2017.”
Major growth challenges for the overall packaging sector identified in the report include availability of substitutes such as plastic and glass, enhanced environmental regulations, volatility in raw material prices, an increase in income levels, energy and transportation costs and industrialization and urbanization.
And despite the positive outlook for the global cosmetic packaging market, the report like other market researchers of late, finds that there are a few dangers remaining on the horizon.
The global financial crisis of 2007-08 and the current euro-zone debt crisis are factors highlighted as having reduced consumer and producer confidences and restrained cosmetics packaging growth and that while “some essential products, such as hair and facial skin care are consistently performing, the value of packaging markets for less essential products is likely to be diminished if euro-zone troubles lead to a new crisis."
The global research firm, Lucintel provides market insight to the personal care, marine, energy, construction and food industries.