The aseptic packaging market was valued at USD 49.15 billion in 2020 and is expected to reach USD 72.15 billion by 2026 and grow at a CAGR of 9.5% over the forecast period (2021-2026). Growth in the aseptic packaging market is driven by the packaging material's ability to respond to the need for high and uniform product quality, higher nutrient retention, and avoid the bisphenol A (BPA) controversy, which is commonly found in can liners. Aseptic packaging has met all these demands while increasing the shelf life of selected products by an estimated period of six to twelve months without refrigeration.
- Aseptic packaging is generally seen as a strong substitute for canning and preservatives for increasing shelf life. Though there is a requirement for high initial investment for material and packaging machinery specific to this process, the ROI achieved due to the reduced cost of cold chain logistics and distribution and preservatives has allowed manufacturers to reap benefits within three to five years.
- According to the 2018 European Consumer Packaging Perceptions Survey of 7,000 shoppers, three-quarters of consumers said the environmental impact of a product's packaging affects their purchasing decisions, and 90 % want the packaging to be easily recyclable. Thus sustainability is playing a significant role in new product developments in the market. For instance, In Tetra Pak's latest portfolio strategy, it has stated that it plans to launch fully renewable aseptic carton packaging and further develop bio-based products.
- The North American region is also one of the largest regions for the pharmaceutical industry because of its large pharmaceutical manufacturing base and the ability to introduce technological advancements to pharmaceutical packaging. United States has been one of the largest R&D spenders in the pharmaceutical, healthcare, and biotechnology sector. For instance, according to Pharmaceutical Research and Manufacturers of America (PhRMA), around 4,500 medicines were in the preclinical development phase of the drug pipeline in the United States as of April 2020.
- The pharmaceutical and healthcare sector is expected to witness substantial growth over the forecast period, aided by opportunities with heat-sensitive advanced injectable and infusion therapies and trends toward self-administration of injectable drugs for chronic conditions. Prefillable syringes help eliminate dosing errors and are expected to witness the fastest gains among all aseptic packaging product types.
- The market's future is expected to be driven by the emerging technologies in aseptic processing, such as advanced isolators, robotics, and packaging material with higher barrier properties. These emerging technologies are anticipated by reducing contamination risks for sterile products and simplifying packaging processes.
- Due to the spread of COVID-19, the market is witnessing tremendous growth. Due to lockdown, customers shifted to online retail and the panic stocking, which increased demand for essential food items such as milk, baby food, and vegetables. Moreover, concerns regarding food hygiene due to Covid-19 is increasing the demand for aseptic packaging. In the coming years, the customers would prefer disposable packaging to prevent more diseases, which would compel the vendors to think on the lines of sustainable aseptic packaging.
Key Market Trends
Rising environmental concerns and government policies are driving the growth
- Numerous conventional packaging materials produce a high amount of solid waste that adversely affects the environment and human health. As a result, several packaging companies are replacing them with edible packaging solutions made from probiotics, milk proteins, vitamins, etc., which act as an oxygen barrier to food.
- This, in turn, is primarily driving the edible packaging market. Furthermore, due to rising environmental concerns, various governing agencies across the globe are implementing stringent regulations to minimize waste generation.
- Besides this, numerous plasticizers and functional additives, such as antimicrobial agents, pigments, chemical preservatives, etc., are also being used in edible packaging to enhance the film’s protective properties.
- Moreover, the growing adoption of processed food products that need longer shelf life further escalates the demand. Additionally, the increasing focus on utilizing nanotechnological solutions, such as nanoencapsulation and multifaceted systems, to improve the nutritional value of the food is also anticipated to catalyze the edible packaging market over the forecasted period.
Asia Pacific Region Expected to Witness the Fastest Growth
- The Asia Pacific is one of the fastest-growing aseptic packaging markets, owing to massive technology adoption and increasing concerns regarding product safety and shelf-life. China is also emerging as one of the dominating countries, even at the global level.
- According to the USDA, China's demand for imported dairy products is expected to increase. However, China's retaliatory tariffs on US dairy products are expected to make it difficult for US dairy companies to take advantage of this situation, thus, opening up an opportunity for local vendors.
- In June 2019, Lamipak launched its All Brown Board product 'LamiNatural.' The new product offers the lowest carbon footprint in Lamipak's product range. One of the critical features of the product is the absence of a layer of white clay coating, which exposes the unbleached paper underneath that gives the product its natural brown fiber appearance. Currently, the company is the largest exporter of aseptic packaging solutions from China.
- China has invested more in the development of aseptic packaging technology and equipment. Guangdong, Beijing, Shanghai, Wenzhou, and Ningbo produce aseptic packing machines of paper boxes, plastic cups, equipment, and packaging materials of ultra-high temperature sterilization. China has remained one of Tetra Pak's major markets. However, with local enterprises entering the aseptic packaging industry, Tetra Pak's shares in the Chinese market have reduced.
- In India, various prominent companies, including PepsiCo, believe that due to its climatic conditions, they will increase the number of sterile products in their shipping packages. This step has the potential to open up new opportunities in the aseptic packaging market. In addition, growth in pharmaceutical exports may provide a favorable market for aseptic packaging vendors and support the growth of the aseptic packaging market.
- Uflex Limited provides packaging films, flexible packaging, sterile liquid packaging, chemicals, engineering, and more. The sterile packaging is sold under the brand name Asept and is used in various liquid products such as juices, alcoholic beverages, and fresh beverages. The company serves consumers in 140 countries and is headquartered in Gujarat, India.
- In South Korea, the surging demand for disposable instruments in the healthcare sector is assessed to fuel the demand for vials, prefilled syringes, and ampoules, positively impacting the aseptic packaging market.
The aseptic packaging market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. With a prominent share in the market, these major players are focusing on expanding their customer bases across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market shares and profitability. The companies operating in the market are also acquiring startups working on aseptic packaging to strengthen their product capabilities.
- Feb 2021: Liquibox launched Liquipure Ultra, a recyclable bag-in-box packaging specifically designed for medium to high barrier applications. Liquibox is working with customers to offer Liquipure ultra for higher-barrier applications such as wine, and they are offering this product currently in the United States.
- Nov 2020: St Croix ABF and Asppak have partnered to develop new processes for aseptic beverage packaging. This partnership has implemented a streamlined process that would pave the way for brands looking to innovate new beverages by the highest food safety standards. The current capabilities of the partnership include a high acid pilot plant and testing facility. They also planned to open a low acid aseptic facility and packaging facility by the first quarter of 2021.
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1.2 Scope of the Study
4.2 Market Drivers
4.2.1 Demand to Reduce Cost of Cold Chain Logistics
4.2.2 Increasing Demand for Longer Shelf-life of Products
4.3 Market Challenges
4.3.1 Manufacturing Complications and Lower ROI
4.4 Industry Attractiveness: Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Industry Value Chain Analysis
4.6 Technology Snapshot
4.7 Industry Policies
4.8 Assessment of COVID-19 Impact on the Industry
5.1.1 Pharmaceutical Industry Outlook
5.1.2 Segmentation By Product
184.108.40.206 Prefillable Syringes
220.127.116.11 Vials and Ampoules
18.104.22.168 IV Bags
5.2 By Beverage Industry
5.2.1 Beverage Industry Outlook
5.2.2 Segmentation By Product
22.214.171.124 Fruit Beverages
126.96.36.199 Milk and Other Dairy Beverages
188.8.131.52 Ready-to-drink Beverages
5.3 By Food Industry
5.3.1 Food Industry Outlook
5.3.2 Segmentation By Product
184.108.40.206 Dairy Foods
220.127.116.11 Processed Foods, Fruits and Vegetables
18.104.22.168 Soups and Broths
22.214.171.124 Baby Food
126.96.36.199 Other Food Products
5.4.1 North America
5.4.3 Asia Pacific
5.4.4 Latin America
5.4.5 Middle East and Africa
6.1.1 Tetra Pak International SA
6.1.2 Amcor Limited
6.1.3 Sealed Air Corporation
6.1.4 SIG Combibloc Group
6.1.5 Bemis Company Inc.
6.1.6 Schott AG
6.1.7 Coveris Holdings SA
6.1.8 DS Smith PLC
6.1.9 Elopak AS
6.1.10 Mondi PLC
6.1.11 Becton, Dickinson & Co
A selection of companies mentioned in this report includes:
- IBM Corporation
- Oracle Corporation
- Internap Corporation
- Packet Inc. (An Equinix Inc. Company)
- Scaleway Inc.
- Amazon Web Services Inc
- Rackspace Inc.
- CenturyLink, Inc.
- LightEdge Solutions, Inc