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Bag in Box Container Market Size Forecast to Reach $2.8 Billion by 2026

(, January 04, 2022 ) Bag in box container market size is forecast to reach US$2.8 billion by 2026, after growing at a CAGR of 4.3% during 2021-2026. The bag-in-box packaging system was developed to address the challenges of packaging paste-textured and liquid food products such as water, wine, sauce, syrup, juice, and fats, purees, and oils. In the food and beverage industry, the growing use of ethylene vinyl acetate and low density polyethylene based bag-in-box containers for the packaging of alcoholic beverages, edible oils, and dairy products has served as a crucial driving factor. The industry's growth is also fueled by a global shift in consumption patterns toward natural food products. Other factors driving the market include bag-in-box packaging's ease of handling and transportation, which has led to its use in e-commerce retail with the benefits of enhanced protection and extended shelf life.

COVID-19 Impact

However, the COVID-19 outbreak has caused a global slowdown in plastics engineering, processing, and production. This has resulted in a decrease in the production of bag-in-box containers around the world. Due to the covid-19 outbreak, many countries were shut down owing to which the market witnessed a period of low demand from its end-use industries. The continued expansion of capacity in the bag-in-box container market has resulted in oversupply and squeezed profit margins, putting manufacturers under even more pressure in 2020. Furthermore, the COVID-19 pandemic impacted manufacturing operations in a variety of industries, including food, beverage, and cosmetic packaging, as most countries released "stay at home" or "lockdown" guidance. During the pandemic, the decline of these economic sectors hampered the growth of the bag-in-box container market.

Bag-in-Box Container Market Segment Analysis – By Capacity

The 5-10 liter segment held a significant share in the bag-in-box container market in 2020 and is forecasted to grow at a CAGR of 3.7% during 2021-2026. Beverage manufacturers, foodservice operators, and quick-serve restaurants have all used 5–10-liter bag-in-boxes in dispensing systems, contributing to the segment's significant growth. Due to the increasing use of these bag-in-boxes for packaging wines and juices for consumer use, the 1-liter segment is expected to grow at the fastest CAGR during the forecast period.

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Bag-in-Box Container Market Segment Analysis – By Material

The polyethylene segment held a significant share in the bag-in-box container market in 2020. Plastic made from petroleum polymers is known as polyethylene. It's one of the most long-lasting plastics available today. It's also affordable and chemically resistant. This means it can withstand a wide range of environmental threats. Because polyethylene packaging does not allow water vapor to pass through, it can keep easily contaminated goods safe from the elements. Furthermore, Polyethylene is light and takes up little space in storage. As a result, it is simple to transport, lowering the carbon footprint associated with transportation. As a result of these advantages, polyethylene packaging is widely regarded as superior to other packaging materials, and demand for it is increasing for a variety of packaging applications.

Bag-in-Box Container Market Segment Analysis – By End-Use Industry

The food and beverages segment held the highest share in the bag-in-box container market in 2020 and is forecasted to grow at a CAGR of 6.5% during 2021-2026. Bag-in-box solutions for the food industry are ideal packaging alternatives to unhygienic plastic canisters and are perfectly suited to HACCP standards. In addition, bag-in-box container offers various advantages such as excellent O2 barrier, shelf life unopened 6-9 months, stays fresh 4-6 weeks after opening, easy access, one-handed dispense, 38% lighter than 4 glass bottles, 98% filled pack pallet efficiency (40% better than glass), reduced transport costs, and more. These advantages are aiding in its demand growth from the food & beverage industry. Food and beverage demand have increased as a result of improved lifestyles, higher disposable income, and growing awareness of healthier products. Over the forecast period, the introduction of packaging solutions that make it easier for consumers to consume and the production of a large number of new soft drinks will emerge as major growth drivers. Furthermore, manufacturers are expanding their product lines to include nutritious products, healthier snack options, and innovative packaging, all of which are driving the adoption of bag-in-box containers and resulting in significant market growth.

Bag-in-Box Container Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the bag-in-box container market in 2020 up to 42% and is estimated to grow at a CAGR of 5.8% during 2021-2026. The food and beverage industry is flourishing in the region, which is accelerating the demand for food and beverage packaging in the region, thereby driving the market of bag-in-box containers. For instance, according to the China Chain Store & Franchise Association, China’s food and beverage (F&B) sector reached approximately US$595 billion in 2019, a 7.8 percent increase over 2018. The Singapore government launched Food Manufacturing Industry Transformation Map. The plan’s goal is for the industry to have an average productivity growth of 4.5% by 2020 while developing Singapore into a leading food and nutrition hub in Asia by 2025. According to Invest India, by 2025, the food processing industry in India is anticipated to be worth more than half a trillion dollars. This growth in the Asia-Pacific food and beverages sector is set to accelerate the demand for bag-in-box containers in the region, thereby driving market growth.

Bag-in-Box Container Market Drivers

Significant Demand from the Chemicals & Petrochemicals Industry

Bag-in-box packaging improves the efficiency of dispensing without the box ever leaving the shelf, which is particularly useful for small-quantity industrial lubes and greases. Bag-in-box container is often used in the chemical and petrochemical industry to store oils, lubricants, paints, industrial fluids, chemicals, petroleum products, and more. According to the International Trade Administration (ITA), the market size of the chemicals industry in India stood at US$163 billion in 2017-18. Major chemicals and petrochemicals production totaled 27,847 MT in 2018-19, up 4.15 percent from 2017-18. European Chemical Industry Council – Cefic, the global sale of chemicals is expected to increase from €3.7 trillion in 2019 to €6.2 trillion in 2030. With the growth of the chemical industry, the demand for its packaging is set to expand, which will substantially drive the bag-in-box container market.

Increasing Personal Care & Cosmetic Industries

The bag-in-box container is often used in the cosmetic & personal care industry for packaging of cleansers, conditioner, cream, liquid makeup, lotion, shampoo, tanning spray, and more. Due to rising consumer demand, the personal care and cosmetics industry is booming in various regions. According to the India Brand Equity Foundation (IBEF), the beauty, cosmetics, and grooming market in India will grow to US$20 billion by 2025, up from US$6.5 billion now. Thailand's beauty and personal care products market was worth around US$6.2 billion in 2018 and is expected to grow to US$8.0 billion by 2022, according to the International Trade Administration (ITA). From 2019 to 2022, Thailand's beauty and personal care industry is expected to grow at a rate of 7.3 percent per year. Since the personal care and cosmetic industries are booming, the demand for personal care and cosmetics packaging is also significantly increasing. Thus, the increasing personal care and cosmetic sector act as a driver for the bag-in-box container market during the forecast period.

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Bag-in-Box Container Market Challenges

High Cost Associated with Bag-in-Box Containers

Because Bag in Box packaging uses twice as many materials, it has a higher packaging material cost. By switching from a double package - a carton with a pillow bag inside - to a single package, the manufacturer saves money. Cost savings can be found not only in the material but also on the manufacturing line, where expensive floor space is conserved and capital investment, as well as related maintenance and operations costs, are reduced. Standup pouches, a bag-in-box alternative, are made on a single VFFS machine, which takes up less space on the manufacturing floor than a typical Bag in Box line, which might include three baggers feeding a single carton. Bag-in-box containers are in danger of being replaced by other packaging products and materials. Pouches are the most common type. Pouches are one of the most widely used products for beverage packaging. They are preferred because of their portability and ease of use. Pouches are also available in a variety of sizes and formats, ranging from 50 mL to larger or multi-serving formats and sizes. Pouches have become popular for on-the-go use as a result of these factors. As a result, the high cost of a bag-in-box container may limit the market growth.

Bag-in-Box Container Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the bag-in-box container market. Bag-in-box container market top companies are Smurfit Kappa, DS Smith PLC, Liqui-Box Corp., Scholle IPN Corp, and CDF Corporation Inc.

Acquisitions/Technology Launches

In October 2019, in response to increased demand in the Asia Pacific, Rapak (DS Smith PLC) increased the bag-in-box production capacity of its Auckland, New Zealand facility.

In September 2019, the Rapak division of DS Smith PLC developed a durable bag-in-box solution for liquid detergents in response to the increase in the e-commerce demand for laundry detergents and other consumer packaged goods. Biaxially oriented nylon (BON) lamination provides a good barrier and high puncture resistance in this specially designed bag-in-box unit.

Key Takeaways

Asia-Pacific dominates the bag-in-box container market. Over the forecast period, the growing food and beverage market in the Asia Pacific is expected to benefit the bag-in-box container industry.

The market is likely to be driven by the rising consumption of packaged nutritional food products, which offer benefits such as food safety and quality at affordable prices.

Furthermore, the demand for bag-in-box containers is also expected to be driven by the rising consumption of household cleaners such as surface deodorizers and surface cleaners. The region's growing urban population has resulted in a rise in demand for hygiene-promoting products like household cleaners.

Growth in the substitute product market, such as plastic and glass bottles, is expected to stifle demand for the bag-in-box container. The abundant availability of low-cost plastic bottles is expected to stifle market growth.

Related Reports:

A. Liquid Packaging Market

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Venkat Reddy

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Source: EmailWire.Com

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