With a total market size of 1,431.5 billion units sold, the Asia Pacific region is a significant player in the packaging industry – and that size is expected to reach 1,724 billion by 2020. There is higher demand for extremely large and small packages due to the desire for “more bang for your buck” and a rise in travel or outdoor activities, respectively. While glass bottles are 16 percent, flexible plastic makes up 22 percent of the packaging materials, and PET bottles are on the rise. Keep an eye out for shifts – the forecasted CAGR (2015-2020) is 3.8 percent.
Economy and Lifestyle Shifts
There is an increase in growth for overall packaging in the Asia Pacific region due to high demand for fast-moving consumer goods. However, a recent lag in the economy hindered sales due to the resulting decrease in average income.
Many young people are delaying marriage while overall population aging has resulted in many elderly people living alone. These factors have led to a spike in single-person households.
What Does that Mean for Packaging?
This increase in people living alone coupled with an economic slowdown is leading low-income households to shop at local convenience stores daily and single person households to purchase more single value packs. Both trends call for smaller, lighter packages that fit on small shelves, as well as smaller transport packaging. Since this type of product often has a quick turnaround, packages need to be easy to handle and dispose of.
To learn more about these trends read our 2017 Guide to Global Markets.