Europe Packaging Container Market – Forecast (2024-2029)

Overview

The Europe Packaging Container Market size is forecast to reach USD 303.64 Billion by 2029, after growing at a CAGR of 4.94% during the forecast period 2024-2029. Glass bottles are durable substances that can be reused and recycled indefinitely without losing their quality. Rising demand from the food, personal care, and cosmetics sectors will accelerate Europe's glass bottle market expansion. For instance, according to the FEVE, in Europe, the production of glass flacons for the perfumery and cosmetics sectors saw robust growth of 2.2%, reaching 13.6 billion units by the end of 2021. This reflects the increasing demand for high-quality, sustainable packaging solutions in these industries, as glass is prized for its recyclability, premium appeal, and chemical inertness. The growth in flacon production complements the broader European glass bottle market. The market for glass packaging is driven by consumers' increasing preference for environmentally friendly packaging materials. Because glass is 100% recyclable and can be reused without losing quality, it is in line with the ideals of the circular economy and has become more and more popular as eco-friendly packaging.

Report Coverage

The report “Europe Packaging Container Market – Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of the Europe Packaging Container market.

By Material: Paper &Board, Flexible Plastic, Rigid Plastic, Glass, Metal, Others

By Field of Application: Food, Beverages, Cosmetics, Pharmaceuticals, Others

By Size: Less than 150ml, 150ml-300ml

By Color: Transparent (Including flint/colorless bottles), Opaque (Plastic, Amber, Opaque Glass, Metal, Other) 

Key Takeaways

•    Europe places a strong emphasis on environmental consciousness. Glass, known for its recyclability, fits well into the trend of circular economy practices. European consumers rank glass as the most environmentally friendly packaging, with 45% preferring it due to its green credentials (FEVE study - Consumer Preference & Packaging in Europe).

•    The cosmetics industry highly values glass for its premium feel and preservation capabilities. High-end beauty brands rely on glass to uphold product quality, avoid contamination, and convey luxury. Europe’s advanced recycling systems for glass provide additional support for businesses entering the market. Glass recycling rates in the EU are among the highest globally, often exceeding 70%, which ensures that new packaging solutions can be part of a closed-loop system. According to glass container expert Peter J Firth, Glass Container Manufacturing Consulting Ltd, no noticeable trend appears to be moving away from the use of glass in cosmetics.

By Material - Segment Analysis

The Paper & Board segment dominated the Europe Packaging Container market in 2023. With increasing awareness of plastic pollution, European consumers and businesses are turning to more sustainable packaging solutions. Paper and board materials, being renewable, recyclable, and biodegradable, are preferred over plastics, especially for single-use applications. The European Union (EU) has been promoting a circular economy, where materials are reused and recycled as much as possible. Paper and board fit well within this framework, as they can be easily recycled, reducing waste and dependence on raw resources. For instance, The Confederation of Paper Industries (CPI) reports on recycling rates for paper, board, and glass in the UK and EU, underscoring the European packaging container market's commitment to sustainability and the circular economy. With a reported 70% recycling rate for paper and board in the UK in 2023 and 80.2% of glass packaging collected for recycling across the EU in 2022, these high recycling rates illustrate the strong environmental focus driving the European packaging market.

By Field of Application - Segment Analysis

The Food segment dominated the Europe Packaging Container market in 2023. There is a growing demand for convenience foods, ready-to-eat meals, and online grocery shopping. This shift drives the need for effective packaging solutions that preserve food freshness and facilitate easy handling. Consumers are increasingly concerned about environmental impact, prompting food manufacturers to adopt sustainable packaging options. Biodegradable, recyclable, and compostable materials are gaining popularity as businesses strive to meet consumer expectations and regulatory requirements. Stringent food safety regulations in Europe are driving the adoption of packaging that ensures product safety and extends shelf life. This includes tamper-evident packaging, vacuum-sealed bags, and other protective solutions that help prevent contamination and spoilage. For instance, according to the FEVE, Glass packaging production for the food and beverage industry reached its highest level ever recorded in 2021, with a significant 5.0% rise over 2020.

By Size - Segment Analysis

The 150ml-300ml dominated the Europe Packaging Container market in 2023. The demand for 150ml-300ml containers is closely tied to the increasing preference for single-serve and on-the-go products among European consumers. With busy lifestyles and growing urbanization, many individuals are opting for products that are convenient to carry and consume on the move. For example, ready-to-drink beverages like smoothies, energy drinks, and functional waters are often packaged in this size range to cater to the modern consumer's need for portability and portion control. Health-conscious consumers in Europe are favoring portion-controlled packaging to manage calorie intake and reduce food waste. The 150ml-300ml range is ideal for packaging health and wellness products such as yogurt drinks, protein shakes, and herbal teas. This aligns with the broader trend of healthier eating habits and the growing demand for functional foods and beverages. According to a report by Euromonitor International, the functional beverage market in Europe has been growing at a steady rate, further driving the demand for appropriately sized packaging containers. 

By Color - Segment Analysis

The Opaque dominated the Europe Packaging Container market in 2023.  Opaque containers are favored across various industries due to their functionality, aesthetic appeal, and ability to protect the contents from light exposure, thus preserving the integrity of the product. This trend can be attributed to several key factors, including the growing emphasis on product protection, brand differentiation, and consumer preferences for sustainable packaging solutions. A 2023 study by Packaging Europe highlights how opaque packaging is essential in protecting ingredients, particularly for products that contain vitamins or essential oils, which can degrade when exposed to sunlight.  Opaque packaging containers continued to dominate the European market due to their ability to protect products, enhance brand appeal, and meet the increasing consumer demand for sustainability. The diverse applications of opaque packaging across industries such as food, beverages, personal care, and pharmaceuticals underscore its significance. As European consumers place a greater emphasis on both product quality and environmental responsibility, opaque packaging is expected to maintain its dominant position in the market, driven by innovation, consumer preferences, and regulatory requirements.

Drivers – Europe Packaging Container Market

•    Rise in Sustainability and Environmental Regulations

Sustainability and environmental regulations are among the most significant drivers of the European packaging container market. As environmental concerns over climate change, pollution, and resource depletion intensify, European governments and consumers are pushing for stricter measures to reduce waste and promote sustainability in packaging. This trend is reshaping the packaging industry and driving the demand for innovative, eco-friendly solutions. The European Union's Circular Economy Action Plan is a cornerstone of this movement, setting ambitious targets for waste reduction, recycling, and the use of sustainable materials. For instance, the EU aims to ensure that all packaging on the market is reusable or recyclable by 2030. To meet these targets, businesses are increasingly adopting biodegradable, compostable, and recycled materials for their packaging solutions. Furthermore, government policies and regulations are accelerating this transformation. For example, several European countries, including Germany, France, and the Netherlands, have introduced bans on single-use plastics and imposed taxes on plastic packaging that does not meet recyclability criteria. These measures are encouraging companies to invest in research and development to create innovative packaging materials that comply with regulations while maintaining functionality.

•    Technological Advancements and Smart Packaging Growth

Technological advancements, particularly in the realm of smart packaging, are emerging as a critical driver of growth in the European packaging container market. These innovations are reshaping the packaging landscape by enhancing functionality, improving supply chain efficiency, and creating new avenues for consumer engagement. The adoption of connected packaging is also driving consumer engagement by offering interactive experiences. QR codes on product containers can provide instant access to detailed information about ingredients, manufacturing processes, and recycling instructions, catering to European consumers' increasing demand for transparency and sustainability. This feature not only fosters brand loyalty but also helps companies comply with EU regulations that require clear labeling for recyclable packaging materials. The integration of artificial intelligence (AI) and data analytics is another major technological advancement influencing the market. AI-powered systems can analyze consumer preferences and predict demand, allowing manufacturers to optimize packaging designs and reduce material usage. For example, packaging companies in Europe are using AI to design lightweight but durable materials, aligning with sustainability goals while lowering production costs.
Challenges – Europe Packaging Container Market

•    Market Saturation and Demand Fluctuations

Market saturation and demand fluctuations pose significant challenges to the growth and stability of the European packaging container market. The increasing availability of packaging materials and the rapid proliferation of packaging manufacturers have led to an oversupply in the market. This oversupply, combined with fluctuating consumer and industrial demand, has intensified competition, creating pricing pressures and compressing profit margins for packaging companies across Europe. One of the main contributors to market saturation is the rising number of new entrants and the expansion of existing players in the packaging industry. As sustainability trends drive innovation, many companies are introducing eco-friendly alternatives to cater to consumer and regulatory demands. However, this has resulted in an overabundance of certain materials, particularly in the paperboard and plastic packaging segments. Demand fluctuations further exacerbate the issue. The COVID-19 pandemic highlighted how quickly demand for packaging can shift due to changes in consumer behavior and economic conditions. For example, the surge in e-commerce during the pandemic initially drove high demand for corrugated boxes and protective packaging. However, as retail activities normalized and consumer spending patterns shifted, the demand for such packaging declined, leaving manufacturers grappling with overcapacity.

•   Economic and Geopolitical Instabilities

Economic and geopolitical instabilities are creating significant challenges for the European packaging container market, affecting production costs, supply chain reliability, and overall market stability. These instabilities stem from factors such as inflation, energy price volatility, and geopolitical tensions, including the Russia-Ukraine conflict, which have far-reaching implications for the industry. The ongoing conflict between Russia and Ukraine has exacerbated these challenges by disrupting supply chains and increasing geopolitical uncertainty. Europe’s reliance on Russian energy exports has made the packaging industry vulnerable to supply shocks and price spikes. According to a 2023 report by the European Central Bank, energy prices in the EU increased by nearly 40% year-over-year in some quarters, significantly impacting manufacturing operations. Inflationary pressures further exacerbate the problem, as higher costs for raw materials, labor, and transportation strain the profitability of packaging businesses. Inflation in key European economies, such as Germany, France, and Italy, has led to increased production costs and reduced consumer spending power. This dual impact has created a challenging environment where manufacturers face higher input costs while contending with declining demand from cost-conscious consumers.

Market Landscape

Agreements, product launches, partnerships, contracts, expansions, and production capacities are key strategies adopted by players in the Europe Packaging Container market. In 2023, the Europe Packaging Container market share has been fragmented by the top ten players accounting for 22.58% of the share. Major players in the Europe Packaging Container market are Westrock Inc., Smurfit Kappa Group, Ball Corporation, Sonoco Products Company, DS Smith PLC, Mondi Group, Stora Enso Oyj, Ardagh Group SA, Amcor Plc, Berry Global, and others.

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