Globaldata: South Korea’s Packaging Industry To Grow At 1.3 Percent CAGR Through 2024
Tuesday, January 5th, 2021 | 321 Views
The packaging industry in South Korea is expected to reach 51.7 billion units in 2024, growing at a compound annual growth rate (CAGR) of 1.3 percent during the forecast period 2019-2024, says GlobalData.
GlobalData’s report, ‘South Korea Packaging Industry – Trends and Opportunities’, reveals that the industry is majorly driven by growth in the rigid metal packaging, which is forecast to register the fastest value CAGR of 4.5 percent during 2019-2024. The category is followed by glass, which is expected to record a CAGR of 2.0 percent during the next five years.
Anchal Bisht, Consumer Analyst at GlobalData, says: “The recyclable and reusable nature of glass bottles is driving their use while rising demand for packaging foods in portable and convenient formats is fueling the use of rigid plastic in the food industry. The implementation of stringent regulations has restricted the use of plastic packaging in industries such as food and beverages which are driving the need for innovative packaging solutions.
“Furthermore, to encourage consumers adopt the use of sustainable products, the government has mandated the use of recycling symbols on product packaging. This offers new growth opportunities in the sector.”
Rigid plastics represented the most consumed pack material in South Korean packaging and accounted for a market share of 36.7 percent in 2019. It was followed by flexible packaging and paper & board packaging with market share of 18.9 percent and 16.1 percent, respectively, in 2019.
Food industry characterised the most use of packaging in South Korea and accounted for 48.0 percent market share. It was followed by non-alcoholic beverages and alcoholic beverages with share at 26.5 percent and 12.1 percent, respectively.
Food industry was leading in terms of the usage of rigid plastics, with a share of 61.5 percent in 2019. It was followed by non-alcoholic industry, which accounted for a share of 30.9 percent in the same year.
Ms Anchal concludes: “Rising disposable income of South Korean consumers is enabling them to spend more on premium options, which offer an eye catchy appeal. Brands are innovating with unique and unusual packaging formats, which not only impart a sophisticated look but also make the packaging look more interactive.”
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