Industrial Packaging Market Report 2025

The industrial packaging market size has grown strongly in recent years. It will grow from $79 billion in 2024 to $84.36 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to globalization of trade, rise in manufacturing activities, stringent regulations, e-commerce boom, focus on sustainability.

The industrial packaging market size is expected to see strong growth in the next few years. It will grow to $112.77 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to evolving consumer preferences, rise in online retail, customization and personalization, circular economy initiatives, rapid urbanization. Major trends in the forecast period include smart packaging technologies, technological innovations in packaging machinery, advancements in smart packaging, increased focus on lightweight packaging, regulatory compliance and safety standards.

The industrial packaging market size is expected to see strong growth in the next few years. It will grow to $104.93 billion in 2028 at a compound annual growth rate (CAGR) of 7.1%. In the forecast period, the growth of the industrial packaging market can be attributed to evolving consumer preferences, an increase in online retail activities, the demand for customization and personalization in packaging, the promotion of circular economy initiatives, and rapid urbanization. These factors are expected to drive the expansion of the market by creating new avenues for growth and innovation. Additionally, major trends in the forecast period include the adoption of smart packaging technologies, ongoing technological advancements in packaging machinery, developments in smart packaging solutions, a growing focus on lightweight packaging, and increased emphasis on regulatory compliance and safety standards. These trends are likely to shape the industrial packaging landscape, offering new opportunities for market players and influencing industry dynamics.

The global increase in demand for food products is expected to drive the growth of the industrial packaging market. This surge in demand is attributed to various factors such as shifting consumer preferences, regulatory requirements, and the need for efficient food storage. The preference for packaged foods over unpackaged options has grown due to heightened concerns about food safety during the pandemic. Packaging materials play a critical role in ensuring the safe storage and handling of food products, supporting the food industry in meeting these evolving demands. According to Bizom data, a retail intelligence platform based in India, sales of packaged food witnessed a significant 95% year-on-year increase in the weeks leading up to the holiday season, driven by rising out-of-home consumption and the popularity of ready-to-eat products. Therefore, the growing global demand for food products is expected to be a key driver for the industrial packaging market's expansion.

The expanding chemical industry is anticipated to drive the growth of the industrial packaging market in the coming years. This industry involves the large-scale production and processing of chemicals, covering the manufacturing of a range of industrial and consumer goods. Industrial packaging is utilized in the chemical sector to ensure the safe and secure containment, transportation, and storage of various chemical products, preventing contamination and ensuring compliance with regulations. For example, in June 2024, the American Chemistry Council Inc., a U.S.-based organization advocating for the chemical manufacturing industry, reported that chemical production grew by 1.3% in 2023 and is projected to reach 2.2% in 2024. Thus, the growth of the chemical industry is fueling the expansion of the industrial packaging market.

The industrial packaging market is increasingly embracing technological advancements, with a notable emphasis on integrating artificial intelligence (AI) to enhance packaging solutions. Companies are leveraging AI algorithms and computer systems for various tasks, including inspection, data labeling, and optimizing recycling processes. An illustrative case is DHL Supply Chain's introduction of an on-demand packaging option in April 2022. This innovative offering utilizes AI-powered OptiCarton technology to optimize box filling by selecting from a predefined range of cartons. Moreover, the technology provides recommendations to split orders into multiple consignments, aiming to improve cost-effectiveness or minimize the carbon footprint of shipments. This strategic use of AI showcases a commitment to streamlining shipment processes while prioritizing environmental sustainability.

Major leaders in the industrial packaging sector are increasingly emphasizing the development of sustainable packaging solutions to stay competitive and address environmental concerns. These sustainable approaches prioritize eco-friendly materials, design methods, and processes that minimize the environmental impact of packaging throughout its lifecycle. For instance, in August 2022, BASF SE, a prominent German chemical company, collaborated with Nippon Paint China, a coatings manufacturer in China, to introduce an eco-conscious industrial packaging solution. This innovation incorporates BASF's water-based acrylic dispersion, Joncryl High-Performance Barrier (HPB), as the barrier material for Nippon Paint China's series of dry-mixed mortar products. This marks the debut of BASF's water-based barrier coatings in industrial packaging in China and is projected to annually save thousands of tons of plastics, repurposing nearly 10,000 tons of paper bags. These initiatives significantly contribute to resource preservation, carbon emission reduction, and the advancement of a circular economy within the packaging industry.

In July 2023, Macfarlane Group, a packaging design and distribution company based in Scotland, acquired Polyformes Limited for a maximum cash consideration of $14.38 million (£11.5 million). This acquisition aims to strengthen Macfarlane's protective packaging business by incorporating Polyformes' expertise in designing and converting foam for specialized applications. Polyformes is a UK-based company that specializes in foam packaging for various industries.

Major companies operating in the industrial packaging market include Westrock Company, International Paper Company, Amcor Limited, DS Smith plc, Packaging Corporation of America, Mondi plc, Grief Inc., KEENER Corporation, Nefab Group, Myers Industries Inc., Schoeler Allibert AB, Menasha Corporation, Rohrer Corporation, UFP Technologies Inc., Rehrig Pacific Company, Ckdpack, PolyFlex Products Inc., GWP Group, Brown Machine LLC, Dunnage Engineering, Thermoflex LLC, Amatech Inc., MJSolpac Ltd., Package Design & Manufacturing Inc., Interior Packaging Design LLC, JIDA Industrial Solutions, Sohner Plastics LLC, Great River Plastics LLC, Electro-General Plastics Corp., Artisanz Fabrication and Machine LLC, Dordan Manufacturing Company, Salco Engineering and Manufacturing Co. Inc., Sonoco Products Company, Ball Corporation.

Industrial packaging refers to the packaging designed to protect, ship, and store sensitive items that rely heavily on stability. It is commonly used by manufacturers of machinery, especially delicate equipment, technology, and other products that must be safeguarded against factors such as moisture and vibrations.

The primary product types in industrial packaging include drums, intermediate bulk containers (IBCs), sacks, pails, and crates/totes. Drums are cylindrical containers typically made of metal or fiberboard that are used for storing and transporting a variety of materials and substances. Industrial packaging materials are made from a range of materials such as paperboard, plastic, metal, wood, and fiber. These packaging types are used across various industries including chemical and pharmaceutical, building and construction, food and beverage, oil and lubricant, agriculture and horticulture, among others. Each type of packaging is designed to meet specific requirements for the safe and efficient storage and transportation of goods in industrial settings.

The industrial packaging market size has grown strongly in recent years. It will grow from $74.35 billion in 2023 to $79.61 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to globalization of trade, rise in manufacturing activities, stringent regulations, e-commerce boom, focus on sustainability.

North America was the largest region in the industrial packaging market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The industrial packaging market consists of sales of flexible and rigid packaging, boxes, envelopes, tapes, handles, cushioning, bags, reusable containers, drums. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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