Market Overview:
Next generation packaging refers to advanced packaging solutions that provide improved food safety, extend shelf life, maintain freshness, require less material, and reduce transportation costs compared to conventional packaging solutions. They include active, intelligent, smart, and intelligent packaging. Next generation packaging solutions help reduce food wastage by increasing shelf life and indicating remaining shelf life to consumers through sensors and indicators.

The next generation packaging market is estimated to be valued at US$ 54.84 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends driving growth of the next generation packaging market is the rising focus on sustainability. Manufacturers are developing innovative packaging solutions made from renewable, recycled, and recyclable materials to reduce use of plastics and meet sustainability goals of companies and regulations. For instance, Amcor Limited offers lightweight, recyclable plastic packaging using less material without compromising on protection. Similarly, WestRock Company provides fiber-based packaging made from recycled paper that offers durability and printability equivalent to plastic packaging but with better sustainability performance. The increasing focus on sustainability in the packaging industry is expected to fuel demand for eco-friendly next generation packaging solutions over the forecast period.

Porter's Analysis
Threat of new entrants: The threat of new players entering the Next Generation Packaging Market is moderate as the technological capabilities to produce smart and functional packaging is high and requires heavy investment.

Bargaining power of buyers: The bargaining power of buyers is moderate to high since there are several key players in the market offering quality products. Buyers can negotiate on price and quality.

Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as raw materials required for next generation packaging are commodity products and available from numerous suppliers globally.

Threat of new substitutes: The threat of substitution is moderate as alternative packaging types like reusable, recyclable are becoming more sustainable options.

Competitive rivalry: Competition is high among existing players to gain market share through innovation, brand, and sustainability.

SWOT Analysis
Strengths: The Next Generation Packaging Market offers products with improved shelf life, convenience, quality, and sustainability features. Manufacturers focus on product differentiation through advanced technology and functionality.

Weaknesses: High initial investment and technological expertise required to produce smart and intelligent packaging. Supply chain issues can impact product availability.

Opportunities: Growing demand for sustainable and eco-friendly packaging from FMCG and pharmaceutical industries. Rising e-commerce sector boosts demand for tamper-proof, leak-proof, and tracked packages.

Threats: Stringent government regulations regarding material usage and disposal norms increase compliance cost. Economic slowdowns impact consumer spending on packaged goods.

Key Takeaways
The Global Next Generation Packaging Market Size is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing demand for smaller pack sizes and sustainable packaging options from consumers and regulations.

Regional analysis: The North American region currently dominates the market due to large scale investments in R&D of new materials by companies. Asia Pacific is expected to be the fastest growing region exhibiting a CAGR of over 8% owing to growing e-commerce, food processing, and pharmaceutical industries in countries like China, India.

Key players: Key players operating in the Next Generation Packaging market are Amcor Limited, WestRock Company, Sonoco Products Company, Sealed Air Corporation, Stora Enso Oyj, Bemis Company, Inc., MULTIVAC, WS Packaging Group, Inc., Active Packaging Ltd., and ULMA Packaging, S.Coop.

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