South Korea’s packaging industry to grow at 1.3% CAGR through 2024, says GlobalData

Customers spend more on premium options

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GlobalData
South Korea’s packaging industry to grow at 1.3% CAGR through 2024, says GlobalData

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% during the forecast period 2019-2024, says GlobalData, a data, and analytics company.

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% during 2019-2024. The category is followed by glass, which is expected to record a CAGR of 2.0% 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 to 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% in 2019. It was followed by flexible packaging and paper & board packaging with market share of 18.9% and 16.1%, respectively, in 2019.

Food industry characterized the most use of packaging in South Korea and accounted for 48.0% market share. It was followed by non-alcoholic beverages and alcoholic beverages with share at 26.5% and 12.1%, respectively.

Food industry was leading in terms of the usage of rigid plastics, with a share of 61.5% in 2019. It was followed by the non-alcoholic industry, which accounted for a share of 30.9% in the same year.

Bisht 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.”

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Packaging South Asia’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

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