A great market potential in emerging economies provides huge growth opportunity for confectionery packaging manufacturers
Emerging markets such as India, China, and Africa etc. provide a huge growth potential for confectionery products. Africa is expected to showcase second fastest growth rate in terms of consumption for confectionery packaging after Asia-Pacific. This region is also witnessing an inflow of foreign investment in manufacturing of confectionery products. South Africa is expected to exhibit progress in terms of income levels, further supporting the strong economic prospects of the African region.
Multinational as well as domestic players are anticipated to enter the markets through various entry strategies that include exports, sales agents and manufacturing. Multinational players as well as domestic players are setting up manufacturing operations in emerging markets and are characterized by shifting away from ‘premiumisation’ of confectionery products. Domestic manufacturers and multinational players of APEJ and MEA regions are on the other hand targeting cash strapped consumers in such regions as a part of their strategy who seek value added products. This is due to the fact that untapped market segments in the emerging economies represent a huge target market opportunity for chocolate, sugar and gum confectionery products.
Further, the APEJ and MEA regions have a huge young population with the average age below 20 years. Young median age and a growing middle class in such regions are expected to fuel the demand for end use products that are packed in stickpacks and boxes.
E-commerce is likely to boost the global confectionery packaging market
As the internet continues on its trajectory of dominating the lives of the consumers, the growth of e-commerce is reaching new heights. Chocolate is the most preferred confectionery product in online sales. A growing consumer preference for dark chocolates is surging the demand for e-commerce confectionery packaging market. Hence, many chocolate manufacturers are opting for various initiatives to launch new products and flavours. For instance, Mondelez has teamed up with Amazon to create a virtual chocolate and sweets store on Amazon’s online marketplace.
The shipping logistics market is growing consequently on the backdrop of a tremendous growth in the e-commerce industry, wherein consumers are ensured the delivery of the products in prime condition. Increasing penetration of modern trade and e-commerce has resulted in more number of consumers availing online retail services. This is attributed to the convenience associated with monetary transactions, product shipment and delivery. These factors, in turn, are expected to boost the growth of the global confectionery packaging market.
Global Confectionery Packaging Market Analysis, by Material Type
As per the data given by Future Market Insights, the plastic segment in the material type category was estimated to be valued at nearly US$ 5,200 Mn in 2017 and is likely to touch a valuation of nearly US$ 7,050 Mn in 2027, exhibiting a CAGR of 3.1% during the assessment period 2017-2027. The paper and paperboard segment in the material type category was estimated to be valued at nearly US$ 2,150 Mn in 2017 and is likely to touch a valuation of nearly US$ 3,500 Mn in 2027, displaying a CAGR of 5.1% during the period of assessment.
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