Aseptic packaging involves filling of pre-sterilized product in a sterile packaging material under an aseptic environment. Growing pharmaceutical and healthcare sector, especially in the emerging regions due to the rising cases of chronic diseases is driving the demand for aseptic packaging solutions globally. Emergence and innovation of new products and increasing urban population in the developing countries may widen up the growth opportunities for the manufacturers during the forecast period, with the aseptic packaging market size estimated to grow from US$50.019 billion in 2019 to US$85.610 billion in 2025 at a CAGR of 9.37%. Strict government regulatory framework and industry standards for pharmaceutical packaging in the developed countries also drive the market growth. However, consumer preference towards non processed food may hamper the growth of the market during the forecast period.
Consumer Demand for Convenience Is Pushing the Market Growth
Growing acceptance of various beverages and shifting preference towards conveniently packed products is expected to drive the aseptic packaging market during the forecast period. Aseptic packaging allows the food manufacturers to meet the consumer demand for safe products as unlike much other processing and packaging method, aseptic packaging doesn’t require the use of preservation. Aseptic packaging also maintains the freshness of the product and is available in pouches, bottles and bags, which are convenient to the consumer. This is further expected to drive the preference for aseptic packaging solutions globally. Benefits associated with the aseptic packaging like extended shelf life of the product without refrigeration reduces the investment cost of the convenience store, enabling them to generate higher margins and is thus attracting a greater number of convenience stores in the region which is further expected to fuel up the demand for the aseptic packaging in the market during the forecast period.
According to National Association of Convenience Stores, the US convenience store industry has around 154,958 stores in 2018, which accounts for about $696 billion in total sales. Moreover, due to rising disposable income in developing countries such as Mexico, there is an increasing demand for processed food that further widen up the growth opportunity for the product during the forecast period. According to USDA, there are approximately 186,000 food processors in Mexico, employing approx. 800,000 employees, and producing US$135.5 billion worth of processed food.
Aseptically Packed Beverage Is Providing Good Growth Opportunities
Aseptic packaging is used by the beverage manufacturers for a variety of purposes including improving the shelf life, cost- efficiency, and the quality of the product at room temperatures. According to the U.S. Department of Agriculture, more than 20% of the Americans regularly consume milk and milk products and it is projected the total milk consumption will increase in the coming years.
Simultaneously, the expanding proportion of middle class and expanding overall population is further driving dairy consumption in the Asia Pacific region. The trend towards the adoption of aseptic packaging solutions due to its faster processing speed and cost-efficiency due to its ability to relatively lower the logistics and storage cost is one of the major factors driving the demand for this packaging technology for beverage technology. In addition, new players entering the market by providing beverages without the addition of any preservatives will add to the demand for aseptic packaging. The rising number of convenience and chain stores coupled with the ability of aseptic packaging to maintain the product integrity at room temperature will augment the growing demand for this packaging technique over the forecast period.
North America holds a significant share in the market while Asia Pacific is projected to be one of the fastest growing regions
The growing competitive environment in the United States is resulting in the firms engaging in strategies that allow them to reduce their manufacturing and shipping cost, which eventually would enable them to be more profitable. As such, the ability of the aseptic packaging technology to allow the manufacturers to ship and store the products at a relatively ambient environment without requiring refrigeration is driving the United States aseptic packaging market. Simultaneously, the capability of the aseptic packaging technology to remove bacteria and manufacture the end product relatively quickly than the conventional method is further leading to its growing adoption by the firms in the United States. Arkema launched its new grade of hydrogen peroxide for spray aseptic packaging system ‘Valsterane® S-HP in May 2018 that has the potential to aid in the growing demand for rising production speed in the food industry.
Moreover, the retail sales of different type of businesses in the healthcare and food & beverage industry in the United States has shown steady growth over the years despite the country being in the recovery phase for greater proportion of the last decade from the financial crises of 2008. Since the economy is on the path of achieving high growth and the recent effort of the government to support domestic industries is expected to push the disposable income over the course of the forecast period that is further projected drive the retails sales in the future. This is expected to attract more retailers in the market in the food and beverage industry that will push the competition and will encourage cost cutting behaviors among the retail stores, such as the growing preference for keeping the products in the stores that requires no refrigeration.
MILK PRODUCTION IN INDIA, IN MILLION TONNES
Source: National Dairy Development Board
Simultaneously, the manufacturers in the packaging industry are expected to generate high revenue generation opportunities from the Asia Pacific region. This is primarily on account of the growing focus by the government of countries like India, China, Vietnam, and Philippines to promote domestic pharmaceutical and food & beverage manufacturing. The government of India is focused on developing a significant roadmap to push drug development and delivery infrastructure. Moreover, milk production in the country has increased at a CAGR of 5.55% between 2010-2018. Thus, rapidly expanding middle class segment in the region is anticipated to be the prime driver for market growth within the Asia Pacific region.