By Ron Chen, Correspondent ASEAN Region
The packaging sector in the Philippines is expected to reach 69 billion units by 2024 at a compound annual growth rate (CAGR) of 3.3 per cent for the forecast period of 2019-2024, says GlobalData.
GlobalData’s report, ‘Philippines Packaging Industry – Trends and Opportunities’ reveals that the sector is majorly driven by growth in rigid plastics packaging, which is forecast to register the fastest volume CAGR of 6.4 per cent during 2019–2024. The category is followed by rigid metal, which is expected to record a CAGR of 4.0 per cent during the next five years.
Consumer Analyst at GlobalData, Anchal Bisht,says: “Rising demand for packaged and processed foods along with soft drinks in portable and convenient formats is driving the use of rigid plastic containers. High popularity of cans in both food and non-alcoholic beverages industries for its portability and convenience will continue to drive the demand for this packaging material.”
Food industry characterized the most use of packaging in the Philippines and accounted for 39.5 per cent market share. It was followed by non-alcoholic beverages and ‘other industries’ with shares at 37.5 per cent and 11.4 per cent, respectively.
Flexible packaging was the most consumed pack material in the Philippines packaging industry and accounted for a market share of 34.9 per cent in 2019. It is expected to reach 33.2 per cent by 2024. Glass and rigid plastics were the other popular pack materials.
Food industry was leading in terms of usage of flexible packaging with a share of 66.9 per cent in 2019. It was followed by non-alcoholic beverages industry which accounted for a share of 23.4 per cent in the same year.
Ms Anchal concludes: “Increasingly concerned over the environmental impact of the products, consumers are focusing on purchasing products that feature reusable and recyclable packaging. The trend is compelling the brands to espouse new formats to make the packaging more informative so as to resonate well with consumers with the growing environmental concerns.”