by Thermoformed plastics are light-weight thermoformed products obtained through a manufacturing process where a plastic sheet is heated to a pliable forming temperature, formed to a specific shape in a mold, and trimmed to create a usable product. Thermoformed plastics provide high durability, shock resistance, toughness and are cost-effective substitutes for glass and metal packaging. The food packaging industry is a major consumer of thermoformed plastics due to the growing demand for single meal packaging of food items.
The global Thermoformed Plastics Market is estimated to be valued at US$ 12.9 Bn in 2023 and is expected to exhibit a CAGR of 2.9% 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 witnessed is the increasing adoption of thermoformed plastics for food packaging applications due to their recyclability features. Thermoformed plastics can be recycled multiple times without loss in material properties making them a viable option for sustainable food packaging. In addition, thermoformed plastics provide leak proof and lightweight packaging solutions for frozen food items thus supporting their rising demand in the frozen food sector. Another trend is the use of bioplastics for thermoforming which helps companies adhere to environment compliance standards. Ongoing R&D for developing advanced bio-based thermoformable plastics with enhanced barrier properties is expected to further drive the market growth over the forecast period.
Porter’s Analysis
- Threat of new entrants: Low startup costs and barriers to entry allow new companies to enter the thermoformed plastics market easily. However, established players have significant brand recognition and supply chain relationships.
- Bargaining power of buyers: Large buyers like food and automotive companies have significant bargaining power due to their sizeable volumes. They can negotiate lower prices from suppliers and switch between plastics easily based on price fluctuations.
- Bargaining power of suppliers: Resin producers face moderate pressure from buyers. However, switching costs for thermoformers are high as they invest in customized machinery for specific materials. This gives some power to resin suppliers.
- Threat of new substitutes: Alternative packaging materials like plastic films, cardboard, aluminum compete with thermoformed plastics. However, thermoforming offers good design flexibility and shore strength at lower costs.
- Competitive rivalry: Intense competition exists among major players. Companies compete based on product innovation, pricing, and supply relationships.
Key Takeaways
The global thermoformed plastics market is expected to witness high growth, exhibiting CAGR of 2.9% over the forecast period, due to increasing demand from the food packaging sector. Thermoformed plastic containers and trays provide durability and printability for various food products.
Regional analysis: North America dominated the global thermoformed plastics market in 2023, accounting for around 35% of the global demand, followed by Europe. Growing consumption of packaged and ready-to-eat food in the US and Canada is driving the North American market. Meanwhile, Asia Pacific is expected to be the fastest growing region, exhibiting over 3.5% CAGR, due to rising incomes, urbanization, and expanding food chains in India and China.
Key players: Key players operating in the thermoformed plastics market are Pactiv LLC, Sonoco Products Company, CM Packaging, Placon, and Genpak LLC. Pactiv LLC specializes in thermoformed packaging for foodservice applications. Sonoco Products Company offers a wide variety of thermoformed rigid plastic packaging solutions.
