The market grew at a significant rate owing to the rising demand of online shopping among consumers which gave rise to the need for packaging and soaring consumption of beverage products increased the growth of the packaging industry. Packaging is a mechanism for coordinating the preparation of things for transportation, warehousing, logistics, sale, and end-use. Packaging also refers to the design, appraisal, and production of packaging. Packaging refers to the wrapping or bottling of products to protect them from damage during transportation and storage. It assists in the identification, definition, and advertising of a product while ensuring its safety and marketability. Packaging solutions are used in a variety of industries, including food and beverage, cosmetics, and healthcare. The packaging business is constantly and consistently developing more sustainable solutions for their products, with a growing number of reusable options.

Packaging has grown in favour in a range of industries owing to its advantages, including long shelf life and durability. The market for packaging solutions is predicted to grow in the future owing to a lack of a comparable level of replacement that is cost-effective in currently available solutions. Despite considerable worries about the impact of packaging on the environment in the absence of an active, sufficient disposal system, packaging demand in the United States continues to climb. The United States was the world's largest packaging consumer, with a 10% annual growth rate in 2019.

According to the American Institute for Packaging and the Environment, the packaging industry in the United States generated $537.91 billion in total economic output in 2019. Furthermore, the growing demand for food options that are easy to grab, hold, eat, or carry is driving up the demand for packaging from the food industry. As a result, in order to satisfy this demand, manufacturers are putting forth extra efforts to make food packaging portable, increasing the packaging industry's demand in the United States.

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U.S. Packaging Market Growth Drivers

Growing Demand of Beverage Industry Soars the Demand of Packaging That Have Readily Aided The Market Growth

In the U.S., the beverage industry was considered one of the most significant industries where carbonated soft drinks were the most popular beverages in the United States. In the United States, sales of carbonated soft drinks increased by 40% in 2019, increasing the demand for packaging beverage items and boosting the packaging industry's growth. Diet coke use has recently increased among health-conscious customers, increasing the packaging industry's demand. Furthermore, increased consumer demand for ready-to-drink items boosts the packaging industry's growth. Vendors of alcoholic beverages are coming up with new ways to attract customers. Glass packaging is in high demand for alcoholic beverages. As the need for liquid items grows, so does the need for packaging, and as a result, vendors are becoming more inventive in their packaging designs. According to the United States Department of Agriculture (USDA), total fluid milk product sales in the country reached 34,181 million pounds in 2019. As a result, demand for packing is increasing, resulting in market expansion.
The trend of Plastic Packaging Is Rising Among Manufacturers Is Set To Drive The Market Growth

Plastics are strong and lightweight that increases their usage in packaging purposes as consumers prefer packaging which is portable and easy to carry which further rose its demand in the packaging industry. Owing to its cost-effectiveness and increasing the shelf life of products, manufacturers are preferring plastic packaging in various industries. Owing to the packaging reduction, expanding end-user demand, and advancements in global production operations, flexible plastic packaging is regarded as the best option. Advances in the healthcare, pharmaceutical, and cosmetics businesses are projected to stimulate demand for plastic packaging items. According to the Flexible Packaging Association, more than 60% of American consumers are willing to pay more for tangible and functional packaging benefits such as product protection, transportation friendliness, and supply chain efficiency, among other things, which drives up the use of plastic packaging and thus the packaging industry.

R&D Investment:

In February 2020, Graphic Packaging International, LLC, announced the acquisition of the Consumer Packaging Group Business from Greif, Inc. and was excited about adding seven folding carton facilities to the portfolio, as it helped in increasing mill-to-converting plant integration levels and further supported the customer base in growing markets. 

The Major Players in this Market Include

The major companies in the U.S. Packaging market include Graphic Packaging International, LLC, P lastipak Packaging, Inc., Classic Packaging, Acorn Paper Products Co., Berry Global Inc., Alpha Packaging Inc., N-Stock Box Inc., Sabert Corp., CKS Packaging Inc., sI lgan Dispensing System Corp. and among others.

Over the years, major market players have focused on different types of packaging products owing to its rising demand in e-commerce. The launch of new innovative packaging solutions, adequate funding, and government-aided policies helped in the innovation of packaging materials. The continuous developments in the field of e-commerce and the food and beverage industry are the major factors set to drive the U.S. Packaging Market over the historical period 2016-2020.

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