Study: Advanced packaging technologies market to rise 7.5% CAGR by 2026
Increasing consumer demand and trend of using packaging as a product marketing strategy are expected to further fuel the growth of the global advanced packaging technologies market.
The global advanced packaging technologies market is projected to rise at a CAGR of 7.5%, during the forecast period of 2018-2026, according to a study produced by Transparency Market Research, Albany, N.Y.
Asia-Pacific is expected to hold a majority of share in the advanced packaging technologies market. This is mainly due the booming foodservice industry coupled with shifting consumer preference toward packaged food and beverages. Based on technology, the active packaging segment is gaining traction mainly in part to its ability to enhance shelf life and properties of contained food on the packaging.
Lack of standardization of technologies to impede growth
The advanced packaging technologies market is expected to rise at a prominent pace in the coming few years. This is mainly due to the rising focus of the industry players to increase the shelf life of products. Moreover, increasing consumption of convenience products such as packaged food and beverages continues to fuel demand for advanced packaging technologies globally.
Players in the packaging technology market focus on product innovations and developments to improve packaging quality and efficiency. Leading brand owners plan to use advanced packaging technologies to create brand differentiation and enhance traceability.
Some of the latest packaging techniques in the advanced packaging technologies market are tetra-packs, chip-based packaging and bio-based packaging, offering convenience to the end users, safer storage and extended shelf life.
Additionally, increasing consumer demand and trend of using packaging as a product marketing strategy are expected to further fuel the growth of the global advanced packaging technologies market.
However, factors like additional end-product costs, lack of standardization and harmful effects of plastics on the environment are expected to hamper growth in the advanced packaging technologies market. This is because it makes it difficult for industry players to meet consumer’ demands, maintain product quality and generate profits.
Advanced technologies to offer lucrative gains
Nevertheless, advent of advanced packaging techniques such as integrated circuit (IC) is expected to offer new opportunities in the advanced packaging technologies market. Such packaging prevents physical damage and corrosion of the metallic parts. Other advanced packaging technologies are ball grid array (BGA), chip-scale packaging (CSP), flip-chip, land-grid array (LGA) and pin-grid array (PGA).
Further advanced packaging technologies offer greater device connectivity, better control and lower power consumption compared with traditional packaging configurations.