Abstract
Summary
The Asia-Pacific package testing market is expected to register a CAGR of 10% over the forecast period (2022 - 2027). Food and beverage companies are developing response actions and effective plans to help mitigate the risk. The Hong Kong government has been testing chilled and frozen foods and their packaging to prevent the spread of the COVID-19 virus through imported foods. Following the COVID-19 detections, Hong Kong disposed of three shipments after a year of monitoring.
Package testing plays a prominent role in almost every supply chain in the Asia-Pacific region. Package testing ensures the business's packaging is up to specifications and avoids costly product damage, legal situations, and poor user experiences. Packaging testing identifies opportunities in several areas such as savings on packaging costs, the performance of packaging materials in realistic environmental conditions and transportation scenarios, quality control insights, scalability of packaging, and compliance issues, such as certifications, specifications, and regulations.
Packaging plays an essential part in the protection of products. In Asia-Pacific, factors such as the growing awareness of and demand for sustainable packaging, growth of the retail industry with increasing demand for packed products, and the emergence of new technologies are driving the growth. Moreover, the requirement for a longer shelf-life of products helps drive the growth of the packaging testing industry in Asia-Pacific. As a result, several companies are investing in sustainable packaging.
The F&B segment is expected to grow due to increased food safety awareness among consumers and a rise in the number of packaging and labeling mandates in Asian countries. Packaged and processed foods and beverages are gaining prominence. With the increased consumption of consumer goods and packaged food worldwide, the industry is anticipated to expand.
The healthcare industry in China is characterized by rapidly expanding sales of pharmaceuticals and medical devices and an evolving distribution system eager to reach foreign markets and achieve economies of scale. According to the China National Bureau of Statistics, China's medical instruments and equipment exports to other countries were approximately USD 18.13 billion in 2020, which increased by USD 5.22 billion compared to the previous year.
Key Market Trends
Plastic Packaging is Expected to Witness Significant Adoption
The increasing use of plastic in various packaging types from end-user industries such as food, healthcare, industrial, personal, and household is resulting in a growing number of third-party vendors that provide plastic package testing as a service. However, these vendors still face competition from industry giants in the packaging industry who have their in-house testing facilities. But with changing technology, regulations, and standards to comply with an increasing number of tests to be conducted, single packaging is expected to change the market competitiveness in the region. The market is likely to incline toward fragmentation during the forecast period.
Moreover, with the rising demand for packaged food, the food industry can obtain longer shelf lives through innovative food packaging materials. The packaging protects food from the outside environment, preserving its integrity, hygienic and organoleptic properties, and shelf life. The product's packaging defends it from possible mechanical stresses and external contamination sources. Packaging preserves food between packaging, marketing, and consumption, even in adverse environmental conditions.
As any change in the packaging industry directly impacts plastic package testing, the plastic package testing market is also facing competition from paper and biodegradable packaging in terms of material. However, plastic is expected to continue growing due to evolutions in biopolymers with bio-based plastics sourced from sustainable resources like agricultural waste rather than petrochemicals.
Several production facilities are now approaching commercial-level production, having been successfully demonstrated in several packaging segments, including films and carbonated soft drink bottles. These developments are expected to be followed by increasing support from private vendors and the government.
Food and Beverage is Expected to Witness Significant Growth in the Market
The demand for online shopping for food and beverages further accelerated due to the recent effects of the pandemic. For instance, according to Korean Statistical Information Service, the transaction value of online food and beverage sales was approximately KRW 6.03 trillion in the first quarter of 2021. Over the years, the transaction value has continuously increased.
Flexible packaging applications for fruits and vegetables are increasing rapidly, driving the studied market. The demand trends can be attributed to the rising trend of down-gauging, which has supported the shift from rigid to flexible packaging.
Consumers are looking for conveniently packaged solutions and are becoming more concerned about sustainability. As a result, retailers and manufacturers have been looking to reduce the amount of garbage transported to landfills. Packaging advances range from reducing the quantity of glass used in each bottle to compostable bioplastic.
Innovations in fresh fruit and vegetable packaging have several core aims, including product protection, shelf life enhancement, and hygiene defense. The COVID-19 pandemic and a reinvigorated e-commerce boom are increasing functional packaging’s value. There has also been a need to provide customized packaging solutions that keep different fruits and vegetables fresh.
Competitive Landscape
The Asia-Pacific package testing market is moderately consolidated, with a few major companies like TDDL Inc., Intertek, SGS, CSZ Testing Services Laboratories, CRYOPAK, Advance Packaging, and Nefab. The companies continuously invest in strategic partnerships and product developments to gain more market share.
- June 2021 - Intertek, one of the prominent players in Total Quality Assurance, partnered with Globizz, a renowned Japanese-American medical device consulting firm, to provide regulatory advising, technical services, and strategic planning to medical device makers in Japan and the United States. The two firms' cooperation will provide experience and resources to customers in both regions for faster, more efficient market access, extending services for both companies, their existing customers, and others in the sector.
- April 2021 - SGS introduced a new comprehensive footwear packaging testing technique. The industry-first testing package assists brand owners and retailers, including e-commerce, to create packaging that performs effectively, meets environmental and sustainability criteria, and provides quality footwear for consumers.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support