Canada Plastic Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 3.29 Million tons |
| Market Volume (2029) | 4.06 Million tons |
| CAGR (2024 - 2029) | 3.47 % |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Canada Plastic Packaging Market Analysis
The Canada Plastic Packaging Market size in terms of shipment volume is expected to grow from 3.29 Million tons in 2024 to 4.06 Million tons by 2029, at a CAGR of 3.47% during the forecast period (2024-2029).
The rising demand for lightweight properties primarily drives the increasing adoption of plastics in packaging. Plastic's lightweight nature offers a significant advantage over other materials like glass, which is considerably heavier and requires more transportation trips.
- Lightweight plastic packaging conserves energy while transporting packed goods and reduces emissions. This growing demand for lightweight and convenient packaging is a key factor driving market growth.
- Polyethylene, including plastic bags, pouches, and films, is widely used in packaging applications. It is a lightweight, partially crystalline, thermoplastic resin with high chemical resistance, low moisture absorption, and sound-insulating properties. Low-density polyethylene (LDPE) is commonly used to manufacture plastic bags. LDPE bags are soft, flexible, and durable, even at low temperatures, and are available in natural colors. The demand for these bags stems from their recognized characteristics, such as flexibility and high-impact strength.
- The food industry's demand for plastic packaging stems from the need for convenient, compact solutions, particularly with the rising popularity of ready-to-eat meals. These meals, often packaged in sealed trays of various shapes, including round containers and salad packs, are experiencing a shift towards sustainable and environmentally friendly materials. In Canada, the pet food sector creates a significant market for packaging solutions due to the high number of households owning pets, especially dogs and cats. According to the Environmental Defence Canada report published in April 2023, approximately 66% of pet food packaging in Canada uses plastic material.
- Plastic packaging offers economical and customizable options for product packaging. Flexible plastic packaging is precious in industries requiring versatile solutions, such as food, beverage, personal care, and healthcare. Its prevalence has increased due to high efficiency and cost-effectiveness. In Canada, fiber-based flexible packaging is gaining popularity, aligning with brands' commitments to environmentally friendly packaging. Some flexible packaging designs now incorporate eco-friendly features.
- Government policies, including the upcoming ban on single-use plastics and extended producer responsibility (EPR) programs, are shaping the demand for plastic packaging in the food industry. These regulations aim to reduce plastic waste and promote recycling, compelling companies to adapt by seeking sustainable alternatives while maintaining functionality and cost-effectiveness in food packaging. The EPR programs, in particular, encourage manufacturers to take greater responsibility for the entire lifecycle of their packaging, from production to disposal or recycling.
- The Canadian flexible packaging market is experiencing increased demand for sustainable options from consumers and producers. Notably, over 40 Canadian manufacturers have joined the "Canada Plastics Pact," pledging to recycle or compost 50% of Canada's plastic packaging by the end of 2025.
- The demand for plastic bottles in Canada remains substantial, particularly in the beverage and personal care industries. However, the market is experiencing a shift towards sustainability and reduced plastic consumption. This transformation is driven by government policies, consumer preferences for environmentally friendly products, and advancements in recycling technologies and alternative materials. Companies that adapt to these changes and prioritize sustainable practices are positioned to succeed in this evolving market landscape.
- Several factors have significantly constrained the demand for plastic packaging in Canada. These include the high cost of raw materials, mainly plastic resin, stringent government regulations, and growing environmental concerns. The increasing price of petroleum, a crucial component in plastic production, has led to higher costs for plastic packaging, affecting both manufacturers and consumers.
- This price increase is further exacerbated by government policies to reduce plastic waste, including bans on single-use plastics and more rigorous recycling requirements. Environmental awareness has prompted consumers and businesses to seek sustainable alternatives, reducing the demand for conventional plastic packaging. Consequently, companies are exploring eco-friendly materials, such as biodegradable plastics and recycled content, while navigating higher production costs and regulatory challenges.
Canada Plastic Packaging Market Trends
Plastic Bottle Segment to Hold Significant Market Share
- Consumer preferences, environmental concerns, and regulatory changes shape the demand for plastic bottles in Canada's beverage packaging industry. Despite increasing awareness of plastic waste, plastic bottles remain a primary packaging choice due to their convenience, cost-effectiveness, and versatility.
- Plastic bottles, especially for water, soft drinks, and juice, are a preferred packaging option in Canada. Their lightweight, shatterproof nature makes them ideal for transportation and storage, contributing to their widespread use in the beverage industry.
- Canada's orange juice consumption is projected to rise from 77,000 metric tons in 2021/22 to an estimated 95,000 metric tons in 2023/24, driving an increased demand for plastic bottles in packaging. This growth necessitates efficient and cost-effective packaging solutions to manage larger product volumes. Plastic bottles remain the beverage industry's preferred packaging choice due to their lightweight, shatter-resistant, and convenient properties.
- While the rising orange juice consumption fuels continued reliance on plastic bottles, there is a growing trend towards using recycled polyethylene terephthalate (rPET) to address environmental concerns. Despite regulatory pressures and consumer preferences for more sustainable packaging, the significant increase in orange juice consumption ensures that plastic bottles remain a key packaging format in the Canadian market.
- Growing sustainability concerns have increased demand for recycled polyethylene terephthalate (rPET) bottles. Many Canadian beverage companies are adopting rPET bottles to meet consumer preferences for eco-friendly products and comply with extended producer responsibility (EPR) programs. While more sustainable than new plastic, rPET demand faces supply and cost constraints.
- Government policies to reduce plastic waste, such as the 2022 ban on single-use plastics, have prompted beverage companies to explore alternatives to traditional plastic bottles. Although plastic bottles remain widely used, the emphasis on recycling and waste reduction drives innovation in sustainable packaging, including refillable containers and plant-based plastics.
- Canadian consumers are increasingly aware of packaging's environmental impact. This shift has led to growing demand for beverages in sustainable packaging, such as aluminum cans, glass bottles, or biodegradable options. While plastic bottles still dominate the market, the trend towards eco-friendly alternatives is gradually in demand.
- Plastic bottles dominate Canada's beverage packaging market due to their practicality and low cost. However, demand is being influenced by environmental concerns, regulatory pressure, and the rising popularity of sustainable alternatives. The industry is evolving to incorporate recycled materials and eco-conscious practices, but the transition is gradual due to cost and supply chain limitations.
Food Segment Set to Lead Market Share
- Plastic packaging remains in high demand within Canada's food industry, primarily due to its convenience, cost-effectiveness, and versatility. It is extensively used for packaging various food products, including fresh produce, snacks, dairy items, frozen foods, and ready-to-eat meals. Plastic packaging's ability to preserve freshness, extend shelf life, and protect against contaminants contributes to its widespread use. The lightweight material also reduces transportation costs and carbon emissions associated with shipping, further enhancing its appeal to food manufacturers and retailers.
- However, environmental concerns and government regulations are increasingly influencing the demand for plastic packaging. As Canadians become more aware of plastic waste's ecological impact, there is a shift towards sustainable packaging solutions. This trend has led to increased use of recycled plastic (rPET) and biodegradable alternatives in food packaging. Food manufacturers are exploring innovative materials to reduce reliance on virgin plastic, such as plant-based plastics, compostable films, and packaging made from recycled content. These alternatives aim to maintain the functional benefits of traditional plastic while reducing environmental impact.
- While plastic packaging continues to dominate Canada's food sector due to its practicality and affordability, the demand is shifting towards more sustainable options in response to consumer concerns and regulatory pressure. The industry is gradually transitioning to eco-friendly solutions, but plastic remains a crucial material in food packaging for the foreseeable future. This transition involves significant research and development efforts to create packaging that meets environmental and functional requirements, often resulting in hybrid solutions combining traditional plastics with more sustainable materials.
- Pouch packaging is gaining popularity due to its ease of use and portability. Many consumers have switched to flexible, stand-up pouches for food products such as snacks, baby foods, sauces, and drinks. The region's companies seek innovative packaging solutions through partnerships to expand their product range nationwide. These pouches often incorporate features like resealable zippers or spouts, enhancing convenience for consumers while potentially reducing food waste.
- High-demand frozen food categories drive innovation in packaging design to meet specific requirements such as maintaining product freshness, ease of use, and shelf appeal. Manufacturers are investing in developing new types of flexible packaging tailored to these food categories' needs, further stimulating growth in the flexible packaging market. This includes the development of advanced barrier films that can withstand extreme temperatures while preserving food quality and packaging designs that facilitate easy preparation and portion control.
- The sales value of organic packaged foods in Canada is projected to increase from USD 2.02 billion in 2023 to USD 2.43 billion by 2026, driving a corresponding rise in demand for high-quality plastic packaging. This growth is fueled by increasing consumer preference for organic foods, stemming from health and environmental considerations. Plastic packaging is essential in meeting these demands due to its versatility, cost-effectiveness, and ability to extend shelf life.
- The organic product sector requires packaging that ensures safety and quality, leading to a focus on food-safe plastics that maintain product freshness while supporting sustainable practices. This trend promotes using recycled plastics (rPET) and innovations in eco-friendly plastic alternatives, aligning with consumer preferences and regulatory requirements for more sustainable packaging solutions in the organic food industry.
Canada Plastic Packaging Industry Overview
The Canadian plastic packaging market is fragmented, with numerous players competing for market share. This competition drives innovation and encourages companies to differentiate their products to meet diverse customer needs. The market includes international and smaller regional manufacturers, each contributing to the industry's dynamics. Key players such as Amcor Group, Coveris Holding, Berry Global Inc., Constantia Flexibles, and Sealed Air Corporation have established strong positions through extensive product portfolios, technological advancements, and strategic partnerships.
These companies leverage their global presence and research capabilities to introduce innovative packaging solutions while adapting to local market demands and regulatory requirements. The competitive environment fosters continuous improvement in product quality, sustainability initiatives, and cost-effectiveness, ultimately benefiting end-users across various industries that rely on plastic packaging solutions.
Canada Plastic Packaging Market Leaders
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Amcor Group
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Coveris Holding
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Berry Global Inc.
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Constantia Flexibles
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Sealed Air Corporation
*Disclaimer: Major Players sorted in no particular order
Canada Plastic Packaging Market News
- March 2024: The Coca‑Cola Company is introducing redesigned, lighter-weight PET bottles for its sparkling beverage portfolio in the U.S. and Canada. This initiative is part of the company's broader commitment to creating a circular economy for its packaging. The new bottle designs, which will be gradually implemented throughout 2024, mark the first change in a decade for 12-, 16.9- and 20-oz. bottles of Trademark Coca‑Cola, Sprite, Fanta, Minute Maid Refreshments, and Minute Maid Aguas Frescas. These new bottles require less raw material, offering significant sustainability benefits for The Coca‑Cola Company and its bottling partners. The transition is expected to reduce the use of new plastic by approximately 800 million bottles in 2025 compared to 2024. Furthermore, this packaging shift is projected to decrease carbon emissions in 2025 compared to 2024, equivalent to removing over 17,000 cars from the road for one year.
- March 2024: NOVA Chemicals Corporation has launched its Centre of Excellence for Plastics Circularity, a hub dedicated to knowledge exchange and technology development for the circular economy of plastics. This centre will function as a network connecting industry innovators and Canadian research institutions with a vision of advancing global efforts in sustainable plastics management. By focusing on R&D collaboration and value chain-integrated solutions, the Centre of Excellence aims to promote Canadian innovation, address customer needs, and contribute to global plastics sustainability goals.
Canada Plastic Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Plastic Bottles is Observing a Significant Increase
5.1.2 Increased Eco-friendly Packaging and Recycled Plastic
5.2 Market Challenges
5.2.1 High Price of Raw Material (Plastic Resin)
5.2.2 Government Regulations & Environmental Concerns
6. Impact of Current Geo-Political Scenario On the Market
7. MARKET SEGEMENTATION
7.1 By Packaging Type
7.1.1 Flexible Plastic Packaging
7.1.2 Rigid Plastic Packaging
7.2 By Product Type
7.2.1 Bottles and Jars
7.2.2 Trays and containers
7.2.3 Pouches
7.2.4 Films & Wraps
7.2.5 Other Product Types
7.3 By End-user Industry
7.3.1 Food
7.3.2 Beverage
7.3.3 Healthcare
7.3.4 Personal care and Household
7.3.5 Other End-User Vertical
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Amcor Group
8.1.2 Coveris Holding
8.1.3 Berry Global Inc.
8.1.4 Constantia Flexibles
8.1.5 Wipak UK Ltd.
8.1.6 Sonoco Products Company
8.1.7 Sealed Air Corporation
8.1.8 National Flexible
8.1.9 Tetra Laval
8.1.10 Silgan Holdings
- *List Not Exhaustive
9. INVESTMENT ANLAYSIS
10. FUTURE OUTLOOK OF THE MARKET
Canada Plastic Packaging Industry Segmentation
Plastic packaging refers to containers, wraps, and materials made from plastic polymers used to protect, preserve, and transport goods. It includes bottles, bags, films, and trays made from PET, HDPE, PVC, LDPE, PP, and PS. These packaging solutions safeguard products, extend shelf life, and aid distribution. Plastic packaging is valued for its versatility, durability, and cost-effectiveness across industries. It serves multiple functions: product protection, contamination prevention, and marketing. However, environmental concerns related to waste management and pollution have led to an increased focus on developing sustainable plastic packaging options.
The Canada Plastic Packaging Market is segmented by type (flexible plastic packaging, rigid plastic packaging), by-products (bottles and jars, trays and containers, pouches, films & wraps, and other product types), and by end-user industry (food, beverage, healthcare, personal care and household and other end-user vertical), The report offers market forecasts and size in volume (tons) for all the above segments.
Canada Plastic Packaging Market Research Faqs
How big is the Canada Plastic Packaging Market?
The Canada Plastic Packaging Market size is expected to reach 3.29 million tons in 2024 and grow at a CAGR of 3.47% to reach 4.06 million tons by 2029.
What is the current Canada Plastic Packaging Market size?
In 2024, the Canada Plastic Packaging Market size is expected to reach 3.29 million tons.
Who are the key players in Canada Plastic Packaging Market?
Amcor Group, Coveris Holding, Berry Global Inc., Constantia Flexibles and Sealed Air Corporation are the major companies operating in the Canada Plastic Packaging Market.
What years does this Canada Plastic Packaging Market cover, and what was the market size in 2023?
In 2023, the Canada Plastic Packaging Market size was estimated at 3.18 million tons. The report covers the Canada Plastic Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Canada Plastic Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Plastic Packaging Industry Report
Statistics for the 2024 Canada Plastic market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Plastic analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Canada Plastic Packaging Market Report Snapshots
