Vietnam’s packaging market worth over $4 billion amid pressure to “go green” and risk of losing orders to foreign competitors

The packaging industry is witnessing strong growth globally, especially in developing markets. This growth is driven by many factors, including the boom of e-commerce, rising consumer demand and free trade policies.

According to Market Research Future’s forecast, the compound annual growth rate (CAGR) for the global market for plastic packaging is 3.6%, while that for paper packaging is 4.7% during the period 2023 – 2030.

In Vietnam, Mordor Intelligence forecasts the paper packaging market size at $2.6 billion in 2024 and is expected to reach $4.14 billion by 2029, growing at a CAGR of 9.73% during the forecast period (2024-2029). The paper packaging market in Vietnam is expected to expand significantly during the forecast period, with several companies forecasting sales growth in the coming years. The country’s stable economic situation and high urbanization rate are expected to boost the use of paper packaging formats.

VietnamPrintPack 2024 is an annual exhibition in the Vietnamese packaging industry. This year, the exhibition scale recorded a further increase to 19,850m2, with 900 booths, gathering more than 362 enterprises from 17 countries and territories such as: Australia, China, Denmark, Germany, Hong Kong (China), India, Indonesia, Israel, Japan, Malaysia, Netherlands, Philippines, Taiwan (China), Thailand, United Kingdom, United States and Vietnam.

Experts say that the growth potential of the packaging industry in Vietnam in the coming time is still large, especially in the food and beverage industry. Enterprises have also been looking for ways to increase their presence in the global market by improving product quality, reducing production costs and complying with environmental standards.

However, Vietnam is facing many risks from plastic waste. According to statistics from the Ministry of Natural Resources and Environment, each year in Vietnam, about 1.8 million tons of plastic waste are discharged into the environment, but only 27% of it is recycled and utilized by facilities and enterprises. This has a great impact on the environment and is a significant waste for the economy.

Not to mention, in export markets, especially developed economies in the world, stricter environmental regulations have been set for imported goods. Global consumers prefer to use products from businesses that comply with environmental responsibilities, and use environmentally friendly and biodegradable packaging materials.

In fact, it is common for Vietnamese businesses to lose orders when foreign businesses take advantage of their financial and technological advantages to gain market share. Meanwhile, similar product suppliers from Thailand make good product packaging and can quickly replace Vietnamese businesses.

Many large businesses have actively implemented the use of recycled packaging, such as Coca Cola; or Unilever Vietnam; etc.