The global tube packaging category is projected to grow at a CAGR of 5.7% from 2024 to 2030. Key factors driving the growth of the global category include growing consumption of personal care products, rising use of flexible packaging formats, advancements in packaging technology, increasing demand from emerging markets, and a surge in requirement within the pharmaceutical sector. Some of the major trends in the market include rise in usage of biodegradable and sustainable products, growing prioritization of consumer safety, increase in product innovations, emergence of paper-based tube packaging, and rising adoption of minimalist design. For instance, paper-based tube packaging is increasingly being used for food items, cosmetics, personal care products, textiles, and apparels, as it offers a natural and eco-friendly alternative to traditional plastic packaging. Paper-based tubes are lightweight and cost-effective and are durable and customizable. Few of the major restraining factors include stringent government regulations, issues in recyclability of plastic, availability of substitutes, and fluctuations in raw material prices.
Key technology trends and innovations driving the global tube packaging category include single-dose tube packaging, smart tube packaging, multi-layered laminated tube manufacturing, nanocomposite coatings, anti-counterfeiting solutions, and 3D printed tubes. Single-dose tube packaging involves individually packaged products in single-serving units. This technology ensures precise dosage and minimizes product waste, particularly in pharmaceuticals and personal care products. It also enhances convenience to customers by providing ready-to-use portions. Moreover, it improves product hygiene and reduces the risk of contamination or cross-contamination. Smart tube packaging incorporates digital technologies to enhance functionality and user interaction. Smart tubes are embedded with features such as Near-Field Communication (NFC), QR codes, and RFID tags. These features enable product authentication, inventory tracking, and interactive customer experiences. For instance, customers are able to access product information or usage instructions through their smartphones or devices.
The tube packaging category is fragmented and consists of a large number of global market players, turning the category to be competitive. Key players in the category set themselves apart by providing innovative product design, deploying advanced manufacturing capabilities, producing sustainable alternatives, engaging in strategic collaborations, implementing robust marketing strategies, and focusing on compliance in order to stay competitive. Additionally, they are also focusing on improving the overall customer experience by providing competitive pricing, developing customized products, streamlining ordering processes, and enhancing customer service. For instance, key players are using online portals for distribution wherein customers are able to seamlessly browse catalogues, select products, and place orders with enhanced and real-time inventory visibility. Moreover, automated order processing and tracking is also being used to streamline the sourcing, by providing customers with instant order confirmations and delivery updates. Customers in the category possess high bargaining capability owing to an extensive supply base.
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Raw materials, labor, equipment, labelling, logistics, and other costs are the major cost components in this category. Other cost components comprise R&D, compliance, rent and utilities, general and administrative, sales and marketing, and taxes. Raw materials and labor account for the largest share of the cost structure. Key players in this category typically adopt cost-plus pricing model in order to price their products. In the cost-plus pricing structure, a profit margin is added to the product's manufacturing expense, to determine the ultimate selling price. This pricing structure enables vendors to ensure a profit on the products being sold. Few of the key factors influencing the prices of tube packaging include fluctuations in the prices of raw materials such as aluminum and plastic, variations in labor costs, deviations in fuel and shipping costs, and geographic location. For instance, prices of Polyethylene (PE) and Polypropylene (PP) resins are forecasted to rise in Q1 2024. In 2023, the prices of aluminum tubes used for packaging in the U.S. were in the range of USD 0.05 - USD 1.2 per tube. The prices of laminated tubes were in the range of USD 0.06 - USD 0.7 per tube. Moreover, the prices of plastic tubes were in the range of USD 0.03 - USD 0.5 per tube.
Asia Pacific dominates the global tube packaging category, holding a significant portion of the global market share. Key drivers for this region include rapid urbanization, rise in demand from emerging countries such as China, India, and Vietnam, rise in the number of suppliers entering the market, favorable government initiatives, and increase in usage among cosmetics and cleaning products. Key driving factors in developed regions such as North America and Europe include presence of large-scale companies, high adoption of technological innovations, robust production infrastructure, and high demand for environmentally friendly products. Asia Pacific is expected to be the fastest growing region during the forecasted period due to a rise in the disposable income, increase in the demand from oral care and cosmetics, and surge in the usage of compact-size tube packaging. Comparing the prices charged by various suppliers, assessing product portfolio of various suppliers, evaluating the experience level of suppliers, comparing product innovations, comparing the lead time of various suppliers, evaluating customer ratings, and checking adherence to environmental and safety standards are some of the best sourcing practices considered in this category.
Tube Packaging Procurement Intelligence Report Scope
• Tube Packaging Category Growth Rate: CAGR of 5.7% from 2024 to 2030
• Pricing Growth Outlook: 5% - 10% increase (Annually)
• Pricing Models: Cost-plus pricing, Competition based pricing, Demand-based pricing, Volume-based/bulk pricing
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier Selection Criteria: Geographical service provision, industries served, years in service, employee strength, revenue generated, regulatory certifications, key clientele, usage mode (squeeze/twist), sustainable product offerings, integration of smart packaging (yes/no), customer service, lead time, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
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Key Companies
• Albea Group
• Amcor plc
• Berry Global Inc.
• EPL Limited
• Hoffmann Neopac AG
• Huhtamäki Oyj
• Montebello Packaging
• Romaco Group
• Sonoco Products Company
• Unette Corporation