Growth Opportunities for Industrial Packaging Manufacturing Companies
The industrial packaging market is poised for substantial growth in the foreseeable future as trade activities regain momentum.
With import and export activities gradually becoming vibrant again and high market demand on the rise, the industrial packaging industry is expected to experience significant growth in the near future.
Bright Prospects of the Industrial Packaging Market
As a sector primarily dependent on import and export activities, the industrial packaging market is poised for substantial growth in the foreseeable future as trade activities regain momentum.
According to Mordor Intelligence, the global industrial packaging market size is estimated at USD 66.27 billion in 2024 and is projected to reach USD 83.45 billion by 2029, growing at a CAGR of 4.72% during the forecast period (2024-2029). These figures underscore the fertile nature of the industrial packaging market, attracting investors and numerous businesses to invest capital.
The Industrial Packaging Field Still Has Room for Development
Meanwhile, in Vietnam, current statistics indicate that there are only about 200 businesses operating in the field of industrial packaging, with an estimated export market size of USD 500 million per year. This figure is relatively modest compared to other countries in the region.
Thus, the industrial packaging market still holds significant untapped potential, with ample room for development. Analysts suggest that Vietnam's active participation in international economic integration, facilitated by signing a series of free trade agreements (FTAs) such as EVFTA, CPTPP, RCEP, will enable industrial packaging products exported to member countries to enjoy tax rates equal to or close to 0%. This presents a significant incentive for Vietnamese packaging manufacturing companies to enter the market, enhancing the competitiveness of Vietnamese packaging on the global stage.
Dominating the Market Thanks to a Comprehensive Business Strategy
Recognizing market demand and the benefits offered by FTAs, a number of Vietnamese businesses have boldly invested in machinery and technology to produce high-quality industrial packaging that meets the stringent requirements of large and demanding markets.
"We have made significant investments in this segment over the past 5 years and now experience a stable increase in orders due to the high market demand," a representative of An Vinh Packaging Joint Stock Company (An Vinh Packaging) stated.
An Vinh Packaging is a well-known name in the industrial packaging segment in Vietnam, belonging to An Phat Holdings - a reputable group renowned for its high-tech and environmentally friendly plastic products.
Leveraging its existing market network, An Vinh Packaging is currently focusing on export promotion, with two primary product lines: Sling bags and Jumbo bags, featuring diverse designs to meet customer needs. "Our Jumbo bags and Sling bags are highly durable with a load capacity of up to 2000 kg, facilitating the transportation or packaging of heavy and large goods," noted the company representative.
As an export-oriented business, An Vinh Packaging considers technology a key factor in ensuring product quality and enhancing competitiveness against rivals. "We make substantial investments in technology, utilizing a range of modern and state-of-the-art machines such as yarn-making, weaving, cutting, coating machines, sewing machines, load testing machines, UV testing machines, to streamline production and quality inspection processes," explained the company representative.
Additionally, An Vinh Packaging actively engages in research and development, introducing new products such as geotextiles and agricultural fabrics to expand customer choices and explore new markets.
With a comprehensive business strategy, the scale of An Vinh Packaging's operations is steadily expanding. Current production output stands at approximately 500,000 bags per month, a significant increase compared to 100,000 bags per month in 2018. The company's products are currently exported to various countries including the US, Canada, Japan, Thailand, Malaysia, Singapore, and Australia.
"Entering the Japanese market is challenging, but An Vinh Packaging currently serves up to one-third of its total output to this market," added the company representative.
Recognizing the bright prospects and immense potential of the industry, the representative of An Vinh Packaging affirmed that the company will continue to invest in technology and acquire new machinery to increase production output, particularly focusing on Jumbo bags. Additionally, the company aims to design and manufacture more sophisticated products to expand its market presence. In addition to its key markets in America and Asia, the company is actively exploring opportunities to enter the European market, where product specifications and prices are highly competitive.
