In the report Ranking of Top 10 Reputable Packaging Companies in 2024 published by Vietnam Report Joint Stock Company on October 9, 2024, the figures show that the packaging industry is facing new development opportunities but is also under a lot of pressure from the greening trend.

Wide open opportunities

According to the Vietnam Packaging Association, there are currently about 14,000 enterprises operating in the packaging sector nationwide, of which 65% focus on producing plastic packaging.

The number of enterprises operating in this industry is forecast to increase due to the stable development of the domestic economy.

In the first 9 months of 2024, GDP increased by 6.82%, opening up the prospect that the whole year of 2024 will achieve a growth rate of 6.5% to 7%.

The industrial production index also recovered and grew impressively with an increase of 8.6% over the same period last year.

In addition, domestic consumption demand continued to increase. Total retail sales of goods and consumer service revenue in the first 9 months of 2024 are estimated at VND 4,703,401 billion, up 8.8% over the same period.

The above factors have created great momentum for the packaging industry, especially packaging for the food and beverage industry, to develop.

The report on the Top 10 Reputable Packaging Companies in 2024 shows that in 2024, Vietnam Report added a ranking of the Top 5 Metal Packaging Group while in 2023 there was no such ranking. This proves that the demand for packaging has shifted towards expansion.

The names announced in the top 5 metal packaging groups are also quite new, such as: Crown Dong Nai Beverage Packaging Company Limited, TBC-Ball Vietnam Beverage Can Company Limited, Hanacans Joint Stock Company, Petroleum Mechanical Joint Stock Company, My Chau Printing and Packaging Joint Stock Company.

However, according to forecasts from Mordor Intelligence, the paper packaging market in Vietnam will still be dominant in the coming time with revenue reaching about 2.6 billion USD in 2024 and is likely to increase to 4.14 billion USD in 2029 with a compound annual growth rate (CAGR) of 9.73% in the period 2024-2029.

The plastic packaging segment is predicted to dominate the market with an expected output of 15.09 million tons in 2028, a compound growth rate (CAGR) of 8.44% (2023-2028).

Currently, the greening trend is putting pressure on the packaging industry as the demand for environmental protection is increasing globally.

In Vietnam, greening the packaging industry is not only a requirement from the law and consumers but also comes from the awareness of the business community.

According to a study conducted by Vietnam Report in 2023, the rate of enterprises that have planned and partially implemented Environmental - Social - Governance (ESG) commitments increased slightly to 37.5%, the rate of enterprises in the planning stage decreased to 40.1%. In particular, the number of enterprises that have shifted from planning to implementing ESG commitments increased by 3.7%.

In addition, the trend of consumers prioritizing products and services of businesses with sustainable brands, social responsibility, and product quality is also putting pressure on packaging businesses.

The results of Vietnam Report's F&B consumer survey show that up to 92.1% of consumers are particularly interested in the level of environmental friendliness of product packaging, an increase of 12.5% ​​compared to 2023.

Source: BUSINESS FORUM MAGAZINE