Bright Prospects for the Industrial Packaging Market
Capitalizing predominantly on import and export activities, industrial packaging is anticipated to experience a surge in growth as commercial trading regains momentum.
According to Mordor Intelligence, a market research and consulting organization, the global industrial packaging market size is projected to reach USD 66.27 billion by 2024 and expand to USD 83.45 billion by 2029, exhibiting a CAGR of 4.72% during the 2024-2029 period. These figures demonstrate the industrial packaging market as a fertile ground, attracting investors and numerous businesses to venture capital.
In Vietnam, statistical data indicates that approximately 200 enterprises currently operate within the industrial packaging sector, with the export market size estimated at USD 500 million per annum. This figure is relatively modest compared to neighboring countries.
Consequently, the industrial packaging sector presents substantial untapped potential with ample room for expansion. Analysts suggest that Vietnam’s active participation in global economic integration through the signing of free trade agreements (FTAs) such as EVFTA, CPTPP, and RCEP will facilitate the export of industrial packaging products to member countries with zero or negligible tariffs. This serves as a significant impetus for Vietnamese packaging manufacturers to enter the market, enhancing the competitiveness of Vietnamese packaging on the global stage.
Conquering the Market with a Strategic Business Plan
Recognizing market demand and the advantages of FTAs, several Vietnamese enterprises have boldly invested in machinery and technology to manufacture high-quality industrial packaging, meeting the stringent requirements of demanding and sophisticated markets.
“We have been investing heavily in this segment for the past five years and now have a stable and growing order book due to strong market demand,” said a representative of An Vinh Packaging Joint Stock Company (An Vinh Packaging).
An Vinh Packaging is a prominent name in the industrial packaging segment in Vietnam. It is a subsidiary of An Phat Holdings Group, a long-standing and reputable enterprise known for its high-tech and environmentally friendly plastic products.
Leveraging its established market network, An Vinh Packaging is now expanding exports, with two primary product lines: Sling bags and Jumbo bags featuring diverse designs that cater to customer needs. “Our Jumbo bags and Sling bags are highly durable and can withstand loads of up to 2000 kg, enabling the transportation or packaging of heavy and bulky goods,” the company representative explained.
As an export-oriented enterprise, An Vinh Packaging considers technology as a critical factor in ensuring product quality, thereby increasing competitiveness against rivals. “We invest heavily in technology, with a range of modern and 100% new machinery such as fiber-making, weaving, cutting, coating, sewing, load testing, and UV testing machines to achieve self-sufficiency in production and quality control,” the company representative stated.
An Vinh Packaging’s state-of-the-art machinery
Furthermore, An Vinh Packaging emphasizes research and development to introduce new products, including geotextiles and agricultural fabrics, to broaden customer choices and explore new markets.
With a well-defined business strategy, An Vinh Packaging’s operations are continuously expanding. Current production output stands at approximately 500,000 bags per month, a significant increase from the 100,000 bags per month produced in 2018. The company’s products are now present in numerous countries, including the United States, Canada, Japan, Thailand, Malaysia, Singapore, and Australia.
“Japan is a challenging market to enter, but An Vinh Packaging now supplies one-third of its total production to this market,” the company representative added.
Recognizing the promising prospects and vast potential of the industry, An Vinh Packaging’s representative indicated that the company will continue investing in technology, acquiring additional new machinery to increase production capacity, particularly for Jumbo bags, while also focusing on designing and manufacturing products with higher complexity to expand its market reach. Beyond its two primary markets in the Americas and Asia, the company is currently exploring entry into Europe, a region characterized by stringent product specifications and highly competitive pricing.
