Plastic Collapsible Tubes

Plastic Collapsible Tubes Global Market Outlook:

• The tube market is likely to experience a strong growth in the next five years, driven by the rapidly growing consumption of personal care products in APAC and LATAM

• Growing concerns over package sustainability and costs are also likely to facilitate substitution of bottles by tubes

• The global tube market expects a significant growth of CAGR 6–7 percent from 2023 to 2027, owing to the increasing use of flexible packaging formats in nearly all key downstream segments, especially Personal care, Hygiene and cosmetics market. The oral care market is a major demand driver

• The high demand for packaging essential commodities such as sanitizers have heled the global tubes market to witness minimal disruption. The tie ups of converters

• APAC is expected to drive growth in the next five years, with over 8 percent CAGR in 2023-2027, owing to the rising per capita income in the key markets, like India, China, Malaysia, Thailand, etc., coupled with the growing rate of urbanization, fostering increased consumption of FMCG products

• Concerns over sustainability and growing preference of innovative packaging over traditional formats, like glass, metal, and plastic containers, have led to the preference of tubes in personal care, pharma/healthcare, and oral care market globally

Global Packaging Tube Drivers and Constraints: Plastic Tube

Drivers

Strong Growth in Cosmetics Market

• Strong growth prospect in the cosmetics segment, especially from the developing market, is expected to be the major driver for plastic tubes globally

• Apart from key markets, like India, China, Brazil, etc., other emerging markets, like Thailand, Malaysia, Chile, South Africa, etc., are expected to drive plastic tubes consumption in the cosmetics segment

Advancement in Dispensing Systems

• High-end tube dispensing solutions, like applicators, child resistant closure, bomb dispensers, etc., facilitating safe and efficient product dispensing are gaining preference, especially in the cosmetics market

Increasing Preference over Premiumization

• The growing preference of packaging premiumization in the west is driving the sale of plastic tube, especially in the skin care segment. New clear tube options are gaining preference over laminates in key end-use segments, like cosmetic and oral care, owing to its see-through and bounce-back properties

Growth in Injection Molded Tubes

• Injection molded tubes, owing to features, like seamless look, premium feel, and easy recyclability, are gaining market preference over alternative tube packaging formats

• Injection-molded tube with in-mold labeling makes these tubes highly sustainable and esthetically advanced packaging format for varied end-use applications

Constraints

Substitution from Laminate Tubes

• Laminate tubes are emerging as a strong alternative to plastic tubes in the cosmetics and food segments, owing to its low-cost nature and high barrier properties. New developments, like high Polyfoil tubes, Reflexion Tubes, are some of high obstructive, high gloss finish packages, which are emerging as a strong alternative to plastic tubes

Lack of Availability for Food-Grade Recycled Solutions

• Though the PCR plastic tubes have been gaining popularity across the globe, many brands with safety and product compliance requirements are concerned about the grades of materials used in these sustainable tubes. Lack of food grade and high-quality recycled resins materials reduce the adoption rates of these sustainable tubes

Cost Structure Analysis: Plastic Tubes

• APAC is the leading producer of PE resins across the globe. The China acts as a major sourcing hub for developing counties, such as Vietnam, Thailand, and the Philippines, in this region for procuring LDPE resins

• Raw materials LDPE used in the sleeves are the major cost contributor for plastic tubes, followed by indirect costs, such as overhead expenses. The contributions of labor and utility costs are expected to be low, as the complexity associated with production of these tubes are lower compared to laminate tubes. Majority of the production is highly automated

• Polyethylene has a strong supply across all major regions