The global plastic packaging market is predicted to be worth US$370.25bn by 2020, according to a new report.

The report by Transparency Market Research covers plastic packaging across a range of sectors including personal care, food and beverage, industrial, household products and medical.

It predicts that the global plastic packaging market will register a compound annual growth rate (CAGR) of 5.2 percent between 2014 and 2020.

The market was worth US$259.65 billion by the end of 2013. In terms of volume, the plastic packaging market was worth 78,400.2 kilo tons in 2013.

Demand for plastic packaging was highest from the food & beverages sector and accounted for over 65 percent of the market. Asia Pacific registered highest demand for plastic packaging in 2013, with over 35 percent of the market share, due to the large number of manufacturing plants in this region.

Over the next five years, demand is expected to be strongest from the pharmaceutical market. This is a result of new regulations, which are being introduced to improve and standardize packaging for drugs internationally in order preserve medicine more effectively and reduce counterfeit.

Rising consumer preference towards lightweight, durable and highly aesthetic packaging is expected to significantly encourage growth of the market over the next few years. However, volatility in prices of crude oil, which consequently affects the prices of its downstream chemicals is expected to hamper the market.

Polyethylene is currently cheapest and most widespread plastic film used for food packaging across the globe. Other plastics such as polypropylene are also gaining importance in the plastic packaging market.