Plastic Materials to Account for 59% of the Protective Packaging Market in 2021: FMI Report
Protective packaging solutions are predominantly used in industries to protect industrial and non-industrial goods from magnetic influences, vibration, shock, and electrostatic or atmospheric damage. According to a recent FMI report, the protective packaging market will surpass a valuation of US$ 26.5 Bn in 2021, exhibiting a CAGR of 4.8% between 2021 and 2031.
Protective Packaging Market
A recent market report published by Future Market Insights on the protective packaging mar...
The rising emphasis of manufacturers on safe and secure transportation of fragile and non-fragile products to reduce unnecessary maintenance and shipping costs is propelling the sales of protective packaging solutions in the market.
Additional benefits of protective packaging such as moisture and air barrier properties with high-level customization are driving market growth. FMI predicts that future demand and sales of protective packaging solutions will witness an upwards trajectory. Pivotal factors such rising output from the manufacturing sector coupled with swift penetration of transport and logistics worldwide is accelerating the growth of the protective packaging market substantially.
The COVID-19 pandemic and its global impact has adversely affected the global protective packaging market. Stringent and complete lockdowns in American, European and Asian countries resulted in a decline in the supply and sales of protective packaging solutions.
Fluctuation in demand from various end use industries has created negative impact on the demand of protective packaging solutions. The demand for protective packaging solutions will be sluggish for the next two quarters of 2021 as various countries across the globe are witnessing a new wave of the COVID-19 pandemic. Nevertheless, demand for protective packaging solutions will gain traction in the later part of 2021 as industries recover rapidly with adequate precautionary measures.
Key Takeaways from Protective Packaging Market
- Flexible protective packaging is leading the market and is projected to hold more than 65% of the value share during the next decade, supported by improved flexibility in logistics.
- Plastic is a widely used material for producing a wide range of protective packaging solutions. It is projected to witness incremental opportunity of US$ 7.9 Bn during the forecast period.
- The U.S. is a dominant market, accounting for more than 88% of the North America market. It is driven by strict packaging standards and regulations in multiple industries.
- Germany will remain a dominant market in Europe, accounting for over 22% of the regional market share, supported by the presence of an active manufacturing sector.
- China and India are high potential markets reflecting a 7.5% and 9% CAGR through 2031 respectively. These markets are supported by wide consumer bases and manufacturing sectors.
“Recent developments aimed at encouraging faster conveyance of heavy and light duty goods with precise and safe packaging solutions is fuelling the popularity of protective packaging offerings among end users. Evolving preferences of industry players as they exhibit higher focus on sustainability and paper-based corrugated packaging solutions are anticipated to create new growth avenues for protective packaging manufacturers,” says the FMI analyst.
Protective Packaging Solutions Prevent Damage to Fragile Cargo
Handle with care warnings are displayed on fragile cargo as there is little margin for mistakes and mishandling. Fragile goods and items are oddly sized and fragile in nature, requiring a customized packaging solution to ensure safe and secure transportation.
Shipping and cargo industries employ protective packaging solutions for bracing of cargo, damage prevention, and securing products during transit. Protective air pillows, dunnage bags, shipping containers, mailers and more are designed to reduce the impact of jerky movements and to preserve the integrity of industrial goods including delicate items.
Lightweight protective packaging solutions are preferred for loading fragile goods. Products and goods with high importance are also included in the fragile category as it is necessary to protect and deliver them undamaged. Rising demand for such resilient yet easy-to-use packaging solutions for safe and secure shipments is propelling the protective packaging market.
Who is winning?
The Tier 3 players in the fragmented protective packaging market hold 75-85% of the overall market share. In conclusion, key players contribute almost 15-25% of the global market. Product development efforts coupled with capacity expansion strategies are likely to gain interest of major players in the market.
Sealed Air Corporation, Smurfit Kappa Group, DS Smith Plc, WestRock Company, Sonoco Products Company are the top players operating in the protective packaging market. Furthermore, Greif, International Paper Company, Cascades Inc, Schur Flexibles Holding GesmbH, Winpack Ltd, Crown Holdings Inc are also the noticeable players in the protective packaging market.
Valuable Insights into Protective Packaging Market Report
Future Market Insights, in its new report, offers an unbiased analysis of the global protective packaging market, analyzing historical demand from 2014-2020 and forecast statistics for 2021-2031. The study reveals growth projections on the protective packaging market on the basis of material type (foam plastic, paper and plastic), product type (foam protective packaging, flexible protective packaging and rigid protective packaging), and function type (Wrapping, void fill, cushioning, insulation and blocking and bracing) across seven regions.
About Packaging Division at Future Market Insights
The Packaging division at FMI provides an in-depth historical analysis and granular projections of the global packaging market. Ranging from packaging materials to designs & formats, FMI has an exhaustive market research database, serving clients with unique offerings and strategic recommendations. With a repository of 750+ reports, the team analyzed the packaging industry comprehensively in 70+ countries. The team evaluates every node of the value chain and provides end-to-end research and consulting services; reach out to explore how we can help
About Future Market Insights (FMI)
Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in Dubai, and has delivery centers in the UK, U.S. and India. FMI's latest market research reports and industry analysis help businesses navigate challenges and make critical decisions with confidence and clarity amidst breakneck competition. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. A team of expert-led analysts at FMI continuously tracks emerging trends and events in a broad range of industries to ensure that our clients prepare for the evolving needs of their consumers.
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