Packaging Foam Market

Packaging Foam Market: Polyurethane (PU) to Remain Most Preferred Material Type: Global Industry Analysis 2012 - 2017 and Opportunity Assessment 2018 - 2026

Packaging foam market analysis: More than 70% of the revenue to be generated by the flexible foam segment in 2018, which is expected to increase further by the end of 2026

The global sales for packaging foam witnessed a minor slowdown in the Covid-19 crisis as all the factories were closed and supply of only basic necessity goods was permitted. Since the lockdown has been lifted up to improve economic conditions, the manufacturing companies are trying hard to gain traction and attract customers globally through innovative launches, online selling and technological upliftments in 2021.

Prominent manufacturing companies including Armacell, JSP, Zotefoams Plc, BASF SE, Sealed Air Corporation, Synthos SA, Rogers Corporation, Kaneka Corporation, and Arkema and Foampartner Group are investing in the establishment of a strong distribution network to remain competitive in the market. Adoption of business strategies like research and developments, new product launches, product approvals, patents and events, joint ventures, product innovations, partnership agreements, collaborations, digital marketing, mergers and acquisitions etc continues to be on the prime attention of leading players to emerge as a recognized and profitable business firm.

For instance, Sealed Air corporation acquired Automated Packaging Systems Inc which is a leading manufacturer of highly reliable automated bagging systems. The company invested $510 million on the acquisition. APS is famous for inventing Autobag® bagging machines and pre-opened bags. It also deals in three recycled film solutions under the EarthAware® brand. The acquisition brought out cross selling opportunities and cost synergies as a result from supply chain efficiencies which enabled growth for Sealed Air Corporation.

In terms of growth, the market in Asia Pacific is anticipated to stay ahead at a promising revenue rate during the forecast period. Increased foreign investments and e-shopping trends in countries like India and China are projected to boost growth of the packaging foams market. Other key regions are North America, Latin America, Europe, Japan and Middle East & Africa.

The global market for packaging foam was valued at US$ 5,048.1 Mn in 2017 and is projected to expand at a CAGR of 5.5% during the forecast period (2018-2026).

In terms of material type, polyurethane (PU) is expected to be the most attractive segment in the packaging foam market across the globe representing the highest CAGR in the global packaging foam market. The increase in manufacturing activities and industrial output has led to growing opportunities for the packaging foam technology in the packaging market. Packaging foam ensures the safety of the product.

With a rise in the protective packaging solutions in the e-commerce industry, packaging foams have become essential to the packaging industry. Globally, flexible foam segment by product type of packaging foam market will register a CAGR of 3.1%. The most commonly used product type in packaging foam is flexible foam and rigid foam. The flexible foam market’s value share is accounting for more than 70% of the global market share of the packaging foam market during the forecast period.

Drivers & Restraints for the Global Packaging Foam Market

3PL will play a key role in driving the demand for safe and protective transportation and will lead to a rise in demand for the global packaging foam market. Efficiency is a crucial challenge for manufacturers and retailers. This is where packaging foam plays an important role. In accordance with this challenge, reducing the overall cost of supplying is an aspect which is considered as a significant factor in the market and a driver towards outsourcing activity. Service providers of 3PL act as agents which are capable of flexing to different challenges and demands.

This has led to an increase in demand for packaging foams. A variety of prospects and trends from Omni-channels and e-commerce growth to evolving consumer markets have unleashed opportunities for retailers and manufacturers to enhance their supply chain productively. This is the prominent factor which will drive the growth of the global packaging foam market. The usage of 3PL is a significant motivation factor among retailers and packaging foam manufacturers in growing their sales rather than improving their bottom line.

Conventionally, service providers of 3PL were helping to make inroads for new sourcing location, but today they have enhanced themselves to support companies to expand into the consumer market as well. They have witnessed a massive shift from supply to demand as the emerging economies continue to develop. Therefore, the ever-growing demand for 3PL is considered as a significant factor towards the growth of the packaging foam market.

Continuous growth in the e-commerce industry along with an increase in the rise of the sale of protective packaging products has led to the emergence of the global packaging foam market. Packaging foam manufacturers and retailers use simplified designs, lightweight packs, and recyclable material for the transportation of the product. This has led to witness the growth of the global packaging foam market during the forecast period.

Key Developments in the Global Packaging Foam Market

  • In June 2016, BASF S.E. extended its innovative foam solutions portfolio with the Ecovio EA.
  • In March 2016, BASF SE and Kolon Plastics, an engineering plastics specialist company, entered into an agreement to establish a JV in Korea to manufacture polyoxymethylene (POM).
  • In January 2015, Sealed Air Corporation realigned its product care segment into global performance packaging and global general packaging.
  • In May 2016, Sealed Air Corporation entered into the strategic partnership with Box On Demand and Panotec, providers of 3- dimensional equipment platforms.

Market Taxonomy of the Global Packaging Foam Market

The global market for packaging foam is segmented by material type, product type, end use, application, and region.

On the basis of material type, the global packaging foam market is segmented into polystyrene, polyurethane (PU), poly vinyl chloride (PVC), and others. Polyurethane (PU) is anticipated to register a CAGR of 3.9% of the global packaging foam market during the forecast period.

On the basis of product type, the global packaging foam market is segmented into flexible foam and rigid foam. Flexible Foam is anticipated to register a CAGR of 5.4% of the global packaging foam market during the forecast period.

On the basis of end use, the global packaging foam market is segmented into automobile industry, construction industry, food & beverage industry, consumer electronics, and homecare and personal care. Packaging manufacturers prefer packaging foam for protective packaging products.

On the basis of application, the global packaging foam market is segmented into inserts, corner and edge protectors, antistatic ESD foam, liners, and others. Furthermore, on the basis of region, the global packaging foam market is segmented as North America, Latin America, Europe, Japan, Asia Pacific excluding Japan (APEJ), and Middle East & Africa.

Key players for the global packaging foam market are Armacell, JSP, Zotefoams Plc., BASF SE, Sealed Air Corporation, Synthos SA, Rogers Corporation, Kaneka Corporation, and Arkema and Foampartner Group.

Key Segments Covered

By material type, the global packaging foam market is segmented into:

  • Polystyrene
  • Polyurethane (PU)
  • Poly Vinyl Chloride (PVC)
  • Others

By product type, the global packaging foam market is segmented into:

  • Flexible Foam
  • Rigid Foam

By end use, the global packaging foam market is segmented into:

  • Automobile Industry
  • Construction Industry
  • Food & Beverages Industry
  • Consumer Electronics
  • Homecare & Personal Care

By application, the global packaging foam market is segmented into:

  • Inserts
  • Corner & Edge Protectors
  • Anti-Static ESD Foam
  • Liners
  • Other

Regional analysis of packaging foam market is presented for following market segments:

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  •  Europe
    • Germany
    • France
    • U.K.
    • Spain
    • Italy
    • Rest of Western Europe
  • APEJ
    • China
    • India
    • Australia & New Zealand
    • ASEAN
    • Rest of APAC
  • Japan
  • MEA
    • GCC Countries
    • Turkey
    • South Africa
    • North Africa
    • Rest of MEA

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