Packaging Foam Market by Material Type (Polystyrene, Polyurethane, Poly Vinyl Chloride), Product Type (Flexible Foam and Rigid Foam), End Use (Automotive Industry, Construction Industry, Food & Beverages Industry, Consumer Electronics, Homecare & Personal Care), Application (Inserts, Corner & Edge Protectors, Anti-Static ESD Foam, Liners), and Region for 2022 and 2026

Packaging Foam Market Outlook – 2022-2026

[275 Pages Report] The global packaging foam market was valued at US$ 6.6 Bn in 2022 and is projected to record a CAGR of 5.7% during the review period from 2022 to 2026.

Increasing penetration of smartphones is anticipated to be a significant factor that can drive the market during the review period. Growing manufacturing activities is likely to offer lucrative market opportunities in the coming time. Further, the rising popularity of eCommerce and surging demand for lightweight packs are likely to augment the industry size.

Flexible foam and rigid foam are the most commonly used product type. The flexible foam market is anticipated to secure more than 70% of the global market during the assessment tenure.

Rising adoption of packaging foam for protecting fragile and sensitive products such as electronics and pharmaceuticals is spurring the growth of packaging foam market and the trend is likely to continue in the future.

Based on application, the liners segment is anticipated to lead the global packaging foam market, accounting for a share of 33.7% in 2022. Adoption of foam liners for protecting various electronic and food products is spurring their sales.

2012-2021 Packaging Foam Market Outlook Compared to 2022-2026 Forecast

The packaging foam market is forecast to expand at a CAGR of 5.7% between 2022 and 2026 in comparison to 4.8% CAGR registered from 2012 to 2021.

According to Future Market Insights (FMI), the global packaging foam market is primarily driven by the increasing demand for packaging foams from diverse end use industries such as food & beverages, consumer electronics and automotive.

Packaging foam has become a standard packaging solution for protecting delicate items from any external impact including vibration and abrasion at the time of shipping and delivery. It offers various advantages such as excellent thermal insulation, lightweight, low cost and customizable nature.

In recent years, the demand for packaging foam has risen at an exponential rate because of its advanced cushioning nature. Companies are increasingly employing packaging foams to protect their products while transporting.

Expanding e-commerce industry, surging demand for ready-to-eat foods and flourishing import-export trade business are bolstering the demand for packaging foam.

Growing focus towards sustainability and ecofriendly packaging has paved way for the development of bio-based and recyclable products. Manufacturers are employing various technologies for developing ecofriendly packaging foams. For instance, in December 2021 M2Bio Sciences announced the launch of its new sustainable packaging solution called Hempcelium. The new Hempcelium transport packaging foam is made from hemp agri-waste and mushroom mycelium.

Similarly, in Perdue Farms developed an innovative foam insulation packaging that can either be composted or disintegrated under water.

Moreover, the flourishing import and export business around the world is supporting the growth of packaging foam market. Packaging foam products such as flexible foam and rigid foam are extensively used for protecting the fragile electronic, medical and automotive components during the long shipping activities.

A total valuation of US$ 8.2 Bn has been projected for the global packaging foam market by FMI through 2026.

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Will Booming E-Commerce Continue to Spurring Packaging Foam Market Growth?

The rising popularity of e-commerce is creating lucrative growth opportunities within packaging foam market. Factors such as hectic lifestyle, rising disposable income and increasing penetration of internet are pushing the e-commerce sales.

According to the United Nations Conference on Trade and Development (UNCTAD), the global e-commerce sales surpassed a gigantic valuation of US$ 25.6 trillion. Expanding e-commerce and home deliver businesses will continue to augment the demand for packaging foam.

Growing interest in purchasing new products from foreign suppliers remains one of the key factors in expanding packaging foam market. People living in both developed and emerging countries are taking full advantage of online shopping platforms for purchasing various items. As majority of these products require better protection while shipping and logistics, companies employ packaging foam for this purpose.

Moreover, e-commerce companies are using various strategies such as attractive discounts and free shipping to woo more and more costumers. This is anticipated to support the growth of packaging foam market during the forecast period.

Amid rising demand for e-commerce packaging, the global packaging foam market is set to expand 1.25X through 2026.

How Will the Growth of 3PL (Third-Party-Logistics) Affect the Packaging Foam Market?

Rising e-commerce sales and blooming import-export business have put huge pressure on manufacturers around the world. To coup with this situation, they are hiring logistic companies. By doing this, they can focus more appropriately on their core work as well as  reduce the overall charges.

Packaging foam plays a crucial role in protecting and safeguarding the delicate items across distribution chains. It provides superior protection as well as reduces the overall weight during shipping and logistics processes.

As products are more prone to external damages during long shipping and logistic activities, 3PL companies utilize different packaging foams while delivering products to their destinations. Thus, expanding 3PL industry across the world will continue to boost the sales of packaging foam over the forecast period.

Country-wise Insights

Why is China Dominating the Global Packaging Foam Market?

China has been at the epicenter of growth since last few decades. The continuous advancement in technology and blooming economy has ushered in a new life into China packaging foam market.

Rise in export trade, increasing production of automotive and flourishing electronic & electrical industry are some of the factors driving the packaging foam market in China.

According to the World Trade Organization (WTO), China was the top exporter of merchandise trade in 2020, accounting for 13% of the global trade. The total merchandise export trade in China reached around US$ 2,323 billion in 2020.

Moreover, strong presence of leading market players along with increasing penetration of e-commerce platforms is supporting the growth of the market. Some of the world’s e-commerce giants such as Alibaba are based in China.

Increasing spending by consumers on purchasing various products through internet will continue to boost the sales of packaging foam across the country. As per FMI, China will continue to dominate the Asia Pacific packaging market during the forecast period.

What is the Growth Projection for India Packaging Foam Market?

As per FMI, India is poised to emerge as the second most lucrative market in Asia Pacific through 2026. Expanding food & beverage industry, rising penetration of online shopping platforms such as Flipkart and Amazon, and increasing disposable income are some of the factors driving the packaging foam market in India.

With changing lifestyle and growing adoption of smartphones, people are spending huge amounts on purchasing products from e-commerce platforms. According to the India Brand Equity Foundation (IBEF), the e-commerce market in India is likely to reach a massive valuation of US$ 111.40 billion by 2025.

Various investments are being made to further develop and expand e-commerce sector across the country. For instance, in May 2021 Flipkart strengthened its grocery infrastructure to cater to customer demand and safety across India. Similarly, in April 2021, the company (Flipkart) announced a commercial alliance with Adani Group to enhance its logistics and data center capabilities.

Spurred by the aforementioned factors, demand for packaging foam in India is set to rise exponentially between 2022 and 2026.

How will the Growth Unfold in the U.S Packaging Foam Market?

The U.S. will continue to remain the most lucrative market for packaging foam in North America. Growth in the country is driven by the presence of leading packaging giants, continuous technological advancements, rising focus towards sustainability and increasing consumer spending on daily use products.

Rising adaption of foam for flexible packaging is boosting the growth of packaging foam market in the U.S. According to the Flexible Packaging Association (FPA), the flexible packaging industry had US$ 33.6 billion sales in the U.S. during 2019.

Moreover, expanding food and electronic industries is supporting the growth of the market across the country. Companies are using packaging foams for protecting various delicate products while shipping them.

Category-wise Insights

Why is Polyurethane More Preferred Over Other Material Types?

Polyurethane is the most utilized material for the production of packaging foam. It possesses various attractive features such as lightweight, high abrasion resistance, excellent insulation and ecofriendly nature. It can be easily modified to suit a variety of applications.

Over the last few decades, polyurethane foam has gained wider popularity for protecting light and fragile products. Moreover, due to its excellent resistance to mildew, it is an ideal packaging solution for shipping foods or moisture sensitive products. A moderate CAGR has been anticipated for polyurethane segment by FMI.

Which is the Top Selling Product in Packaging Foam Market?

As per FMI’s latest market analysis, flexible foam segment will continue to dominate the global packaging foam market, accounting for over 70% share through 2026. Rising adoption of flexible foam for protecting sensitive products including electronic parts, jewelry and computer components is spurring the sales of flexible foam packaging.

Flexible foam is extremely lightweight and thus helps in reducing emission in transport applications. It provides durable protection for many sensitive products and can also be easily customized.

Why is the Demand for Packaging Foam Increasing in Automotive Industry?

Packaging foam has emerged as an ideal solution for protecting the automotive products during handling and transportation activities. It facilitates the safe and affordable transport of vehicle parts. Rapid growth in automotive production will continue to fuel the demand for packaging foam.

A healthy market share has been predicted for automotive industry segment by FMI through 2026.

Which is the Most Ideal Application for Packaging Foams?

Based on the application, the packaging foam market has been segmented into inserts, corner & edge protectors, anti-static ESD foam, liners and others. Among these applications, liners segment is anticipated to lead the market, accounting for a share of 33.7% in 2022.

Foam liners provide positive sealing for foods, beverages, pharmaceuticals, cosmetics, industrial, and household chemicals. Surging demand for foam liners across multiple industries such as food & beverages, pharmaceutical and cosmetics will continue to boost the growth of packaging foam market during the forecast period.

Competitive Landscape

Leading players operating in the packaging foam market are investing vigorously in research activities for the development of bio-based products. Besides this, they are leveraging various growth strategies such as partnerships, acquisitions, collaborations and partnerships to dominate the market. For instance

In November 2021, Stora Enso expanded its packaging portfolio with the launch of new bio-based foams i.e., Fibrease and Papira. The new products are lighter and fully recyclable. They are ideal for protective and thermal packaging.

In November 2020, Armacell, a global leader in flexible foam for the equipment insulation market and a leading provider of engineered foams, launched new Armacell Solutions Portfolio into North American market.

Scope of the Report

Packaging Foam Market by Category

By Material Type:

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

By Product Type:

• Flexible Foam
• Rigid Foam

By End Use:

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

By Application:

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

By Region:

• 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