Protective Packaging Market - Key Research Findings
- The global protective packaging market size was ~US$ 26 Bn in 2018.
- The protective packaging market is expected to grow at a CAGR of ~5% during the forecast period of 2019-2029.
- Rapidl growth of e-commerce in retail sector and increasing innovations in manufacturing industry are driving need for a cost-effective barrier which is resistant to vibration and shock during transportation of products.
- In terms of market share, North America and Asia Pacific Excluding Japan (APEJ) are anticipated to account for ~60% share of the protective packaging market by the end of 2029.
- Strong presence of key manufacturers and suppliers of protective packaging in these regions is significantly contributing to the market growth.
- APEJ and Middle East & Africa are envisaged to hold high growth potential for the protective packaging market.
- Increasing trade activities in these regions have created growth opportunities for protective packaging manufacturers.
Protective Packaging Market Outlook
There has been an increase in demand for convenient packaging materials for the production of electronics, pharmaceuticals, and electronics, across various end-use industries. Given this influence, manufacturers have constantly been working in their spaces to diversify their product portfolios in the protective packaging market.
Various types of packaging materials such as spacers, liners, containers, storage boxes, and more are available. Since the on-the-go eating and drinking culture has been on the rise, demand for protective packaging materials is expected to grow during the forecast period. Besides this, innovative concepts in the food and beverage market related to the on-demand recipes and ready-to-cook food are also strong influencers driving the growth to the market.
COVID-19 times have generated untapped opportunities for the protective packaging market. There has been a shift in the behaviours of individuals, as they seek pharmaceuticals from online stores in general. As a result, the demand for protective packaging for pharmaceuticals is on the rise for safe delivery in urban as well as some rural areas, especially in the developed countries and some parts of the developing countries.
During the pandemic situation, numerous industries experienced a temporary shut down in their operations. As a result, the production and distribution of different products have halted, which is likely to cause a slow down in the growth of the protective packaging market during the forecast period. Several countries like Wales, London, France, and more have witnessed a second lockdown, owing to the second wave of coronavirus in their territories, which is expected to further hamper the steady growth of the protective packaging market during the forecast period.
During this time, the healthcare industry is likely to remain at the top of the demand for protective packaging and flexible protective packaging is anticipated to generate significant demand.
Key Factors Influencing the Protective Packaging Market Growth
- Increased Consumption of Protective Packaging by E-commerce Industry
Rising internet penetration across the globe has propelled the retail environment in developing countries such as China, India, and Malaysia, with a notable increase in number of retail formats such as hypermarkets, supermarkets, convenience stores, and retail e-commerce. In the view of increasing disposable income and spending lesser time on shopping, e-retailing is gaining a huge traction among individuals. E-commerce had removed the barriers between retailing globally.
Furthermore, rising smartphone penetration and ease in the availability of internet is considerably driving the growth of e-commerce. Therefore, continuous growth of the e-commerce industry along with increase in online shopping is expected to drive the growth of the protective packaging market. Continuous shift in the purchasing pattern of the consumers is forcing the manufacturers and retailers to produce innovative protective packaging products for the convenience of an individual.
- Expansion and Product Launch - Key Strategies Adopted by Manufacturers
Key protective packaging manufacturers are constantly focusing on intensifying their business footsteps to generate maximum revenue. These manufacturers are targeting developing countries such as China and India to capture considerable market share. Increasing need for a packaging with simplified designs, lightweight, and easily recyclable packaging aspects will continue to work to the advantage of protective packaging market players. For Instance,
- In June 2019, Pregis LLC invested in a new 50,000 square foot innovation headquarters designed to help solve protective packaging challenges.
- In April 2019, Sealed Air Corp. launched its new Jiffylite auto sealer to increase throughput when sealing bubble mailers.
- In January 2018, VPK Packaging Group invested in a new paper machine for lightweight recycled containerboard to strengthen its sustainable resource management.
- Frequently Changing Packaging Design and Configuration Representing Threat
Retailers and manufacturers are often dealing with an extensive range of product which can differ in weights, shapes, sizes, and fragility levels, which affects the protective packaging service providers in terms of delivery. In addition, excessive amount of time and money are required to classify a single protective packaging product for every type of end use.
It has been observed that one size that can fit all the applications is not possible in the protective packaging industry. This result in the need to review, test, and evaluate different protective packaging formats which are best suitable for the end use application. Therefore, continuous change in the configuration of package is considered to negatively affect the growth of the protective packaging market.
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Protective Packaging Market Structure Analysis
- Sealed Air Corp., Crown Holdings Inc., Sonoco Products Company are the leading players in the protective packaging market.
- In 2019, product launch and expansion strategies were adopted by leading manufacturers for expanding their business and product portfolio.
- Developments of new product and its launch are few of the imperative trends followed by the key protective packaging manufacturers.
In the protective packaging market, tier 1 companies hold a revenue share of ~ 5%-10%. Some of the prominent players in the market are DS Smith Plc, Packaging Corporation of America, Smurfit Kappa Group PLC, Cordstrap B.V., Crown Holding Inc., VpK Packaging Group, Pratt Industries, Inc., and Packaging Corporation of America. In this report, we have discussed distinct strategies followed by these manufacturers in terms of improving their product portfolio, creating new marketing practices, mergers and acquisitions.
Protective Packaging Market - Report Scope
Historical Data Available for
US$ Mn for Value
Key Regions Covered
North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, Japan, and Middle East & Africa (MEA)
Key Countries Covered
U.S, Canada, Germany, Brazil, Mexico, Rest of Latin America, U.K., France, Italy, Spain, Rest of Western Europe, BENELUX, NORDIC, Russia, Poland, Japan, India, ASEAN, Rest of Asia Pacific Excluding Japan, Australia, New Zealand, GCC, North Africa, Rest of MEA, & South Africa
Key Segments Covered
Material Type, Product Type, Function Type, Region
Key Companies Profiled
Market Overview, Key Market Trends, Key Success Factors, Demand Analysis, Market Background, COVID-19 Analysis, Segmental Analysis, Regional Profiling, Market Structure & Competition Analysis
Customization & Pricing
- Foamed Plastic
- Foam Protective Packaging
- Flexible Protective Packaging
- Rigid Protective Packaging
- Void Fill
- Blocking & Bracing
- North America
- Latin America
- Western Europe (WE)
- Eastern Europe (EE)
- Asia Pacific Excluding Japan (APEJ)
- Middle East & Africa(MEA)