About the Report
Expansion of the global supply chains has created the need for thermal insulation packaging. Distribution of food and beverage and pharmaceuticals require certain pre-requisites to ensure quality of packaged goods stays intact. This has intensified the demand for reliable thermal insulation packaging solutions. Increasing emphasis on regulatory compliances among food and pharmaceutical products manufacturers is driving the need for thermal insulation packaging to ensure integrity of the products.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for thermal insulation packaging. The report tracks the global sales of thermal insulation packaging in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the thermal insulation packaging industry.
What is Future Outlook for Thermal Insulation Packaging in Comparison to Historic Pattern?
Focus on food and pharmaceutical safety has always been important, but recent changes and stringent regulations implemented by regulatory authorities have increased the demand for safe packaging to assure quality of products. With regulatory changes, businesses have prepared themselves for regulatory expansion.
Innovative technologies introduced in the last few years are expected to bring improvements in the thermal insulation packaging solutions. This will enable accurate logistics tracking and improve data management. Data management devices incorporated with packaging solutions will not only help collect and store data but will make supply chain more interactive to improve the quality of the products being shipped.
Furthermore, advent of novel technologies will enhance the security and transparency, allowing manufacturers or suppliers to take immediate action to prevent excursion due to compromise with package integrity, delays or tampering. Compared to traditional data loggers, cloud solutions, and sensors are faster and provide real time data on temperature changes.
According to FMI’s analysis, thermal insulation packaging sales have grown at 13% CAGR between 2015 and 2019
Thermal insulation packaging is extremely useful for biopharma industry to preserve the quality of the products. It has been highly effective in reducing losses and helps in preserving freshness of goods packaged for food and beverage industry. While the COVID-19 outbreak caused significant disruptions, the market is projected to gain momentum post the pandemic due to the increasing demand for thermal insulation packaging solutions.
This is especially true in the pharmaceutical industry. Thermal insulation packaging will be increasingly used for medical products such as testing kits, and vaccine distribution and delivery. Development of drugs to treat patients is increasing the need for more reliable thermal insulation packaging systems as temperature control determines the stability and quality of the drugs.
Healthy eating has spurred the demand for various food products, subsequently effective packaging solutions to store and transport food without nutritional decay. Consumption of high-end food across geographies increases the need for thermal insulation packaging to sustain the freshness of the food product. These factors present a positive outlook for growth. FMI expects global thermal insulation packaging market to grow at 17.3% CAGR through 2030.
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How is Technology Improvement Fuelling Thermal Insulation Packaging Demand?
One key area where passive packaging lacks behind active packaging is its tenuous ability to provide safety during transportation. Many companies are offering shippers equipped with temperature sensors, which immediately detects if the container has been opened during transportation. Some shippers now come equipped with Thermo chromic labels that change color to provide visual verification that shippers are ready to pack.
- Pelican’s reusable shipper and Sofrigam’s Elite cooling box come equipped with these sensors.
Data loggers with temperature sensors and USB connection points, are increasingly becoming common and cheap to incorporate. These label-like loggers easily affixes to the packaging, and continuously tracks temperature conditions and provide a full summary of time and temperature data. Furthermore, battery powered data loggers can incorporate advance technologies such as RFID, WiFi, and GPS, and can provide real time information regarding temperature fluctuations.
- BIOmed Xpress PDF Temperature Monitoring Label, PakSense, Cold Chain Logger CCL100, Vaisala, and TempTRIP are some of the product offerings under this segment.
How are Regulatory Requirements Affecting Thermal Insulation Packaging?
The increasing demand for temperature sensitive products has increased the regulatory attention. Regulatory bodies are stressing on to ensure that the food and pharmaceutical products are complying with the norms and have been kept within approved temperature ranges during transit. Increasing production of temperature sensitive products have led to stricter regulations and high visibility across the supply chain.
This has made temperature monitoring a must for pharmaceutical and food manufacturers. Many manufacturers are capitalizing on this opportunity to build proactive strategies to identify excursions and send replacements to minimize delays. Furthermore, serialization requirements for biopharma products have intensified the demand for in-depth know how of the temperature of products in transit.
How Profitable is Rental Business for Thermal Insulation Packaging Manufacturers?
Recent trend identified in the market is that the thermal insulation packaging solution providers are rapidly expanding their rental business and are comparatively less focused on fresh sales of their products. Owing to high costs of shippers and insulated containers, coupled with environmental concerns associated with its disposal, buying these still remains uneconomical and non-ecological solution for most end users. In countries such as Germany, disposal of EPS and PUR is not permitted, and one has to pay an additional fee for disposal of the same.
Various end users are therefore opting to lease or rent shippers/containers for Thermal Insulation Packaging. On the other hand, shipper/container manufacturers achieve reduced cost of ownership and increased return on their investment, thereby resulting in enhanced profit margins. However, unless a company has closed loop system, this solution remain uneconomical. Success in the business requires establishment of depots at various geographical locations.
Instances of manufacturers providing Thermal Insulation Packaging rental solutions,
- Va-Q-tec AG established a temperature controlled container rental station in Singapore, in partnership with Yusen Logistics Pte. Ltd.
- Pelican Biothermal introduced pallet shippers rental program under the brand name Credo on demand.
How is Thermal Insulation Packaging Reducing Agricultural Waste?
Food waste though being biodegradable has a major impact on the environment. According to epsindustry.org, around one third of the food produced for human consumption goes to waste which means that one third of the resources such as land, water, energy and finances required to produce food dissipate.
To retain peak condition of agricultural harvest, it is necessary to transport them as quickly as possible to a facility where they can be cooled and stored. Insulated containers and shippers can be effective in packaging and storing the agricultural harvest without affecting the nutritional value of the produce.
Furthermore, the increasing demand for e-commerce has propelled the demand for thermal insulation packaging. For e-commerce food delivery partners temperature control of perishable goods such as fresh produce, dairy products and meat helps in preventing monetary losses due to product quality degradation and enhances customer satisfaction.
What are the Risks Associated with Passive Packaging?
Some pharmaceutical products are extremely temperature sensitive and any sort of temperature excursion can lead to millions of dollars of product losses. Passive temperature controlled packaging offer significant cost benefits over active packaging techniques.
However, there are clear risks associated with transporting products such as dry ice, gel packs and insulations, owing to unexpected delay in shipment leading to an unpredicted change in temperature. These translate into higher risks for temperature excursions. As global shipments rises and pharmaceutical products explore new geographies and terrains, unexpected delays are becoming increasingly common.
Furthermore, the ability to lease active systems on per trip basis, is also overcoming the only, cost disadvantage associated with them. Using active shipments also reduces stockpiling or disposing of packaging materials, including coolants. Hence, active packaging solutions are increasingly preferred for large volume shipments.
Rising shipping volumes per consignment coupled with decreasing costs associated with active packaging solution might restrain demand for passive temperature controlled packaging solutions. Similarly, rising number of refrigerated truck solution provider, and dropping prices associated with the same is significantly impeding sales of insulated bins/containers for perishable food transports.
Cold storage is the most preferred packaging type in the market. Increasing use of refrigerators and freezers for storage of food & beverages, pharmaceuticals and other products has spurred the growth of cold storage. Stretched food and pharma industry has further led the manufacturers to use thermal insulation technology to avoid food and pharmaceutical waste translating into lower profitability margins.
As the world looks ahead at reducing wastage of resources, one of the most promising solutions is thermal insulation packaging solutions. Refrigerators and freezers which have multiple temperature ranges are the right choice for multiple applications. Embedded sensors and monitoring technology in cold storage systems has strengthen the logistics chain.
Ocean Freight Creating Opportunity for Thermal Insulation Packaging Market
Rapid globalization and introduction of low cost medicines is leading to rapid growth of the global pharmaceuticals industry. Various government bodies across the globe are promoting adoption of alternative generic medicines and bio similar products, which are significantly cheaper yet require thermal insulation packaging/logistics.
This shift translates into airfreight transportation becoming increasingly uneconomical, with various pharmaceutical companies are shifting towards ocean freight. Transportation through ocean is significantly different from airfreight transportation, and requires considerable different thermal insulation packaging solutions.
With more preference towards ocean freight, companies should introduce more economical and improved solutions based on extended duration and protection in extreme temperatures, such as the ones based on vacuum insulated panels. The demand for phase change materials-based coolants for varied temperature ranges and duration requirements is also increasing. Thermal insulation packaging solution provider can leverage this opportunity by introducing new product ranges catering specifically to ocean freight compliance.
Frozen Food Industry Aiding Thermal Insulation Packaging Adoption in U.S.
As per the FMI analysis, the food industry is one of the U.S.’s largest manufacturing sectors and accounts for a significant share of shipments. Continuous demand for processed food is less affected by economic swings since food is a necessity. Frozen food segment is anticipated to grow owing to ease of carrying, cooking and consuming.
Frozen food provides convenience which is catering to the shift. Thermal insulation packaging is expected to grow owing to the need of packaging for the frozen food distribution across the region. Frozen food manufacturers are continuously investing on thermal insulation packaging to ensure their product’s quality.
How Germany’s Healthcare Industry Driving Thermal Insulation Packaging Market?
Germany is Europe’s largest and world’s fourth largest pharmaceutical market. The country’s highly attractive clinical trial and R&D location creates demand for proper packaging and transportation of pharmaceuticals and biological products. According to Organization for Economic Co-operation and Development (OECD), Germany spends more per person on healthcare compared to other European countries. The share of spending on healthcare has increased since 2000 and is likely to grow further owing to ageing population and rise in chronic illnesses.
According to International Trade Administration (ITA), the German medical device market is ranked first in Commerce’s Medical Device Top Market Report and still provides lucrative growth opportunities. Furthermore, Germany is Europe’s largest biotechnology market and in the year 2019, 686 dedicated biotechnology companies generated sales of $5.5 billion which translates in a 10 percent growth compared to 2018. This is anticipated to generate demand for thermal insulation packaging to maintain and protect the quality of the healthcare products.
India’s Agriculture Sector Exhibits High Demand
Agriculture plays a vital role in India’s economy. Moreover, India is leading producer of various agricultural products. The Indian cold chain is still at a nascent stage whereby there is a shift from unorganized cold chain sector to organized cold chain sector. Though there is a large scale of production or perishable goods, there still remains untapped due to high investment and lack of awareness of handling perishable produce. Fledging temperature control has led to huge loss of food and other resources. As per a study conducted by Central Institute of Post-harvest Engineering and Technology (CIPHET), the total harvest and post-harvest losses in India amounted to USD 14 Bn.
Growth in organized food retail and processed food sector along with urbanization is anticipated to further boost the demand for thermal insulation packaging. The trend is shifting towards establishing cold storage facilities and providing end to end services to control temperature throughout the supply chain.
As per National Center for Cold Chain Development (NCCD), there is a gap of 3.2 Metric tonnes in cold storage capacity and more than 50,000 reefer vehicles in India.
Cold Storage to Create Lucrative Growth Opportunity
Cold storage is the most preferred packaging type in the market. The increasing use of refrigerators and freezers for storage of food & beverages, pharmaceuticals and other products has spurred the growth of the cold storage segment. The demand from stretched food and pharma industry has further encouraged manufacturers to use thermal insulation technology to avoid food and pharmaceutical waste translating into lower profitability margins.
As the world looks ahead at reducing wastage of resources, one of the most promising solutions is thermal insulation packaging. Refrigerators and freezers which have multiple temperature ranges are the right choice for multiple applications. Embedded sensors and monitoring technology in cold storage systems has strengthen the logistics chain.
Why EPS is the Most Preferred Insulation Material?
EPS material among the other insulation materials provides exceptional performance for products that are sensitive to changes in temperature. Insulation materials which provide stable and reliable insulation are necessary to make thermal insulation packaging solutions which can ensure quality and safety of the packaged products. Thus, making EPS a cost effective and efficient solution for manufacturing thermal insulation packaging products.
Food & Beverage Segment Accounts for the Maximum Share
The food and beverage industry is the leading end user of thermal insulation packaging. Since it is extremely crucial to ensure food and beverage products arrive at the destination in a condition that is fit for human consumption, the demand for thermal insulation is expected to remain significantly high in the sector.
Globalization has further boosted the demand for specialty foods which requires multiple modes of transportation and variations in multiple climatic conditions. Thermal packaging ensures that there is no loss to the product which leads to mitigation of loss caused to resources and finances.
0 to 10°C Most Preferred Temperature Range for Pharma Products
0 to 10°C is one of the common temperature ranges used in pharmaceutical industry. The temperature range at which most of the pharmaceutical goods are stored and transported are 2°C to 8°C. Further various pharma products that require to be stored within the temperature of 0 to 10°C are eye drops, aerosol sprays for asthma, insulin for diabetes and biologicals.
Companies operating in the thermal insulation packaging market are aiming at strategic collaborations with technology partners. High investment in technology such as cloud computing and IoT solutions is expected to aid thermal insulation packaging market is multiple ways. These improvements promise better control, visibility, accountability for thermal insulation packaging solutions.
With IoT, cold chain monitoring systems issues can be handled without any delay. Sonoco ThermoSafe launched Orion r® which is a temperature controlled box rental service. It would also offer optional on board telemetry, which provides access to cloud based temperature to the biopharmaceutical clients. This enhances visibility and ensures quality of the products.
Some of the leading companies operating in the market are:
- Sonoco ThermoSafe
- Pelican Products, Inc.
- Cold Chain Technologies, Inc.
- Sofrigam SAS
- CSafe Global, LLC
- Insulated Products Corporation
- Cryopak Industries Inc.
- Snyder Industries, Inc.
- va-Q-tec AG
- Inmark LLC
- DGP Intelsius Ltd.
- Softbox Systems Ltd.
- Envirotainer Ab
- Aeris Dynamics Pte Ltd
- Global Cold Chain Solutions
- Thermo Fisher Scientific, Inc
- Helmer Scientific Inc.
- Global Cooling, Inc.
- PHC Holdings Corporation
- BINDER GmbH
- Esco Micro Pte Ltd.
- Labcold Ltd
- ARCTIKO A/S
- Eppendorf AG
- So-Low Environmental Equipment Co.
- Azbil Corporation
- Haier Biomedical Co. Ltd
- Philipp Kirsch GmbH
- EVERmed s.r.l
- The Sure Chill Company Limited
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and ‘000 Units for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa
Key Segments Covered
Packaging Type, Insulation Material, Temperature Range, Application and Region
Key Companies Profiled
Market Forecast, Brand share analysis, Competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in the Report
Q1. Which is the most lucrative market for thermal insulation packaging?
North America currently leads the global market for thermal insulation packaging. Sales in North America will account for over 30% of total demand throughout the forecast period. Within North America, the U.S. will emerge dominant.
Q2. Which is the top-selling thermal insulation packaging type?
Cold storage is the most preferred thermal insulation packaging type in the market. The demand for cold storage is expected to decline over the forecast period owing to the demand for thermal insulation packaging solutions made up of innovative materials such as Vacuum Insulated Panel (VIP) and Phase Change Material (PCM).
Q3. Which insulation material are thermal insulation packaging manufacturers using?
Expanded polystyrene (EPS) is highly preferred material for manufacturing thermal insulation packaging solution. This segment holds over 25% market share due to its insulation performance and shock resistance.
Q4. Which are some of the leading companies offering thermal insulation packaging?
Some of the leading companies offering thermal insulation packaging are Emball’ISO, Sonoco ThermoSafe, Pelican Products, Inc., Cold Chain Technologies, Inc., Sofrigam SAS, CSafe Global, LLC, Insulated Products Corporation, Cryopak Industries Inc., Snyder Industries, Inc., va-Q-tec AG, Inmark LLC, DGP Intelsius Ltd., Softbox Systems Ltd., Envirotainer Ab, Aeris Dynamics Pte Ltd and Global Cold Chain Solutions among others.
Q5. Which applications account for boosting sales of thermal insulation packaging?
As per FMI Analysis, food & beverage along with pharmaceutical market are expected to increase the sales of thermal insulation packaging market. Food & beverage and pharmaceutical safety is of high priority for both product manufacturers and cold chain logistics providers.
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Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst
What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology
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What are the sources of secondary research?
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Thermal Insulation Packaging Market by Category
- Passive Packaging
- Single Use or One Way use Packaging
- Multiple Use or re-usable Packaging
- Active Packaging
- Reefer trucks and Containers
- Active Pallet Containers
- Cold Storage
- Less than -40°C
- -20 to -40°C
- -1 to -20°C
- 0 to 10°C
- 10 to 25 °C
- Food and Beverage
- Blood Banking
- North America
- Latin America
- East Asia
- South Asia
- Middle East and Africa (MEA)