E-commerce has been the fastest growing market for protective packaging over the past decade as online purchases have continued to make up a larger share of retail sales, most notably in such countries as the US and China. In addition, e-commerce is rapidly rising in lower income countries as internet access and smartphone penetration grows.
Among the major product types, flexible protective packaging will continue to benefit the most from e-commerce’s expansion:
- A focus on right-sizing and source reduction by online retailers will drive demand for protective mailers.
- The widespread use of corrugated boxes for e-commerce shipping will support demand for protective packaging that is often used in conjunction with boxes, such as bubble wrap, air pillows, and paper fill.
Sustainability Will Impact the Protective Packaging Market Going Forward
Although sustainability concerns – such as the use of non-recyclable plastics and the carbon footprint of packaging production – have a larger impact on primary packaging, the protective packaging market will also see sustainability trends that will impact future growth and product mix. These effects will have a relatively larger impact on foam protective packaging. For example, government regulations limiting or banning the use of certain plastics and manufacturer pledges to reduce plastic use have prompted protective packaging suppliers to offer more sustainable products, such as paper-based fill and insulating products or starch-based foam products as replacements for expanded polystyrene.
Although plastic protective packaging (especially foam protective packaging) will continue to be the focus of environmental concern, plastic will continue to be used for protective packaging due to its advantageous properties, including crush resistance and moisture resistance, which can reduce losses due to leaking during transportation.
Study Description
This Freedonia industry study analyzes the $33.2 billion global protective packaging industry. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2022) by product (flexible protective packaging, foam protective packaging, rigid protective packaging), market (durable goods, nondurable goods, e-commerce, retail and other markets), and region (North America, Central and South America, Western Europe, Eastern Europe, Asia/Pacific, Africa/Mideast). The study also evaluates company market share and competitive analysis on industry competitors including Abriso Jiffy, Cascades, Crown Holdings, DS Smith, Mondi, Packaging Corporation of America, and WestRock.