Global Automotive Parts Packaging Market 2019-2023
About this market
Disposable packaging companies are offering innovative products to increase their market share during the forecast period. For instance, Opti NX shrink film developed by Sealed Air has better tear resistance than traditional products and enables easier packaging of irregularly shaped products with shrink films. The demand for low-cost and high efficiency disposable products such as bubble wraps is also increasing. Thus, the growing preference of disposable packaging and product innovations will boost the growth of automotive parts packaging market. Technavio’s analysts have predicted that the automotive parts packaging market will register a CAGR of over 4% by 2023.
Increasing demand for protective packaging
The demand for protective packaging solutions such as paper cushion packaging and honeycomb packaging is increasing in the automotive industry. Molded pulp packaging is also gaining popularity in the automotive parts packaging industry. Molded pulp packaging is eco-friendly and costs less than traditional packaging. It can also be redesigned according to product requirements. These advantages of protective packaging will increase its demand which in turn will drive the growth of the automotive parts packaging market.
Rise in raw material cost
The high volatility of the prices of raw materials used for manufacturing disposable packaging materials is hurting the growth prospects of the market. Wood pulp is one of the primary raw material used for automotive parts packaging. Its price depends on the availability of wood and recycled paper. The price of packaging increases if there is any shortage of wood pulp. Increasing environmental concerns will increase the prices of wood pulp during the forecast period which in turn will hamper market growth.
For the detailed list of factors that will drive and challenge the growth of the automotive parts packaging market during 2019-2023, view our report.
The market appears to be fragmented and with the presence of several companies including DS Smith, and Mondi the competitive environment is quite intense. Factors such as the growing demand for protective packaging, will provide considerable growth opportunities to automotive parts packaging companies. DS Smith, Mondi, Sealed Air, Smurfit Kappa, and Sonoco are some of the major companies covered in this report.