Europe Protective Packaging Market - Growth, Trends, Forecasts (2022 - 2027)

Europe Protective Packaging Market - Growth, Trends, Forecasts (2022 - 2027)

The Europe protective packaging market is expected to register a CAGR of 3.4% during the forecast period 2020 - 2025. Protective packaging is one of the most significant packaging styles used for packaging of various ends user industry products, such as consumer electronics, pharmaceutical, and automotive, among others that safeguard and shield core product from damages during transportation or storage.​ The e-commerce industry is proliferating across Europe by nearly 7% annually and is boosting the market growth. Further, the United Kingdom holds third place worldwide for most parcels delivered each year at 1.9 billion packages.

Key Highlights

• The market in the United Kingdom is mainly growing due to the Flexible Packaging sector. Global packaging vendors are expanding in this region, and local companies are being acquired, which is indicative of the market potential in the region. ​For instance, in January 2020, Macfarlane Group acquired protective packaging solutions provider Armagrip for undisclosed sums.
• Beauty brands in the region are taking greater care in packaging and logistics operations. Product innovations, such as downgauging and the emergence of alternative raw materials, are expected to translate into future growth opportunities. Moreover, for industries with a bulk need for packaging materials, the vendors also provide packaging equipment along with raw materials to maintain businesses with high volume and huge value customers.
• Moreover, the market is witnessing new partnerships and M&A activities to address new challenges emerging in the market and drive growth. For instance, in June 2019, Warburg Pincus, a global private equity firm, agreed to acquire Pregis LLC, protective packaging materials and automated systems manufacturer, from Olympus Partners, which after five years of ownership and a series of acquisitions resulted in Pregis LLC growing from 14 to 22 manufacturing sites in North America and Europe.
• Although light-weighting of the board has long been affecting the corrugated industry, light-weighting and proper-sizing play a critically important role in this industry, not only in response to buyer's demands for efficient packaging but also in response to buyer's demands for efficient packaging also in response to the logistics system's adoption of dimensional weight (DIM) pricing. In some scenarios, substituting a heavier board grade can provide a better impact overall as it allows for the eradication of additional protective elements. Light weighting has been quite successful in Western Europe. The importance of light-weighting will continue to be felt even in the coming years as it is cost saving.
• Due to the outbreak of COVID-19, the lockdown enforced and social distancing norm has elevated the consumer to order their requisite through online medium. The food and beverage sector has also been witnessing rising demand for takeaway and online delivery that is driving the growth of the protective packaging market in the region.

Key Market TrendsBeauty and Homecare Industry to Drive the Market Growth

• The personal care sector is witnessing a significant growth rate through online channels and e-commerce. Grooming has become an integral part of contemporary lifestyles. Consumers are willing to spend more to look and feel at their best, and online shopping has proved to be a popular choice for customers looking to satisfy their personal care needs.​
• The primary aim of packaging is to protect the product from all hazards it can be exposed to during transport and handling. Recycling has become a significant part of cosmetics, skincare, and perfume companies. For instance, the British Plastics Federation (BPF) in conjunction with the Cosmetic, Toiletry and Perfumery Association (CTPA) and the Food and Drink Federation (FDF), has announced the launch of new guidelines for recycled content used in plastic packaging applications.
• Protective mailers are widely used for one or two light cosmetic product shipping. The recycled bubble mailers and recycled padded mailers are catering to the adoption of protective packaging in the cosmetics sector. Both offer the cushioning required to protect personal care items in transit, and also both are 100% recyclable.
• The growth of secondary packages due to the increase in sales of perfumes in the region would aid the plastic packaging market's growth. Switzerland boasts of an ever-growing fragrance industry. This is augmented by partnerships such as done by Mane and Brenntag in April 2019 to increase market penetration. This would bring multiple secondary plastic packaging vendors into the market scenario.

Germany Holds Significant Market Share

• The German online and e-commerce landscape can be compared to the United States: even though it only has 79 million internet users, a portion of the US digital population, the wealth of the Germans, and their habits of using e-commerce make it one of the world’s most sophisticated market.​
• Several companies are providing protective packaging, catering to the surging market demand. For instance, the Germany based company Storopack provides an extensive portfolio of protective packaging solutions such as loose-fill, foam, air pillows, paper cushioning, etc., that are widely used for e-commerce purposes.​
• Moreover, vendors are investing in sustainable and recyclable protective packaging offering in the region., For instance, in December 2019, Storopack has launched AIRplus, a 50% recycled protective packaging available in void, bubble, and cushion film.
• Further, during the covid-19 crisis, in March 2020, Storopack continues to supply the protective packaging materials for essential products such as pharmaceuticals, medical supplies, food and drink, cleaning and hygiene materials, and veterinary supplies, among others.

Competitive Landscape

The Europe protective packaging market is moderately fragmented and consists of various vendors providing these products and solutions. Players in the market focus on product innovations and strategic initiatives such as merger and acquisition, partnerships to capture the market share. Some of the recent developments in the market are:

• August 2020 - Stora Enso has built a pilot plant in Sweden for bio-based packaging foam cellufoam, which is a lightweight, fiber-based foam material for protective packaging and cushioning. Bio-based foam is renewable, recyclable, and is a sustainable packaging material.
• March 2020 - Kite packaging expanded its air cushion systems to produce protective air cushions that inflate a wide range of filler and wrapper cushions with air on demand for the e-commerce industry. The new machines use 100% recyclable film and produce protective air cushions that inflate a wide range of filler and wrapper cushions with air on demand.​

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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