Protective Packaging Market - Growth, Trends, and Forecast (2020 - 2025)
The protective packaging market was valued at USD 25.78 billion in 2019, and it is expected to reach a value of USD 34.08 billion by 2025 at a CAGR of 4.77%, during the forecast period of 2020-2025. Logistics and material handling technology, with its development and innovation, has played a significant role in the evolution and adoption of new generation packaging products. These protective packaging products have evolved to be smart, and the reduction in the price of sensors, network, and communicating devices has augmented the market.
- In the present market scenario, customer retention for a business is beneficial, as a satisfied customer has high worth for the company's image. Hence, an increased focus on extending shelf life of products, coupled with growing demand for eco-friendly materials and the growing consumer awareness on product quality, and the trust of prospective and potential customers are some factors driving the market.
- The paper mailers are gaining more market share with their environment-friendly qualities, such as better suitability for recycling. This is one of the major trends in the developed markets, such as North America, where the recycling programs are extensively employed, as well as stringent environmental regulations are in place.
- E-commerce logistics have evolved their packaging standards, complementing the protective packaging market. Protective packaging is used either as a primary or a secondary packaging material depending upon the products' end use application. The extended application and a variety of material choices make it ideal for almost all end-user industry vertical in one way or another.
Scope of the Report
The two types of materials used for protective packaging are plastic and paper and paperboard. They are designed and constructed to protect the goods from atmospheric, magnetic, and electrostatic vibrations or shocks.
Key Market Trends
Plastic-based Protective Packaging is Expected to Occupy Significant Market Share
- Plastic remains one of the most used raw materials for packaging, and hence occupies the highest market share among the all the raw materials being used by the manufacturers in the packaging industry.
- Plastic provides the flexibility of being cost-effective to manufacturers and its inert nature to the contents being stores in it has allowed it to be utilized for packaging products in certain industry verticals.
- With e-commerce sales increasing globally, coupled with properties plastic possess, it is used for safe logistics and transport of the orders.
Europe is Expected to Execute a Steady Growth Rate
- E-commerce has already established itself as a significant sales forum for a wide range of products from food and beverages, consumer electronics, and home and beauty care products in the European region. The rise in online sales, in turn, has driven the market for protective packaging solutions, which ensure the safe delivery of the delicate products sold online.
- The region consists of developed economy population having disposable wealth, along with an improving middle class. This situation strengthens the purchasing power of the people, which indirectly propels the demand for protective packaging solutions in the region. The demand emerging from this segment is majorly for the protective packaging material with B2C reach i.e., for the products, which are directly used by the individual customers.
- In the B2B segment, the United Kingdom, for instance, boasts of a booming healthcare expenditure contributing to over 10% of the country’s GDP. Protective packaging plays a vital role in healthcare, as packaging products should be safe, sterile, and provide a robust covering.
- The development of recyclable materials for protective packaging has driven the consumer demand for effective and sustainable packaging solutions in the country. This demand for packaging is expected to drive the growth of the market in the country.
The competitive landscape of the protective packaging market is moderately fragmented and consists of various vendors providing these products and solutions.
- August 2018 - Sonoco announced the expansion of its environmental and social stewardship initiatives to achieve greater packaging sustainability and recycling, supporting the food industry’s efforts to reduce the global food waste.
- May 2017 - Pregis announced its acquisition of Sussex, a Wisconsin-based sharp packaging system for an undisclosed amount. The acquisition is expected to enable Pregis to expand its product portfolio to include a complete line of flexible packaging bagging systems and materials.
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- 1 INTRODUCTION
- 1.1 Key Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
- 2 RESEARCH METHODOLOGY
- 3 EXECUTIVE SUMMARY
- 4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Longer Shelf Life and Changing Lifestyle
- 4.3 Market Restraints
- 4.3.1 Concerns Regarding Environment and Recycling
- 4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
- 5 MARKET SEGMENTATION
- 5.1 By Material
- 5.1.1 Plastic
- 5.1.2 Paper and Paperboard
- 5.1.3 Other Material Types
- 5.2 By Product
- 5.2.1 Rigid
- 220.127.116.11 Corrugated Paperboard Protectors
- 18.104.22.168 Molded Pulp
- 22.214.171.124 Insulated Shipping Containers
- 126.96.36.199 Other Product Types
- 5.2.2 Flexible
- 188.8.131.52 Protective Mailers
- 184.108.40.206 Bubble Wraps
- 220.127.116.11 Air Pillows/Air Bags
- 18.104.22.168 Paper Fill
- 22.214.171.124 Other Flexible Materials (Foil Pouches/Bags and Stretch and Shrink Films)
- 5.2.3 Foam
- 126.96.36.199 Molded Foam
- 188.8.131.52 Foam in Place (FIP)
- 184.108.40.206 Loose Fill
- 220.127.116.11 Foam Rolls/Sheets
- 18.104.22.168 Other Types of Foam (Corner Blocks, etc.)
- 5.3 By End-user Vertical
- 5.3.1 Food and Beverage
- 5.3.2 Industrial
- 5.3.3 Pharmaceuticals
- 5.3.4 Consumer Electronics
- 5.3.5 Beauty and Home Care
- 5.3.6 Other End-user Verticals
- 5.4 Geography
- 5.4.1 North America
- 5.4.2 Europe
- 5.4.3 Asia-Pacific
- 5.4.4 Latin America
- 5.4.5 Middle East & Africa
- 6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 3M Corporation
- 6.1.2 Automated Packaging Systems Inc.
- 6.1.3 Intertape Polymer Group Inc.
- 6.1.4 MJS Packaging Company
- 6.1.5 Mold-Rite Plastics
- 6.1.6 Placon Corporation
- 6.1.7 Pregis Corporation
- 6.1.8 Riverside Paper Co.
- 6.1.9 Sealed Air Corporation
- 6.1.10 Signode Protective Packaging Solutions
- 6.1.11 Sonoco Products Company
- 6.1.12 Smurfit Kappa Group
- 6.1.13 Huhtamaki Group
- 6.1.14 DS Smith PLC
- 6.1.15 International Paper
- 6.1.16 Mondi Group
- 7 INVESTMENT ANALYSIS
- 8 MARKET OPPORTUNITIES AND FUTURE TRENDS