Protective Packaging Market: Current Analysis and Forecast (2022-2028)

Protective Packaging Market: Current Analysis and Forecast (2022-2028)

The global protective packaging market is expected to witness a CAGR of around 5% during the forecast period (2022-2028F). As the market is anticipated to witness owing to the growing demand for protective packaging all over the globe owing to the growth in the food and beverage industry. For instance, in October 2021, Reliance Retail introduced Freshpik, a new experiential gourmet food store in India, to expand its grocery segment in the ultra-premium category. Furthermore, with the rising demand in the e-commerce industry for the safety of shipped products, the rising customer expenditure, continuous automation developments, and enhancement in the production activities. For instance, in 2022, the Indian eCommerce market is predicted to increase by 21.5%, reaching US$ 74.8 billion.

In addition, major players such as Sonoco Products Company, Sealed Air Corporation, Smurfit Kappa Group, DS Smith Plc, Cascades Inc, Crown Holdings Inc., Ranpak Inc., Huhtamaki Oyj, Pregis Holding II CORP, Pro-Pac Packaging Group Pty Ltd. Several M&As along with partnerships have been undertaken by these players to develop the protective packaging market.

Protective packaging is designed purposely to protect items from any physical harm and damage during shipment and storage. They play a crucial role in logistics or supply providing superior security through packaging. Protective packaging helps to protect the product by conserving the integrity of the product. For instance, during transportation packages are subject to dropping, rough handling, and movement from vehicles, making them prone to damage. Moreover, the packaging system is cost-effective and provides excellent barrier resistance properties from damage such as vibration and shock. Furthermore, the rising demand for protective packaging is due to its applications such as corrosion protection, exporting & casting long-term insurance, and outdoor storage protection. Hence, it is extensively used in the e-Commerce industry, manufacturing industry coupled with its recyclable properties is driving the market growth of protective packaging. The global protective packaging market is expected to witness a CAGR of around 5.00% during the forecast period (2021–2027).

However, Covid – 19 has devasted the global economy due to which many sectors experienced a downfall as the demand for protective packaging got reduced within the industries due to its shutdowns. The production and supply chain in many industries got declined due to a lack of operations which directly or indirectly affected the market for protective packaging. Since the industries have been in process for a certain period, the usage of protective packaging is increasing as a source for transporting articles from one place to another with no damage. Hence, the requirement for the use of protective packaging will see increasing during the forecasted period.

Insights Presented in the Report
"Amongst material types, foamed plastic category to hold a significant share in the market”

Based on material type, the market is fragmented into foamed plastic, paper & paperboard, plastic, and others. During the forecast period, the foamed plastic segment is likely to dominate the global protective packaging market. As foamed plastics are lightweight, have strong thermal insulation, and have shock-absorbing qualities, which are suitable for protective packaging. In addition, foamed plastic provides the flexibility of being cost-effective to manufacturers and wholesalers. Furthermore, the factors justify its use in the market which will drive its growth during the forecasted period.
"Amongst product type, flexible category to hold a significant share in the market”

Based on product type, the market is fragmented into foam, flexible, and rigid. In 2020, the flexible segment is seen dominating the growth of the protective packaging market. This is mainly due to the increasing demand for cost-effective, recyclable materials, and less occupancy of space available for packaging. Therefore, flexible packaging is available as a recyclable material content. In addition, the incorporation of bioplastic to manufacture flexible protective packaging solutions has improved its recyclability, sustainability, and sales which is driving the market for flexible protective packaging.
"Amongst function, wrapping segment to hold a significant share in the market”

Based on function, the market is fragmented into cushioning, blocking & bracing, void fill, insulation, and wrapping. In 2020, the wrapping segment is seen dominating the growth of the protective packaging market. The function of wrapping is that it offers a versatile and lightweight solution to protect products during transportation, handling, or storage. In addition, it plays a major role in product packing. As it helps in preventing product damage and reducing losses & returns in any business. Furthermore, wrapping provides a flexible and lightweight way of protecting objects during shipping, handling, and storage. Hence, it has become an important aspect of sales and marketing tactics since it helps to minimize product damage and reduce losses and returns in the industries.
"Amongst end-user, food & beverage category to hold a significant share in the market”

Based on end-user, the market is fragmented into food & beverage, automotive, industrial goods, household appliances, healthcare, consumer electronics, and others. During the forecast period, the food & beverage segment is likely to dominate the global protective packaging market. This is mainly due to using of eco-friendly, highly portable, and easy-to-handle materials that are expected to drive the demand for protective packaging in the region. In addition, the packaging in the food and beverage industry includes bags, pouches, shrink films, sleeves, and tubes, primarily owing to their flexibility, low weight, and durability are some of the factors that are increasing the demand for protective packaging within the region. Furthermore, the increasing demand for food and beverage packaging and product protection, and the high consumption of flexible packaging over conventional packaging are anticipated to boost the demand for the protective packaging market.

Asia-Pacific to witness significant growth during the forecast period”

Asia-Pacific is likely going to dominate the protective packaging market during the forecasted period. This is due to factors such as industrialization, increasing disposable income, growing e-retail sales, rising internet penetration, growing manufacturing activities, and rising consumption level that would drive the market during the forecasted period. Furthermore, the rising demand in the e-commerce industry for the safety of shipped products, the rising customer expenditure, continuous automation developments, and enhancement in the production activities in the region are expected to further propel the growth of the protective packaging market. For instance, according to UNCTAD, in 2020 China’s Online retail sales were $1,414.3 billion which shows the increasing trend of online purchasing in the country, which in turn, is boosting the demand for protective packaging in the Asia-Pacific region. In addition, as per the Ministry of Statistics and Program Implementation (MOSPI) survey, the revenue generated from manufacturing beverages in India in FY 2019 was USD 10.94 billion which is expected to reach USD 11.69 billion by 2023.

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