Protective Packaging Market

Protective Packaging Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Protective Packaging Market grew at a CAGR of 5.0% between 2017-2021 and is estimated to be US$ 27,271.3 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 5.3% and is expected to reach a valuation of US$ 18,436.42 Mn by 2032 end.

Various applications, including food, electronics, and pharmaceutical industries, embrace protective packaging. The type of goods’ protective packaging can be divided into three basic categories: rigid, foam, and flexible. Additionally, protective packaging offers solutions that shield machinery, equipment, and industrial goods from harm while being stored and transported. Additionally, protective packaging provides security through the void fill, wrapping, flexible cushioning, blocking and bracing, defensive containment, and surface defense.

Market Dynamic

GROWTH OF THE E-COMMERCE INDUSTRY WILL DRIVE THE MARKET

E-commerce offers users a wide range of possibilities for purchases and the convenience of shopping from home. This is encouraging an increasing number of individuals to shop online, making e-commerce one of the fastest-growing sectors globally. Large e-commerce firms like Amazon, Alibaba, and Flipkart employ protective packaging to shield the contents from damage during delivery and shipment.

STRINGENT REGULATION FOR PACKAGING WILL RESTRICT THE MARKET GROWTH

Environmental impact is greatly increased by the non-biodegradability of certain plastic packaging wastes. Governments worldwide are enacting stringent laws and regulations that the packaging sector must follow to address this issue. The European Green Deal, for instance, introduced in December 2019 and established a path to zero net greenhouse gas emissions by 2050 while emphasizing economic growth unrelated to resource use, is one example.

The Commission announced that it would continue the Plastics Strategy by focusing on enacting new legislation, such as legal requirements to boost the market for secondary raw materials with mandatory recycled content, targets, and measures to combat excessive packaging and waste generation, regulations to ensure that all packaging in the EU is recyclable or reusable in an economically viable manner by 2030, and a regulatory framework for biodegradable and bio-based products.

GLOBALIZATION AND INTERNATIONAL TRADE CREATE AMPLE OPPORTUNITIES

Construction and industrialization are expanding quickly in developing nations. As a result, there is a rise in demand for construction and chemical products. To accommodate this demand, international trade is expanding. Two major factors are driving the worldwide protective packaging industry: growing trade and capital market liberalization, which has increased export and import activity, and technical developments, which have reduced transportation costs. As a result of globalization, businesses are also exporting their goods to other countries, increasing the demand for protective packaging to preserve interests from damage over long distances.

COVID-19 Impact

Manufacturers and suppliers of protective packaging were heavily impacted by safety and governmental orders made at the federal, state, and local levels in 2020. Shelter-in-Place Orders issued at the state and local levels and federal government (United States) guidelines to stop the virus’ spread have compelled businesses to alter or disrupt their regular business operations.

Protective packaging producers suffered in 2020 due to laws requiring business closures, societal conventions of segregation, and reduced municipal and state government office activity. The pandemic hindered the need for protective packaging, primarily because the end-use sectors’ demand for this protective packaging fell.

Market Segments Covered in Report

By Material Type:

• Foamed Plastic
• Paper
• Plastic

By Product Type:

• Foam Protective Packaging
• Flexible Protective Packaging
• Rigid Protective Packaging

By Function Type:

• Wrapping
• Void Fill
• Insulation
• Cushioning
• Blocking & Bracing

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

How are flexible protective packaging solutions set to fare in the coming years?

Flexible protective packaging currently occupies the top spot in product type, accounting for about 67.3% of the protective packaging market in 2021. Its popularity and demand are driven by properties including cushioning, insulating, void filling, and low weight among end-use industries. Flexible protective packaging options with recyclable material content are available. The recyclability, sustainability, and sales of flexible protective packaging have all increased with the use of bioplastic in manufacturing.

Why is the foamed plastic segment expected to expand the fastest during the forecast period?

The market segment with the largest share was foam plastics. The substantial market share can be due to the products’ lightweight, robust thermal insulation and shock-absorbing properties, which are suitable for protective packaging.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• With a projected 4.5% CAGR and a market share of 27.1%, the North American protective packaging industry is anticipated to grow. According to the report, North America is expected to experience significant growth in the need for protective packaging solutions over the coming years.
• More than 22.3% of protective packaging solutions are expected to be sold in Germany alone in Western Europe. One of the main sources of demand for protective packaging solutions for transporting online-sold goods with the necessary safety precautions is the worldwide e-commerce industry.

Competition Analysis

These actions have enabled market participants to increase their clientele and revenue. With the increasing demand for chlorinated solvents in the worldwide industry, market players in the chlorinated solvents market can anticipate attractive growth prospects in the future.

Some of the key developments that have taken place in the Protective Packaging Market include:

• In June 2021, Redi-Bag Inc., a well-known producer of plastic and polyethylene film packaging for usage in the packaging of produce and seafood, was acquired by Soteria Flexibles.

A list of some of the key suppliers present in the market are:

• Sealed Air Corporation
• Crown Holdings Inc
• Sonoco Products Company
• Winpack Ltd
• Smurfit Kappa Group
• DS Smith Plc
• WestRock Company
• Schur Flexibles Holding GesmbH
• Greif
• International Paper Company
• Nefab Group
• Cascades Inc

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.