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The protective packaging market size is estimated to grow at a CAGR of 4.02% between 2022 and 2027. The market size is forecast to increase by USD 6,950.24 million. The growth of the market depends on several factors such as the growth of the e-commerce sector, the rise in demand for secondary and protective packaging, and the increasing demand for protective packaging for packed food products.
This protective packaging market report extensively covers market segmentation by end-user (food and beverages, industrial goods, consumer electronics, household appliances, and healthcare and others), type (flexible, rigid, and foam), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of the e-commerce sector is driving growth in the protective packaging market. In a number of countries, the e-commerce sector is experiencing increasing growth, such as the US, China, India, and the UK. The e-commerce sector is progressing quickly, owing to various factors, such as the growing tech-savvy population, increasing Internet penetration, and the rising use of smartphones.
However, it is not only easier for consumers to buy easily online since they do not meet the physical barriers that exist from offline stores but also helps them make more informed decisions. The growth of the e-commerce sector directly impacts the e-commerce packaging industry. The growth of the e-commerce industry will boost the growth of the global protective packaging market during the forecast period.
The emergence of new recycling techniques for flexible packaging is a key trend in protective packaging. One of the major concerns in the global protective packaging market is the not recyclable nature of plastic materials. Thus, to overcome this challenge, vendors and raw material suppliers are introducing environment-friendly plastic packaging solutions and different recycling programs.
However, various other programs and initiatives such as the Dow Energy Bag, Waste and Resource Action Program (WRAP), Plastic Industry Recycling Action Plan (PIRAP), and Material Recovery Facility are recycling initiatives for plastic waste that arise as a result of the recycling of rigid packaging are also contributing to this. Therefore, it is expected to boost the growth of the global protective packaging market during the forecast period.
The growing on-demand packaging in the e-commerce industry is a major challenge in the protective packaging market. The increased expenses of operations for e-commerce operators and retailers are a consequence of the increasing weight and more space devoted to loading boxes in warehouses. The cost incurred on lining the box with protective packaging material also varies, depending on the size of the shipment box.
However, it is necessary for retailers and e-commerce players to adopt alternative packaging to reduce the high costs associated with warehouse space utilization and the purchase of void-filling material. The growing on-demand packaging market is expected to have an adverse impact on the demand for protective packaging, which will hinder the growth of the global protective packaging market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Protective Packaging Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cascades Inc.- The company offers protective packaging such as Regular boxes, Die cut boxes, and Insulated boxes.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The food and beverages segment is estimated to witness significant growth during the forecast period. The potential growth in the sales of packaged food is generating demand for protective packaging across the world. Demand for good quality packaging is likely to increase as a result of increasing food and beverage production and rising exports, which is necessary to ensure that food products reach their destinations in a secure and hygienic manner.
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The food and beverages segment was the largest segment and was valued at USD 7,971.34 million in 2017. Packaged food products include cereals, dry food, frozen foods, candy and confectionaries, dairy products, refrigerated meat, and others. The packaging does not only protect food products against damage but also ensures that they will remain fresh as soon as they are brought to the retailer facility.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The protective packaging market is growing at a steady pace across APAC. Developing economies such as China and India are expected to emerge as major revenue contributors to the overall protective packaging market in APAC. Packaging is a very important aspect of the e-commerce industry, as products are prone to damage during transportation. Multilayered films that offer enhanced protection during transit can be used to protect the packages, such as flexible packaging. It can be used to reduce the costs related to damage, replacements, returns, waste, and shipping. This, in turn, will increase the demand for flexible packaging in the e-commerce industry.
The outbreak of COVID-19 in 2020 negatively affected the economic growth of APAC. However, the lockdowns were lifted in 2021 owing to large-scale vaccination programs across APAC. This led to the resumption of production activities in manufacturing units, including that of packaging, in the first half of 2021. In 2021 the need for protective packaging materials is expected to increase. Increasing e-commerce and international trading are likely to boost the growth of the protective packaging market in APAC during the forecast period.
The protective packaging market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Protective Packaging Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.02% |
Market growth 2023-2027 |
USD 6,950.24 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.1 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 39% |
Key countries |
US, Canada, China, Japan, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Berry Global Inc., Cascades Inc., Crown Holdings Inc., Dow Chemical Co., DS Smith Plc, EcoEnclose, Hanchett Paper Co., International Paper Co., Intertape Polymer Group Inc., Mondi Plc, Nefab AB, Pregis LLC, Ranpak Holdings Corp., Sealed Air Corp., Smurfit Kappa Group, Sonoco Products Co., STOROPACK HANS REICHENECKER GMBH, Universal Protective Packaging Inc., WestRock Co., and Winpak Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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