Honeycomb Packaging Market by Type, Material, and Geography - Forecast and Analysis 2021-2025

The honeycomb packaging market share is expected to increase by USD 689.62 million from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 5.56%.

This honeycomb packaging market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers honeycomb packaging market segmentation by type (interior packaging, exterior packaging, pallets packaging, and others), material (paperboard and plastic), and geography (North America, APAC, Europe, MEA, and South America). The honeycomb packaging market report also offers information on several market vendors, including American Containers Inc., Cascades Inc., Corint Group, DS Smith Plc, Honicel Nederland BV, IPC Industrial Packaging Corp., Packaging Corp. of America, Smurfit Kappa Group Plc, Taylor Packaging Ltd., and YOJ pack-kraft among others.

What will the Honeycomb Packaging Market Size be During the Forecast Period?

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Honeycomb Packaging Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The growing automotive market in emerging economies is notably driving the honeycomb packaging market growth, although factors such as rising prices of raw materials may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the honeycomb packaging industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Honeycomb Packaging Market Driver

The growing automotive market in emerging economies is notably driving the honeycomb packaging market growth. Honeycomb packaging is used in the automotive market to pack automotive parts. The global automotive industry is expected to grow on the backdrop of the rising demand from emerging markets, such as China and India. Compared with the mature markets, India and China have a low vehicle penetration. As the middle-class population grows and increases in disposable income, the sales of the automotive industry are expected to rise as one of the aspirations of the middle-class population is owning a car. Global automotive production is estimated to increase during the forecast period. As the market for the automotive industry grows, OEMs will increase the production of automotive parts that are used in the final automotive vehicle. Thus, the increasing demand for honeycomb packaging needed to pack automotive parts will drive the global honeycomb packaging market.

Key Honeycomb Packaging Market Trend

The rising e-commerce sales is the key market trend driving the honeycomb packaging market growth. In the e-commerce sector, the products being sold must be securely packed. Otherwise, they may get damaged while they are being shipped or transported across long distances. This may increase the chances of consumers not opting for the same supplier again by 50%. Hence, e-commerce players use protective packaging, such as honeycomb packaging. In addition, the consumers may use the Internet to publicly show their dissatisfaction with the experience with the supplier. This may create a negative image of the supplier in public. Even if a consumer returns the damaged product, the company must bear the additional cost. Therefore, it is essential for e-commerce companies to invest in quality packaging to protect their products. At present, the use of the Internet is extensive. This has contributed to the growth of the e-commerce industry during the past few years. The industry is expected to continue to grow during the forecast period. The growing e-commerce sales will increase the need for honeycomb packaging, thereby fueling the growth of the global honeycomb packaging market.

Key Honeycomb Packaging Market Challenge

The rising prices of raw materials is the key challenge impeding the honeycomb packaging market growth. In general, a major part of honeycomb packaging is made of paperboard. This employs substantial use of wood pulp as a raw material for making paperboard. These increased prices of wood pulp led to a rise in the production cost incurred by the packaging companies, including the companies in the global honeycomb packaging market. Several factors that contribute to the rise in the wood pulp prices are mentioned in the exhibit below: Increased demand for wood pulp due to rising economies across the world Increased construction activities Increased industrial activities Rise in the supply chain input cost The rise in the prices of packaging materials will increase the prices of production for companies in the global honeycomb packaging market and will, therefore, prove challenging for the companies to balance this rise.

This honeycomb packaging market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global honeycomb packaging market as a part of the global metal and glass containers market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the honeycomb packaging market during the forecast period.

Who are the Major Honeycomb Packaging Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• American Containers Inc.
• Cascades Inc.
• Corint Group
• DS Smith Plc
• Honicel Nederland BV
• IPC Industrial Packaging Corp.
• Packaging Corp. of America
• Smurfit Kappa Group Plc
• Taylor Packaging Ltd.
• YOJ pack-kraft

This statistical study of the honeycomb packaging market encompasses successful business strategies deployed by the key vendors. The honeycomb packaging market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• American Containers Inc. - The company offers honeycomb packaging such as corrugated honeycomb which is used in load securement solutions.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The honeycomb packaging market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Honeycomb Packaging Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the honeycomb packaging market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

Which are the Key Regions for Honeycomb Packaging Market?

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34% of the market's growth will originate from APAC during the forecast period. China and Japan are the key markets for the honeycomb packaging market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The expansions by the end-users such as the food and beverages sector will influence the demand for packaging solutions which will facilitate the honeycomb packaging market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The honeycomb packaging market in the region is witnessing certain challenges due to the COVID-19 pandemic. The US is the most affected country by the pandemic. For instance, as of August 24, 2021, there were 38 million COVID-19 cases in the US. Most of the industrial operations in the region are negatively affected by the creation of significant downtime, shipment delays, and challenges in manufacturing due to the pandemic. This has negatively affected the demand for packaging solutions for various manufacturers. Hence, these factors hindered the potential growth of the market in the region during the first half of 2020. However, the market is expected to grow during the forecast period due to the lifting of lockdowns and the resumption of supply chain activities.

What are the Revenue-generating Type Segments in the Honeycomb Packaging Market?

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The honeycomb packaging market share growth in the interior packaging segment will be significant during the forecast period. The end-user expansion with new variants can influence the demand for interior components, thereby influencing the growth of packaging solutions as well during the forecast period. This rise in the number of cars sold will result in original equipment manufacturers (OEM) packaging their products in protective packagings, such as honeycomb die-cuts.

This report provides an accurate prediction of the contribution of all the segments to the growth of the honeycomb packaging market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Honeycomb Packaging Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive honeycomb packaging market growth during the next five years
• Precise estimation of the honeycomb packaging market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the honeycomb packaging industry across North America, APAC, Europe, MEA, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of honeycomb packaging market vendors

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