Protective Packaging Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, Canada, China, Japan, UK - Size and Forecast 2023-2027

Protective Packaging Market Forecast 2023-2027

The protective packaging market size is estimated to increase by USD 6.95 billion and grow at a CAGR of 4.02% between 2022 and 2027. Market expansion hinges on various factors, including the expansion of the e-commerce sector, heightened demand for secondary and protective packaging, and the increasing need for packaged food items. However, challenges abound, such as the proliferation of on-demand packaging in the e-commerce industry, the intricate supply chain dynamics of materials, and the complexities associated with optimizing packaging size. Addressing these challenges necessitates strategic adaptation to accommodate the evolving demands of the e-commerce landscape, effective management of the intricate supply chain network to ensure timely availability of packaging materials, and innovative approaches to optimize packaging dimensions. Overcoming these hurdles requires proactive measures to streamline packaging processes and enhance efficiency, ultimately enabling businesses to capitalize on the burgeoning opportunities within the market while mitigating associated challenges.

What will be the size of the Protective Packaging Market During the Forecast Period?

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Market Dynamics and Customer Landscape

The Protective Packaging Market encompasses a wide range of products and applications in various industries, including Automobiles and Automotive Components. Delicate parts of Vehicles require effective cushioning during Transportation and Warehousing. Foam plastics, such as Inflatable Air Cushions and Molded Foam Inserts, play a crucial role in this regard. These packaging solutions ensure the safe handling of products, particularly in the context of E-commerce platforms and Convenience-oriented items. Moreover, the Protective Packaging Market caters to diverse sectors like Logistics and Transportation, Energy, and Home Appliances. In the Energy sector, components of Solar Panels and Wind Turbines require protective packaging during manufacturing, storage, and distribution. Similarly, Frozen Foods and Ready-to-Eat Meals necessitate specialized packaging to maintain their quality and freshness. However, the increasing focus on Sustainable Packaging and reducing Carbon Footprints poses challenges to the market. Disruptive supply chains and the need for Energy-efficient solutions call for innovative and eco-friendly packaging alternatives. Sealed Air and other protective packaging solutions continue to evolve, offering both functionality and sustainability.

Key Market Driver

The growth of the e-commerce sector is driving growth in the market. The protective packaging market is experiencing significant growth in various sectors, including healthcare, alcoholic and non-alcoholic beverages, lubricants and oils, and the pharmaceutical and healthcare industry, which involves the transportation of medications, drugs, and vaccines. The e-commerce sector, driven by a tech-savvy population, increasing Internet penetration, and the use of smartphones, is a major contributor to this growth. Retailers and online platforms prioritize protective packaging to prevent contamination, spoilage, physical damage, and disruptions caused by moisture, light, and oxygen.

Sustainable protective packaging solutions, such as eco-friendly materials and recyclability, are gaining popularity in the logistics and transportation industries, particularly in the energy sector, which handles sensitive equipment like solar panels and wind turbine parts. Small-scale businesses and recessionary economies also rely on cost-effective protective packaging solutions, such as pallet wrap and bubble wrap packaging, to minimize their carbon footprints and ensure the safe delivery of electronic goods, monitors, mobile phones, keyboards, and home appliances. The pallet wrap market is a significant component of the protective packaging industry, providing solutions for various industries and logistics industries. The growth of the e-commerce industry will boost the growth of the global market during the forecast period.

Significant Market Trends

The emergence of new recycling techniques for flexible packaging is a key trend. In the protective packaging market, the non-recyclability of plastic materials is a significant concern, particularly in sectors such as healthcare, alcoholic and non-alcoholic beverages, lubricants and oils, and the electronics industry. To mitigate this challenge, vendors and raw material suppliers are introducing sustainable protective packaging solutions and recycling programs. For instance, the Materials Recovery for the Future (MRFF) organization was established in 2015 to facilitate cost-effective and successful recycling of plastic materials throughout their lifecycle. Other initiatives, such as the Dow Energy Bag, Waste and Resource Action Program (WRAP), Plastic Industry Recycling Action Plan (PIRAP), and Material Recovery Facility, are also contributing to the recycling of plastic waste generated from flexible packaging. These efforts are crucial in preventing contamination, spoilage, and physical damage to medications, drugs, vaccines, solar panels, wind turbine parts, electrical equipment, and other goods during logistics and transportation. The use of eco-friendly materials in protective packaging is becoming increasingly important in reducing carbon footprints, minimizing disruptions to supply chains, and addressing the needs of retailers and online platforms. The pallet wrap and bubble wrap packaging markets are also adopting recyclable and sustainable materials to meet the demands of small-scale businesses and recessionary economies. Therefore, it is expected to boost the growth of the global market during the forecast period.

Major Market Challenge

The growing on-demand packaging in the e-commerce industry is a major challenge in the market. In the logistics and transportation sector, protective packaging plays a crucial role in ensuring the safety and integrity of goods during transit. However, the use of protective materials, such as bubble wrap and pallet wrap, can significantly increase the weight and size of shipment boxes, leading to higher operating expenses for retailers and online platforms. This issue is particularly relevant for industries with sensitive products, such as healthcare, pharmaceuticals, and electronic goods, which require specialized packaging to prevent contamination, spoilage, or physical damage. Sustainable protective packaging solutions have emerged as an alternative to traditional packaging methods. These eco-friendly materials offer better recyclability and reduced carbon footprints, making them an attractive option for retailers and e-commerce players. The alcoholic and non-alcoholic beverage industries, lubricants and oils, and the energy sector, including solar panels and wind turbine parts, are among the key industries that stand to benefit from sustainable protective packaging. In the context of supply chain disruptions and recessionary economies, the pallet wrap market has gained significant attention as a cost-effective solution for securing and protecting bulk shipments. Retailers and small-scale businesses are increasingly adopting on-demand packaging technology, which allows for customized packaging based on the size and shape of the product, reducing the need for excessive protective materials and void-filling. In summary, the market plays a vital role in ensuring the safe and efficient transportation of various industries' goods.

However, the use of protective materials can lead to increased costs and environmental concerns. Sustainable protective packaging solutions and on-demand packaging technology offer viable alternatives to traditional methods, addressing the need for cost savings, reduced carbon footprints, and improved supply chain efficiency. The growing on-demand packaging market is expected to harm the demand for protective packaging, which will hinder the growth of the global market during the forecast period.

Market Customer Landscape

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 Market Customer Landscape

Who are the Major Market Companies?

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:

• Berry Global 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

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.

Market Segmentation

This 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.

By End-user

The food and beverages segment is estimated to witness significant growth during the forecast period. The market is significantly driven by the food and beverages sector due to the increasing production and export of these products. Lightweight packaging solutions, such as paper-based ones, are gaining popularity in this segment to reduce carbon footprint. In the electronics appliances industry, protective packaging is essential for shock absorption during transportation. Void-fill materials, including eco-conscious, biodegradable, and recyclable options, are crucial for securely filling spaces in packaging boxes. 

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The food and beverages segment was the largest segment and was valued at  USD 7.97 billion in 2017. The manufacturing industry also relies on protective packaging to ensure the safe transport of fragile goods. Overall, consumer awareness towards sustainability is driving the demand for lightweight, biodegradable, and recyclable protective packaging solutions.

Key Regions

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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 market in APAC is experiencing significant growth, driven by expanding end-user industries, particularly e-commerce, FMCG, and personal care. Countries like China, India, and Japan, with thriving e-commerce sectors, are key contributors. Product handling and transportation duration are crucial factors in this market. Protective packaging solutions include inflatable air cushions, sustainable packaging, molded foam inserts, and offerings from Sealed Air. Convenience-oriented items, such as frozen foods, ready-to-eat meals, and consumer electronics, require various protective packaging types, including flexible, foam, and rigid types made of materials like cardboard, metal, plastic, and PET, PVC, and EPS. The market comprises the wrapping and void fill segments, utilizing packaging solutions like paper wrap, bubble wrap, air pillows, packing peanuts, and void-fill techniques for dairy products, meat products, frozen meals, and household appliances.

Segment Overview

The 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. 

• End-user Outlook 
  • Food and beverages
  • Industrial goods
  • Consumer electronics
  • Household appliances
  • Healthcare and others

• Type Outlook 
  • Flexible
  • Rigid
  • Foam

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

The market encompasses a variety of products and solutions designed to safeguard and transport commodities, particularly sensitive and valuable items. Components such as automobiles, electronics, and components require protective packaging to prevent damage during transportation. Vehicles, for instance, are often shipped using custom-designed containers to ensure their safe transit. Delicate components, like glass or electronic parts, require specialized packaging materials like corrugated cardboard, cushioning, and void-filling materials. Transports and logistics play a crucial role in the protective packaging market, as they facilitate the secure movement of goods from one location to another.

The use of advanced technologies, such as recycled and biodegradable materials, is gaining popularity in the protective packaging industry. Sustainable packaging solutions are becoming increasingly important as businesses aim to reduce their carbon footprint and minimize waste. The market for protective packaging is expected to grow significantly due to the increasing demand for e-commerce and the need for secure transportation of goods. The rise of globalization and international trade has also contributed to the growth of this market. In summary, the market caters to the needs of various industries by providing customized solutions to ensure the safe and secure transportation of their valuable commodities. The use of advanced materials and technologies is driving the growth of this market, making it an essential component of the logistics and transportation sectors.

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 6.95 billion
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 forecasting, 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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