Europe Protective Packaging Market Size

Europe Protective Packaging Market Analysis

The Europe protective packaging market is expected to register a CAGR of 3.4% during the forecast period 2020 - 2027. Protective packaging is one of the most significant packaging styles used for packaging various end-user industry products, such as consumer electronics, pharmaceutical, and automotive, which safeguard and shield core products from damage during transportation or storage. The e-commerce industry is increasing across Europe by nearly 7% annually and is boosting the market growth. Further, the United Kingdom holds third place worldwide for most parcels delivered yearly at 1.9 billion packages.

• The market in the United Kingdom is mainly growing due to the Flexible Packaging sector. Global packaging vendors are expanding in this region, and local companies are being acquired, which is indicative of the market potential in the area. For instance, in January 2020, Macfarlane Group acquired protective packaging solutions provider Armagrip for undisclosed sums.
• Beauty brands in the region are taking greater care in packaging and logistics operations. Product innovations, such as downgauging and the emergence of alternative raw materials, are expected to translate into future growth opportunities. Moreover, for industries with a bulk need for packaging materials, the vendors also provide packaging equipment and raw materials to maintain businesses with high volume and huge value customers.
• Moreover, the market is witnessing new partnerships and M&A activities to address new challenges emerging in the market and drive growth. For example, Warburg Pincus, a global private equity firm, agreed to acquire Pregis LLC, protective packaging materials and automated systems manufacturer, from Olympus Partners, which after five years of ownership and a series of acquisitions, resulted in Pregis LLC's growth from 14 to 22 manufacturing sites in North America and Europe.
• Although light-weighting of the board has long been affecting the corrugated industry, light-weighting and proper-sizing play a critically important role in this industry, not only in response to buyer's demands for efficient packaging but also in response to buyer's demands for efficient packaging also in response to the logistics system's adoption of dimensional weight (DIM) pricing, in some scenarios, substituting a heavier board grade can provide a better impact overall as it allows for the eradication of additional protective elements. Light weighting has been quite successful in Western Europe. The importance of lightweighting will continue to be felt even in the coming years as it is cost-saving.
• Due to the outbreak of COVID-19, the lockdown enforced and social distancing norm has elevated the consumer to order their requisite through online medium. The food and beverage sector has also been witnessing rising demand for takeaway and online delivery, driving the growth of the protective packaging market in the region.