The protective packaging market was valued at USD 23.51 billion in 2017 and is expected to reach a value of USD 30.96 billion million by 2023 at a CAGR of 4.70 %, over the forecast period (2018-2023). The report is segmented based on material into plastic and paper & paperboard, based on product into rigid, flexible, and foam, and segmented on end-user vertical into food & beverage, automotive, pharmaceutical, consumer electronics, industrial, beauty, and home care. The regions considered in the report include North America, Europe, Asia-Pacific, Latin America and Middle East & Africa.
Protective Mailers Account Large Market Share
The protective mailers used for online purchase are expected to grow with significant a growth rate with the e-commerce sector. The insulated shipping containers which are predominantly used in moving pharmaceutical and other various temperature-controlled products are also expected to register an above average growth rate during the forecast period. The recycled, biodegradable materials used in products, such as paper fill, biodegradable loose-fill are also gaining prominence.
E-Commerce Sector To Boost the Growth of the Market
E-commerce is also helping to boost demand for product segments, such as air pillows, molded foams, bubble wraps, etc. The significant growth in the number of e-commerce platforms and increased focus on enhancing the existing packaging techniques, with the help of technology, has influenced the consumers’ choice towards preferring adequately packaged products. Improving lifestyles have made the consumers conscious of the package and have hence created a demand for the higher quality of packaging to ensure no compromise has been made to the core product. Product manufacturers will continue to exert greater demand on packaging firms to reduce their prices to retain the balance between innovation and product costs. Greater consumer awareness, emergence of new materials, and R&D operations undertaken by market incumbents will pave the way for innovative products over the forecast period.
Asia-Pacific to Account for the Largest Market Share
The Asia-Pacific has the largest market share, followed by North America and Europe. Europe represents one of the largest markets for beauty and personal care products in the global market. The demand for these products is expected to remain fairly high over the forecast product. Beauty brands are taking greater care in packaging and logistics operations, to improve their customer retention. Recent product innovations, such as down gauging and emergence of alternate raw materials, are expected to translate into future growth opportunities in the protective packaging market.
The robust growth in online retailing is driving the demand for economical, lightweight, and pre-constructed protective packaging solutions. Protective mailing solutions are currently being used for offering greater protection to a wide variety of relatively small objects such as books, jewelry, recorded music, personal electronics, electronic accessories, and others. The paper mailers are gaining more market share with their environment-friendly qualities such as better suitability for recycling. This is one of the major trends in the developed markets, such as North America, where the recycling programs are extensively employed as well as stringent environmental regulations are in place.
Key Developments in the Market
- July 2017: Sonoco Corporation announced that it has completed the acquisition of Clear Lam Packaging Inc., a developer and manufacturer of flexible and forming plastic packaging films, for approximately USD170 million in cash. The reason for the acquisition was to leverage Clear Lam’s expertise in modified atmosphere packaging, which comes from a strong base of material science knowledge when it comes to films, additives, and adhesives. Clear Lam also developed new portion-control condiment packaging, peel-reseal films for fresh fruits and vegetables, forming films for healthy yogurts, lidding films for fresh guacamole, and several new packaging films that extend shelf life. The addition of their portfolio and technical capabilities for producing multiayer film structures enhances and expands their ability to serve the rapidly growing perimeter of supermarkets in fresh food products, while driving synergies through the internalization of materials for Sonoco’s existing flexible and thermoforming customers.
- May 2017: Pregis has announced its acquisition of Sussex, a Wisconsin-based sharp packaging system for an undisclosed amount. The acquisition is expected to enable Pregis to expand its product portfolio to include a complete line of flexible packaging bagging systems and materials. The shift to dimensional weight-based transport pricing is making bagging an attractive option for a variety of products that do not require cushioning protection. By adding bagging systems to their already robust protective packaging product offering, it is expected to offer customers, particularly those whose market strategy includes e-commerce, another option to deliver their products to consumers.
Major Players: Sealed Air Corporation, Sonoco Corporation, Pregis Corporation, Mold-Rite Plastics, Placon Corporation, Automated Packaging Systems Inc., Intertape Polymer Group Inc., Cartonajes Vir SA, Signode Protective Packaging Solutions, 3M Corporation, MJS Packaging Company, and Riverside Paper Co., among others.
Reasons to Purchase this Report
- The growing e-commerce sales act as a driver to the global market scenario
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The regions that are expected to witness the fastest growth during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Key Study Deliverables
1.2 Key Study Assumptions
1.3 Market Definition
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.2.1 Longer Shelf Life and Changing Lifestyle
4.3.1 Concerns about the Environment and Recycling
4.4 Industry Attractiveness – Porter’s Five Forces
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Competitive Rivalry
5. Market Segmentation
5.1 By Material
5.1.2 Paper & Paperboard
5.2 By Product
184.108.40.206 Corrugated Paperboard Protectors
220.127.116.11 Molded Pulp
18.104.22.168 Insulated Shipping Containers
22.214.171.124 Protective Mailers
126.96.36.199 Bubble Wraps
188.8.131.52 Air Pillows/Air Bags
184.108.40.206 Paper Fill
220.127.116.11 Others (Foil Pouches/Bags, Stretch and Shrink Films)
18.104.22.168 Molded Foam
22.214.171.124 Foam in Place (FIP)
126.96.36.199 Loose Fill
188.8.131.52 Foam Rolls/Sheets
184.108.40.206 Others (Corner Blocks, etc.)
5.3 End-User Vertical
5.3.1 Food & Beverage
5.3.4 Consumer Electronics
5.3.6 Beauty and Home Care
5.4 By Region
5.4.1 North America
5.4.4 Latin America
5.4.5 Middle East & Africa
6. Competitive Intelligence - Company Profiles
6.1 3M Corporation
6.2 Automated Packaging Systems, Inc.
6.3 Cartonajes Vir SA
6.4 Intertape Polymer Group Inc.
6.5 MJS Packaging Company
6.6 Mold-Rite Plastics
6.7 Placon Corporation
6.8 Pregis Corporation
6.9 Riverside Paper Co.
6.10 Sealed Air Corporation
6.11 Signode Protective Packaging Solutions
6.12 Sonoco Corporation
*List not Exhaustive
7. Investment Analysis
7.1 Recent Mergers & Acquisitions
7.2 Investor Outlook
8. Future of the Market