North America Protective Packaging Market Size

North America Protective Packaging Market Analysis

The North America Protective Packaging Market size is estimated at USD 9.36 billion in 2024, and is expected to reach USD 10.87 billion by 2029, growing at a CAGR of 3.05% during the forecast period (2024-2029).

The demand for protective packaging in North America is predicted to rise due to the introduction of biodegradable plastics. It aids in lowering carbon emissions and plastic pollution nationwide.

• Protective packaging emerged as one of the most effective packaging techniques used for packaging in various end-user industries, such as consumer electronics, pharmaceutical, and automotive, that safeguard and shield core products from damage during transportation or storage.
• Further, with the rise in e-commerce in the North American region, purchases are the key factor expected to boost the demand for protective packaging. The increasing trend of online purchasing by consumers and the readiness of manufacturers for direct sales augment the innovation in product offerings. Moreover, it drives the vendors for changes in product design, packaging, picking, fulfillment, and shipping. As a result, product protection is considered one of the most important issues among end users.
• The exponential growth of e-commerce, technological advancements resulting in customized packaging solution needs, and the availability of different packaging options, such as transparency of materials to allow product visibility, adhesive films, and edge protection of consumer electronics items like TVs, are primarily changing the way most companies choose these products. The US Gross Domestic Product (GDP) per capita was last estimated at USD 69288 in 2021, according to data from the World Bank. American GDP per capita is 485 percent more than the global average. The significant per capita income in the nation increases the purchasing power of the citizens and may cause an increase in online sales, which will raise the need for protective packaging.
• Moreover, automated packaging solutions are also witnessing increasing adoption, as they reduce labor and waste while increasing processing speeds for high-volume packaging. Also, the market is witnessing constant efforts and increased investments to develop eco-friendly and sustainable protective packaging materials, which can be recycled and reused.
• Consumer confusion has arisen due to promises that plastic products are biodegradable and environment-friendly. The end-of-life conditions to which plastic items are exposed significantly impact the rate and extent of degradation. As a result, California and the federal government have tightened environmental marketing claims rules. California's laws regulate selling degradable plastic products, including those claimed to be compostable or biodegradable. Environmental marketing claims must be supported by competent and credible scientific facts and adhere to predetermined standards to avoid misleading consumers about the environmental impact of degradable plastic products, such as bags, food service ware, and packaging.
• With the outbreak of COVID-19, the market for protective packaging is witnessing significant growth owing to a rise in demand from e-commerce, pharmaceutical, and other end-user industries.