Packaging Foams Market Size
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
|CAGR:||> 4.5 %|
*Disclaimer: Major Players sorted in no particular order
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Packaging Foams Market Analysis
The packaging foams market is expected to reach USD 10,600 million by the end of this year and is projected to register a CAGR of over 4.5% during the forecast period.
COVID-19 had a negative impact on the global economy in 2020. It affected several industrial sectors such as the packaging sector by hindering their supply chain. The lockdown and shutdown have changed the behavior of retail business shuttered, international supply chains, and purchase significantly across various sectors. However, the industry witnessed a recovery, with the growing demand for convenience as consumers are increasingly ordering groceries and other food products online owing to increased online shopping and transportation activities after the lifting of restrictions in the second half of 2021.
- Over the short term, the rising demand from the industrial packaging industries is a major factor driving the growth of the market studied.
- However, the availability of molded pulp as a green alternative is a key factor anticipated to restrain the growth of the target industry over the forecast period.
- Nevertheless, the growing quest for eco-friendly packaging foam is likely to create lucrative growth opportunities for the global market soon.
- Asia-Pacific is expected to dominate the global packaging foams market, and it is also estimated to be the fastest-growing market over the forecast period due to the increasing market applications in countries such as China and India.
Packaging Foams Industry Segmentation
Packaging foam is commonly used as cushioning material for boxes, and this packaging solution is known for its versatility and its ability to be customized. The packaging foam market is segmented by material, structure, application, and geography. By material, the market is segmented into polystyrene, polyurethane, polyolefin, and other materials. By structure, the market is segmented into flexible and rigid. By application, the market is segmented into food packaging and industrial packaging. The report also covers the market size and forecasts for the packaging foam market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
Packaging Foams Market Trends
This section covers the major market trends shaping the Packaging Foams Market according to our research experts:
Increasing Demand from the Industrial Packaging Sector
- Packaging foam is commonly used as a cushioning material for boxes, and this packaging solution is known for its versatility and ability to be customized.
- Foams are used in a wide variety of packaging applications and industries including industrial goods, consumer electronics, automotive, and other applications where optimum protection and durability are overriding considerations.
- Automotive spares are difficult to handle, and some parts necessitate extra caution during storage and transportation. This is due to the intricate nature of some parts, particularly those in the interior and engine.
- The global automotive industry registered huge growth in the studied period. According to OICA, the total number of vehicles produced in 2021 was 80,145,988 and witnessed a growth rate of 3% compared to 2020. The Asia-Pacific region holds the highest production share in the global automotive market with 46,732,785 units in 2021.
- According to the Census Bureau, United States retail e-commerce sales amounted to USD 265.9 billion, an increase of 3.0 percent (±0.5%) from the second quarter of 2022.
- The European e-commerce industry was valued at EUR 7718 billion (USD 7,902.32 billion) at the end of 2021, registering an increase of 13 % as compared to the situation last year. The major contribution in the region comes from Northern Europe, which accounts for 86% of the total e-commerce value.
- Moreover, Military foam packaging necessitates a higher level of attention to detail than commercial packaging. Because of the sensitive contents, a huge proportion of military cargo requires careful packing and handling. Military equipment is frequently moved around the world, which necessitates the use of high-quality defense foam packaging to ensure safe shipping.
- Thus, the growth in transportation and e-commerce industries has led to the exponential growth of the packaging sector, also taking support from the rising awareness and use of green packaging. Therefore, these trends are expected to have a potentially positive impact on the packaging foam market in the forecast years.
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Asia-Pacific to Dominate the Market
- Asia-Pacific dominated the global packaging foams market primarily due to the growing demand for packaging in logistics, the growing industrial and automotive manufacturing and other manufacturing operations.
- China is one of the major contributors to the packaging foams markets globally, especially in Asia-Pacific. The growing food and beverages, automotive, electronics, personal care, and pharmaceutical industry are expected to boost the growth of the market.
- China has one of the largest food industries in the world. As per the National Bureau of Statistics of China, in 2021, the food industry in China generated a total profit of about CNY 618.7 billion (USD 86.33 billion). The food manufacturing industry contributed approximately CNY 165.4 billion (USD 23.08 billion) to the total profits.
- As per METI (Japan), the total production value of the electronics industry in Japan is around JPY 10.95 trillion (USD 80 billion) in 2021, which is 110% of the production value compared to the last year. Furthermore, the total electronics exports in 2021 amount to JPY 10.82 trillion (USD 79 billion) with JPY 1.04 trillion (USD 7.6 billion) in December 2021 alone, thus providing huge demand for packaging foams in the region.
- The South Korean e-commerce market stands at over USD 92 billion per annum. A wave of building and investment has been drawing significant interest and capital from international investors, including GIC, APG, Angelo Gordon, Warburg Pincus, and Blackstone. South Korea is also the 4th-largest third-party logistics (3PL) market in Asia-Pacific and is growing at an annual rate of nearly 8%, faster than Japan, Australia, and Singapore.
- Hence, owing to the rapidly growing packaging industry in the Asia-Pacific region, the demand for packaging foams is also expected to increase rapidly over the forecast period.
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Packaging Foams Industry Overview
The packaging foams market is partially fragmented in nature. The major companies include (not in any particular order) Borealis AG, Sealed AIR, Armacell, TotalEnergies, and Recticel NV/SA.
Packaging Foams Market Leaders
*Disclaimer: Major Players sorted in no particular order
Packaging Foams Market News
- In March 2021, Recticel announced that it successfully acquired FoamPartner, the Swiss-based global provider of high-added-value technical foams. Recticel Flexible Foams and FoamPartner are merged to form the Recticel Engineered Foams business line. The new organization will leverage numerous synergies in resources and talents to promote excellence, grow its global presence, and accelerate the commercialization of sustainable innovations and leading-edge solutions to global markets.
- In February 2021, Zoatfoams announced the virtual opening of its new plant in brzeg, Poland with a designed capacity of 13,000-meter square, the new plant adds 50,000-meter cubes of annual foam production to the company increasing its global capacity and optimizing its service level for its customers in Europe.
Packaging Foams Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Rising Demand from the Packaging Industry
4.2.1 Molded Pulp as a Green Alternative
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Value)
5.1.4 Other Materials
5.3.1 Food Packaging
5.3.2 Industrial Packaging
220.127.116.11 Electrical and Electronics
18.104.22.168 Personal Care
22.214.171.124 Other Industrial Packaging
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.4.2 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
5.4.4 South America
22.214.171.124 Rest of South America
5.4.5 Middle East & Africa
126.96.36.199 Saudi Arabia
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 Atlas Roofing Corporation
6.4.3 Borealis AG
6.4.4 Drew Foam
6.4.5 Foamcraft Inc.
6.4.7 Huntington Solutions
6.4.9 Sealed Air
6.4.10 Williams Foam
6.4.11 Zotefoams PLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Quest for Eco-friendly Packaging Foam
Packaging Foams Market Research FAQs
What is the study period of this market?
The Packaging Foams Market is studied from 2017 - 2027.
What is the growth rate of Packaging Foams Market?
The Packaging Foams Market is growing at a CAGR of >4.5% over the next 5 years.
Which region has highest growth rate in Packaging Foams Market?
Asia Pacific is growing at the highest CAGR over 2017-2027.
Which region has largest share in Packaging Foams Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Packaging Foams Market?
Armacell LLC, Borealis AG , Sealed Air , Recticel NV/SA, TotalEnergies are the major companies operating in Packaging Foams Market.
Packaging Foams Industry Report
Statistics for the 2023 Packaging Foams market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Packaging Foams analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.