The global packaging foams market size was valued at USD 10279.34 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 4.56% from 2022 to 2030. Rapid growth in packaging industry is a prime factor augmenting global packaging foams market growth. Polystyrene, cross-linked polyethylene, polyurethane, polyolefin like polyethylene, expanded polyethylene (EPE), and expanded polypropylene (EPP) are some of the type of packaging foams used in packaging industry. Strong growth in e-commerce sector driven by increasing penetration of internet worldwide is also uplifting market growth. According to the Census Bureau of the Department of Commerce, U.S. retail e-commerce sales for the fourth quarter of 2021 is increased by 1.7% compared to the 3rd quarter of 2021 which accounts the 14.5% of the total retail sale in the United States.
Global Packaging Foams Market: Regional Insights
Asia Pacific is expected to gain significant growth over the forecast period and this is attributed to the rapid industrialization and urbanization. For instance, China has one of the largest food industries in the world. According to the National Bureau of Statistics of China, in 2020, the food industry in China generated a total profit of about CNY 621 billion, increasing from around CNY 577.5 billion in the previous year. The food manufacturing industry contributed approximately CNY 179.1 billion to the total profits. According to OICA, the automotive production in India stood at 4.4 million units in 2021, registering an increase of 30% compared to 3.38 million units produced in the same period last year.
North America is also expected to gain significant growth over the forecast period and this attributed to the presence of strong and powerful economies such as US, Mexico, and Canada. According to International Monetary Fund forecasts, the GDP of the US is expected to grow to 6% in 2021 as the country recover from the pandemic situation. The GDP growth is forecasted to be 5.2% in 2022. The US is one of the key consumers of packaging foams in the region. According to the same source, the GDP of Canada is estimated to register a 4.9% growth rate in 2022.The packaging market in the country is expected to reach about USD 31 billion by 2025, owing to the increasing demand for packaging from the manufacturing and FMCG sector in the country.
Figure 1. Global Packaging Foams Market Value Share (%), By Region, 2021
Global Packaging Foams Market Drivers:
Growing demand from packaging industry is primarily driving growth of the global packaging foams market. For instance, polyurethane foam is majorly used to protect and transport various products, such as delicate glassware, electronic and medical diagnostic equipment, and large industrial parts. Moreover, polypropylene foam is used in internal layers to reduce the density in all types of rigid packaging such as trays, bottles, glasses, etc. Furthermore, another popular polymer: Polyethylene foam is widely used in the construction and automotive industries.
Expanding food service industry with the increasing adoption of advanced packaging products is also contributing to the market growth. For instance, in February 2021, London Bio Packaging, a trading division of Bunzl UK Ltd, is working on revolutionary innovation in sustainable food-to-go EPP packaging, with Infinity, to create the fully recyclable choice with a low carbon footprint that is microwaveable and keeps food hotter for longer.
Global Packaging Foams Market Opportunities:
Increasing launch of bio-based polypropylene due to growing number of research &development activities is expected to provide lucrative growth opportunities over the forecast period. For instance, in October 2019, For instance, Borealis AG and Neste have entered into strategic cooperation with an aim to produce renewable polypropylene (PP).
Growing application of PET foam for lightweight packaging materials in electronics, food, and other industries is projected to bring bright market opportunities. They are used in various products consisting of covers, trays- oven-able bakery trays, containers, meat trays, trolleys, reheat-able dinner trays, and shower pans.
|Base Year:||2021||Market Size in 2021:||US$ 10279.34 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||4.56%||2030 Value Projection:||US$ 15100 Mn|
Armacell, Atlas Roofing Corporation, Borealis AG, Drew Foam, Foamcraft Inc., TotalEnergies, Huntington Solutions, Recticel, Sealed Air, Williams Foam, and Zotefoams PLC
|Restraints & Challenges:||
Global Packaging Foams Market Trends:
Growing penetration of smart devices such as smartphone, laptops, and wearable device is expanding size of electronics market. According to ZVEI, the global electronics industry is set to rise by 6%. America, Europe, and Asia are expected to grow by 5%, 6%, and 7%, respectively. In addition, the global consumer electronics market is expected to grow by 5% in 2022. Moreover, domestic electric appliances (to EUR 287.4 billion) and consumer electronics (to EUR 268.7 billion) might each increase by 5%. Therefore, it is expected to enhance the demand for plastic packaging.
Increasing demand for personal care products due to growing disposable income and changing lifestyle of consumers is expected to shape the market growth positively in the near future. According to Loreal data, the beauty and cosmetics industry was valued at more than EUR 200 billion in 2020, with skincare occupying 42% of the revenue generated in the market, followed by haircare at 22%. The industry was garnering an average growth rate of 4% to 5% from 2011 to 2019 to register a dip of -8% in 2020. However, the industry stabilized in 2021, with the company generating double-digit growth in its personal care sector.
Global Packaging Foams Market Restraints:
Availability of molded pulp as a green alternative is expected to hinder the market growth. Molded pulp solutions is a clean, convenient, and environmentally friendly packaging alternative. Molded pulp is produced with newspaper and water without any chemicals involved in the production process.
Strict regulation pertaining to packaging materials is another key factor expected to hinder the market growth.
Figure 2. Global Packaging Foams Market Value Share (%), By Material, 2021
Global Packaging Foams Market Segmentation:
The global Packaging Foams market report is segmented into material, structure, application, and region.
Based on material, the market is segmented into Polystyrene, Polyurethane, Polyolefin, and Other Materials. Out of which, Polystyrene is expected to dominate the global market over the forecast period and this is attributed to the increasing usage of polystyrene in the production of lightweight and protective packaging. It is also used in other types of packaging to avoid damage in electronic devices.
Polyurethane segment is also expected to witness significant growth in the near future and this is owing to the advantages this polymer offers. PU foam is lightweight and abrasion-resistant polymer. Moreover, it is also able to absorb shock and recover its shape quickly and ideal for protecting lightweight products. Furthermore, it can be easily custom die- cut/fabricated, cut into pads, or convoluted (egg crate). The foam combines the greatest qualities of plastic and rubber while avoiding the drawbacks of vinyl films.
Based on structure, the market is segmented into Flexible and Rigid. Out of which, flexible is expected to dominate the global market over the forecast period and this is attributed to the fact that flexible foams are water-resistant, soft and lightweight, and shock-resistant. Moreover, the anti-static properties of flexible foam make it an ideal packaging choice for electrical components.
Rigid segment is also expected to witness significant growth in the near future and this is owing to growing demand from packaging industrial products ranging from fragile pharmaceuticals to electronic components, electrical consumer goods, toys, and other products. Rigid are beneficial for protecting products.
Based on application, the market is segmented into Food Packaging and Industrial Packaging. Out of which, Industrial packaging is expected to dominate the global market over the forecast period and this is attributed to the rapid urbanization and industrialization.
Food Packaging segment is also expected to witness significant growth in the near future and this is owing to the strong growth in fresh food packaging market. According to the Coherent Market Insights analysis, the global fresh food packaging market was valued at around USD 80 billion by the end of 2020, and it is expected to record a CAGR of more than 3% during the forecast period.
Global Packaging Foams Market: Key Developments
Global Packaging Foams Market: Key Companies Insights
The global packaging foams market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global packaging foams market are Armacell, Atlas Roofing Corporation, Borealis AG, Drew Foam, Foamcraft Inc., TotalEnergies, Huntington Solutions, Recticel, Sealed Air, Williams Foam, and Zotefoams PLC
*Definition: Packaging foams are excellent packaging material that help protect fragile items against knocks and vibrations.
Packaging foams are crucial for many industries, from pharmaceuticals to food and beverage packaging. Polyethylene foam is commonly used packaging material. It can protect lighter and more fragile products. It is also excellent for cushioning and positioning. These foams can be found in many forms, from extruded planks to laminated sheets. One of the most popular types of packaging foam is recycled polyethylene. Cross-linked polyethylene foam is another type, characterized by a compact feel. This material is cross-linked to produce a stronger chemical bond between two molecules.
Growing demand from packaging industry and strong growth in e-commerce industry are major factor propelling growth of the packaging foams market. According to an estimation of the Census Bureau of the Department of Commerce, the total sales of e-commerce retail in North America increased by 7.8% in the 1st quarter of 2021 as compared with the 1st quarter of 2020. During the second quarter of 2020, as COVID-19 spread across the globe, the U.S.'s quarterly e-commerce revenue reached 200 billion. Moreover, advent of Bio-based polypropylene is expected to provide significant growth opportunities over the forecast period.
On the other hand, availability of green alternative like molded pulp is expected to restrict the market growth.
Key features of the study: