PROTECTIVE PACKAGING MARKET ANALYSIS

Protective packaging is designed to provide protection and prevent damage to products during transport and storage. Protective packaging helps protect a product by maintaining the integrity of the product. Protective packaging is available in three forms such as flexible protective packaging solution, rigid protective packaging solution, and foam protective packaging solution.

Global protective packaging market was valued at US$ 31788.0 Million in 2021 in terms of revenue, exhibiting a CAGR of 5.92 % during the forecast period (2022 to 2030).

Drivers

Robust growth in various manufacturing industries around the globe is a major factor propelling the growth of protective packaging market. A rise in the end-use industries such as automotive, pharmaceutical, automotive, electronic, etc. across developing regions coupled with growing consumerism is also projected to augment the growth of protective packaging market the forecast period.

A rise in urban population around the globe is expected to propel the growth of protective packaging market. According to the United Nations in 2020, at present, 55% of the world’s population lives in urban areas, a proportion that is projected to increase to 68% by 2050. Moreover, the gradual shift in the residence of human population from rural to urban areas, combined with the overall growth of the world’s population is expected to add another 2.5 billion people to urban areas by 2050.

The global packaging industry has witnessed a significant rise in the sales of specific types of packaging which are associated with the healthcare and pharmaceuticals sectors. Imposed lockdowns and reduce demand from various end use-sectors have reduced the demand for protective packaging solutions. Furthermore, limited and restricted trade activities across countries are impacting the sales of protective packaging solutions. Nevertheless, recovery from the COVID-19 crisis with rapid vaccination drives across American and European countries is estimated to help in the recovery of the demand for protective packaging solutions through 2021 and beyond.

Figure 1. Global Protective Packaging Market Value Share (%), By Region, 2021

Market Restraints

Growing environmental concerns due to waste generated by protective packaging are expected to hinder market growth. In order to protect the products, retailers or logistics service providers utilize a large amount of protective packaging such as bubble wraps, paper fills, loose fill peanuts, or paper/foam edges that increase the generation of waste materials after the unpacking of the products.

The issue associated with foamed plastic in protective packaging is expected to hamper the market growth. Foamed plastic is a non-biodegradable raw material and takes years to decompose.

Market Trends

Inflatable packaging is gaining traction in the market as they offer a high level of protection at a low cost. Moreover, factors such as more environment-friendly than other bulkier alternatives are propelling the demand for protective packaging market. Furthermore, they offer a greater level of shock absorption capability and protection to the packaged product. Additionally, inflatable packaging has drastically reduced the damages and costs in the supply chain. Thus, growing demand for inflatable packaging is propelling the market growth.

Acquisition and merger among key manufacturers for business expansion is another major trend in the market. For instance, in June 2019, Warburg Pincus, a global private equity firm, headquartered in New York acquired Pregis LLC, a provider of protective packaging materials and automated systems, from Olympus Partners, a private equity firmThus, the growing adoption of strategic mergers and acquisitions among key manufacturers is projected to support the growth of protective packaging market over the forecast period.

Figure 2. Global Protective Packaging Market Value Share (%), By Material Type, 2021

On the basis of material type, the flexible protective packaging segment held a dominant position and accounted for 66.7% share in the global protective packaging market in 2021.

Recent Developments

• In October 2021, Compass Diversified-Backed Altor Solutions, Inc., a designer and producer of superior products for packaging announced the acquisition of Plymouth Foam, a designer and manufacturer of foam products for packaging, shipping With the help of this acquisition, the company aims to strengthen its status as a leading provider of packaging and componentry solutions through an expanded geographic presence.
• In September 2021, Tekni-Plex, a global leader in the Healthcare and Consumer Product markets acquired Keyes Packaging Group, the leading provider of protective molded fiber packaging and tissue wrap. The acquisition adds Tekni-Plex to widen its tray and flats portfolio, strengthening its offerings to customers in the food and beverage industry.
• In July 2021, Specialized Packaging Group (SPG), a leading vertically-integrated provider of protective packaging products, acquired Bay Area-based Specialized Packaging Solutions (SPS), a designer and manufacturer of packaging products. With the help of this acquisition, the company aims to increase its product portfolio of the protective packaging division.

Competitive Section

Major players operating in the market include Sonoco Products Company, Sealed Air Corporation, Packaging Corporation of America, ACH Foam Technologies, Inc., BASF SE, Cascades Inc., Pregis Corporation, Ranpak Corp., Storopack Hans Reichenecker GmbH, and Advanced Protective Packaging Ltd.