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).
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
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.
Protective Packaging Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 31788.0 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||5.92 %||Forecast Period:||2022-2030|
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.
|Restraints & Challenges:||
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.
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.
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