Protective packaging is designed to provide protection and prevent damages to the product during shipment and storage. Protective packaging helps to protect the product by conserving 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.
The global protective packaging market is estimated to be valued at US$ 31,766.5 million in 2021 and is expected to exhibit a CAGR of 5.3% over the forecast period (2021-2028).
Figure 1. Global Protective Packaging Market Value (US$ Mn), by Region, 2020
North America held dominant position in the global protective packaging market in 2020, accounting for 28% share in terms of value, followed by Asia Pacific excluding Japan and Western Europe, respectively.
Robust growth in the various manufacturing industries around the globe is a major factor propelling the market growth of protective packaging. Rise in the end-user industries such as automotive, pharmaceutical, automotive, electronic, etc. across developing region coupled with the growing consumerism are also projected to augment the market growth of the protective packaging over the forecast period.
The rise in the urban population around the globe is expected to propel the market growth of cosmetic packaging. According to the United Nations, 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 the 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 growing inclination of manufacturers towards bioplastic materials for protective packaging is projected to bring new market opportunities in the near future. For instance, in May 2019, Eastman showcases sustainable packaging innovations at LUXE PACK New York, Eastman Tr?va™ engineering bioplastic, and Cristal EV600™ copolyester. They can serve as a direct replacement for ABS and enables opportunities for downgauging in packaging applications. Moreover, they offer better performance and less environmental impact.
The expansion of the healthcare and pharmaceutical packaging industry is projected to offer bright market opportunities over the forecast period. Growing trading of the pharmaceutical products coupled with the rise in the geriatric population around the globe is creating a need for healthcare products such as devices and drugs. Also, increasing adoption of the advanced and reliable packaging solution in the pharmaceutical industry is propelling the market growth of the protective packaging.
|Base Year:||2020||Market Size in 2021:||US$ 31,766.5 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.3%||2028 Value Projection:||US$ 46,368.9 Mn|
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, factor such as environment friendly than other bulkier alternatives is again propelling product demand. Furthermore, they offer a greater level of shock absorption capability and protection to the packaged product. Additionally, the inflatable packaging has drastically reduced the damages and cost during the supply chain. Thus growing demand for inflatable packaging is propelling 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 acquired e Pregis LLC, a provider in protective packaging materials and automated systems manufacturer, from Olympus Partners. Thus growing such strategic merger and acquisition among key manufacturers is projected to support the market growth of the protective packaging over the forecast period.
Figure 2. Global Protective Packaging Market Share, By Product Type, 2020
Key Takeaways of the Graph:
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 increase the generation of waste materials after the unpacking of the products.
The issue associated with the foamed plastic in the protective packaging is expected to hamper the market growth. Foamed plastic is a non-biodegradable raw material and take years to decompose. Thus, the growing demand for biodegradable raw materials in the protective packaging industry is projected to hamper the market growth.
In August 2020, Sealed Air Corporation has announced it has signed a collaboration agreement with Plastic Energy, a company involved in advanced recycling technology.
Protective packaging is any material designed to physically shield and buffer an object against possible damage or destruction during transportation or storage. Typically, protective packaging is utilized as the primary element of the object's packaging, protecting the object from moisture, light, abrasion, or breakage. However, protective packaging can also be used as a secondary component of the packaging, serving as an additional barrier to prevent damage or destruction of the packaging itself.
Rapid urbanization and industrialization is expected to drive growth of the protective packaging market. Advancement in technology is again projected to foster growth of the market. For instance, in September 2021, Pregis has partnered with German chemical and consumer goods company Henkel to develop sustainable protective packaging solutions for commercial launch.
However, growing environmental concerns due to waste generated by protective packaging is projected to hinder growth of the market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.