Dunnage Packaging Market Size, Share & Industry Analysis by Material (Plastic, Fabric, Paper, Metal, and Others), By Product Type (Inserts & Dividers, Bags, Racks, Trays, Pads & Corners, and Others), By End Use (Automotive, Shipping & Logistics, Aerospace & Defense, Electricals & Electronics, Food & Beverages, Healthcare, and Others), and Regional Forecast, 2024-2032

The global dunnage packaging market size was valued at USD 4.00 billion in 2023 and is projected to be worth USD 4.21 billion in 2024 and reach USD 6.65 billion by 2032, exhibiting a CAGR of 5.89% during the forecast period. North America dominated the dunnage packaging market with a market share of 34% in 2023. Moreover, the dunnage packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.85 billion by 2032, driven by the growing technological advancements in packaging solutions.

Dunnage packaging includes several types of loose packaging materials intended to safeguard the products. The massive rise in the consumption of dunnage packages to protect shipments from damage, moisture, and shock absorption majorly drives the growth of the global market. Increasing demand for dunnage bags, pillows, and inserts for product protection in the automotive sector contributes to the global dunnage packaging market share.

The sudden occurrence of the COVID-19 virus harmed the market's supply chain, leading to the shutdown of several businesses. However, the rapid growth in the e-commerce, shipping and logistics, and food and beverage industries generated demand for packaging solutions during the COVID-19 pandemic, further enhancing the market's growth.

Dunnage Packaging Market Trends

Growing E-commerce Sector and High Demand for Sustainable Packaging Solutions Emerges as a Market Trend

The increasing need for dunnage packages due to the growing developments in e-commerce operations is emerging as a key trend for the market. The growing e-commerce sector globally boosts the demand for protective packaging solutions to safeguard the safe delivery of products to clients, which in turn boons market growth. Thriving e-commerce & digital shopping activities have upsurged the demand for protective and reusable packaging solutions. Dunnage offers excellent protection to durable & perishable products during transportation, thereby piloting the market trend.

Additionally, the augmenting demand for sustainable packaging solutions is also enhancing the utilization of recyclable materials such as paperboard, wood, and biodegradable polymers for manufacturing dunnage packages, thus driving market growth.

Dunnage Packaging Market Growth Factors

Surging Demand for Dunnage Products from the Automotive Sector Boosts Market Growth

The extensively growing automotive industry generates huge demand for dunnage products due to their cost effectiveness and sturdy nature. The rising demand for dunnage packaging products from the automotive sector due to its improved inventory control, reduced packaging waste and carbon footprint, and excellent product protection drives the market growth. The automotive parts, such as engines, gearboxes, propeller shafts, decorative interior items, and other small elements, require strong packaging solutions during transportation, which enhances the market growth.

The rising utilization of such packaging solutions for the finished and semi-finished automotive components, such as the delivery of body parts from the vendor to the assembly parts division, also propels the market growth. Moreover, as the packaging offers damage prevention, humidity protection & stress absorption, the frequent transportation of high-volume products becomes easier, further contributing to the global dunnage packaging market growth.

Rising Logistics and Transportation Industry Propels the Market Growth

The flourishing logistics and transportation sector is a major contributor to the rapid growth in the dunnage packaging industry globally. The rising online delivery trends and demand for quick and long-distance delivery services are thriving the growth of the logistics & transportation sector, thus driving the market growth of dunnage packaging. The dunnage bags or pillows are significant in protecting delicate & expensive consumer goods and other products. The goods or packaged products that are prone to damage due to high moisture exposure to moisture, such as electricals & electronics, are increasing the demand for dunnage during transit.

Closed-cell polyethylene foam pads, corners, and bags are an ideal choice for protecting surfaces prone to paint finishes and scratches, further ensuring that they reach their destination in original and impeccable condition. The rapidly growing shipping & logistics industry demands dunnage packages, thus boosting the market growth. In addition, the dunnage protects products by absorbing shock while getting tossed around, stacked with other boxes, or dropped during transportation, further boosting its market growth.

RESTRAINING FACTORS

High Initial Costs Associated with Dunnage Products Hampers Market Growth

The increasing necessity for high initial investments in the manufacturing of dunnage products is the primary factor hindering market development. The high initial costs associated with dunnage limit the small-scale packaging businesses and new firms to enter and survive in the market for a longer period, further hindering the dunnage packaging market. Depending on the material, the prices of the final dunnage packages vary. The racks or pallets manufactured with steel are one of the most expensive dunnage solutions & are only used for high-value shipping.

Supply chain disruptions and problems with shipping can also impact the high prices. It is essential to weigh the drawbacks of utilizing steel material, further limiting the market growth. Moreover, it is observed that the dunnage sticks to the products & get often pulled out of the bag, which may also cause damages, impeding global demand.

Dunnage Packaging Market Segmentation Analysis

By Material Analysis

Significant Benefits of Plastic Material Thrives the Segmental Growth

Based on material, the market is segmented into plastic, fabric, paper, metal, and others.

Plastic is the dominating material segment and holds the largest market share. Utilization of plastic material to support products and equipment is expensive yet the best choice due to its durability and sturdy properties. The racks, trays, pallets, inserts, and dividers manufactured with plastic offer a higher shatter resistance than other materials and comprise less wear & tear when shipping and storing. Such features make them an ideal choice for product protection during transit, leading to rapid segmental growth.

Fabric is the second-dominating material segment and is expected to witness notable growth during the projected period. Fabric dunnage is designed to keep the packaged products separate, prevent contact & optimize the load or the quantity of products that are being transported.

By Product Type Analysis

High Demand for Inserts & Dividers in the Shipping & Logistics Sector Boosts the Segment’s Growth

Based on product type, the market is segmented into inserts & dividers, bags, racks, trays, pads & corners, and others. Inserts & dividers are the dominating segment and is projected to grow rapidly over the forecast period. The inserts and dividers are essential in improving the productivity and efficiency of the business, further enhancing the protection of the parts & components during handling & transit, and eliminating the costs associated with the handling processes. The massive demand for inserts & dividers to protect the critical components and parts of the automotive industry is a major factor enhancing the segmental growth.

Dunnage bags are the second-dominating product type segment. The bags are essential in preventing goods and loads from damaging each other, overturning, and shaking. The bags are also important in filling voids and space, further reducing the instances of damage and movement.

By End Use Analysis

Growing Consumption Dunnage Products in the Automotive Sector Enhances Segmental Growth

Based on end use, the market is segmented into automotive, shipping & logistics, aerospace & defense, electricals & electronics, food & beverages, healthcare, and others. Automotive is the dominant end-use segment and is anticipated to grow rapidly during the forecast period. During transit, automotive components majorly face the risk of damage caused due to shock & vibration. The dunnage products such as foam pads & dividers are crucial in mitigating & absorbing vibrations and protecting products from potential harm. The automotive industry majorly utilizes dunnage bags, pads, and inserts, as it guarantees that customers obtain undamaged products, safeguarding the brand's quality, image, and final products, leading to segmental growth.

Shipping and logistics is the second-leading end-use segment. Dunnage is significant in preventing the products from falling out of a ship, truck, or train and causing any serious harm. It is also vital in absorbing shocks, tremors, & other disruptions and thus has gained high traction in the shipping & logistics sector.

REGIONAL INSIGHTS

The market for dunnage packaging is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is the dominating region of the global dunnage packaging market. The presence of major players and the well-established automotive sector are the primary factors enhancing the market growth in the region. Additionally, the continuous investments in research & development activities, growing technological advancements in packaging solutions, and growth in the e-commerce sector also contribute to North American market growth.

Asia Pacific is the second-dominating region. The rapid demand for lightweight packaging for electronics, electricals, and automotive components and parts while maintaining its structural integrity and curtailing its handling and transportation costs drives the Asia Pacific dunnage packaging market growth.

Europe is the third-leading region and is expected to foresee significant growth in the projected years. The rapid growth & expansion of food & beverages, metal working, power generation, oil & gas, automotive, chemicals, & other manufacturing sectors, and the utilization of sustainable raw materials in the region positively influence the market growth. The Latin American market is expected to experience steady growth during the forecast period. The growth of e-commerce and the automotive sector in the region fosters market development.

List of Key Companies in Dunnage Packaging Market

Key Market Participants to Witness Significant Growth Opportunities with New Product Launches

The global market is highly competitive and fragmented. Some of the significant players are leading the market by providing innovative packaging solutions in the packaging industry. These major players in the market are continuously focused on the expansion of their customer base globally by innovations in their existing range of products.

The key competitors in the market include ORBIS Corporation, DS Smith, Sonoco Products Company, Corplex, NEFAB Group, Dordan Manufacturing Company, Inc., and others. Many key players in the market are concentrating on providing advanced packaging solutions and market scenarios.

List of Key Companies Profiled:

• ORBIS Corporation (U.S.)


• DS Smith (U.K.)


• Sonoco Products Company (U.S.)


• Corplex (France)


• NEFAB Group (Sweden)


• Dordan Manufacturing Company, Inc. (U.S.)


• Reusable Transport Packaging (U.S.)


• IPS Packaging & Automation (U.S.)


• Signode Industrial Group (U.S.)


• Amatech Inc. (U.S.)


• MJSolpac Ltd. (U.K.)


• Ckdpack (Canada)


• GWP Group (U.K.)


• Packaging Corporation of America (U.S.)


• Southern Packaging, LP (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 – Allpack declared the launch of innovative dunnage bag solutions with the introduction of the contain-a-pac brand. A contain-A-Pac brand for dunnage bags is mainly designed to revolutionize the shipping & logistics industry and enrich its cargo protection product range.


• February 2023 – SSI SCHAEFER Packaging introduced a threadless dunnage product line, which is essential in saving material & reducing handling costs for customers that demand parts protection. The dunnage product line is perfect for automotive products that require high surface protection.


• May 2021 – An international leader in reusable packaging, ORBIS Corporation added a new material, PolySilk, to its product portfolio, ORBIShield. ORBIShield is the company’s production line of custom protective dunnage, which helps protect automotive parts during transit, assembly & storage.


• April 2021 –  ORBIS Corporation announced the addition of Lite Foam to its dunnage material products to protect lightweight parts. Lite Foam dunnage is made with extruded polypropylene & its constant strength removes the ribbing effect present in other lightweight materials.


• February 2020 – AtMet KOREA declared the launch of new dunnage airbags for container cargo. AtMet dunnage airbags are suitable for fastening and protecting cargo in trucks, trains, and ships. They can be used for space separation and various cargo heights.

REPORT COVERAGE

The market research report for dunnage packaging provides a detailed market analysis and focuses on key aspects, such as top key players, competitive landscape, product/service types, market segments, porter’s five forces analysis, and leading segments of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market intelligence & growth in recent years.

REPORT SCOPE & SEGMENTATION