Honeycomb Packaging Market Size, Share & COVID-19 Impact Analysis, By Packaging Type (Exterior Packaging, Interior Packaging, and Pallets), By End Use (Food & Beverages, Automotive, Consumer Goods, Logistics, and Others), and Regional Forecast, 2023-2030

The global honeycomb packaging market size was valued at USD 2.80 billion in 2022 and is projected to grow from USD 2.93 billion in 2023 to USD 4.18 billion by 2030, exhibiting a CAGR of 5.20% during the forecast period. North America dominated the honeycomb packaging market with a market share of 32.14% in 2022. Moreover, the honeycomb packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.12 billion by 2032, driven by the increasing demand across various sectors including electronics, consumer goods and automotive.

Honeycomb packaging is designed with a combination of kraft liner and a core with a cell structure. Honeycomb is mainly used as primary packaging, which helps to prevent scratches and damage and offers dust-free packing. The packaging is lightweight, strong, and cost-effective, has minimal environmental impact, and safeguards goods during transit, owing to which it is highly utilized among several end-use industries. The rising focus on developing cost-effective and lightweight packaging materials is majorly contributing to the global market growth.

COVID-19 IMPACT

Business Shutdowns Due to Lockdown Restrictions Adversely Affected the Market Growth

The market was adversely affected due to the COVID-19 pandemic. The dependence of such packaging on the growth of automotive, transportation, home decor, aerospace, and other industries and the shutdown of all these during the pandemic hampered the market growth. According to a Society of Indian Automobile Manufacturers (SIAM) report published in April 2020, the sale of commercial vehicles, two‐wheeler vehicles, and passenger vehicles declined by 88%, 40%, and 51%, respectively, in March 2020. Furthermore, several automotive companies halted their operations due to the rising risk of the virus spread. It temporarily obstructed the demand for packaging during the COVID-19 period. However, increased awareness of using eco-friendly products among citizens surged the demand for honeycomb packaging market in several industries in the post-COVID-19 era.

Honeycomb Packaging Market Trends

Augmenting Demand for Sustainable Packaging is Booming as a Market Trend

In the packaging sector, sustainable packaging with honeycomb materials has been developing as a new trend. It is a primary environmentally-friendly packaging solution, having better possibilities to package products than other packaging solutions, especially plastic packaging, which may lead to unnecessary waste that pollutes the environment and ecosystems. These packaging solutions are biodegradable and easily recyclable and would not cause any harmful waste to the environment. The rising need for sustainable product packaging among manufacturers, brands, and consumers is booming as a major trend in the market. Significant benefits offered by the packaging create an eco-friendly brand image, further attracting numerous customers. Therefore, all these factors boost the honeycomb packaging demand, further emerging as a critical trend.

Honeycomb Packaging Market Growth Opportunities

Increasing Demand for Cost-Effective Protective Packaging Materials to Boost the Market Growth

Due to the growing damage and waste of products during transport, the demand for honeycomb packaging is on the rise. The material is strong, durable, lightweight, and cost-effective and protects the products inside it, owing to which the market is witnessing rapid growth. Moreover, the need to protect valuable products such as glass items, industrial machinery, heavy consumer electronics, and other equipment is rising. As a result, there has been an increased demand for transport and the need for safer packaging methods is growing.

Another major factor contributing to the demand for honeycomb packaging is the emergence of several e-commerce platforms ensuring that products are correctly and safely delivered. The emergence of e-commerce and the reduced footfall in the retail outlets are contributing to the expansion of the market. In addition, the development is stimulated by the customization of boxes, pallets, wraps, and other packaging products according to customer needs. The growth of the global market is also expected to be encouraged by the need for environmentally friendly packaging solutions.

Rising Usage of Honeycomb Materials for Automotive Product Packaging to Drive the Market Growth

The automotive industry and the packaging with honeycomb material seem to be ideal for each other. As the automotive industry is looking for a reduction in weight to improve its performance and indirectly improve the environment, honeycomb materials provide an excellent alternative that also offers direct ecological advantages with respect to fossil materials. The rising utilization of honeycomb materials for automotive product packaging is driving the market growth.

The collaboration of paper honeycomb manufacturers and automotive engineers has led to solutions where honeycomb material is the core of car parts such as interior trim, spare tire covers, roofs, and sandwich panels. It is easy for the material to be shaped according to requirements, making it possible to come up with creative and multifunctional designs, further boosting the market growth. In addition, when it comes to custom-made packaging designs for the automotive industry, the material provides strength, flexibility, weight reduction, and protection. Therefore, the increasing usage of honeycomb material in the automotive industry boosts the growth of the global market.

RESTRAINING FACTORS

Rising Demand for Alternatives and Intense Competition May Hamper the Market Growth

The rising demand for flexible packaging by several end-use sectors and consumers is the primary factor hindering the market growth. The occurrence of the flexible packaging industry can be attributed to the rising focus on sustainability and convenience. Moreover, as flexible packaging is more lightweight than honeycomb packaging, it is restraining the market growth. The rising emission of gases during the manufacturing of paper based packaging impacts the environment, further restraining market growth.

Major players such as Sealed Air Corporation, Smurfit Kappa, and Sonoco Products Company are anticipated to expand their geographical presence to gain more significant shares, leading to stiff competition, which may hinder the global market growth.

Honeycomb Packaging Market Segmentation Landscape

By Packaging Type Analysis

Overall Product Protection Feature Contributes to the Exterior Packaging Segment’s Growth

Based on packaging type, the market is segmented into exterior packaging, interior packaging, and pallets.

The exterior packaging segment dominates the market and is expected to continue its dominance over the projected period. Exterior packaging materials involve containers, boxes, edge protectors, and others that are used for packaging products before they are shipped or transported. As the outer packaging covers the entire product and is very effective for safe transportation from the seller to the buyer, the segment’s growth is flourishing. This segment is also expected to witness a steady growth rate due to increasing demand from consumer goods and automotive industries.

The pallets segment is the second-dominating packaging type segment. Honeycomb pallets weigh less than other wood pallets and are easy to handle owing to their high demand. The rising demand for such pallets among several end-use sectors such as logistics & automotive drives the segmental growth.

By End Use Analysis

Excellent Strength and Versatility of the Material Enhances its Usage in Consumer Goods Sector

Based on end use, the market for honeycomb packaging is segmented into food & beverages, automotive, consumer goods, logistics, and others.

The consumer goods segment is the dominating segment and is projected to witness massive growth in the forthcoming years. The rising usage of honeycomb products for packaging furniture, home care, and other products is contributing to segmental development. The strength, protection, versatility, and reduced weight properties of the packaging also make it an ideal choice for consumer goods, further leading to the segment’s growth.

Automotive is the second-dominating end use segment and is expected to grow significantly over the forecast period. Protective packaging is a crucial part of the auto supply chain; subsequently, honeycomb products for packaging automotive products are gaining huge demand. Packing with honeycomb is the best choice for bulky products and automotive components and parts as it offers improved safety.

REGIONAL INSIGHTS

Based on region, the market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America accounts for the largest part in the global honeycomb packaging market share. The presence of significant players in the region, along with the well-established furniture and automotive sectors, is majorly contributing to the market growth. The rising focus of manufacturers on developing pallets for transportation & logistics for shipment of electronic products, consumer goods, and others is also bolstering the market growth in the North American region.

Europe is the second-dominating region of the global honeycomb packaging industry. The rising demand from consumers for such valuable products and sustainable packaging solutions is favoring market growth in the region. The increasing usage of paper honeycomb for product packaging is also boosting regional growth.

Asia Pacific is the fastest-growing region of the global market. The utilization of such cost-effective and lightweight packaging materials by several manufacturers to develop honeycomb wraps, boxes, pallets, and other products is driving regional growth.

The Latin American market is witnessing moderate growth owing to the past decade's blocked integrations with neighboring countries. Latin America and the Caribbean has been resilient to the growing uncertainty in the global economy, due to which the growth rates are insufficient to decrease poverty & reduce social tensions. Hence, it is causing the honeycomb packaging industry to grow slowly in the region.

The rising disposable income of consumers and reduced footfall of retail outlets in the Middle East and Africa are driving the market growth.

List of Key Honeycomb Packaging Market Companies

Major Players Experience Significant Growth Opportunities with Innovative Product Launches and Global Expansion

The global honeycomb packaging market is highly fragmented and competitive. A few noteworthy players are dominating the market by providing new and innovative packaging solutions in the packaging industry. These major players also focus on expanding their customer base across the globe by innovating their prevailing product range.

The market report also focuses on several significant players in the honeycomb packaging industry, including DS Smith, Sonoco Products Company, Sealed Air Corporation, Signode Industrial Group LLC, Packaging Corporation of America, Smurfit Kappa Group, and others. Numerous other small and large companies operating in the market are expected to focus on offering advanced packaging solutions.

List of Key Companies Profiled:

• DS Smith (U.K.)


• Sonoco Products Company (U.S.)


• Sealed Air Corporation (U.S.)


• Signode Industrial Group LLC (U.S.)


• Packaging Corporation of America (U.S.)


• Smurfit Kappa Group (Ireland)


• Axxor (Netherlands)


• BEWI (Denmark)


• Deluxe Packaging (U.S.)


• IPC Industrial Packaging Corporation (U.S.)


• Dufaylite (U.K.)


• Eltete TPM Ltd (Finland)


• Helios Packaging (India)


• Macpack (India)


• Honicel (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – A U.S.-based packaging company, Novolex, announced the launch of its Power Prep packaging, specifically designed for fresh food. Power Prep uses non-fluorinated oil-and-grease-resistant paper, which is laminated using a honeycomb pattern to create an insulated layer.


• July 2022 – Dufaylite launched thermally-insulated box liners and inserts developed from recycled paper honeycomb. The company aims to offer a paper-based substitute to solutions manufactured with polystyrene and lamb wool. As claimed by the company, the inserts provide all the insulation and protection required for everyday products.


• May 2022 – Alkindo Naratama Tbk (ALDO) announced the introduction of a green product substitute for the first plastic bubble wrap in Indonesia, Hexcel Wrap. Hexcel Wrap is a sustainable product and an alternative to bubble wrap in the form of a honeycomb structure made of recycled paper. It is used as a protection solution in packaging shipments of goods, specifically for the e-commerce industry.


• March 2022 – Antalis Packaging manufactured an easy-to-recycle honeycomb cell design, which can be an effective alternative to wooden shipping crates, offering enhanced protection for a company that requested sustainable crates for the transportation of heavy, fragile goods overseas. The solution includes a custom-made shipping carton designed with PALLITE, a lightweight, paper-based material reinforced with a 25mm honeycomb cell design.


• April 2021 – A leading manufacturer of packaging, components, and insulation solutions, BEWI, declared the 51% acquisition of the Danish paper packaging Honeycomb Cellpack A/S. Through this acquisition, the company focused on broadening its product offering within protective packaging, in line with its strategy to offer its customers complementary solutions.

REPORT COVERAGE

The market research report provides detailed market analysis and focuses on key aspects, such as top market players, competitive landscape, product/service types, market segmentation, Porters's five forces analysis, and leading end uses 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 growth in recent years.

REPORT SCOPE & SEGMENTATION