Packaging Foams Market Size, Share & Industry Analysis, By Material (Polystyrene, Polyurethane, Polyolefin, and Others), By Type (Flexible and Rigid), By End-use Industry (Automotive, Electrical & Electronics, Building & Construction, Medical, Food & Beverage, Military & Defense, and Others), and Regional Forecast, 2024-2032

The global packaging foams market size was valued at USD 14.24 billion in 2023 and is projected to grow from USD 15.12 billion in 2024 to USD 25.01 billion by 2032, exhibiting a CAGR of 6.50% during the forecast period. Asia Pacific dominated the packaging foam market with a market share of 41.22% in 2023. Moreover, the packaging foam market in the U.S. is projected to grow significantly, reaching an estimated value of USD 3.76 billion by 2032, driven by the increasing use of packaging foams in several end-use industries due to its properties, such as protecting fragile, lightweight products.

Packaging foams are used to cushion and protect goods during storage and shipping. These materials are made of either polystyrene, polyurethane, polyethylene, or expanded polyethylene foam, providing numerous properties to the products during handling. These versatile materials come in a variety of sizes and shapes and are often tailored to a specific use or purpose. The increasing trade among countries and the augmenting use of packaging foams for insulation, cushioning soundproofing, and void filling are contributing to the packaging foams market growth.

The packaging foams market experienced negative growth during the pandemic, as there was a temporary ban on trade activities. Major end-use industries of packaging foams, such as automotive and building and construction, electrical and electronics, food, and beverage, had declining demands. The medical military and defense sectors observed positive and moderate demands, respectively. However, the post-pandemic phase has brought new opportunities to the market due to the surging e-commerce industry.

Packaging Foams Market Trends

Innovation of Sustainable Packaging Foam Products is Trending in the Market

Packaging foam products generally contain air, as they use raw materials, water, and polystyrene from fossil sources or recycle EPS efficiently in production. They are lighter than almost any substitute packaging material and have shock absorption and thermal insulation properties during transit.

As these are lightweight, they reduce the carbon footprint of everything they protect during transport, from fresh fish and groceries to refrigerators. A 2011 life cycle analysis by PricewaterhouseCoopers* found that the use of EPS packaging results in fewer greenhouse gas emissions, pollution, and waste than cardboard and uses three times less water consumption.

Moreover, manufacturers of protective packaging are taking the initiative to develop sustainable foam that has the properties of traditional foam material. The sustainable packaging giant Stora Enso took such an initiative by producing Fibrease® wood foam, which is made of Nordic wood fibers and is a soft material with memory foam-like behavior. It can be used for cushioning and dampening and also as an insulating material for applications such as temperature-controlled packaging.

The major advantage offered by this packaging is that it is recyclable in curbside bins along with the outer corrugated cardboard box in which it is used. The easy recyclability of wood foam is an important advantage for the customer and reduces the need for harder-to-recycle materials.

Packaging Foams Market Growth Factors

Increasing Demand for EPS in the Electrical Industry is Enhancing the Market's Growth

The consumer electronics industry is experiencing prompt change, with innovative products and technologies launched into the market. This has raised the demand for the Expanded Polystyrene (EPS) material for the packaging of electronic devices. EPS has been identified for its exceptional shock-absorbing properties, making it best suited to safeguard sensitive and delicate electronic components during transit.

EPS is extensively used as a packaging material due to its excellent insulating properties, low cost, and lightweight. As more consumers buy electronic devices such as laptops, smartphones, and accessories, the demand for EPS packaging materials that protect these items during transportation has increased accordingly.

Antistatic foam is the most economical insulator for shielding electrical devices as one of the major threats to electronic components during transportation or storage is the accumulation of static electricity. Such foam is made from a special polystyrene foam blend with certain chemicals to block the conduction of static electricity through the foam. Other than protecting the products from static electricity, antistatic foam directs potential electrical charges away from the packaging, allowing for safe dissipation. Such properties of the EPS will contribute to the growth of the market over the forecast period.

Augmenting Use of Polyurethane in Several End-use Industries is Propelling the Market's Growth

Polyurethane foam is easy to shape and adapt to various types of protective packaging. It can be used as a filling material to fill voids, preventing products from moving during handling. Due to its flexibility, it can absorb shocks and quickly return to its original shape and can also be given antistatic properties. Thus, protective packaging foams minimize and absorb electrical charges to protect electronic products from internal damage during transit. Polyurethane is best suited for protecting fragile, lightweight products due to its softness and resistance to dents and scratches. Additionally, it is low odor and mildew resistant, making it ideal for shipping food or moisture-sensitive products.

The foam is a versatile material making it ideal for various military applications, from body armor to insulation. Polyurethane foam is used to pack and transport sensitive military equipment and supplies. It can conform to the shape of the packaged item, creating a cushioning layer that prevents it from damage during transportation. This is important for sensitive electronic devices and other sensitive items that are at risk of being damaged during transport. Military electronic equipment is always vulnerable to static electricity, which can destroy sensitive components, and therefore requires extreme care when transporting.

Due to its versatility, polyurethane is often used in medical and pharmaceutical applications. Some polyurethanes are biodegradable and harmless and provide outstanding advantages, such as flexibility, durability, and resistance. It is also characterized by its positive biocompatibility, bending resistance, and adaptability to different types of applications, making it suitable for the packaging of medical devices.

The numerous properties offered by polyurethane have made its application in several end-use industries, leading to the growth of this market.

RESTRAINING FACTORS

Ban on the Use of Packaging Foams in the Food & Beverage Industry is Hampering the Market's Growth

Styrofoam or expanded polystyrene foam is a non-biodegradable material. An article published in the Journal of Environmental Sciences states that styrene can have adverse effects on humans in various ways, raising serious public health and safety questions regarding its accumulation in human tissue. Although there is evidence that styrene causes cancer in animals, it has not yet been proven to cause cancer in humans. Therefore, many nations have banned the use of EPS in food and beverage packaging, leading to the restricted growth of the market.

Using polystyrene to package food and beverages is harmful because hot foods and liquids cause the Styrofoam to partially break down, allowing some toxins to be absorbed into the bloodstream and tissues.

Additionally, the non-biodegradable nature of the substance poses a threat to the environment, such as marine pollution and other threats.

Packaging Foams Market Segmentation Analysis

By Material Analysis

Polyurethane’s Antistatic Properties Support the Segment’s Leading Position

Based on material, the market is segmented into polystyrene, polyurethane, polyolefin, and others. Polyurethane holds the largest market share as it is extremely flexible, easy to fabricate and cut, and has wide usage in several end-use industries. It protects the products from scratches, breaks, dents, and other damages during transportation. The growing use of this material in automotive and electrical packaging due to its insulating and antistatic properties is bolstering the growth of this segment.

Polystyrene is the second dominating segment of this market. It is the most suitable packaging material due to its thermal insulating properties and its ability to mold into any shape and size. The segment's growth is also being contributed to by its lightweight and inexpensive nature.

By Type Analysis

Flexible Foam’s Shock Absorbing Properties Lead to the Segment’s Dominance

Based on type, the market is segmented into flexible and rigid. The flexible type holds the largest packaging foams market share. These foams are less dense, making them highly flexible and elastic, leading to high resilience and shock-absorbing properties. In addition, flexible foams are durable and capable of extending the product life cycle by helping a product maintain its appearance. It has led to a higher demand for packaging foams in the automotive, furniture, footwear, and other industries, thus fueling the segment's growth.

Rigid is the second dominating segment of the market. Solid structures such as plastic and higher density increase the application of such foams in the construction, automotive, and electrical industries, thus accelerating the segment's growth.

End-use Industry Analysis

Automotive Industry Holds the Prominent Position with High Demand for Packaging with Structural Reinforcement Properties

Based on the end-use industry, the market is segmented into automotive, electrical & electronics, building & construction, medical, food & beverage, military & defense, and others. Automotive is the dominating segment of the market. It has a high demand for packaging that offers sound insulation, shock absorption, vibration dampening, and structural reinforcement properties. The packaging foams can fulfill all such requirements, thus making the automotive industry the largest end-user.

Electrical and electronics is the second dominating and fastest-growing end-use industry in this market. The growing disposable income and rising standard of living are driving the accelerating growth of this segment.

REGIONAL INSIGHTS

The market for packaging foams is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific is the leading and fastest-growing region of this market, fueled by the growing demand for consumer electronics. For instance, emerging nations, such as China and India, have experienced a high demand for electrical devices in the last few years due to the expanding middle class, rising urbanization, and increasing disposable income. An increased number of consumers connected to technology will result in more sales of the products. Thus, the growing demand for electronic products in the region and the presence of the largest manufacturer and exporter country of electronic products is expected to bolster the region's growth during the forecasted period. Europe is the second most dominant region in this market bolstered by the increasing innovation, awareness, and use of green packaging in the region.

North America is experiencing significant growth in the market for packaging foams due to the rising automotive, medical, and military & defense industries. Latin America is anticipated to grow at a moderate rate during the forecasted period. The increasing number of investments in the region, along with the growing infrastructural development, is leading to a high number of constructions in the region, thus boosting the region's growth. The Middle East & Africa will witness steady growth due to the growing demand for the electrical and electronics industry.

List of Key Companies in the Packaging Foams Market

Key Participants in the Market Witnessing Significant Growth Opportunities

The global packaging foams market is highly fragmented and competitive, where few major players dominate by offering innovative packaging. These players are constantly focusing on expanding their customer base and innovation.

Major players in the market include Sealed Air, Smurfit Kappa, UFP Technologies, Inc., Sonoco Products Company, BASF SE, and others. Numerous other companies operating in the industry are focused on delivering advanced packaging solutions.

LIST OF KEY COMPANIES PROFILED:

• Sealed Air (U.S.)


• Smurfit Kappa (Ireland)


• UFP Technologies, Inc. (U.S.)


• Sonoco Products Company (U.S.)


• BASF SE (Germany)


• JSP (Japan)


• Zotefoams plc (U.K.)


• Rogers Foam Corporation (U.S.)


• The Supreme Industries Ltd (India)


• Atlas Molded Products (U.S.)


• NEFAB GROUP (Sweden)


• American Foam Corporation (U.S.)


• CARPENTER (Germany)


• Synthos (Poland)


• KANEKA CORPORATION (Japan)

KEY INDUSTRY DEVELOPMENTS:

• March 2024 - Seawise Innovative Packaging launched Styrofoam, an alternative form of packaging that is designed to replace extensively used EPS foam. The new packaging is designed to be a cost-effective solution for companies trying to reduce the use of plastics in their supply chain.


• December 2023 - Woamy launched a bio-foam product for plastic-free packaging in collaboration with Paptic and Secto Design. The new packaging foam products are fully bio-based, plastic-free, biodegradable, and recyclable.


• September 2022 - Nefab launched WoodFoam Solutions - packaging solutions made from an eco-friendly fiber-based recyclable foam. The product was developed in partnership with the provider of renewable products in packaging, Stora Enso®. The fiber-based and eco-friendly wood foam performs similarly to PU foam. Still, it is recyclable in the paper or paperboard stream and produces four times less carbon dioxide emissions than traditional PU foams.


• January 2022 - Tekni-Plex Consumer Products announced the expansion of its product portfolio by launching foam polypropylene processor trays for fresh food products such as poultry, meat, pork, fruits, and vegetables. The material is lightweight, durable, heat-resistant, and FDA-approved for direct food contact. Foam polypropylene is also a substitute for common foam polystyrene trays.


• November 2021 - Stora Enso announced the extension of its packaging portfolio of bio-based foams from wood. The foams can be used to safeguard fragile and delicate products and are ideal for the thermal packaging of temperature-sensitive products.

REPORT COVERAGE

The market research report provides a detailed market share analysis and focuses on key aspects such as leading companies, competitive landscape, product/service types, Porter’s five forces analysis, and leading end-use industries of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the above factors, the report encompasses several factors that contributed to the market's growth in recent years.

Report Scope & Segmentation