Molded Fiber Packaging Market Size, Share & COVID-19 Impact Analysis, By Pulp Type (Thick Wall, Transfer Molded, Thermoformed Fiber, and Processed Pulp), By Product Type (Trays, Boxes & Cartons, Clamshells, Inserts & Dividers, Cups & Bowls, and Others), By Application (Food & Beverage, Electrical & Electronics, Automotive, Healthcare, Industrial, and Others), and Regional Forecast, 2023-2030

The global molded fiber packaging market size was valued at USD 7.68 billion in 2022 and is projected to grow from USD 8.13 billion in 2023 to USD 12.56 billion by 2030, exhibiting a CAGR of 6.41% during the forecast period. North America dominated the molded fiber packaging market with a market share of 39.58% in 2022. Moreover, the molded fiber packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 4.35 billion by 2032, driven by the aesthetic improvements and performance for packaging of high end products such as cosmetics nad electronics.

Molded fiber packaging is a versatile and environmentally friendly packaging solution made from recycled paper materials. It offers excellent cushioning protection and sustainability, making it the best choice for several industries.

The molded fiber packaging market growth in the last few years, driven by factors such as strict regulations on plastic waste, rising demand for eco-friendly packaging, and increasing focus on sustainable practices was noteworthy.

Molded Fiber Packaging Market Trends

Growing Preference for Consuming Sustainable and Eco-Friendly Products is emerging as a New Trend

As global environmental challenges intensify, sustainability has become a focus for consumers across several industries. Driven by ethical consumerism, raising awareness, and the influence of younger generations, this shift in consumer behavior has pushed producers to create sustainable products.

For sustainable packaging, molded fibers made from quickly renewable fibers are often suitable as they are made from highly sustainable materials. Continuous efforts are aimed at reducing or eliminating single-use plastic for packaging. This anti-plastic sentiment benefits the molded fiber packaging industry by promoting biodegradable alternatives. Moreover, government agencies and health-conscious consumers actively support the transition to environmentally friendly options. In addition, the pervasive problem of plastic waste presents significant opportunities for the players operating in this market. Molded fibers will continue to play an important role globally; even though the changes have occurred due to technological advancements, this industry is likely to flourish during the forecast period.

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COVID-19 IMPACT

Halt in Business Activities Owing to Mandatory Lockdowns led to Negative Impact on the Market

The coronavirus pandemic affected every industry, including the packaging sector. The pandemic affected this industry on an unparalleled scale, accelerating existing trends and upending various aspects of the industry. Before the pandemic, online shopping was moving in a positive direction, with conveniences such as meal kits and grocery delivery services steadily gaining popularity. However, mandatory lockdowns and precautionary measures brought all activities to a standstill, resulting in a reduction in people’s disposable income and negatively impacting the market. However, after the pandemic, the increasing concern for the environment and thriving demand for sustainable products led to the revival of the market.

Molded Fiber Packaging Market Growth Factors

Surging Food & Beverage Industry is Likely to Drive the Market Growth

The global molded fiber packaging market share is anticipated to continue its growth curve. This growth is determined by rising demand for sustainable and environmentally friendly packaging options and growing consumer awareness of the environmental impact of packaging waste.

The increasing demand for packaging in the food and beverages sector, encompassing eggs, poultry, meat, fruits, vegetables, and beverages underscores the importance of packaging. These types of packaging products are a desirable option for the food and beverage sector as they preserve the freshness and quality of packaged items while being biodegradable and compostable.

The growing food and beverage industry with the growing online outlets is one of the main reasons for the growth of this market. In addition, increased consumption of eggs and vegetables as part of healthy diet is amplifying the demand for molded fiber packaging products.

Thriving E-commerce Industry is Poised to Enhance the Market Growth

The swift growth of the e-commerce industry has led to increased demand for sustainable and innovative packaging solutions. This type of packaging provides excellent protection for products from food & beverage, electrical and electronics, and industrial during shipping and handling. Its shock-absorbing properties and structural integrity helps to minimize the risk of damage during transport.

E-commerce companies are increasingly placing more emphasis on sustainability and are looking for environmentally friendly packaging alternatives. It is made from recycled materials and is compostable and fully biodegradable, decreasing environmental impact compared to traditional packaging materials such as plastic. This packaging is transforming the e-commerce industry by providing superior product protection, customizability, sustainability, and cost-effectiveness. As e-commerce continues to grow, the demand for innovative and environmentally friendly packaging solutions will persist, driving the adoption of molded fibers. Leveraging these advantages enables e-commerce merchants to improve customer experience, reduce their environmental impact, and differentiate themselves in a competitive market.

RESTRAINING FACTORS

High Production Cost and Material Sourcing is a Key Challenges to this Market

A key challenge in the global molded fiber packaging market is verifying a constant and sustainable supply of raw materials such as natural fibers or recycled paper pulp. Fluctuations in material availability and quality can disturb production processes and affect product quality. Producers must build resilient supply chains to meet this challenge and ensure a continuous flow of materials for manufacturing, especially as demand for this packaging continues to rise.

One of the challenges in this market is the initial production costs. Although molded fibers are environmentally friendly, set-up and maintenance costs of the manufacturing processes can be expensive. These costs may deter some companies from adopting molded fiber packaging. However, as technological advances and economies of scale are realized, this limitation may be alleviated over time.

Molded Fiber Packaging Market Segmentation Analysis

By Pulp Type Analysis

Increasing Use of Transfer Molded Pulp in Various Applications is Boosting the Growth of Transfer Molded Segment

Based on the pulp type, the market is segmented into thick walls, transfer molded, thermoformed fiber, and processed pulp.

Transfer molded pulp segment holds the largest share in this market. It is slightly thinner compared to the other pulp types. Both sides are finished properly, offering a polished look and texture. The most common applications include fruit and vegetable trays, egg trays, wine shippers, slipper pans, and end caps. The increasing demand for these products globally is leading to high demand for transfer molded pulp, contributing to the growth of this segment.

Thermoformed pulp is the second dominating segment in this market. It is used to make the material denser and create specific-shaped products. Due to their super-finished look, they are frequently used for refined molded tableware such as dinner plates, trays, cups, and soup bowls, thereby enhancing the growth of the segment.

By Product Type Analysis

Trays Segment Dominates the Market owing to its Ability to Offer Potential Benefits

Based on the product type, the market is segmented into trays, boxes & cartons, clamshells, inserts & dividers, cups & bowls, and others.

Trays are the dominating segment of this market. The excellent functionality and convenience offered by trays are bolstering the growth of this segment. Increased consumption of dairy products such as eggs and fruits & vegetables, drives the demand for trays, with their ease of handling during transportation further enhancing the growth of this segment.

Clamshells is the second largest segment of this market. The growing online food market and high demand for packaged food are augmenting the growth of this segment.

By Application Analysis

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Increasing Consumption of Dairy Products and Fruits & Vegetables is Enhancing the Growth of Food & Beverage Segment

Based on the application, the market is segmented into food & beverage, electrical & electronics, automotive, healthcare, industrial, and others.

Food & beverage is the leading segment of this market, driven by a rising demand for eggs, fruits, and vegetables. The porous fiber material of molded fiber provides better ventilation and shock absorption, safeguarding eggs from breaking during rough handling and keep products free from infections. Apart from providing continuous ventilation through the micropores, the porous nature of the molded fiber absorbs moisture from fruits and vegetables. Thus, molded pulp packaging products can keep their freshness intact for longer, leading to a reduction in food waste. In the period of supermarkets, attractive packaging is also necessary for fruit and vegetables. Colored and printed molded pulp trays have proven to be beneficial in packaging goods attractively, contributing to the growth of this segment.

Electrical & Electronics is the second leading segment of this market. Continuous digitalization and dependence on electronic products have increased the demand for molded fiber packaging products. These products protect electrical products during transit and ensure proper handling until they reach the end user.

REGIONAL MOLDED FIBER PACKAGING MARKET ANALYSIS

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

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North America is the leading region of this market. Increasing food waste in the region has surged the demand for convenient packaging. The presence of the key players and their growing investments in the molded fiber industry is driving the growth of this region. For instance, in 2022 CKF Inc., with Scotia Investments Limited (SIL), purchased UFP’s Molded Fiber Technology Inc. (MFT) to deliver sustainable solutions to customers.

Asia Pacific is the second dominating and fastest-growing region of this market. The increasing demand for the food & beverage industry and the presence of one of the biggest electrical and electronics producers, such as China, is bolstering the growth of this region.

Europe is growing at a significant rate. The awareness among people regarding the use of sustainable packaging products to reduce packaging waste has raised the demand for molded fiber products. Moreover, the continuous innovative development of packaging products is bolstering the growth of this region. For instance, on 2023, Omni-Pac Group, a molded fiber packaging provider, has partnered with HP to digitize and transform the production of molded fiber on an industrial level. In this partnership, the company will revolutionize the development, launch, and production of molded fiber applications at an industrial scale.

Latin America is expected to grow moderately due to attractive investments from other regions and growing online food outlets in the region.

Middle East & Africa is anticipated to grow at a steady rate due to the growing industrial development in a sustainable way.

LIST OF MAJOR COMPANIES IN THE MOLDED FIBER PACKAGING MARKET

Expansion of Business by Key Participants in the Market is Leading to Significant Growth Opportunities

The global market is highly fragmented and competitive. In terms of market share, there are few major market players that leads the market as they offer innovative packaging in the industry. These leading players constantly put their focus on the expansion of their customer base in various regions and also focus on innovation.

Major players operating in the global market include Sonoco Product Company, Robert Cullen Ltd, Hartmann, CKF Inc., FiberCel Packaging LLC, and others. Numerous other players operating in the industry are focused on delivering advanced packaging solutions.

LIST OF KEY COMPANIES PROFILED:

• Sonoco Product Company (U.S.)


• Robert Cullen Ltd (U.K.)


• Hartmann (Denmark)


• CKF Inc. (Canada)


• FiberCel Packaging LLC (U.S.)


• Huhtamäki Oyj (Finland)


• Green packing Environmental Protection Technology Co., Ltd. (China)


• Dongguan City Luheng Papers Company Ltd. (China)


• Keiding, Inc.(U.S.)


• Pacific Pulp Molding, LLC (U.S.)


• Pactive Evergreen (U.S.)


• Prima Pack (Egypt)


• Dynamic Fibre Moulding (PTY) Ltd. (South Africa)

KEY INDUSTRY DEVELOPMENTS:

• September 2023 - Guamolsa, a part of Molpack Corporation, one of Latin America's leading providers of molded fiber packaging, partnered with HP to digitize and transform the industrial production of molded fiber products. Molpack is making significant progress in reducing carbon emissions and replacing single-use plastics with more sustainable packaging solutions through this revolutionary collaboration.


• June 2022 - Huhtamaki announced its plans to expand its molded fiber product manufacturing unit in Indiana, U.S., as a part of its investment in Fiber Solutions. The USD 100 million investment would help the company to better serve new and existing customers in North America. This financial commitment supported the development and production of a broad range of fully recyclable, sustainable, and compostable, fiber-based packaging solutions, all manufactured from 100% recycled North American raw materials.


• November 2021 - Sonoco expanded its focus on sustainable packaging by adding recyclable molded fiber packaging for refrigerated and frozen meals in partnership with Tellus Products, LLC.


• October 2021 - AR Packaging launched a fiber-based tray intended for modified atmosphere packaging of ready meals and other chilled foods. The fully recyclable TrayLite solution offered a convenient and efficient substitute for full plastic barrier trays, reducing plastics by 85%.


• October 2021 - Arctic Paper and Rottneros signed a Letter of Intent concerning a 50/50 joint venture in Kostrzyn, Poland, intending to build a factory for molded fiber trays. The commencement of operations for the new factory is estimated to generate an annual revenue of USD 9.46 million by the end of 2023.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies and their product launches, competitive landscape, product/service types, Porter’s five forces analysis, and leading end-use industries for 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.

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