Protective Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Plastic and Paper & Paperboard), By Product Type (Rigid, Flexible, and Foam), By Function Type (Wrapping, Void Fill, Insulation, Cushioning, and Blocking & Bracing), By End-use Industry (Food & Beverage, E-commerce, Pharmaceutical, Automotive, Consumer Electronic, Personal Care & Cosmetic, and Others) and Regional Forecast, 2023-2030

The global protective packaging market size was valued at USD 36.31 billion in 2022 and is projected to grow from USD 38.52 billion in 2023 to USD 61.44 billion by 2030, exhibiting a CAGR of 6.90% during the forecast period. Asia Pacific dominated the protective packaging market with a market share of 31.62% in 2022. Moreover, the protective packaging market in the U.S. is projected to grow significantly, reaching an estimated value of USD 14.80 billion by 2032, driven by the increasing use of protective packaging products in international trade.

Protective packaging provides sufficient buffering to goods and prevents them from sustaining damage and destruction. The demand for the product has been increasing due to the rising penetration of the e-commerce industry globally. The increasing need from end-use industries such as food & beverage and automotive has further fueled the use of the product to ensure safe and secure packaging and shipment of goods.

Moreover, the necessity for protective packaging of the products is growing, owing to the expanding demand for consumer electronics across regions and the increasing smartphone penetration, which is boosting market growth. Protective packaging products are widely used in the pharmaceutical sector to ensure that products are stored and transported safely, which further propels market growth.

PROTECTIVE PACKAGING MARKET TRENDS

Increasing Use of the Product in the Food & Beverage Industry

The increasing number of online consumer purchases boosts the demand for the product. The rapid expansion of the e-commerce industry and the technological development in packaging material and protection of goods during transport are further fueling market growth. The eco-friendly features of the product, such as higher recycling, are becoming a safer option for consumers. The shifting consumer preference toward convenience items, including ready-to-eat products and frozen foods, is also increasing the demand.

Moreover, manufacturers offer products with recycled and natural fiber molded pulp for alcoholic and non-alcoholic beverages. They also emphasize strategies such as signing collaborative agreements with small players, which could help prominent market players expand the overall market, increasing the use of the product for the food & beverage sector and boosting market growth.

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COVID-19 IMPACT

The COVID-19 Pandemic Interrupted the Manufacturing of Protective Packaging Products Globally

The market was negatively affected by the COVID-19 pandemic. The shutdown of various industries decreased the use of the product. In addition, the demand for the product was hindered by the pandemic, mainly due to the decline from the end-use industry. However, the market is expected to recover rapidly owing to the rising demand from the pharmaceutical, food & beverage, and e-commerce sectors. The growing trend of food delivery and online shopping is further expected to boost market growth. Capital market liberalization and greater trade, which is poised to increase import and export activities, are expected to boost the protective packaging market growth during the forecast period.

PROTECTIVE PACKAGING MARKET GROWTH FACTORS

Increasing Demand for the Product in the E-commerce Industry to Foster Market Expansion

E-commerce provides customers with more options to purchase the product, and the convenience of buying from home is bolstering market growth. This leads to more customers shopping online, making it the fastest-growing industry worldwide. Moreover, large e-commerce companies use the product. It protects the goods from damage during shipping and delivery. The new water-resistant paper is developed to withstand exposure to water without damage, making the packaging more suitable for e-commerce products such as flowers, detergent, vegetables, and fruits, temporarily protecting the goods against water and increasing the product demand. The increasing use of void fill to prevent product movement during shipment, offering cushioning and protection against physical damage, mainly used in the e-commerce sector to avoid damage and returns, further drives market growth.

Increasing Use of the Product in International Trade to Aid Market Growth

In many developing countries, industrialization and the construction sector are growing rapidly, and the construction sector is seeing an increase in demand for protective packaging solutions. Moreover, international trade is increasing the demand for packaging products, and these factors drive market growth. The product is designed to shield items from physical harm and damage. During transport, the packages are subject to rough handling, dropping, and movement from vehicles, which makes them prone to damage. The product benefits the goods during transportation as it protects them from damage and is sent to retailers and customers safely, increasing international trade and boosting market growth. Multi-use packaging helps companies reduce their carbon footprint, and choosing reusable packaging to impact the environment positively is expected to fuel market growth. Thus, international trade is driving the protective packaging industry's growth globally.

RESTRAINING FACTORS

Stringent Regulations on the Use of Plastic in Packaging May Hamper Market Growth

Plastic waste harms the environment as most packaging is non-biodegradable. The strict laws and regulations imposed by the government for plastic packaging are restraining market growth in developing countries. The government is becoming more aware of protecting the environment and taking steps to promote eco-friendly and sustainable packaging materials. As a result, the cost of raw materials is increasing as the prices of paper and aluminum have increased due to the pandemic. At the same time, carrier charges to foreign countries have also increased, placing the packaging sector under significant pressure and increasing the operational cost for manufacturers. Thus, these factors are expected to restrain the overall market growth during the forecast period.

PROTECTIVE PACKAGING MARKET SEGMENTATION ANALYSIS

By Material Analysis

Plastic Segment Dominates Due to Ease of Availability

Based on material, the market is bifurcated into plastics and paper & paperboard. The plastics segment holds the largest share in the market. Plastic materials are easily available, and they have exceptional packaging barriers. In addition, the material is lightweight and has strong thermal insulation and shock-absorbing qualities. Such factors contribute to the largest market share of the segment.

By Product Type Analysis

Flexible Segment Dominates Due to Cushioning and Sustainability Characteristics

By product type, the market is classified into rigid, flexible, and foam. The flexible segment holds the largest share of the market. The flexible products are almost made from recycled materials, and flexible protective packaging solutions have improved their sustainability and recyclability. These products also provide characteristics such as insulation and cushioning, contributing to the largest market share.

By Function Type Analysis

Wrapping Segment Dominates Due to the Use of Wrap for Different Sizes of the Product

Based on function type, the market is categorized into insulation, void fill, cushioning, wrapping, and blocking & bracing. The wrapping holds the largest share in the market. Protective wrappings, including bubble wrap or paper wrap, can be utilized for multiple products of various sizes and are easily cut according to the product requirement. In addition, wrapping provides lightweight and cushioning properties, decreasing the chances of physical damage to the product and contributing to the largest share of the segment.

By End-use Industry Analysis

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Food & Beverage Segment Dominates Due to the Capability of the Product to Retain Freshness and Quality of Dairy Items

By end-use industry, the market is divided into e-commerce, food & beverage, pharmaceutical, automotive, consumer electronic, personal care & cosmetic, and others. The food & beverage segment holds the largest share of the market. In the food & beverage industry, the product helps to preserve the quality and freshness of dairy products, which has increased emphasis on product quality such as bakery products and frozen meals. The packaging protects goods from damage throughout transportation and keeps them safe, contributing to the largest share of the segment.

REGIONAL PROTECTIVE PACKAGING MARKET ANALYSIS

The market is divided into the Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa.

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Asia Pacific dominated the protective packaging market with a market share of 31.62% in 2022, owing to the growing e-commerce business, which increases the use of the product for safe shipping and transportation in the region. Moreover, highly populated economies such as China and India are fueling the e-commerce sector.

North America holds the second-largest global protective packaging market share, as the presence of packaging giants in the region produces a wide range of protective packaging solutions based on end-use industry requirements.

Europe is projected to witness considerable growth over the forecast period due to the growing preference of consumers for on-the-go snacks, attributed to the busyness of European consumers, which has bolstered the demand for packaged consumer items, surging the demand for the product in the region.

Latin America market is anticipated to show steady growth during the forecast period owing to the demand for insulated containers driven by the increased online sales of food, and the foam comes in a corrugated cardboard box that offers maximum protection for perishable items, driving regional growth.

The Middle East & Africa market is projected to grow moderately during the forecast period, as protective mailers are widely used for shipping cosmetic products. Bubble mailers and padded mailers are broadly used in the cosmetic sector, which drives the global protective packaging market size.

KEY INDUSTRY PLAYERS

Key Players are Observing Significant Growth Opportunities by Providing Innovative Packaging

The global market is competitive and highly fragmented. In terms of market share, the few key players dominate the market by offering innovative packaging in the packaging industry. These major players are constantly emphasizing innovation and expanding their customer base across the regions.

Moreover, key players in the market include Smurfit Kappa, Westrock Company, Sealed Air Corporation, Sonoco Product Company, Huhtamaki, DS Smith PLC, Pregis LLC, Pro-Pac Packaging Limited, Storopack, Intertape Polymer Group, and others. Many other companies in the industry are focused on offering advanced packaging solutions.

LIST OF KEY COMPANIES PROFILED IN PROTECTIVE PACKAGING MARKET:

• Smurfit Kappa (Ireland)


• Westrock Company (U.S.)


• Sealed Air Corporation (U.S.)


• Sonoco Product Company (U.S.)


• Huhtamaki (Finland)


• DS Smith PLC (U.K.)


• Pregis LLC (U.S.)


• Pro-Pac Packaging Limited (Australia)


• Storopack (Germany)


• Intertape Polymer Group (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 – Ranpack launched Wrap’n Go converter for protective honeycomb paper. The company brought its Geami Wrap’n Go converter, which turns kraft paper into protective, pack-in-store packaging for fragile items, to the North American market, providing an alternate option to the plastic solution.


• February 2023 – The circular materials company Cruz Foam announced the launch of a revolutionary new product family of environmentally protective packaging, introducing highly efficient solutions that meet the specific needs of customers in transporting sensitive and temperature-sensitive goods to consumers and businesses.


• February 2022 – Pregis launched a film that is used to make air cushioning that protects products from damage during distribution. The company brings a sustainability focus to protective packaging with a new carbon-neutral air cushioning film called Renew Zero. The product is currently available only in Europe.


• February 2021 – Smurfit Kappa launched a new packaging system for its sustainable TopClip product portfolio, a paper-based replacement for plastic shrink wrap that bundles beverage multi-packs. The company launched complete solutions, including automation for every size and shape of the beverage company.


• September 2020 – Protective packaging specialist Storopack launched FOAMplus 5504RC, the first polyurethane foam with renewable content. The sustainable foam consists of sugar-based material from renewable sources that will fulfill cushioning demands.

REPORT COVERAGE

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

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