In the North American protective packaging market, the United States is poised for gradual yet consistent growth with an anticipated 4.5% Compound Annual Growth Rate (CAGR) spanning from 2023 to 2033. This expansion is underpinned by the substantial demand for protective packaging solutions, largely attributable to the strong presence of industry leaders like Sealed Air Corporation, Sonoco Products Company, WestRock Company, Greif, International Paper Company, and Coveris Holdings S.A.
These key players offer a diverse array of protective packaging tailored to meet specific requirements across various end-use industries. Leveraging strategies such as acquisitions and product launches, they aim to not only bolster sales but also to extend their market presence. Notably, Sealed Air Corporation’s establishment of the SEE Packforum in South America exemplifies their ambition to expand into neighboring markets, reflecting a broader industry trend of globalization and market penetration.
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The global protective packaging market is poised for substantial growth, with a projected valuation of US$ 28.3 billion in 2023 and a steady compound annual growth rate (CAGR) of 5.0% expected to reach US$ 46.1 billion by 2033. This growth is underpinned by the crucial role that protective packaging plays in safeguarding products during warehousing and shipping, especially delicate or fragile items vulnerable to damage during transit.
Protective packaging serves as a buffer that shields products from potential harm or destruction during various stages of the supply chain. It often functions as both primary and secondary packaging, adapting to the specific needs of different products.
The surge in online shopping has significantly boosted the demand for effective protective packaging. As e-commerce continues to expand, the need for secure and reliable protective packaging solutions is set to rise sharply. In 2022, the global protective packaging market accounted for an estimated 2 to 4% of the overall packaging market, valued at US$ 980 billion, indicating its growing importance.
Furthermore, environmental consciousness is driving a shift towards eco-friendly protective packaging solutions. Consumers are increasingly seeking packaging that is biodegradable, compostable, sustainable, or recyclable. This green trend aligns with the growing global focus on sustainability and responsible consumption.
Additionally, modern protective packaging is designed to enhance the customer’s unboxing experience, capitalizing on the popularity of unboxing videos created by social media influencers. Consumers now expect high-quality unboxing experiences that they can share with their online communities, further boosting the demand for innovative protective packaging solutions.
In terms of material, plastic dominates the global protective packaging market, holding an estimated market share of around 52% in 2023. The widespread availability of plastic as a raw material, coupled with its excellent protective barrier properties, makes it a preferred choice in the industry.
Overall, the protective packaging market is poised for substantial growth, driven by the interplay of factors such as e-commerce expansion, sustainability concerns, and the desire to create memorable unboxing experiences for consumers.
key points about the protective packaging market:
- The growth of the market can be attributed to the rising demand for e-commerce, increasing consumer spending on packed goods, and growing manufacturing activities.
- Protective packaging is used to protect goods from damage during transportation and storage. It is made from a variety of materials, including plastics, paper, foam, and metal. The type of material used depends on the weight and fragility of the goods being shipped.
- The e-commerce industry is one of the major drivers of the protective packaging market. The growth of e-commerce has led to an increase in the number of goods being shipped, which has increased the demand for protective packaging.
- Increasing consumer spending on packed goods is another major driver of the market. Consumers are increasingly spending money on packed goods, which has increased the demand for protective packaging.
- Growing manufacturing activities is another major driver of the market. The growth of manufacturing activities has led to an increase in the number of goods being produced, which has increased the demand for protective packaging.
Here are some of the trends that are expected to shape the protective packaging market in the coming years:
- Increased demand for sustainable packaging
- The growing use of automation in packaging
- Rise of e-commerce
- Increasing demand for customized packaging
- Growing focus on product safety
The e-commerce sector’s expansion is one of the key factors driving the protective packaging market. The necessity for protective packing options that can guarantee the safe and secure delivery of goods has increased as more and more customers turn to online platforms for their shopping needs. This is especially true for pricey and delicate things that require special handling, including jewelry and electronics
Another major driver for the protective packaging market is the need for sustainable and eco-friendly packaging solutions. With increasing awareness about the environmental impact of packaging materials, manufacturers are looking for ways to reduce the carbon footprint of their products. This has led to the development of new and innovative protective packaging materials that are biodegradable and made from renewable resources.
The protective packaging market is segmented into various types of products, including bubble wraps, foam, paper and paperboard, and plastic. Bubble wraps and foam are widely used for protecting fragile items during transportation. Paper and paperboard are commonly used for packaging consumer goods such as food and beverages. Plastic materials are used for packaging a wide range of products, including electronics, medical devices, and industrial goods.
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The protective packaging market is also segmented by end-use industry, with the major industries being consumer goods, healthcare, automotive, and industrial goods. The consumer goods industry is expected to be the largest segment of the market, driven by the increasing demand for e-commerce and the need for efficient and cost-effective packaging solutions. The healthcare industry is also expected to see significant growth, driven by the need for protective packaging for medical devices and pharmaceuticals.
Geographically, the protective packaging market is segmented into North America, Europe, Asia Pacific, and Rest of the World. Asia Pacific is expected to be the largest market for protective packaging, driven by the increasing demand for e-commerce and the growing manufacturing industry in the region. North America and Europe are also expected to see significant growth, driven by the increasing demand for sustainable and eco-friendly packaging solutions.
In conclusion, the global protective packaging market is expected to grow significantly in the coming years, driven by the increasing demand for e-commerce and the need for efficient and cost-effective packaging solutions. The market is segmented by product type and end-use industry, with Asia Pacific expected to be the largest market. The major players in the market are focusing on the development of new and innovative protective packaging materials and solutions to meet the growing demand. As the e-commerce continues to grow and consumers become more conscious of the environmental impact of packaging, the protective packaging market is expected to grow even more.
Protective packaging sales are projected to reach US$ 42.4 billion by the end of the projection period. Through the duration of the assessment, there will be an increase in demand for flexible protective packaging. Flexible packaging will continue to be the best-selling product through 2031, accounting for 70% of sales, according to market research on protective packaging.
The Impact of COVID-19 on the Global Protective Packaging Market Orders from the federal, state, and local governments had a significant impact on protective packaging makers and suppliers in 2020. As a result of the federal government’s (United States) instructions to limit the spread of the virus, as well as Shelter-in-Place Orders issued at the state and local levels, businesses have been obliged to adapt or adjust their daily business activities. Protective packaging producers were hampered by business shutdown rules, social distance standards, and reduced municipal and state government office activities in 2020. Due to a decline in demand for protective packaging from end-use industries, the pandemic slowed protective packaging demand.
Packaging is the process of enclosing goods in packages with protective wrappings or other exterior coverings to provide protection, information, safety, and other benefits. Protective packaging helps food items maintain their freshness and flexibility while also extending their preservation life without the use of preservatives.
Technological advancements in packaging are critical in propelling the protective packaging industry forward. The protective packaging market is booming due to a variety of causes, including increased demand from the food and beverage and healthcare industries, as well as a preference for simple packaging. The protective packaging market is expected to rise due to factors such as global industrial output, ongoing technical advances, and customer expansion on packaged goods. Furthermore, the e-commerce industry is expected to cushion the protective packaging market during the forecast period. For businesses, ensuring favourable consumer understanding and addressing their needs is critical.
key takeaways:
Detailed analysis of upstream starting materials, downstream demand, and the current market landscape for each Foam Protective Packaging player Collaborations, R&D projects, acquisitions, and product launches of each Foam Protective Packaging player
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Key players Covered-
- Sealed Air Corporation,
- Crown Holdings Inc,
- Sonoco Products Company,
- Winpack Ltd,
- Smurfit Kappa Group
- DS Smith Plc
- WestRock Company
- Schur Flexibles Holding GesmbH
- Greif
- International Paper Company
- Nefab Group
- Cascades Inc
Author
Ismail Sutaria (Lead Consultant, Packaging and Materials) has over 8 years of experience in market research and consulting in the packaging & materials industry. Ismail’s strength lies in identifying key challenges faced by the client and offering logical and actionable insights to equip the clients with strategic decision-making power.
Ismail has been an instrumental part of several transformational consulting assignments. His key skills include competitive benchmarking, opportunity assessment, macroeconomic analysis, and business transformation advisory. Ismail is an MBA holder in Marketing and has a Bachelor’s Degree in Mathematics.
Ismail is a regular at industry conferences and expos and has been widely covered in electronic and print media. He is a Speaker at our upcoming Talk show – Rise of the Intelligent Packaging. Ismail has been quoted in leading publications, including the European Pharmaceutical Review and the European Adhesive Tape Association.
About Future Market Insights (FMI)
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