VCI Paper Market: Anticipated Growth to Reach US$ 696.5 Million by 2032

VCI Paper Market

In 2022, the global VCI paper market is expected to reach a valuation of US$ 600.3 million, with a projected sluggish Compound Annual Growth Rate (CAGR) of 1.5% anticipated through 2032. According to analysis from FMI report, sales of VCI paper are forecasted to rise to US$ 696.5 million by 2032. This subdued growth trajectory suggests steady but modest expansion in the market, reflecting factors such as evolving industrial practices, increasing demand for corrosion protection solutions, and advancements in VCI paper technology to cater to diverse application needs across industries worldwide.

Europe is expected to maintain its stronghold as the dominant player in the global VCI paper market throughout the forecast period. Currently, Europe holds a substantial share of 28% in the VCI paper market.

The demand for VCI paper in Europe is on the rise, leading to increased investments in the region. Economic labor and government grants for research and development activities are contributing factors driving market growth for VCI paper. In Europe, the need to protect ferrous components due to their corrosive nature and their application in commercial vehicles and automobiles is expected to propel the market’s growth. The combination of these factors positions Europe as a leader in the VCI paper market.

Don’t Miss Out: Get Your Hands on Our Sample Report to Uncover the VCI Paper Market:

Market Drivers:

  1. Growing Awareness of Corrosion Protection: With increasing awareness about the damaging effects of corrosion on metal products during storage and transportation, the demand for VCI paper as a corrosion protection solution is rising.
  2. Expansion of Automotive and Aerospace Industries: The automotive and aerospace industries extensively use metal components that require protection from corrosion. As these industries continue to expand globally, the demand for VCI paper as a reliable corrosion protection solution increases.
  3. Advancements in Packaging Technologies: Innovations in packaging technologies have led to the development of VCI papers with improved properties such as longer protection periods, enhanced barrier properties, and eco-friendliness, driving their adoption across various industries.
  4. Regulatory Compliance: Stringent regulations regarding environmental protection and product quality standards push industries to adopt corrosion protection solutions like VCI paper that are compliant with these regulations.
  5. Globalization and International Trade: The increasing globalization of trade activities necessitates effective corrosion protection solutions for metal products during transit and storage, boosting the demand for VCI paper in regions with active import-export operations.
  6. Cost-effectiveness: VCI paper offers a cost-effective corrosion protection solution compared to alternatives like coatings or oiling, making it an attractive choice for industries seeking to reduce operational costs.

Market Restraints:

  1. Limited Awareness in Some Regions: In certain regions or industries, there might be limited awareness about the benefits of VCI paper compared to traditional corrosion protection methods, hindering its widespread adoption.
  2. Perception Challenges: Some industries may perceive VCI paper as less effective or reliable compared to other corrosion protection methods, leading to hesitancy in adoption despite its proven effectiveness.
  3. Competitive Landscape: The market for corrosion protection solutions is highly competitive, with various alternatives such as coatings, oils, and films available. VCI paper faces competition from these alternatives, impacting its market share and growth.
  4. Environmental Concerns: While VCI paper is generally considered environmentally friendly compared to some traditional corrosion protection methods, there may still be concerns about its disposal and environmental impact, particularly in regions with strict environmental regulations.
  5. Technological Limitations: Despite advancements, there may still be limitations in the effectiveness or longevity of VCI paper in certain applications or environments, limiting its adoption in specific use cases.
  6. Supply Chain Disruptions: Disruptions in the supply chain, whether due to raw material shortages, transportation challenges, or geopolitical factors, can impact the availability and pricing of VCI paper, affecting market growth.

Request Report Methodology:

Competitive Landscape-

Key Players Setting the Bar too High for New Entrants with their Innovation Capabilties

The key companies are seeking solutions that would make packaging seamless for the end users. Some of the recent developments by the market players are:

Natur-VCI, a biodegradable and compostable vapor corrosion inhibitor film, was introduced in May 2021 by the Northern Technologies International Corp. business unit to protect both ferrous and non-ferrous metals during shipment and short-term storage.

The key players in the VCI paper market are:

  • Branopac
  • Daubert VCI
  • Zerust
  • RustxUS
  • LPS Industries
  • Transilwrap (Metpro)
  • Protective Packaging Corporation
  • RBL Industries
  • Technology Packaging Ltd
  • Protopak Engineering Corp
  • Green Packaging

Recyclability of VCI Paper to Keep the Profit Margin High for Manufacturers

  1. Cost-Efficient Production : VCI paper can be manufactured from recycled materials, reducing the cost of raw materials. This cost efficiency allows manufacturers to maintain healthy profit margins while offering competitively priced products to customers.
  2. Environmental Responsibility : Recycling materials for VCI paper aligns with environmental sustainability goals. Manufacturers can promote their eco-friendly practices and appeal to environmentally conscious consumers, potentially commanding premium prices for their products.
  3. Reduced Waste Disposal Costs : Recycling VCI paper and using eco-friendly materials minimizes waste and disposal costs. Manufacturers can benefit from reduced waste management expenses, contributing to higher profitability.
  4. Market Demand : With the growing emphasis on sustainable and recyclable packaging solutions, VCI paper made from recyclable materials can meet the demand of environmentally aware customers. This increases the marketability of VCI paper products and, in turn, profit margins.

Applications of VCI Paper

VCI Paper finds applications in a wide range of industries, each benefiting from its exceptional corrosion protection. Some common applications include:

  1. Automotive Industry:  Protecting auto parts, engines, and components during manufacturing and shipment.
  2. Electronics:  Preserving sensitive electronic equipment, circuit boards, and components from corrosion.
  3. Aerospace:  Shielding critical aircraft components and spare parts from rust and degradation.
  4. Machinery and Equipment:  Preventing corrosion in machinery, tools, and industrial equipment.
  5. Military and Defense:  Safeguarding weapons, ammunition, and other military assets from corrosion.
  6. Metalworking and Fabrication:  Preserving metal sheets, coils, and finished products during storage and transit.

Customize Your Report to Gain a Competitive Edge in the VCI Paper Market!.

Key Segments in the VCI Paper Market

By Product:

  • VCI Paper
  • VCI Films
  • VCI Bags
  • Foam
  • Other

By Material:

  • Paper
  • Polythene
  • Other

By End-User Industry:

  • Aerospace & Defence
  • Primary Metal
  • Electricals & Electronics
  • Automotive
  • Heavy Equipment
  • Metal Works

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

Contact Us:        

Nandini Singh Sawlani

Future Market Insights Inc.
Christiana Corporate, 200 Continental Drive,
Suite 401, Newark, Delaware – 19713, USA
T: +1-845-579-5705
For Sales Enquiries:
LinkedInTwitterBlogs | YouTube

Leave a comment

Your email address will not be published. Required fields are marked *