The global packaging inserts market is on a growth trajectory, with an estimated valuation of USD 2,352.5 million in 2023. According to the latest market insights from Future Market Insights (FMI), the market is set to experience consistent Year-on-Year (Y-o-Y) growth of 4.6% from 2023 to 2033. As a result, packaging inserts sales are expected to increase significantly, reaching a projected value of USD 3,688.5 million by 2033.
Packaging inserts, which account for approximately 7% to 9% of the global protective packaging market—valued at USD 27 billion in 2021—play a vital role in enhancing customer satisfaction and protecting products during transportation. These inserts are widely used in various industries, especially e-commerce, pharmaceuticals, and consumer goods.
Plastic packaging inserts, particularly those made from polyethylene (a durable, high-density polymer), are expected to continue leading the market due to their flexibility, durability, and excellent resistance to water and damage. This makes them an ideal choice for ensuring the safety of products and minimizing the risk of damage during transit.
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Beyond their protective qualities, packaging inserts also offer a unique opportunity for businesses to engage customers. These inserts can include personalized notes, promotional offers, discounts, coupons, and even small gifts items that have been shown to significantly enhance customer satisfaction and loyalty.
As businesses increasingly look for ways to create a memorable unboxing experience, the demand for packaging inserts is set to grow substantially in the coming years.
Challenges Faced by the Packaging Inserts Market
- Sustainability Demands: As consumers and businesses become more environmentally conscious, the packaging inserts market faces increasing pressure to adopt sustainable materials. Balancing performance with eco-friendly options like biodegradable or recyclable inserts remains a significant challenge.
- Cost Management: Rising raw material costs, coupled with the demand for high-quality packaging, force manufacturers to find cost-effective solutions. This challenge is particularly acute as businesses try to balance cost savings with the need for functional and attractive packaging inserts.
- Customization and Personalization: As businesses increasingly seek customized and personalized packaging solutions, the demand for packaging inserts that can cater to specific product shapes, sizes, and branding requirements is growing. Meeting this demand without increasing production times and costs is a complex challenge.
- Supply Chain Disruptions: Global supply chain issues, such as shortages of raw materials and transportation delays, have led to difficulties in maintaining consistent production and delivery schedules for packaging inserts. This has increased lead times and disrupted operations in the market.
- Regulatory Compliance: The packaging industry is subject to a range of regulations, especially in sectors like food, pharmaceuticals, and cosmetics. Ensuring that packaging inserts meet safety standards and regulatory requirements, particularly for protective and labeling functions, can be a significant hurdle for manufacturers.
Key Takeaways: Packaging Inserts Market
- The packaging inserts market grew at a CAGR of 3.6% from 2018 to 2022.
- In 2021, US food service and grocery retail industries shipped nearly USD 2.12 trillion worth of food, with the food service industry contributing USD 1.17 trillion (according to the US Department of Agriculture).
- India is forecasted to become the world’s third-largest automobile market by 2033, producing 22.9 million vehicles in 2022, with 5.6 million exported.
- Tray packaging inserts hold around 44% of the market share due to their flexibility, water resistance, and cost-effectiveness.
- By 2033, the food and beverage sector is expected to account for 27% of the packaging inserts market
Competitive Landscape
Key competitors in the global market employ a variety of marketing strategies, including mergers and acquisitions, expansions, collaborations, and partnerships.
Leading companies also employ new product development as a strategic method to increase their market share among customers. These techniques have resulted in the use of advanced packaging inserts.
Key Players
Mondi Group; DS Smith Plc; Cascades Inc.; Innerpak Inc.; Smurfit Kappa Group; Dynamic Packaging, LLC; AMERICAN BOX COMPANY; VisiPak; Index Packaging, Inc.; Barco Sales and Manufacturing, Inc.; UFP Technologies, Inc.; Polyformes Limited; Synergy Packaging; VICTORY FOAM; Tucson Container; Engineered Components & Packaging; American Foam Products; Enterprise Europe Network; GPProducts LLP
Recent Developments in the Market:
- In June 2022, Mondi Group won the Retort pouch recyclable scoops Swiss Packaging Award, demonstrating packaging innovation and creativity. Packaging was developed in partnership with Hilcona, a European market leader.
- In March 2022, DS Smith created cost-saving, e-commerce-compatible cardboard packaging for medical devices in Asia’s market. The single-use plastic is used in cardboard which is environment-friendly.
Global Packaging Inserts Market by Category
By Product Type:
- Trays
- End Caps
- Sheets
By Material:
- Paper & Paperboard
- Plastic
- Foam
- Molded fiber
By End Use Industry:
- Food & Beverages
- Electrical & Electronics
- Automotive
- Healthcare
- Industrial
- Cosmetics
By Region:
- North America
- Latin America
- Europe
- South Asia
- East Asia
- The Middle East & Africa
- Oceania
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 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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