The Protective Packaging Market was estimated to value USD 33,237.32 million in 2021 and is projected to grow at a CAGR of 6.45% during the forecast period, as per a recent comprehensive market study by Quince Market Insights. Packaging is the covering of particulars in packages with the aid of defensive wrappings or other external covering, which gives protection, safety, information, and other advantages. Protective packaging aids to retain the elasticity and quality of food particulars meanwhile expanding their preservative life without the application of preservatives.
The e-commerce industry is one of the leading as well as the fastest-growing industries worldwide as large number of people are opting for online shopping owing to the convenience and a large variety of options that are offered and available online. Large e-commerce companies such as Pepperfry, Amazon, Nykaa, Alibaba, and Flipkart use protective packaging materials in order to protect their contents or items from damage during delivery and shipping.
Industrialization and construction activities are increasing at a high rate in many of the developing countries. This is uplifting the demand for chemical industry and construction products. An increase in international trade could be seen in order to fulfil this demand. Two initial elements are driving the global protective packaging market-the increase in the liberalization of the capital and trade market, which has increased import and export activities innovative progression, that has reduced the cost of transportation, and because of globalization, companies are exporting their products to other countries, which is increasing the demand for protective packaging to safeguard their products from damage over long road and air distances.
Due to the lack of customized box which further lead over boxing and inefficient use of space. Whereas container space and efficient box allows more products to be shipped during a single load which reduces greenhouse emission from extra weight and shipping. Open communication in between suppliers, manufacturers, brands, and distributors would help to facilitate this system which will surely reduce shipping costs.
Weight and volume optimization are central sustainability considerations for protective packaging. Materials with favorable characteristics from the sourcing perspective include renewable resources, responsibly sourced, and recycled materials. Favorable packaging is defined as recyclable, reusable, or compostable.
Waste from the packaging harms our ecosystem as they take decades to decompose. Worldwide government are imposing strict rules and laws for the packaging industry. In many of the developing nations, governments have become more conscious about protecting the environment and necessary steps are being taken to promote sustainable packaging. As these laws forbids the companies from validating raw materials, which fails to satisfy the environmental rules. The cost of raw materials are high as a result it increases the operational costs. This affects the overall protective packaging economy and work as a retraining factor.
TABLE 1: GLOBAL PROTECTIVE PACKAGING MARKET OVERVIEW
COVID-19 Impact on the Global Protective Packaging Market:
The global packaging industry has witnessed a significant rise in the packaging which are associated with pharmaceuticals and healthcare sectors. Decreasing demand and imposing of the lockdown due to the reason of the pandemic has reduced the demand for protective packaging.
Moreover, restricted and limited trade activities worldwide is impacting the sales of protective packaging. Rapid vaccination and the recovery rate from the COVID-19 crisis will drives the protective packaging market worldwide.
Segmentation
By Material
On the basis of material, the global protective packaging market is segmented into Foam Plastics, and Paper & Paperboard. The foam plastics material segment holds the largest market share owing to its good thermal insulation, lightweight, and shock-absorbing properties, which are very much suitable for protective packaging.
By Type
Grounded on the type, the global protective packaging market is bifurcated into flexible, rigid and foam. The flexible protective packaging segment is anticipated to hold the largest market share in terms of revenue due to the increasing demand for cost-effective and recyclable materials.
By Function
Based on function, the global protective packaging market is bifurcated into cushioning, blocking & bracing, void fill and wrapping. Cushioning is anticipated to hold the largest market share, as it protects lightweight and fragile items from damage during warehousing and transportation, it also restrains the movement of the packed product and prevents damage from vibration and shock during transit.
By Application
Based on application, the global protective packaging market is segmented into Food & Beverages, Consumer Electronics, and Others. Food & beverages holds the largest market share in terms of revenue as it extend the shell-life of the product.
A trend of using eco-friendly, highly portable, and easy to handle materials are expected to thrust the demand for protective packaging. Increasing demand for food and beverage packaging, growing demand for product protection, and high consumption of flexible packaging over conventional packaging is anticipated to boost the demand of protective packaging market in the forecast period.
By Region
Based on the region, global protective packaging market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia pacific region is the largest and fastest-growing protective packaging market. China is one of the largest and fastest-growing market in the region and is anticipated to dominate the regional market in the next few years. Industrialization, increasing disposable income, growing e-retail sale, rising internet penetration, growing manufacturing activities, and rising consumption level, would drive the market during the projected period.
TABLE 2: GLOBAL PROTECTIVE PACKAGING MARKET OVERVIEW
Major Developments in the Global Protective Packaging Market:
- In July 2021, Smurfit Kappa acquired Cartonbox, a folding carton company located in Monterrey, in the North-East of Mexico. This will help the company in strengthening its participation in the paper packaging solutions business in Mexico and expand its footprint to four folding carton locations in the country.
- In February 2021, Smurfit Kappa launched a new packing system for its sustainable TopClip product, a paper-based replacement for plastic shrinkwraps that bundle beverage multi-packs. This packing system is designed for smaller businesses and brands and is suitable for beverage companies of all sizes.
- In August 2020, Sealed Air Corporation announced that it had signed a collaboration agreement with Plastic Energy, an industry-leading company in advanced recycling technology. Additionally, Sealed Air has made an equity investment in Plastic Energy Global, the parent company of Plastic Energy.
- In June 2021, Soteria Flexibles announced the acquisition of Redi-Bag Inc. a leading manufacturer of plastic and polyethylene film packaging for seafood and produce packaging applications.
Protective Packaging Market Snapshot
Major Companies operating in the Global Protective packaging Market: Pregis Corporation (U.S), Pro-Pac Packaging (Australia), Storopack Hans Reichenecker (Germany), Dow (U.S), and DS Smith (U.K)
Market Segmentation:
By Material
- Foam Plastics
- Paper & Paperboards
By Type
- Flexible
- Rigid
- Foam
By Function
- Cushioning
- Blocking & Bracing
- Void fill
- Wrapping
By Application
- Food & Beverages
- Consumer Electronics
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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