Insulated Packaging Market Size, Share & Trends Analysis Report By Material Type (Corrugated Cardboard, Metal, Glass, Plastic), By Type, By Application, And Segment Forecasts, 2018 - 2025

Industry Insights

The global insulated packaging market size was valued at USD 11.85 billion in 2016. The increasing disposable income of people in developing economies is expected to be one of the key factors driving the market over the forecast period.

Insulated packaging helps in preventing damage to products from variable temperature & pressure and physical damage. The packaging is used in various sectors such as cosmetics, foods & beverages, pharmaceuticals, and electronics. Industrial chemicals are hazardous in nature and can easily catch fire. These bulk chemicals, which come in solid, liquid, and gaseous forms, are required to be handled with care.

The market in the U.S., by material type, was valued at USD 1.62 billion in 2016 and is anticipated to ascend at a steady CAGR of 4.9% over the forecast period. The U.S. is the largest producer of agricultural products, which has thus resulted in high demand for IP. The large market size, high disposable income, ability to mass-produce, and high product variation have boosted the industry growth in the region. The presence of major industry players in the region and their manufacturing hubs across the globe have also contributed to the growth of the market.

The purpose of IP is to help manufacturers preserve their products from damage as well as transport them in a safe manner. According to the World Packaging Organization (WPO), the packaging product consumption in Asia Pacific was the highest during 2003–2009, amounting to an approximate value of USD 160.0 million. The growing packaged food & beverage industry, rising urbanization, and rapidly increasing population are anticipated to drive the IP market over the forecast period. The rising demand for cosmetics, ready-to-eat food products, carbonated beverages, and medicines from emerging economies, such as China and India, is also expected to fuel the market growth over the forecast period.

Material Type Insights

Corrugated cardboard comprises linerboard and fluted corrugated sheet. These components make corrugated cardboards stronger and help them withstand high amounts of pressure. Corrugated cardboards are usually manufactured by the means of flute lamination machines, which are also known as corrugators. The cardboards have high impact strength, bending resistance, tear resistance, and burst strength. 

Metal IP is made of two metal sheets and foam is situated between them. Depending on the application, metal sheets can be modified as per the requirement. The metal panels utilized for manufacturing IP products provide moisture & air barrier and create a vapor inside the rigid core, which enhances the thermal stability. These metal panels are highly durable and can be obtained in a number of colors and shapes.

Glass packing products are lightweight and majorly used for packaging beverages including juices, carbonated beverages, alcoholic drinks, and energy drinks. The beverages, when exposed to different temperatures & pressures, are easily damaged. Glass packing helps in preserving these products and also transporting them over long distances without causing any harm to the product contents.

Plastic is used to package products that require storage under controlled temperature & pressure. The various products that are packaged by using plastic include red meat (bison, goat, lamb, and beef); pork, poultry (turkey and chicken); and seafood. Plastic is also used to pack meats and preserve & dry age them over a long duration spanning from few months to several years.

The other material types include wood and paper. Wood is used to manufacture barrels and boxes. The barrels made out of wood are used for aging and storing beer such as craft beer. The different types of wood used to impart distinct taste and aroma to the beer. Paper is used for manufacturing cardboards, cartons, and boxes that are used to store and transport various food & beverage, electronic, & pharmaceutical products.

Type Insights

Rigid packing products are derived from paperboard, fiberboard, plastics, corrugated cardboard, and paper. The materials are used to manufacture rigid products such as cases, trays, bottles, cans, cups, pots, and boxes. Rigid products are sealed by using adhesives, staples, and tapes. The products can be manufactured with Radio-frequency identification (RFID) and various color printing designs. 

Flexible products are made of plastic films and ply. Graphics are incorporated onto the packaging to make them look attractive to the consumers. Flexible packing products are sealed by using pressure and heat. Plastic polymers used to manufacture flexible packaging products include polyester, nylon, polyethylene, and polypropylene. 

Metalized plastics and aluminum foils are also used to manufacture end-use flexible products. Plastic films are used to manufacture end-use products such as bags, zippers, and pouches. The segment is relatively new as compared to rigid and semi-rigid segments but has garnered popularity in the recent years owing to the increasing demand for convenience foods.

Semi-rigid products are neither flexible nor rigid in nature. The various end-use products include folding cartons, lined cartons, aseptic cartons, and thermoformed containers. Semi-rigid IP products are manufactured using polypropylene and polyethylene. The products are lightweight, have a high resistance to below freezing point temperature, and are suitable for refrigeration.

Application Insights

The globally increasing demand for pharmaceutical products is expected to propel the insulated packaging market over the forecast period. Food & beverage was the largest application segment in 2016 and accounted for a market share of 26.2%.

IP for cosmetics is intended to keep the contents of the package safe from external damage. The EU and the U.S. FDA regulate the packing products for cosmetic applications under the International Organization for Standardization, which has laid down guidelines and norms for various manufacturers. 

Pharmaceutical IP is subjected to stringent regulations across the globe on account of its use in the healthcare sector and the damage it may cause to patients due to discrepancies. The factors considered by regulatory authorities pertaining to this segment include patient safety, shelf life, migration of packaging material into the medicines, sterility, heat, moisture, and degradation of drugs by oxygen content.

Industrial packaging products are manufactured by using metal, plastic, fabric, and paper. The products packaged include electronics, petroleum, hazardous, and chemicals in solid, liquid, and gaseous forms. The end-use products require adhering to strict guidelines laid down by the regulatory authorities so they do not cause harm to the surrounding living and nonliving things.

IP for food & beverages provides tamper resistance, protection from physical damage, and preserves the nutritional aspects of the product. Food & beverage products need to be protected from temperature & pressure changes as they are perishable in nature and may become inconsumable by the time they reach their destination.

The others application segment consists of electronics, agriculture, textile, and printing. Packaging products for agricultural use are intended for protection against compression, vibration, shocks, temperature changes, and bacteria. Various electronic products are sensitive to sunlight & physical damage, and thus need to be stored and transported by wrapping them up in a UV resistant film inside a shock-proof container.

Regional Insights

Government initiatives in Mexico are driving the growth of industrial sectors in the region. The region is witnessing rapid industrialization due to these efforts. Conducive environment, favorable conditions for investment, and the availability of labor are expected to be the key driving factors. The established smart packaging sector and the regional government’s efforts to provide technologically advanced packing solutions are expected to positively drive the market over the forecast period. Funding from organizations, such as the Organization for Economic Co-operation and Development (OECD) for manufacturing activities coupled with the increasing demand for smart packing products for food & beverages, is expected to positively drive the IP market in the region over the forecast period. 

Rapid urbanization, better government balance sheets resulting in increased infrastructure spending, and increasing disposable income are some of the major growth contributors for the IP industry in the region. Governments have entered into Public-Private Partnerships (PPPs) to develop the electronics and automobile industries in the region. The concentrated efforts undertaken by various governments to provide efficient modern electronics are driving the IP industry. 

The expanding population and urbanization in India are likely to continue generating the need for infrastructural development. The government is focusing on infrastructural development to improve trade competitiveness and cope with exponential population growth. Furthermore, the introduction of Goods and Service Tax (GST) to ease tax and the “Make in India” initiative to encourage domestic manufacturing activities are anticipated to be the key factors driving the IP market in India.

Numerous special economic zones (SEZs) are being set up in India owing to the growing demand for commercial office spaces by multinationals & IT hubs. The population, income, and the organized retail sector have witnessed significant growth in recent years, as young consumers are moving toward luxurious consumer goods for higher standards of living. These factors together are expected to positively drive the IP market over the forecast period.

ASEAN Ceramics Market Share Insights

IP material manufacturers have been adopting various strategies such as new product developments, partnerships, agreements, collaborations, and joint ventures in order to increase market penetration and cater to the changing technological requirements for different end-use applications. In July 2017, Sonoco completed the acquisition of Clear Lam Packaging, Inc. for approximately USD 170 million. The acquisition was aimed at enhancing the product portfolio of the company by including forming & flexible plastic packaging films. 

Companies including Sonoco Products Company; Innovative Energy, Inc.; Huhtamaki Group; and Amcor Limited have achieved forward integration by establishing their presence in the manufacturing and distribution sectors. Companies such as Deutsche Post AG; Cold Ice Inc.; Ecovative Design; Marko Foam Products; DuPont; and TP Solutions offer IP for end-use applications.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global insulated packaging market on the basis of material type, type, application, and region:

• Material Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Corrugated Cardboards

  • Metal

  • Glass

  • Plastic

  • Others

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Rigid

  • Flexible

  • Semi-rigid

• Application Outlook (Revenue, USD Million; 2014 - 2025)

  • Cosmetic

  • Pharmaceutical

  • Industrial

  • Food & Beverages

  • Others

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The U.K.

    • Russia

  • Asia Pacific

    • China

    • India

  • Central & South America

  • The Middle East & Africa