The global protective packaging market size was estimated at USD 27.42 billion in 2016. Factors, such as increasing global manufacturing output, continuous technological advancements, and consumer spending on packaged goods, are expected to be the key growth factors. In addition, significant demand from e-commerce industry, especially in Asia Pacific is anticipated to fuel demand over the forecast period.
Protective packaging solutions are designed and manufactured to protect products from atmospheric, magnetic, electrostatic, vibration, or shock damage. The solutions include numerous packaging types such as materials, boxes, liners, storage containers, and spacers. Weather, vibration dampening, electric insulation, thermal insulation, moisture, and fire are some of the factors that impact the product during transportation or storage. Proper selection of protective packing primarily depends on the type of that is product packaged and surrounding environmental conditions.
In the U.S., industrial goods segment is anticipated to experience fastest-growth rate over the forecast period. The segment accounted for USD 1,361.9 million in 2016 and is expected to register the fastest growth rate from 2017 to 2025. Significant growth in online sales in the country is likely to propel the market growth. Increasing manufacturing output and investments in R&D activities are anticipated to play a vital role in the growth over the forecast period.
The ongoing shift in consumer spending patterns impacted by economic recession is propelling new retail strategies to address the variability in demand, margin pressures, and increasing competition. These challenges, in turn, have compelled the manufacturers of consumer-packaged goods (CPG) to find supply chain solutions that accommodate customer needs without incurring additional costs. Emerging markets, such as India, Brazil, and France, and increasing demand for overseas goods are the factors boosting online spending.
However, the implementation of stringent private and government regulations by various countries is posing a challenge to the growth of protective packaging market. The production of packaging and packaged goods involves the consumption of large amount of materials such as plastics, glass, metal, plastic foams, and water. Waste packaging materials that are not recycled end up in landfills or become a key component of litter, which in turn contribute to land or sea pollution and greenhouse gas emissions. A number of regulatory frameworks have been introduced by governments in various regions, especially North America and Europe or local jurisdictions to minimize the use and disposal of certain packaging materials and mandate minimum recycling requirements.
The global foam protective packaging demand was valued at USD 5.72 billion in 2016 and is projected to register a CAGR of 5.0% between 2017 and 2025. Foam protective packaging segment is likely to acquire the second-largest share of the global market with established manufacturing end-use markets despite intense competition from flexible and rigid segments. Foam products include expanded polyurethane foams, loose fills, foam in place polyurethane, and molded foams.
Rigid segment accounted for the smallest share of the global market in 2016. However, the segment is anticipated to post solid gains as paperboard protectors and molded pulp both benefit from a variable pricing structure and trends toward sustainability. Rigid segment accounted for 14.3% of the global share.
Proper selection of packaging material primarily depends on the type of product that is being packaged and environmental conditions from which a product should be protected. Various types of materials are used to produce protective packaging such as paper & paperboard, plastic, foam plastics, metal, and glass. This includes a wide range of specific types of products including air pillows, edge boards, bubble wraps, corner blocks, corrugated wraps, molded packaging, loose fills, and void fillers. The global paper & paperboard demand was valued at USD 12.07 billion in 2016 and is projected to denote a CAGR of 6.1% between 2017 and 2025.
Protective packaging solutions use both plastic and paper as a raw material occasionally to create a custom solution. It is important to evaluate packing solutions for specific product and production situation due to the availability of various alternatives. These factors are required to be taken into consideration during the decision-making processes such as related costs, performance objectives, and environmental profile of the product.
Wrapping was the largest segment, in terms of function, in the global market in 2016 and the trend is likely to continue over the forecast period. Wrapping function offers versatile and lightweight solution to protect products during transportation, handling, or storage. As product packing, it has become a critical part of business strategies such as sales and marketing as it helps in preventing product damage and reducing losses & returns.
Void fill segment accounted for 24.5% of the global protective packaging market in 2016 and is expected to expand at a CAGR of 6.1%% over the forecast period. Void fill materials are extensively used to quickly and economically fill spaces in packages. Rigid product is designed to protect, provide a cushioning effect, and act as an insulator while the products are stored or shipped. Insulation segment is expected to witness a significant surge in the growth over the forecast period.
Food & beverage was the largest end-use segment in 2016 and the trend is anticipated to continue over the forecast period. These products finds application in various end-use markets such as automotive, aerospace, pharmaceuticals, home appliances, and consumer electronics. It is widely used as a primary or secondary packing material depending on the end use. In e-commerce industry, it is vital to analyze the effect of receiving a damaged package as far as customer experience is concerned.
The ongoing shift in consumer spending patterns impacted by the economic recession is propelling new retail strategies to address demand variability, margin pressures, and increasing competition. These challenges, in turn, have compelled the manufacturers of consumer-packaged goods (CPG) to find supply chain solutions that accommodate customer needs without incurring additional costs. Emerging markets, such as India, Brazil, and France, along with increasing demand for overseas goods are the factors expected to boost online spending.
Asia Pacific and North America are anticipated to be the major markets over the forecast years driven by rising demand from e-commerce industry for the protection of shipped products. Increasing consumer spending, continuous technological advancements, and improvements in manufacturing activities in Asia Pacific are driving the growth. The presence of high population economies such as China and India are contributing toward the growth of e-commerce industry, which, in turn, is likely to trigger the growth.
Asia Pacific accounted for 38.82% of the total global revenue in 2016. The region was followed by North America, which was valued at USD 7.36 billion million in 2016 and is projected to grow at 5.3% between 2017 and 2025. Several factors such as improving middle class, urbanization, and income levels of population are likely to contribute toward growth in North America.
The competition in global market is highly intensive and relatively integrated with the presence of major key players capturing a major revenue share in 2016. Key participants include Smurfit KAPPA Group; Westrock Company; Sealed Air Corporation; Sonoco Products Company; Huhtamaki OYJ; DS Smith PLC; Pregis LLC; Pro-Pac Packaging Limited; Storopack Hans Reichenecker Gmbh; The DOW Chemical Company; and Cascades Corporation.
In terms of rivalry, key industry players witness high competition among themselves owing to the highly fragmented nature. The degree of rivalry varies depending upon the product demand, innovation in technology, regulatory compliance, and distribution network. For instance, the market is concentrated in North America; whereas, in Asia Pacific, there is intense competition among players.
Base year for estimation
Actual estimates/Historical data
2014 - 2015
2017 - 2025
Volume in Million Tons, Revenue in USD Million, and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa
U.S., Canada, Mexico, Germany, UK, France, Russia, China, India, Japan, and Brazil
Volume forecasts, revenue forecasts, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional & country levels and provides an analysis on 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 protective packaging market on the basis of type, material, function, end use, and region:
Type Outlook (Volume, Million Tons; Revenue, USD Million; 2014 - 2025)
Material Outlook (Volume, Million Tons; Revenue, USD Million; 2014 - 2025)
Paper & Paperboard
Function Outlook (Volume, Million Tons; Revenue, USD Million; 2014 - 2025)
Blocking & Bracing
End-use Outlook (Volume, Million Tons; Revenue, USD Million; 2014 - 2025)
Food & Beverage
Regional Outlook (Revenue, USD Million; 2014 - 2025)
Central & South America
Middle East & Africa
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