Protective Packaging Market

Protective Packaging Market Size (2023-2028)

The Protective Packaging Market was valued at $ 24.12 billion in 2022 and is predicted to reach $ 36.1 billion in 2028, with a CAGR of 6.21%.

 The worldwide protective packaging market is predicted to see a great expansion in the future due to the rapid expansion of the e-commerce industry and the improvement of the manufacturing industry. Additionally, the upward trend in online shopping is driving the overall expansion of the e-commerce industry, which in turn is giving way to market expansion. Additionally, increased investment in R&D activities is predicted to contribute to market expansion due to the use of recyclable materials. Packaging is the coating of packaged products using protective wrapping or other external coatings, which provides protection, information, security, and other benefits. Boxes, bubble wraps, plastics, bags, cloth, and cartons are some of the most common packaging materials. Product packaging has become an important part of sales and marketing operations. With online sales expansion of 20% annually, packaging has an impact on branding as well as shipping costs. Innovative packaging solutions enhance brand equity through internal packaging and also demonstrate the assurance of environmentally friendly packaging, along with minimizing the size and weight of overall packaging to reduce shipping costs.

Protective packaging is adopted in various applications such as the food, electronics, and pharmaceutical industries. Additionally, protective packaging provides solutions that protect industrial products, machinery, and equipment from damage during storage and shipping. In addition, protective packaging provides protection in the form of blocking and reinforcement, flexible padding, protective containment, gap filling, packaging, and surface protection. Another factor driving market expansion is the increased use of protective wrapping by contractors to incorporate airbags and fill the gap. However, the rising cost of raw materials is predicted to hamper market expansion during the foreseen period. Environmental regulations on non-renewable fossil fuel feedstocks employed for packaging are predicted to limit market expansion.

Protective Packaging Market Drivers

Technological advances in packaging play a vital role in the expansion of the protective packaging market. The market is experiencing strong expansion due to several factors, such as an escalating call from the food and beverage and healthcare industries and the preference for convenient packaging. Advances in technology have allowed innovation instead of using traditional packaging methods. The recent trend shows that major market players are focusing on R&D activities to develop sustainable and environmentally friendly packaging materials that can be reemployed and recycled. The popularity of online shopping and the adoption of protective materials along with sustainable packaging is predicted to have a positive impact on market expansion during the foreseen period. The growing call for protective packaging is driving investment in e-commerce applications. The growing call for conveniently packaged products around the world is escalating the market need for protective packaging. Furthermore, the increase in online sales worldwide is also predicted to significantly influence the market for protective packaging in the coming period. Furthermore, the growing call from the food and beverage industry for packaging purposes is predicted to have a major impact on the protective packaging market. The escalating use of flexible protective packaging in the healthcare industry is predicted to create untapped opportunities for market players.

Protective Packaging Market Restraints

The high initial capital investments had an adverse impact on the profitability of the packaging industry.

Opportunities in the Protective Packaging Market

Continuous changes in consumer habits, affected by the economic recession, are driving new retail strategies to cope with changing calls, pressures on margins, and escalating competition. These challenges, in turn, have forced consumer product manufacturers (CPGs) to find supply chain solutions that meet customer needs without incurring additional costs. Emerging markets, such as India, Brazil, and France, and the growing call for foreign products are the factors driving online spending.

Challenges in the Protective Packaging Market

The implementation of strictly private and government regulations by various countries poses a challenge for the expansion of the protective packaging market.

PROTECTIVE PACKAGING MARKET REPORT COVERAGE

Protective Packaging Market Segmentation

Protective Packaging Market - By Material

• Foam plastics

• Paper & paperboard

On the basis of material, the foam plastics segment, which is predicted to be the fastest-growing market during the foreseen period, had the largest share in 2021.

Protective Packaging Market - By Type

• Flexible

• Rigid

• Foam

In terms of value, the flexible protective packaging segment accounted for the largest market share and is predicted to grow at the highest CAGR over the foreseen period. This expansion can be attributed to flexible protective packaging, as it is one of those innovative forms of protective packaging that contributes to its ease of use and portability.

Protective Packaging Market - By Function

• Cushioning

• Blocking & bracing

• Void fill

Protective Packaging Market - By Application

• Food & beverage

• Consumer electronics

By application, the food and beverage segment is predicted to grow at the highest rate due to the high call for food and beverage packaging, as it provides durability, product protection, and extends product life.

Protective Packaging Market - By Region

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East & Africa 

In 2021, the Asia-Pacific region is predicted to account for the largest share of the total protective packaging market by value, followed by North America and Europe, due to manufacturers' focus on developing packaging options for low-cost protection. The Asia-Pacific region is predicted to register the highest expansion during the foreseen period; This is attributed to the large clientele of household appliances and consumer electronics, The market for protective packaging in the North American region is developing and maturing; The US and Canadian markets are predicted to experience the highest expansion rates from 2022 - 2027. Asia-Pacific dominates the worldwide protective packaging market, and expansion is predicted to be the highest during the foreseen period. Countries like China and India are predicted to experience the highest expansion in the region. Manufacturers are focused on developing low-cost protective packaging options. The rapid expansion of the electronics industry and e-commerce sector and the growing call for paper and cardboard packaging, including folding, corrugated or cardboard, protective envelopes, and others, are some of the key factors accelerating the expansion of the market. Furthermore, higher disposable income in developing countries such as India, China, and Indonesia increases the purchasing power of clients. As a result, consumer dependence on processed, pre-cooked, and packaged foods is likely to increase. As a result, the market for protective packaging has been positively affected.

Impact of COVID-19 on the Protective Packaging Market:

The times of COVID-19 have created untapped opportunities for the protective packaging market. There has been a change in the behavior of people looking for pharmaceuticals in online stores in general. As a result, the call for protective packaging for pharmaceutical products is escalating for safe delivery in urban areas and some rural areas, especially in developed countries and parts of developing countries.

During the pandemic situation, many industries suffered a temporary shutdown of their operations. As a result, the production and distribution of various products have come to a halt, which is likely to lead to slower expansion of the protective packaging market during the foreseen period. Several countries such as Wales, London, France, and others have witnessed a second lockdown due to the second wave of coronavirus in their territory, which is predicted to further hamper the steady expansion of the protective packaging market during the foreseen period. Meanwhile, the healthcare sector is likely to remain at the forefront of the call for protective packaging, and flexible protective packaging is predicted to generate a significant call.

Recent Developments

• Pregis launches new protective films for high-pressure containers. Pregis has developed two new patent-pending high-performance films for inflatable cushion applications. Hybrid Cushion (HC) performance films are intended for high-pressure applications for products that require longer storage or shipping cycles.

• Macfarlane introduces new protective packaging products through packaging innovations. 

Protective Packaging Market Key Players:

1. Smurfit KappaSealed Air

2. Sonoco Products Company

3. Amcor plc

4. Huhtamaki

5. DS Smith

6. Pregis LLC

7. Pro-Pac Packaging Limited

8. WestRock Company

9. International Paper

10. STOROPACK HANS REICHENECKER GMBH

11. Ranpak

12. STREET WEAR OFFICIAL LLC

13. Protective Packaging Corporation

14. APEX Packaging Corporation

15. BDL Supply

16. Wisconsin Foam Products