In terms of revenue, the Global Protective Packaging Market is expected to reach USD 39.78 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 5.3% from 2022 to 2028. The Global Protective Packaging Market is gaining momentum over the forecast period due to growth in this market can be attributed to factors such as increasing demand for food products that require protection from external elements, rising consumer awareness regarding health benefits associated with using Protective Packaging, and increased adoption of innovative technologies by manufacturers. However, high cost involved in manufacturing these products may hinder the growth of this market.
Key Highlights from the Report:
- The foam Protective Packaging segment dominated the market growth at a substantial Compound Annual Growth Rate (CAGR). The increase in demand for safe packaging with polyurethane provides efficient protection to the goods, are accentuated the segment growth in 2021.
- The industrial goods segment held a significant market share in 2021. The market growth has been spurred by the usage of goods in different markets such as automotive, electronic consumers, pharmaceuticals, and also in households.
- Asia Pacific is the largest regional segment owing to rapid urbanization and industrialization in countries such as China and India. Thus, the presence of such countries in the region is further propelling the market growth in the region over the forecast period.
Some of key players in the Protective Packaging Market include - Sealed Air Corporation, Crown Holdings Inc, Sonoco Products Company, Winpack Ltd, Smurfit Kappa Group, DS Smith Plc, WestRock Company, Schur Flexibles Holding GesmbH, Greif, International Paper Company, Nefab Group, Cascades Inc.
The Global Protective Packaging Market is expected to grow at a rapid rate in the next coming years, supported by the rise of the e-commerce industry and manufacturing activities. The growing popularity of online shopping and rising consumer spending on packaged goods is driving the demand for Protective Packaging. According to the U.S. Department of Commerce, the U.S. e-commerce industry was worth $220 billion in 2014, growing at a rate of 17 percent annually to reach $601.75 billion in 2019. Large e-commerce companies such as Amazon, Alibaba, and Flipkart use Protective Packaging to protect the contents from damage during shipping and delivery.
The foam Protective Packaging segment has established manufacturing end-use market although strong competitors from the flexible and rigid segments. Polyurethane foams, loose fills, foam-in-place polyurethanes, and moldable foams are examples of foam products. Industrial goods are widely used in a variety of end-use markets, including automotive, aerospace, pharmaceutical, and consumer electronics. Depending on the ultimate application, it is widely employed as a primary or secondary filler. When it comes to the consumer experience in the e-commerce industry, it is critical to consider the consequences of getting a damaged product.
Asia Pacific is expected to emerge as a potential market for Protective Packaging. The market growth in the region is attributed to the increasing disposable income of consumers in emerging economies such as China and India. Key factors such as industrialization, increased internet penetration, growth in manufacturing activities, increased disposable income, increased consumption levels and increased electronic retail sales will drive the market during the forecast period. Thus, the presence of such countries in the region is further propelling the market growth in the region over the forecast period.