Protective Packaging Market - Global Outlook & Forecast 2023-2028

Protective Packaging Market - Global Outlook & Forecast 2023-2028

The global protective packaging market is expected to grow at a CAGR of 6.22% from 2022 to 2028.

MARKET TRENDS & DRIVERS

Growing E-commerce Industry

With the rapid growth of the e-commerce industry globally, e-commerce sales have also grown at a healthy rate globally, particularly during COVID-19. This growth has created a demand for safe and efficient protective packaging in various end-user segments such as F&B, pet food, healthcare, and others, as a seamless consumer experience is critical to brand reputation and loyalty and propelled the protective packaging market growth. Sometimes, products sold in the retail environment do not have the same demand when sold online. Hence, it allows manufacturers and retailers to use different packaging formats and branding when sold online. Therefore, the sustainable advantages of lightweight, protective packaging play a crucial role in e-commerce. This lightweight packaging also helps the supply chain as more goods can be distributed easily.

Increasing Demand from the Healthcare Industry

The pharmaceutical industry is one of the major end-users in the protective packaging market. The primary packaging products include blister plastic films, aluminum foils, and pouches. The broader adoption of blister packaging, replacing glass and rigid plastics, has resulted in higher usage of lidding films. Paper and plastic films are widely used in blister packs, followed by aluminum foil, mainly because of the higher cost associated with aluminum foils. A combination of all three or any two is also adopted based on the product to be packaged. The pharmaceutical packaging market in the United States is a significant revenue contributor as most pharmaceutical players are in the region. North America is expected to have around 40-45% of the global pharma market value. The need to comply with FDA norms concerning packaging materials drives the pharmaceutical packaging market.

INDUSTRY RESTRAINTS

Recycling Challenges with Protective Packaging Products

Recycling protective pouches and other products is cumbersome and not economically viable, as separating those materials involves many processes. The recycling process consists of the collection of sorting, waste, and recycling. The materials undergo shredding, washing, and categorizing plastic and extruding in these processes. The multilayer films include a combination of paper, foil, and plastic. Also, a variety of different polymers is possible, which would require investments in terms of machinery and technology. Unlike rigid plastic products, recycled protective packaging cannot be used for packaging pharmaceuticals and food as per FDA regulations. The recycled material can be used for other applications. The materials that are of low quality are disposed of or transported to energy recovery centers. End-users use only high-quality material output.

SEGMENTATION INSIGHTS

INSIGHTS BY MATERIAL

The protective plastic material segment holds the most significant global protective packaging market share. Protective plastic pouches consume 60% less plastic than rigid packaging, with a higher product-to-package ratio. Consequently, it requires less energy to manufacture with lower emissions. The barrier properties of protective plastic pouches are enhanced by using a single substrate or a combination of different substrates. Co-extrusion or lamination are the two methods used in the industry to manufacture multilayer and multi-material protective packaging with the highest protective plastic weight. Multi-material products garner the highest share in the protective packaging market in 2022, majorly due to the belief in virus protection with many layers of packaging, with protective plastics having a more significant volume consumption than protective paper and foil.

Segmentation by Material

• Protective Plastic
• Protective Paper
• Protective Foil

INSIGHTS BY TYPE

The global protective packaging market by type segments as flexible protective packaging, foam protective packaging, and rigid protective packaging. Flexible protective packaging will dominate the market during the forecast period. Flexible packaging includes protective packaging made from paperboard, plastic, foil, wax-coated paperboard, paper, and similar materials. These flexible packaging products are used in various applications such as personal care, pet food, healthcare, etc. The market has multiple types of flexible packaging, such as re-closable plastic bags, poly woven bags, etc. The flexible protective packaging market has prominent packaging trends in product protection, packaging design, consumer convenience, performance, and sustainability.

Segmentation by Type

• Flexible Protective Packaging
• Foam Protective Packaging
• Rigid Protective Packaging

INSIGHTS BY APPLICATION

The consumer packaging application segment held the most significant global protective packaging market share in 2022 and is growing moderately due to increased consumption. Pouches, blister packs, and strip packs, among others, are the major product categories that cater to the consumer market and are sold at retail stores. Industrial packaging includes packaging products used to transport goods from warehouses to retail outlets. The major industrial packaging products include FIBCs, stretch, and shrink films. The consumer packaging market is expected to grow faster than industrial packaging in protective packaging. As more industries adopt protective solutions, the two end-users are expected to bring in more volumes in the consumer protective packaging market, including the non-food and beverage industries.

Segmentation by Application

• Consumer Packaging
• Industrial Packaging
• Healthcare
• Personal Care

GEOGRAPHICAL ANALYSIS

The global protective packaging market is dominated by APAC, Europe, and North America, which held more than a 79.25% market share in 2022. The APAC market is volume-driven mainly due to the growing retail landscape and organized packaging growth. The organized retail and packaging market has been pushing for advanced and expanded packaging techniques to provide quality products that can be sustained for longer. North America and Europe are the regions with more awareness of advanced packaging technologies and equipment and are the first to adopt any new trend.

Segmentation By Geography

• APAC
• China
• India
• Australia
• Japan
• South Korea
• New Zealand
• Europe
• Germany
• France
• UK
• Italy
• Benelux
• Spain
• Rest of Europe
• North America
• US
• Canada
• Latin America
• Mexico
• Brazil
• Argentina
• Chile
• Middle East & Africa
• Turkey
• Egypt
• Saudi Arabia
• South Africa
• UAE

COMPETITIVE LANDSCAPE

Small and medium enterprises dominate a vast segment of the protective packaging market. The more prominent players have adopted an inorganic growth tactic to expand their operations in many regions. Moreover, the more notable players have technological high-volume and strength product lines that have helped offset the cost differences. The smaller vendors in the global protective packaging market focus on customization, as the rivalry in the market is mainly based on features and price. The niche segment that does not have large volumes largely depends on smaller packaging companies.

Key Company Profiles

• Smurfit Kappa
• Sealed Air
• Sonoco
• Huhtamaki
• Amcor
• Berry Global
• Mondi
• TC Transcontinental
• Constantia Protectives
• Ahlstrom
• Greif
• WestRock
• Alu Flex Pack
• Aptar Group

Other Prominent Vendors

• Alinvest
• Aran Group
• Aluberg
• American Packaging Corporation
• Bischof+Klein
• Bioplast
• Carcano
• Danaflex
• Printpack
• ProAmpac
• Wipak Group
• Saica
• Etapak
• Innovia Films
• Uflex
• International Paper
• Reynolds Group
• Novolex
• Sigma Plastics
• Glenroy
• Symetal
• Krajcar Pack
• ITP
• Gascogne Protective
• Schur Protectives
• Schmid and Folien
• RKW
• Pouch Partners
• Perlen Packaging
• Goglio Packaging
• Kleiner Protective Packaging
• Winpak
• Stora Enso
• Global-Pak
• Di Mauro
• Eurofoil
• Gerosa Group
• LEEB Protectives
• Polypak Packaging
• PPG
• Walki
• All4Labels
• SIG Combibloc Group
• Ringmetall SE
• The Reflex Group
• Dazpak Protective Packaging

KEY QUESTIONS ANSWERED:

1. How big is the protective packaging market?

2. What is the growth rate of the global protective packaging market?

3. What are the growing trends in the protective packaging industry?

4. Which region holds the most significant global protective packaging market share?

5. Who are the key players in the global protective packaging market?