Protective Packaging Market Size, Share, Forecast Report, 2028

Protective Packaging Market: Industry Prospective

The global protective packaging market size was worth around USD 29.5 billion in 2021 and is predicted to grow to around USD 39.4 billion by 2028 with a compound annual growth rate (CAGR) of roughly 5.2% between 2022 and 2028.

The report analyzes the global protective packaging market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the protective packaging industry.

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Protective Packaging Market: Overview

Protective packaging is materials designed to shield and safeguard a product from damage or destruction during shipment or storage. Protective packaging can be manufactured out of any material, including but not restricted to plastic, cardboard, metal, and other materials. Protective packaging is often used as the primary element of a product's packaging or as a supplementary type of package supply. It serves a variety of purposes, but all kinds of protective packaging have the same goal, to ensure that a product arrives in perfect condition and free of damage or other issues.

Protective packaging is designed and constructed to safeguard the goods from atmospheric, electrostatic, magnetic, vibration, or any other kind of damage. The protective packaging consists of packaging materials, storage containers, spacers, liners, and others. Protective packaging safeguards industrial & machinery products and other items from getting damaged. The protective factors may include electrical insulation, thermal insulation, fireproofing, vapor protection, vibration dampening, weather resistance, and others. Most of the vendors in the food & beverages, textiles, automotive, pharmaceuticals, and electronics industries use such packaging to transport goods to a destination in a safe condition.

The booming e-commerce market is the major factor in increasing the demand for the protective packaging market. Moreover, the rising trend of online shopping is also considered to be a strong factor in boosting the e-commerce market which positively tends to influence market growth. In addition to this, the increase in investments in R&D activities is anticipated to drive market growth owing to the increase in the use of recyclable materials. Furthermore, the rising adoption of protective packaging in the electronics and food & beverages sectors to protect during transportation will considerably drive the global protective packaging market growth during the forecast period. Nonetheless, an increase in the cost of raw materials is estimated to obstruct the market growth during the forecast timeline. 

COVID-19 Impact:

In 2020, protective packaging suppliers and manufacturers were heavily impacted by safety and government mandates made at the federal, state, and municipal levels. Companies have been compelled to adapt or change their everyday business activities as a result of the government's guidelines to halt the spread of the virus, along with Shelter-in-Place Orders issued at the state and municipal levels. Due to company closure laws, social distance conventions, and reduced municipal & state government office activity, protective packaging producers were impacted in 2020. The pandemic impeded protective packaging demand, owing to a drop in demand for these protective packaging from end-use sectors. However, the increase in logistic activities is likely to boost the global protective packaging market growth over the forecast period.

Protective Packaging Market: Growth Drivers

The booming E-commerce industry may fuel the growth of the market.

The e-commerce business is one of the fastest-growing sectors in the world as more and more people choose to purchase online. This is due to the ease and wide range of product availability. According to the US Department of Commerce, the e-commerce business in the US has grown 17% per year over the last couple of years. Similarly, rapidly developing digital platforms in Asian countries support the E-commerce sector's growth. Major E-commerce companies operating in emerging countries such as India, China, and Japan serve millions of customers.

Protective packaging materials are used by large e-commerce firms like Alibaba, Amazon, and Flipkart to protect the contents from harm during shipment and delivery. With such huge demand from the E-commerce sector, the market is expected to grow significantly over the forecast period.

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Protective Packaging Market: Restraints

Strict rules related to packaging materials may hinder the growth of the market.

Packaging trash is harmful to the environment since it takes decades for it to degrade. Governments all across the globe are tackling this problem by enacting tough regulations that the packaging sector must follow. Governments in Europe, for example, have taken a variety of steps to address packaging waste and recycling difficulties. Governments in developing countries have grown increasingly concerned about environmental protection, and initiatives are being taken to encourage sustainable packaging.

As a result of these rules prohibiting enterprises from getting raw materials from organizations that do not comply with environmental regulations, the cost of raw materials will rise, further increasing the operating expenses. As profits drop, this has an impact on overall protective packaging revenues.

Protective Packaging Market: Opportunities

An increase in international trade globally will provide better growth opportunities for the market.

In emerging nations, construction and industrialization are growing at a rapid pace. Construction and chemical sector items are seeing an increase in demand as a result of this. As a result, international commerce is increasing to meet this need. The worldwide protective packaging industry is being driven by two key factors: technological advancements, which have lowered transportation costs, and greater trade & capital market liberalization, which has enhanced export and import activity.

Companies are also shipping their products to other nations as a result of globalization, which is boosting the need for protective packaging to preserve items from harm across long distances.

Protective Packaging Market: Challenges

Issues with efficiency and sustainability pose major challenges to the growth of the market.

Overboxing and inefficient use of space due to a lack of configurable boxing options can result in excess air being transported. More items may be carried in a single load with more efficient box and container space, lowering greenhouse gas emissions from needless excess transportation and weight. This system-wide management is aided by open communication among manufacturers, vendors, distributors, and brands, which lowers transportation costs.

While volume and weight minimization are essential sustainability factors for protective packaging and sourcing, end-of-life is also equally crucial. Responsibly sourced renewable resources and recycled materials are examples of commodities with beneficial sourcing attributes. Favorable packaging is characterized as recyclable, reusable, or biodegradable after its life cycle.

Protective Packaging Market: Report Scope

Protective Packaging Market: Segmentation

The global protective packaging market is categorized into material, category type, function, application, and region.

Based on material, the market is bifurcated into foam plastics, paper & paperboard, and others. The foam plastics segment dominates the protective packaging market due to its high-performance cushioning and protective capabilities, making it essential for shipping fragile and high-value products. However, the Paper & Paperboard segment is experiencing significant growth, driven by increasing sustainability efforts and regulatory support for eco-friendly packaging.

The category type segment of the market is divided into flexible, rigid, and foam. The foam segment dominates the protective packaging market due to its exceptional shock absorption and insulation properties, making it essential for fragile and high-value items. However, the Flexible segment is growing rapidly, driven by its lightweight and sustainable packaging options, while the Rigid segment remains vital for applications requiring durability and structural strength.

Based on Functions, the protective packaging is categorized into cushioning, blocking & bracing void fill and others.

By application, the market is split into food & beverage, consumer electronics, household appliances, automotive, industrial goods, and others.

Protective Packaging Market: Report Scope

Protective Packaging Market: Regional Analysis

Asia Pacific to rule the global market with a considerable revenue generation

The Asia Pacific is the largest revenue generator in the global protective packaging market. This is due to increasing industrialization in China and India. China is the global production house and industries in these countries supply millions of goods worldwide. Due to such factors, China contributes a major share of the regional market. India on the other hand has great potential for the expansion of the market.

Key factors such as booming industrialization, rising internet penetration, expanding manufacturing activities, rising disposable income, rising consumption levels, and increasing e-retail sales will drive the market in India during the projected period.

Recent Developments

• In January 2020, Sealed Air Corporation introduced a new variant of its bubble wrap packaging that contains at least 90 percent recycled material. This form of bubble wrap brand packaging is made using recycled content taken from industrial waste materials which would otherwise wind up in landfills.

Protective Packaging Market: Competitive Landscape

Key players functioning in the global protective packaging market include:

• Sealed Air Corporation
• Smurfit Kappa Group Plc.
• WestRock Company
• Huhtamaki OYJ
• DS Smith Plc
• Pregis LLC
• Pro-Pac Packaging Limited
• Dow Chemical Company
• Intertape Polymer Group (IPG)
• Storopack Hans Reichenecker Gmbh
• International Paper Company
• EcoEnclose
• Point Five Packaging
• Universal Protective Packaging, Inc.

Primary growth strategies for these market players include mergers and acquisitions, as well as cooperation, to expand their product offerings and geographical presence to address the rising demand for protective packaging from emerging markets.

The global protective packaging market is segmented as follows:

By Material

• Foam Plastics
• Paper & Paperboard
• Others

By Category Type

• Flexible
• Rigid
• Foam

By Function

• Cushioning
• Blocking & Bracing
• Void Fill
• Others

By Application

• Food & Beverage
• Consumer Electronics
• Household Appliances
• Automotive
• Industrial Goods
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa