Plastic Protective Packaging Market

Plastic Protective Packaging Market Growth Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global plastic protective packaging market is estimated to reach US$ 17.7 billion in 2023 and it is anticipated to grow at a CAGR of 6.6% to reach US$ 33.5 billion by the end of 2033.

The plastic protective packaging market is a rapidly growing industry due to the increasing demand for protective packaging in various sectors such as e-commerce, healthcare, and food and beverages. Convenience, cost-effectiveness, and sustainability are the prominent factors driving the market growth.

Report Attributes	Details
Plastic Protective Packaging Market Size (2022A)	US$ 16.6 Billion
Estimated Market Value (2023E)	US$ 17.7 Billion
Forecasted Market Value (2033F)	US$ 33.5 Billion
Global Market Growth Rate (2023-2033)	6.6% CAGR
Key Companies Profiled	AEP Industries Inc. Berry Global Group Coveris Holdings S.A. Kureha Corporation PREMIUM PACK GmbH Schur Flexibles Group Sealed Air

Historic and Future Pathway Analysis for the Plastic Protective Packaging Market

According to Fact.MR, historically, from 2018 to 2022, utilization of plastic protective packaging increased at around 4.8% CAGR, wherein, countries such as China, India, and the United States held a significant share of the global market.

Plastic protective packaging is predominantly used in end industries such as food & beverage, pharmaceuticals, electrical and electronics, e-commerce, automobile components, consumer product, glass and ceramics, furniture, books and CDs, medical devices, military, transportation and logistics, and building materials. Due to such a wide range of applications, the market is anticipated to grow rapidly in the upcoming period.

• Short Term (2023-2026): The introduction of biodegradable films by leading manufacturers and consumers’ rising preference towards such packaging solutions is driving the market.
• Medium Term (2026-2029): The fast-growing economies in the Asia Pacific along with the rising e-commerce industry to driving demand for Plastic Protective Packaging.
• Long Term (2029-2033): Continuous growth in the end-use industries will create a lucrative opportunity for the market to grow in the coming year.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.6% CAGR between 2023 and 2033.

Market Dynamics Outlook

“Unleashing Opportunities: The Role of 3PL Services in Driving Growth of Plastic Protective Packaging Market”

The plastic protective packaging market is experiencing significant growth, and 3PL services are playing a crucial role in driving the market growth. Various sectors, such as e-commerce, healthcare, and food and beverages are prominently contributing to the growth of the market. The increasing demand for convenient, cost-effective, and sustainable packaging options is also contributing to the growth of the plastic protective packaging market.

The use of 3PL services has become a major factor in driving sales growth in the plastic protective packaging market, rather than just improving the bottom line. 3PL service providers are now helping companies expand into new consumer markets, in addition to making inroads into new sourcing locations.

The growth of e-commerce and the emergence of new consumer markets are unleashing new opportunities for retailers and manufacturers to enhance their supply chains in a productive manner. This is expected to drive the growth of the plastic protective packaging market further. With emerging economies continuing to develop, the demand for 3PL services is expected to grow significantly in the coming years, which in turn will drive the growth of the plastic protective packaging market.

“E-commerce: Now, the Prime Consumer of the Plastic Protective Packaging Industry”

The retail environment in developing countries such as China, India, and Malaysia has experienced a massive transformation with a significant increase in the number of retail formats such as hypermarkets, supermarkets, convenience stores, and retail e-commerce.

The rising Internet penetration across the globe has witnessed a continuous shift in the purchasing pattern of an individual. Along with the increasing disposable income and spending lesser time on shopping, e-tailing is gaining huge traction among individuals. In addition to this, e-commerce has reduced destination barriers, which have fueled cross-border retailing among high-net-worth individuals.

Manufacturers and retailers use simplified designs, lightweight packs, and recyclable materials for the transportation of products. Moreover, rising smartphone penetration and ease in the availability of the Internet are considerably driving the growth of e-commerce. Therefore, continuous growth in the e-commerce industry along with the increase in mobile shopping is expected to drive the development of the plastic protective packaging market.

“Growing Environmental Concerns About Plastic Waste Hamper the Market Growth”

Plastic protective packaging is widely used for various products, which is mainly attributed to its various properties such as being lightweight material. Despite gaining momentum, the major challenge to the growth of the plastic protective packaging market is the waste generated from it. In order to protect the products, manufacturers, retailers, or logistics service providers use large volumes of plastic protective packaging in terms of paper fills, bubble wraps, paper foams, and loose fill peanuts, which adds up to the waste materials after the delivering or unpacking of the products.

Foamed plastic is a non-biodegradable raw material. This material takes more years to decompose and due to this, it has practically no value in the recycling stream. It is involved in almost all aspects of the plastic protective packaging industry due to its lightweight and low cost as it consists of 95% of air.

All of such material recyclability issues create environmental concerns due to the waste generated from them hence, it is considered a restraining factor to the growth of the plastic protective packaging market.

Country-wise Insights

Why is the U.S. being a Lucrative Market for Plastic Protective Packaging?

The U.S. is the center of the plastic protective packaging market in the world and is expected to dominate during the projected period.

A highly developed electronic industry and an increase in the number of electronic components manufacturing are promoting the sale of plastic protective packaging in the United States. The key presence of well-known packaging manufacturers like Berry Global Inc., Sealed Air Corporation, and others play an important role in the market. In accordance with industry requirements, these players manufacture and sell a wide range of plastic protective packaging solutions which is another important factor driving the demand for plastic protective packaging solutions across the U.S.

Why is the China Dominating East Asia’s Plastic Protective Packaging Market?

China is the world's largest market for plastic protective packaging in East Asia and is in the spotlight for suppliers and manufacturers. Further, exponential growth in the electrical and electronics industry and the rising growth of e-commerce platforms are expected to stimulate growth in China during the forecast period.

China’s e-commerce channel is already developed, comprising a large number of buyers and sellers conducting transactions at the internet-based marketplace.

• China is the world’s largest smartphone producer and through online sales channels, it supplies smartphones around the globe. M-commerce is the fastest-growing sector in the Chinese economy. Already, smartphones account for more than 50% of all online sales. Such wide online sales make a large demand for plastic protective packaging around the country.

The favorable business environment in the country has augmented the growth of plastic protective packaging in the country. Along with this, China is one of the key countries with high per capita consumption of packaging materials. This also makes China one of the largest consumers of packaging materials

Category-wise Insights

Why Bubble Plastic Protective Packaging is Most in Demand?

Bubble plastic protective packaging currently dominates the market and is expected to remain in this position for years to come.

As a result of the construction and electronic industries’ major development bubble packaging has become a viable protective packaging option for goods varying from lightweight products such as ceramics and housewares to heavier electronic components and glassware.

Bubble products are the most adaptable protective packaging, so producers offer a variety of inflated bubble packaging products with different grades that change the bubble's size depending on the product. Modern inflated bubble products are also created using recycled materials. In recent years, the demand for bubble plastic protective packaging has increased significantly as an efficient packaging solution, with growth in palletizing and shipping activities being ascribed to rising consumer spending power and retail activities.

Thus, the bubble plastic protective packaging segment is estimated to potentially drive the market in the coming year.

Eminent Players Key Stratagems

Prominent plastic protective packaging manufacturers are Berry Global Group Inc., Buergofol GmbH, Coveris Holdings S.A., Flexopack S.A., Intertape Polymer Group Inc., Kureha Corporation, PREMIUM PACK GmbH, Schur Flexibles Group, Sealed Air Corporation, Smurfit Kappa Group, and among others

The global plastic protective packaging market is a highly fragmented market. The global market is highly competitive in nature with a strong presence of prominent manufacturers. Such a strong presence and high capital investment of key market players have created barriers for new market players. Currently, due to the consumers rising preference for eco-friendly products many of the market players are introducing bio-based or biodegradable plastic protective packaging solutions to increase their revenue by attracting consumers to their solutions. For instance:

• In September 2022, DUNAPACK launches Rio, the new air packaging recycled plastic. This new film is made from 70% recycled and recyclable plastic. Available in multiple sizes, the new RIO cushion aims to reduce the consumption of virgin plastic and the environmental impact of packaging systems

Fact.MR has provided detailed information about the price points of key manufacturers of plastic protective packaging positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Plastic Protective Packaging Industry Research

• By Material :

  • Air Cushion
    • PP
    • HDPE
    • LDPE
    • LLDPE
  • Plastic Mailer
    • PP
    • HDPE
    • LDPE
    • LLDPE
  • Bubble
    • PP
    • HDPE
    • LDPE
    • LLDPE
  • Dunnage Bags
    • PP
    • HDPE
    • LDPE
    • PVC
  • Sleeves
    • PP
    • HDPE
    • LDPE
    • PVC
  • Shrink Wrap
    • PP
    • HDPE
    • LDPE
    • LLDPE
    • PVC
  • Stretch Wrap
    • PP
    • HDPE
    • LDPE
    • LLDPE
    • PVC
  • Stretch Hood
    • HDPE
    • LDPE
    • LLDPE

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa