Plastic Protective Packaging Market

Plastic Protective Packaging Market Analysis Report

The plastic protective packaging will register robust growth surpassing 6.7% CAGR between 2021 and 2031.

As of 2020, overall market revenues surpassed US$ 14.6 Billion. The market will continue to witness robust growth, expanding almost 2x and likely to surpass US$ 28 billiion by 2031, owing to growing demand for inflatable packaging and increasing adoption of plastic packaging in the e-commerce sector.

Consumption Analysis of Plastic Protective Packaging from 2016-2020 Vs Market Outlook for 2021 to 2031

The global market for plastic protective packaging expanded at over 5% CAGR, reaching US$ 14.6 Billion. Consumer inclination towards online shopping has witnessed a dramatic rise in recent years, which in turn has boosted the growth of the e-commerce sector significantly. 

Sensing the role of protective packaging in the overall end-user experience, leading players in the plastic protective packaging market are focusing on easy-to-use designs, along with consistent branding activities. Consequently, the global demand for plastic protective packaging will continue to surge, projected to grow at nearly 6.7% CAGR during the 2021-2031 forecast period.

Is E-Commerce Expansion Aiding Expansion of Plastic Protective Packaging?

In recent years, e-commerce has been facilitating consumers across the world by delivering the products in the best condition. The widespread adoption of e-commerce facilities has resulted in thousands of packets being delivered daily across the world, further increasing the demand for quality packaging of the products.

Factors such as quick delivery, free shipping, and simple return policies are contributing towards the adoption of e-commerce over the conventional method of shopping. Growing demand for novel products, huge availability of various products, and the enormous growth in the overall e-commerce market are pushing the demand for plastic protective packaging.

How is Consumer Demand for Pre-Packaged Foods Spurring Demand?

Demand for pre-packed food continues to increase, amid changing lifestyles and the expanding global population.  Latest trends suggest that in recent years there has been an increase in the number of working women and the dominance of nuclear families. This is shaping the lifestyles of a majority of consumers in emerging economies. 

Demand for on-the-go products has surged as they reduce time spent on cooking, which contributes to the demand for plastic protective packaging. Moreover, rising disposable income and increasing consumption of packed goods will also fuel the demand for rigid packaging in emerging markets. 

The foodservice industry is focusing on trading, logistics, marketing, and consumer services, all of which are directly dependent on the quality of the packaging of the food. This global trend of takeaways and growing ready-to-eat food consumption has increased the demand for pre-packed food and foodservice packaging. 

This has further resulted in increased plastic production, and hence, a large number of retailers in the foodservice industry are focusing on the usage of plastic protective packaging. 

According to the British Plastic Federation (BPF), over 70% of the soft drinks in the global market, are being packaged in PET plastic bottles, while the rest of the 30% gets packed and is available in other variety of packaging materials, such as glass bottles, metal cans, and paper-based cartons.

How is Stretch Wrap Finding Widespread Adoption in Protective Packaging across Industries?

Stretch wraps have gained high palpability as an effective packaging solution in recent years, with demand attributed to growth in palletizing and shipping activities, in line with the rising purchasing power of consumers and retail activities.

Improvement in resin strength and machinery technology used in stretch wrap manufacturing is also likely to expand the application range of stretch wraps in the upcoming years. Multi-layer stretch wraps and films are also gaining popularity across various industries due to their high strength and customization potential.

According to Fact.MR’s report, the demand for stretch wrap will remain relatively larger in light of its better recyclability and dust, moisture, and tamper resistance. Sales of the LDEP resin-based stretch wrap are expected to close in on 3 million tons in 2022, which can be attributed to their amenability to heat shrinking, and high clarity.

Country-Wise Analysis 

Why do Prospects Appear Bright across the U.S?

The U.S. market is expected to rise at a CAGR exceeding 5% over the forecast period. As per the report, the U.S. is projected to display strong demand for plastic protective packaging solutions during the upcoming years. 

One of the key factors behind the increasing demand for plastic protective packaging solutions in the U.S. is the significant presence of prominent packaging giants such as the Sealed Air Corporation, Berry Global Inc, and others who produce and sell a wide range of plastic protective packaging solutions as per industry requirements.

Why is Europe an Attractive Investment Destination for Key Players? 

Europe is projected to be the largest revenue contributor to the global market for plastic protective packaging, with sales projected to bring in revenues over US$ 4 Bn in 2022. It is expected to clock a CAGR worth 4.5% through 2031.

The region is projected to show the highest growth rate owing to the increasing disposable incomes, improving economic conditions, increasing number of double-income families, and on-the-go food trends.

European Union (EU) adopted a strategy known as Circular Plastics Alliance. This initiative aims to boost the EU market for recycled plastics to 10 million tons by 2025. The alliance covers the full plastics value chains and includes 282 organizations representing industry, academia, and public authorities.

Category-Wise Insights

Why are Air Cushions & Bubble Wraps Surging in Popularity?

With significant growth in the construction and electronics sector, air cushion and bubble packaging have emerged as the viable protective packaging solution for products ranging from lightweight, delicate objects such as ceramics and housewares, to heavier electronic components and glassware.

Bubble products being the most versatile protective packaging, manufacturers are offering multiple configurations, inflated bubble packaging with various grades that adjust the size of the bubble as per the product. Moreover, recycled materials are also being used to produce modern inflated bubble products. A market share worth 50% is projected for both segments.

Competitive Landscape 

The global plastic protective packaging market is highly competitive in nature. The global reach of well-established market players and high capital investment for entering the market has created barriers for new market players.

• Smurfit Kappa has announced the opening of a new International Safe Transit Association (ISTA) certified lab at its new e-commerce packaging facility in Northampton, UK. 
• This brings with it an expansion of Smurfit Kappa’s network of packaging testing labs and centers that support retailers and producers to develop, test, and launch disruptive packaging solutions for e-commerce at minimal risk and with reliable implementation.

Report Scope

Report Attributes	Details
Forecast Period	2021-2031
Market size value in 2020	USD 14.6 Billion
Market forecast value in 2031	USD 28 Billion
Growth Rate	CAGR of 6.7% from 2021 to 2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Market Segments Covered	Material Type Region
Key Companies Profiled	Berry Global Group Inc. AEP Industries Inc. Intertape Polymer Group Inc. Smurfit Kappa Group Sealed Air Corporation Signode Packaging Systems Corporation Winpak Ltd. Kureha Corporation PREMIUM PACK GmbH Flexopack S.A. Schur Flexibles Group Coveris Holdings S.A. Allfo Vakuumverpackungen Hans Bresele Kg Kuplast Matejka Kumar S.P. Buergofol GmbH

Key Segments Covered

• Material Type

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