Packaging Nets Market

Packaging Nets Market Snapshot

The global packaging nets market was valued at US$ 890 Million in 2022 and is expected to reach a valuation of US$ 914.51 Million in 2023. From 2023 to 2033, the market is likely to expand at a CAGR of 3%, reaching US$ 1.2 Billion. The demand for packaging nets has gained traction among food and consumer brands for multiple reasons.

The fact that customers are able to see and feel the final packed products makes the packaging nets acceptable and attractive packaging types. Also, suppliers’ labels are also visible, helping in transparency of the branding. The easy visibility of the products also makes the packaging increasingly attractive. All these factors are boosting the prospects of the packaging nets market.

Growing demand for low-cost packaging nets is a key consumer trend in the market. The growing adoption of automated packaging lines has expanded the avenue for manufacturers of packaging nets. Furthermore, growing demand from end-users for common purposes owing to flexible designs is anticipated to significantly drive the growth of packaging nets market.

Manufacturers in packaging nets market are likely to witness surging demand from food and packaging industry. Bag form packaging nets is anticipated to gain significant traction in the forthcoming years in the food industry, especially in the applications such as cooking, marinating, and packaging. Easy handling and freshness retaining properties with enhanced air circulation further stimulates the sales of bag form packaging nets.

Report Attribute	Details
Estimated Base Year Value (2022)	US$ 890 Million
Expected Market Value (2023)	US$ 914.51 Million
Anticipated Forecast Value (2033)	US$ 1.2 Billion
Projected Growth Rate (2023-2033)	3%
Expected CAGR of the US market	5%
Anticipated market valuation of China (2023-2033)	US$ 310 Million
Major Packaging Nets Manufacturers	SWM EXPO-NET Giró Group GSH Group Intermas Lenzing MAAR NorPlex Inc. S.M. Enterprise Starlinger Group

Demand analysis of Packaging nets from 2018 to 2022 Compared to Demand Outlook for 2023 to 2033

The packaging nets industry was witnessing a CAGR of 3.5%, with a market valuation of US$ 600 Million during the historical period. Technological developments and improvements in production techniques coupled with rising prevalence of eco-friendly packaging nets are propelling the sales of packaging nets. Considering these growth factors, the packaging net industry is projected to be valued at US$ 1.2 Billion, while exhibiting a CAGR of 3% during the forecast period.

Which are Some Prominent Drivers of the Packaging Nets Market?

Ban on Plastic Bags driving the demand for Packaging Nets

Packaging nets are manufactured from environmental-friendly plastics like polyethene and polypropylene, which are used to hold products weighing around 1-10 kg. The packaging industry has evolved from plastic to biodegradable packaging material. In 2016, around 335 million metric tonnes of plastic was produced globally, from which, nearly half was for single purpose use only. Most of this plastic produced is used for manufacturing plastic bottles and plastic bags. Every year, around 4 trillion plastic bags are used worldwide, which causes a significant amount of waste and is polluting the oceans and lands, which is harmful to the environment.

Awareness about plastic pollution among the masses has resulted in an amplified demand for packaging nets. Biodegradable or compostable packaging nets are used for covering products, mainly fruits and vegetables. Packaging nets are mostly utilised in supermarkets and grocery retail stores, and with the growing demand of packaging nets, manufacturers are developing packaging nets with better tensile strength and weight bearing capacity. Packaging nets are extensively used to cover toys and sports goods, having high penetration in consumer goods packaging.

The market is driven by the increased usage of environmentally friendly materials in packaging. Eco-friendly packaging is recyclable, biodegradable, reused, and non-toxic, with a low environmental impact.

With the growing retail industry, there lies huge opportunity for manufacturers of packaging nets to grow their businesses, not only in the domestic market but international markets as well, as this attracts significant groups such as retail packaging suppliers, supermarkets, and others for packaging nets. Growing R&D activities amid key players and constant requirement for enhanced quality of packaging nets is a key development.

What are the Challenges Faced by the Packaging nets market?

The overall usage of non-recyclable, non-biodegradable plastic packaging solutions is expanding, resulting in increased carbon emissions in the environment. This might be a factor that could restrain the market growth.

Availability of counterfeit and cheap packaging nets can hinder market growth. Less protection offered to the content inside the nets is anticipated to impact the market growth negatively.

Comparative View of Adjacent Packaging Nets Markets

Packaging Nets Market :

Attributes	Packaging Nets Market
CAGR (2023-2033)	4.2%
Market Value (2033)	US$ 1.2 Billion
Growth Factor	Ban of plastic bags in few countries and manufacturing of many other eco-friendly substitutes is augmenting the sales of packaging nets around the globe.
Opportunity	Adoption of environment friendly and recyclable packaging nets will present lucrative prospects for this market.

Food Packaging Market :

Attributes	Food Packaging Market
CAGR (2023-2033)	5.5%
Market Value (2033)	US$ 525 Billion
Growth Factor	Improved shelf-life, coupled with heightened efficiency in the prevention of content contamination, is expected to fuel the growth of the industry.
Opportunity	Manufacturing of high-performance materials in the food packaging market is going to open up new avenues in this market.

Plastic Packaging Market :

Attributes	Plastic Packaging Market
CAGR (2023-2033)	4.2%
Market Value (2033)	US$ 500 Billion
Growth Factor	The expanding size of key application industries including food and beverages, pharmaceuticals, personal and household care, and rising penetration of organized as well as e-retail across the world, are primarily augmenting growth in the industry.
Opportunity	Manufacturing of engineered plastic will boost the opportunities in this market because of high survivability of this plastic in extreme environments.

Which Region is Projected to Offer the biggest Opportunity for Packaging nets Suppliers?

Asia pacific is projected to offer biggest opportunities for the sales of packaging nets. This region is expected to present lucrative prospects owing to the expansion of food and consumer-based industries. China is projected to dominate the market followed by India and Japan. Further, the plastic ban by China is going to creative new avenues for the expansion of packaging nets market.

Country-wise Analysis

Asia Pacific set to dominate the Packaging Nets Market

In terms of regional demand, APAC leads in the global packaging nets market, with a market share of 45%, owing to the number of active and passive players in the region. China dominates the region in terms of total demand and production and it is expected to retain its dominance with a market valuation of US$ 310 Million by 2033 with a CAGR of 5.2%. Chinese consumers' increasing inclination toward products containing fish, meat, and vegetables are mainly packed by using packaging nets to ease the extra packaging burden, is a factor fuelling the sales of packaging nets in China.

Packaging nets has observed wide-scale utilization in Asia, with countries like India and China contributing significantly through their food and beverages market. The Chinese packaging sector is heavily influenced by variables such as rising per capita income, changing social atmosphere, and demographics, including ban enforcement on plastics to minimize its plastic footprint. This results in potential impact on the packaging nets business and augments the market growth.

Innovative Designs opening up new avenues in North America

Over the past few years, demand for packaging nets in North America has been driven by innovative and attractive designs that offer functional benefits, such as small pack sizes and convenient closures. Most American consumers adhere to increasingly hectic work and lifestyle schedules, which makes time-saving packaging features an appealing addition to their product choices. Small-sized, on-the-go packaging nets packs have become popular choices for consumers who feel time-poor, or seek snacking options that can easily be consumed in a variety of locations.

As such, the Packaging nets market in the US is expected to witness the highest growth in North America, at a CAGR of 5% while exhibiting a market share of 74% alone, between 2023 and 2033. These nets are extensively used to carry food, vegetables, and fruits, where many consumers actively seek out quick and easy solutions that align with their time constraints.

This is largely due to the lightweight, sustainable, cost-efficient, and resealable dispensing features offered by packaging nets. In response to the growing demand created by the food and consumer goods industry, manufacturers have begun to design portable, resealable and reusable pouches with grip strips and spouts, using knitted and synthetic nets to encourage the foodie habits of busy consumers.

Country-wise Forecast CAGRs for the Packaging Nets Industry

Country	CAGR
US	5%
China	5.2%
UK	4.66
Japan	4.5

Category-wise Insights

High demand for Knitted Packaging

Knitted packaging nets are in high demand due to availability of different designs and mesh sizes, depending upon the implementation of the product. Some of the products using knitted technology are Monofilament bags, which are woven synthetic bags or knitted bags manufactured by keeping a fine mesh size, and can carry a weight of up to 30 kg. Tubular netting is another knitted packaging net used for the automatic packaging of fruits and vegetables, and this is used to carry a weight of up to 5 kg.

Synthetic Packaging Nets to account for 61% of Market Share

The synthetic packaging nets segment occupies over 61% market share. This product source also records a higher growth rate as compared to natural nets; key reason being, rising demand for more durable and higher service life of packaging nets.

Additionally, ease of availability of raw materials and increased yield of synthetic packaging nets due to convenient manufacturing techniques are also some notable factors propelling the segment in the global packaging nets market. Thus, key players in the market are very proactive regarding synthetic packing nets which is boosting the segment’s growth.

Food packaging segment leading the market share

With a market share of 68%, the food packaging application will dominate the segment, as in most regions they nets are used to transport food items, especially in hypermarkets and specialty stores, where packaging nets are used to carry fruits and vegetables by consumers.

Start-Ups for the Packaging Nets Market

Business models evolve with time, sometimes due to changes in the market and sometimes due to advent of technology, resulting in emergence of new exciting trends. Fact.MR closely tracks the start-up ecosystem across the world. Few start-ups gaining popularity in packaging nets market are:

• Founded in 2015, ‘Zume’ is a Camarillo, US-based start-up that offers sustainable packaging solutions for multiple industries, mainly food industries. Offers bagasse based molded fiber packaging products to reduce plastic usage by industries. It received a funding of US$ 23 Million from Kortschak Investments, SignalFire, SoftBank Vision Fund and 2 Other Investors.
• Founded in 2014, ‘Notpla’ is London-based manufacturer of seaweed-based bioplastics. It is made of brown seaweed. It has applications in manufacturing diversified items, such as nets, sachets, alcohol cocktails, lined cardboard, plastic cups, and hot sealable films. It received a funding of US$ 14 Million from Astanor, Torch Capital, Horizons Ventures and 3 Other Investors.

Market Competition

The packaging nets market is competitive, with the presence of various regional and global players. To achieve a competitive advantage in the market, firms compete on a variety of variables such as product offerings, price, material quality, and marketing efforts. Companies are utilizing digital and social media marketing to notify people about new product launches. Some of the key companies manufacturing packaging nets are-

SWM, EXPO-NET, Giró Group, GSH Group, Intermas, Lenzing, MAAR, NorPlex Inc., S.M. Enterprise, Starlinger Group.

Some Recent Developments in Packaging Nets Market are -

• In July 2022, Mativ Holdings, Inc. announced the successful completion of the merger of equals between Schweitzer-Mauduit International, Inc. ("SWM") and Neenah, Inc. ("Neenah"), two leading global manufacturers of specialty materials, effective July 6, 2022. Mativ has approximately $3 billion in sales, supporting customers in more than 100 countries, and manufacturing capabilities on four continents. Beginning Wednesday, July 6, 2022, the Company will commence trading on the New York Stock Exchange (NYSE) at the market open, under the new ticker symbol “MATV.”
• In April 2022: The Mondi Group has declared launching of new packaging solutions for the food industry. Two-tray packaging products will provide recyclable options for fresh food manufacturers and can help reduce food waste. PerFORMing monoloopand monoi formable PP will provide food protection, demonstrating how packaging plays a crucial role throughout the supply chain.
• In April 2022: Sealed Air (SEE) declared its partnership with ExxonMobil and Ahold Delhaize, which will facilitate the recycling of plastic material used in the food supply chain to create new food-grade packaging products.

Key Segments Profiled in the Packaging nets Industry Survey

• By Source :

  • Natural
  • Synthetic

• By Type :

  • Extruded Nets
  • Knitted Nets

• By Form :

  • Bags
  • Rolls

• By Application :

  • Food
    • Fruits and Vegetables
    • Meat & Seafood
    • Others
  • Non-food
    • Consumer Goods
    • Sports Accessories
    • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa