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Protective Packaging Market Surges In Response To The Growing E-Commerce Industry: Pivotal Factor Influencing Protective Packaging Market Growth in 2025
Protective Packaging Market Size
Protective Packaging Market Size Growth Forecast: What to Expect by 2025?
In recent times, the protective packaging market has experienced substantial growth. There is an expectation for it to expand from $34.98 billion in 2024 to $37.35 billion in 2025, projecting a compound annual growth rate (CAGR) of 6.8%. The historical growth trend has been linked with factors such as the surge in consumer electronics, the adoption of sustainable packaging strategies, emphasis on brand image, heightened consciousness about product safety, expansion in the automotive sector, and the globalization of supply chains.
How Will the Protective Packaging Market Size Evolve and Grow by 2029?
The market size of protective packaging is projected to experience substantial growth in the upcoming years, reaching a value of $49.01 billion in 2029 with a 7.0% compound annual growth rate (CAGR). The forecasted growth can be credited to the progressing retail industry, advancements in the design of packaging, the surge in pharmaceutical manufacturing, personalized packaging solutions, and the heightened emphasis on final-mile delivery. Key trends to watch out for during the forecast period encompass material technology innovations, the rising demand for flexible packaging, changes in packaging regulations, the shift towards lighter packaging, partnerships throughout the supply chain, and packaging designs that are compatible with e-commerce.
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What Drivers Are Propelling the Growth of Protective Packaging Market Forward?
The protective packaging market's expansion is anticipated to be fueled by the e-commerce industry's progress. E-commerce entails buying and selling various products and services online, encompassing business-to-business (B2B), business-to-consumer (B2C), among other business models. For the e-commerce sector, protective packaging is essential in shielding goods from potential hazards or destruction during transit, logistics, and storage, thereby enabling businesses to operate the logistics chain more effectively and ensuring products arrive at their final destination in ideal condition. For example, in August 2023, data from the United States Census Bureau, a government agency in the US, showed that, compared to the second quarter of 2022, e-commerce in the second quarter of 2023 rose by 7.5% (or 1.4%), while general retail sales increased by 0.6% (or 0.4%). Online stores accounted for 15.4% of all sales in the second quarter of 2023. Hence, the rise of the e-commerce sector is spurring on the growth of the protective packaging market.
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Which Emerging Trends Are Transforming the Protective Packaging Market in 2025?
The primary trend in the protective packaging market is technological progress. Major firms are concentrating their efforts on research and development to create innovative products, such as carbon-neutral goods that incorporate a level of automation. For example, Pregis Corporation, a protective packaging materials and systems company based in the Netherlands, launched a product named Renew Zero in February 2022. This recyclable air-cushioning film comprises 50% post-consumer recycled material and 50% renewable plant waste, like cellulose fiber, which is carbon-neutral and does not rely on carbon-offset methods such as reforestation. European legislation for packaging and packaging waste has validated this. The Renew Zero film can be used with the Pregis AirSpeed MINI PAK'R device that produces air cushions in five film configurations. It uses radio frequency identification (RFID) technology to automatically select the best seal temperature, airflow, and seal pressure for the film, ensuring optimal protective packaging.
What Are the Key Segments in the Protective Packaging Market?
The protective packaging market covered in this report is segmented -
1) By Type: Rigid Protective Packaging, Flexible Protective Packaging, Foam Protective Packaging
2) By Material: Foam Plastics, Paper And Paperboard, Plastics, Other Materials
3) By Function: Cushioning, Blocking And Bracing, Void Fill, Insulation, Wrapping
4) By End-User Industry: Food And Beverage, Industrial Goods, Automotive, Household Appliances, Pharmaceuticals, Other End-User Industries
Subsegments:
1) By Rigid Protective Packaging: Boxes And Containers, Crates And Pallets, Trays
2) By Flexible Protective Packaging: Bags And Pouches, Stretch Films, Bubble Wrap And Air Cushions
3) By Foam Protective Packaging: Foam Inserts, Foam Sheets, Custom Foam Packaging
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Who Are the Key Players Shaping the Protective Packaging Market's Competitive Landscape?
Major companies operating in the protective packaging market are Sealed Air Corporation, Sonoco Products Company, Huhtamäki Oyj, Dow Inc., Smurfit Kappa Group PLC, DS Smith PLC, International Paper Company, WestRock Company, Ball Corporation, Oji Holdings Corporation, Advanced Protective Packaging Inc., Storopack Hans Reichenecker GmbH, Packaging One GmbH, ITP Packaging Limited, Amcor PLC, Anchor Packaging Inc., ALPLA Werke Alwin Lehner GmbH & Co. KG, Pregis LLC, Ranpak Corp., Pactiv LLC, Intertape Polymer Group Inc., Cascades Inc., Berry Global Group Inc., Mondi Group, Pro-Pac Packaging Group Pty. Ltd., Nefab AB, Unisource Worldwide Inc., Tekni-Plex Inc., Bway Corporation
What Geographic Markets Are Powering Growth in the Protective Packaging Market?
Asia-Pacific was the largest region in the protective packaging market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the protective packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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