United States and Canada Protective Packaging Market Set to Hit USD 22.5 Billion by 2035 Amid Sustainability and E-Commerce Boom

The protective packaging industry across the United States and Canada is entering a transformative decade driven by sustainability mandates, automation, and the expansion of last-mile delivery networks. With a projected value surge from USD 9.1 billion in 2025 to USD 22.5 billion by 2035, the sector is responding to rising demand in pharmaceutical logistics, cold-chain transportation, and temperature-sensitive goods.

In 2024, regional markets experienced momentum from higher shipment volumes linked to e-commerce expansion and supply chain modernization. Meanwhile, state and provincial regulations in California, Ontario, and British Columbia have accelerated the shift toward recyclable and compostable packaging formats. Both the U.S.

Environmental Protection Agency (EPA) and Environment and Climate Change Canada have issued enhanced recyclability guidelines, prompting brand owners to adopt fiber-based mailers, molded pulp, and starch-derived foam alternatives.

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Innovation Anchoring Regional Growth

The temperature-controlled logistics sector is expanding rapidly. ThermoSafe launched a recyclable insulated shipper line in 2024, targeting healthcare supply chains. E-commerce leaders like Amazon continue to integrate paper-based void fill and padded mailers, signaling a broad material transition.

Furthermore, technology integration is becoming central to packaging traceability. PAC Worldwide's smart QR-enabled mailers and the Association for Packaging and Processing Technologies (PMMI) reporting a 30% rise in automated packaging lines reflect how data-driven solutions are redefining efficiency and compliance.

Material and Product Insights

Among material categories, paper and paperboard are expected to lead growth-expanding from USD 3.4 billion in 2025 to USD 5.9 billion by 2035 at a CAGR of 5.5%. Within this, molded pulp will see the highest growth at 6.4%, driven by its biodegradability and recyclability advantages.

Plastic-based materials remain relevant, though increasingly pressured by policy restrictions. The segment will expand at a 4.5% CAGR, supported by bioplastics' rise, which will grow at 6.1% annually. Foam-based packaging, though effective for cushioning, faces sustainability scrutiny, maintaining a modest 3.8% CAGR through 2035.

By product type, boxes and protective mailers dominate. Boxes will expand from USD 2.9 billion to USD 5.1 billion, while mailers will post the fastest growth rate of 6.3%, buoyed by direct-to-consumer retail. Air pillows and bubble wrap maintain demand for high-speed fulfillment automation but face gradual replacement by paper-based alternatives.

Applications and End-Use Outlook

Cushioning applications will remain the largest category, growing at 5.6% CAGR, followed by void fill at 5.2%, reflecting their essential role in e-commerce and fragile goods shipping. The insulation segment, vital to pharmaceuticals and perishables, is projected to grow from USD 1.1 billion to USD 1.9 billion, as recyclable thermal liners become mainstream.

In terms of end-use, logistics and transportation lead with a 6.1% CAGR, driven by cross-border e-commerce and the scaling of 3PL providers. Pharmaceuticals follow closely at 6.0% CAGR, while electrical & electronics and personal care sectors post strong mid-single-digit growth rates.

Country-Level Insights

United States

The U.S. dominates the North American protective packaging market-growing from USD 7.4 billion in 2025 to USD 18.3 billion by 2035 (CAGR: 5.2%). Three key drivers define this leadership:

1. Omnichannel retail expansion and rapid delivery models fueling demand for recyclable formats.
2. Extended Producer Responsibility (EPR) policies in California, Oregon, and Washington encouraging mono-material packaging.
3. The EPA's 2024 Packaging Waste Reduction Roadmap, targeting 50% recyclability by 2030.

Automation-led investments by major retailers like Walmart and Amazon further reinforce the nation's shift to lightweight, eco-friendly, and intelligent packaging systems.

Canada

Canada's market will grow from USD 1.7 billion to USD 4.2 billion (CAGR: 4.8%) by 2035, propelled by strict EPR regulations and the Canada Plastics Pact, aiming for 100% recyclable or compostable packaging by 2035. Provinces like Ontario and Quebec are witnessing strong adoption of molded fiber and bioplastic formats. However, domestic capacity gaps continue to necessitate imports from the U.S., presenting opportunities for cross-border collaboration and innovation in circular systems.

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Key Industry Players and Strategic Landscape

The market's competitive terrain features Sealed Air Corporation, Sonoco Products, Smurfit Kappa, International Paper, 3M, Pregis LLC, Cascades Inc., and Intertape Polymer Group among top innovators. Their strategies focus on sustainability, automation compatibility, and traceability.

Collectively, these firms-along with organizations like the Sustainable Packaging Coalition and PMMI-are driving North America toward a zero-waste packaging ecosystem by 2035, positioning protective packaging as a cornerstone of resilient and circular supply chains.

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This release was published on openPR.