Protective Packaging Demand to Reach $5.2 Billion in 2014

US demand for protective packaging is forecast to climb 6.2 percent per year to $5.2 billion in 2014, reflecting an upswing in manufacturing output as the US economy recovers from the recession that began in December 2007.  Advances will also be boosted by the continued proliferation of Internet shopping.  Value gains will also be helped by greater interest in environmentally friendly products that tend to be more costly than their conventional counterparts.  However, the importance of price in the purchasing decisions of most packaging users will moderate gains for green products to some extent. These and other trends, including market share and product segmentation, are presented in Protective Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Through 2014, the fastest growth is expected for air pillows, foamed plastics and bubble packaging, with rapid advances also anticipated in the smaller molded pulp segment.  Demand for air pillows will climb 8.7 percent per year to $395 million in 2014, the result of strong growth in Internet shopping, advantages over other materials in terms of cost and material use, and consumer preference for the product over other materials such as loose-fill.

Foamed plastic protective packaging is expected to rebound substantially from a depressed base in 2009.  Gains will reflect a significantly improved outlook in the manufacturing sector, especially durable goods, which represent the majority of demand for molded foam, foam-in-place and polyolefin roll protective packaging.  Nonetheless, longer-term prospects for foams will be moderated by further shifting of manufacturing to nations that offer lower-cost production. 

Demand for bubble packaging will be aided by favorable outlooks for manufacturing activity and electronic shopping.  Molded pulp will experience some of the fastest gains (albeit from a small base) as a result of heightened interest in environmentally friendly packaging coupled with more stable pricing than petroleum-based plastics.  More moderate gains are anticipated for paperboard protectors, paper fill, dunnage bags and loose-fill, the result of mature applications and/or competition from faster growing product types.  Nonetheless, prospects for paper fill and biodegradable loose-fill will be helped by growing interest in environmentally friendly packaging.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.