Freedonia Market Research Analyzes Protective Packaging Industry

Protective packaging demand is projected to expand 4.6 percent per year to $5.2 billion in 2012, driven by manufacturing growth and the proliferation of Internet commerce.  These factors will fuel demand for cost-effective packaging used in the protection of goods from shock, vibration, abrasion and other damaging effects of shipping and handling.  Fastest advances are anticipated for air pillows and insulated shipping containers, with protective mailers and bubble packaging also logging above-average growth.  All of these products have significant usage in the shipping of goods purchased via Internet sales channels and will continue to benefit from robust growth for e-commerce. 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 research firm.

Demand for air pillows is expected to climb nearly ten percent annually, driven by advantages of versatility and excellent performance with light- to medium-weight items, along with consumer preference for the product over other materials such as loose-fill.  Insulated shipping container demand will be fueled primarily by the increased presence of temperature-sensitive drugs.  Also driving growth will be expanded specialized delivery requirements resulting from increased online sales of perishable foods. Good opportunities for bubble packaging will reflect the growing popularity of onsite bubble packaging systems, which are gaining ground as they offer greater cost-effectiveness and reduced warehouse space compared to standard bubble materials.  Protective mailer advances will be driven by the need for economical, lightweight, pre-constructed protective packaging for the shipping of a wide variety of relatively small objects. 

Foamed plastic protective packaging demand is forecast to increase 3.5 percent per year to $1.2 billion in 2012, aided by advantages of light weight and excellent cushioning capabilities compared to paperboard and other materials.   Gains will lag the overall protective packaging market as resin prices rise more slowly and manufacturing is outsourced to nations that offer lower-cost production.  Polyolefin roll (i.e., polyethylene and polypropylene) product demand will outpace the foam average based on versatility and cost-effectiveness in the protection of furniture, electronics and other products from scratches and abrasion. 

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.