World demand for protective packaging is projected to increase 7.8 percent per year to $22.2 billion in 2014. This represents a notable acceleration from the pace of the 2004-2009 period. Advances will be stimulated by an upswing in manufacturing activity and the continued proliferation of Internet shopping in both developed and developing regions. These factors will necessitate heightened requirements for cost-effective packaging used in the protection of goods from shock, vibration, abrasion and other damaging effects of shipping and handling. Value gains will also be boosted by the growing presence of environmentally friendly products -- such as those made from recycled or biodegradable materials -- which tend to be more costly than their conventional counterparts. However, such gains will stem from a low base. In addition, the importance of price in the purchasing decisions of most packaging users will moderate demand for green products to some extent. These and other trends, including market share and product segmentation, are presented in World Protective Packaging, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Overall, foamed plastic protective packaging will remain the largest product type by a wide margin. However, the growing emphasis on packaging sustainability -- especially in developed countries with more established environmental regulations -- will constrain opportunities for conventional foamed plastic protective packaging to some extent. Protective mailers and other protective packaging products such as air pillows and bubble packaging will continue to experience the fastest gains. More moderate gains are anticipated for paperboard protectors. Nonetheless, opportunities will exist for paperboard packaging products such as kraft honeycombs, which offer excellent strength-to-weight ratios and ease of recycling.
While the US is by far the world’s largest user of protective packaging, the most rapid increases will occur in developing regions. The Asia/Pacific region, Central and South America, and the Africa/Mideast region will all outpace the global average. Population growth, greater urbanization, industrialization trends and increases in international trade activity will support advances in these regions’ generally underdeveloped packaging sectors. Some of the best growth opportunities will occur in Asia, which is expected to see double-digit annual growth through the forecast period. In particular, China alone is expected to account for one-quarter of global value gains in protective packaging demand between 2009 and 2014.
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.
