Loose Fill Packaging & Protective Packaging Market - Forecast(2023 - 2028)

Loose Fill Packaging & Protective Packaging Market Overview

The Loose Fill Packaging & Protective Packaging Market size is estimated to grow at a CAGR of 5.3% in 2022-2027 and is valued at USD $41.5 billion in the year 2027. Protective packaging is a type of packaging that is used to protect and buffer products from potential harm & helps preserve that product during shipping or warehousing. Loose fill packaging is essentially the most common type of protective packaging where loose fill materials like expanded polystyrene peanuts are used to fill empty spaces in packages for shock absorption. Some common examples of other protective packaging are plastic foams, shrink films, and protective mailers. In this report, we will take an in-depth look at the various segments of the Loose Fill Packaging & Protective Packaging Market and analyze the market landscape, drivers, and challenges within the forecast period of 2022-2027.

COVID-19 Impact 

During the COVID-19 Pandemic, many industries had suffered a tumultuous time, and it was no different for the Loose Fill Packaging & Protective Packaging Market. Many governments across the globe implemented lockdown regulations and factories & production facilities in many sectors came to a halt. The supply chain was greatly disrupted as many businesses followed the lockdown protocols. Some of the primary end-use industries of the loose fill packaging and protective packaging market are the Automotive and the Aerospace & Defense Industries. According to the Organisation Internationale des Constructeurs d’Automobiles (OICA), the production of passenger vehicles decreased by 16.9% from 2019 to 2020. According to the International Air Transport Association (IATA), the demand for passenger air travel fell by 65% from 2019 to 2020 with international travel decreasing by 75.6% since 2019. However, the Electronics industry saw growth instead. For example, according to the Japan Electronics and Information Technology Industries Association (JEITA), the production value of the global electronics and IT industry is projected to have grown by 2% year-on-year in 2020 and is estimated to be USD $2,972.7 billion. As of now, many governments have relaxed lockdown procedures as the world population is being vaccinated daily and many industries are resuming production. As such, the Loose Fill Packaging & Protective Packaging Market is expected to grow within the forecast period of 2022-2027.

Loose Fill Packaging & Protective Packaging Market Report Coverage

The report: “Loose Fill Packaging & Protective Packaging Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Loose Fill Packaging & Protective Packaging Industry.

By Type: Flexible Films (Bubble Wraps, Barrier Bags, Medical Films, Seal Films, Others), Foam (Polyethylene (PE), Polyurethane (PU), Polystyrene (PS), Others), Paper, Corrugated, Semi-rigid, and Others.

By Application: Food Packaging, Vacuum Packaging, Electronics Packaging, Reusable Packaging, Shipping Cases, Cushioning, Equipment & Automation, Medical Packaging, and Others.

By End Use Industry: Automotive, Aerospace & Defense, Building & Construction, Electrical & Electronics, Food & Beverage, Industrial, and Others.

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa).

• The Asia-Pacific dominates the Loose Fill Packaging & Protective Packaging Market within the forecast period of 2022-2027.
  

• Protective packaging is primarily used in the Food & Beverage sector as it is vital in maintaining the shelf-life of food products and ensures the safety and security of food & beverage products during trade.

• One of the key drivers for the market is the tremendous growth of the automotive and electronics sector.
  

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Loose Fill Packaging & Protective Packaging Market Analysis – By Type

Flexible Films holds the largest share of 38% by type in the Loose Fill Packaging & Protective Packaging Market within the forecast period of 2022-2027. Flexible packaging is a type of protective packaging that is malleable by nature. It is commonly made from plastic polymers or a blend of materials such as paperboard, foil, and paper. Some common examples of flexible films are shrink & seal films, bubble wraps, and flexible laminates. They are most commonly used because of their elastic properties and excellent shock absorption. Foams holds the second-largest share in the Loose Fill Packaging & Protective Packaging Market. Foams are mostly made from plastic polymers such as polyethylene (PE), polyurethane (PU), polystyrene (PU), and so on. However, modern research and development are implementing more biodegradable options to make them eco-friendly. Some common examples of foams are loose fill, foam rolls, molded foams ad so on.

Loose Fill Packaging & Protective Packaging Market Analysis – By End-Use Industry

Food & Beverage holds the largest share of 44% by end-use industry in the Loose Fill Packaging & Protective Packaging Market within the forecast period of 2022-2027. This is because protective packaging not only helps to secure food products during trade but also helps in preserving food & beverage products and increasing their shelf life. According to the Organisation of Economic Co-operation and Development (OECD), the global agricultural production is expected to increase by 1.4%, and the global livestock & fish production is expected to increase by 14% within the decade of 2021-2030. The average global food availability per person is also expected to grow by 4% within 2021-2030. Some other key end-use industries are the electronics industry and the automotive industry. The significant growth in the electronics and automotive sector also proves to be an excellent driver for the Loose Fill Packaging & Protective Packaging Market within the forecast period of 2022-2027.

Loose Fill Packaging & Protective Packaging Market Analysis – By Geography

The Asia-Pacific region holds the largest share of 41% by geography in the Loose Fill Packaging & Protective Packaging Market within the forecast period of 2022-2027. This is because growing economies like China, India, Japan, and South Korea have a high demand for trade when it comes to the Electronics and Automotive sectors. Protective food packaging has also observed growth in the region as the demand for fast food and processed food has increased due to the large population in the region. According to the Organisation Internationale des Constructeurs d’Automobiles (OICA), China alone contributed about 32% of the global automotive production in 2020. According to the International Journal of Environmental Research & Public Health, China’s Fast-Food industry is expected to reach USD$ 190.1 billion by 2030. This is primarily because of the various reforms in China’s Agricultural and Trade sectors which have facilitated the rapid growth in the Fast-Food Industry. Due to these various factors, the Loose Fill Packaging and Protective Packaging Market in the Asia-Pacific region is expected to grow tremendously within the forecast period of 2022-2027.

Loose Fill Packaging & Protective Packaging Market Drivers

The increasing demand of the Automotive & Electronics Sector:

The demand for the automotive sector and the electronics sector is expected to observe tremendous growth within the forecast period of 2022-2027. The electronics industry had observed growth despite the COVID-19 Pandemic in 2020. According to the Japan Electronics and Information Technology Industries Association (JEITA), the production value of the global electronics and IT industry is projected to have grown by 2% year-on-year in 2020 and is estimated to be USD $2,972.7 billion. According to the Organisation Internationale des Constructeurs d’Automobiles (OICA), the global production of vehicles increased by 5.4% year-on-year in 2021 to 57.3 million units. The growing automotive and electronic sectors are also fueling the need for protective packaging. As such, this proves to be a great driver for the Loose Fill Packaging & Protective Packaging Market within the forecast period of 2022-2027.

Loose Fill Packaging & Protective Packaging Market Challenges

Stringent Regulation on Loose Fill Packaging due to environmental concerns:

One of the key drawbacks of loose fill packaging materials like expanded polystyrene foams is that it proves to be harmful to the environment as it is non-biodegradable. As such, various governments have put regulations in place to maintain the production and usage of loose fill materials while some regulations are aiming to ban them entirely. For example, on January 1, 2022, the Department of Environmental Conservation (DEC) of the New York State, United States, had implemented a ban on expanded polystyrene foam containers and loose fill packaging to reduce waste and create long-term benefits for the environment. Such regulations can be a challenge to the growth of the Loose Fill Packaging & Protective Packaging Market within the forecast period of 2022-2027.

Loose Fill Packaging & Protective Packaging Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Loose Fill Packaging & Protective Packaging top 10 companies include:

1. Storopack Hans Reichenecker GmbH
2. Sealed Air Corporation
3. Smurfit Kappa Group plc
4. Huhtamäki Oyj
5. Sonoco Products Company
6. Pro-Pac Packaging Limited
7. DS Smith plc
8. Pregis LLC
9. WestRock
10. The Dow Chemical Company

Recent Developments

• In October, 2021, Storopack acquired the majority shares of OPITZ Packing Systems GmBH. OPITZ specializes in the manufacture of state-of-the-art automation solutions for packaging systems which greatly increases the efficiency of Storopack.
• In May, 2019, Sealed Air Corporation announced the opening of a new research and development lab in Singapore. The temperature assurance lab will help the company increase its support for food packaging and secondary product packaging.
• In May, 2019, Sealed Air Corporation, announced the acquisition of Automated Packaging Systems, Inc. (APS), for USD$ 510 million. APS is one of the leading manufacturers of high-reliability, automated bagging systems and will increase the production efficiency of Sealed Air Corporation.

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