Protective Packaging Market Report 2025

The protective packaging market size has grown strongly in recent years. It will grow from $34.98 billion in 2024 to $37.35 billion in 2025 at a compound annual growth rate (CAGR) of 6.8%. The growth in the historic period can be attributed to increase in consumer electronics, rise in sustainable packaging, focus on brand image, increasing awareness of product safety, growing automotive industry, globalization of supply chains.

The protective packaging market size is expected to see strong growth in the next few years. It will grow to $49.01 billion in 2029 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to evolving retail landscape, advancements in packaging design, rise in pharmaceutical production, customization in packaging solutions, increased focus on last-mile delivery. Major trends in the forecast period include innovations in material technologies, demand for flexible packaging, evolving regulations on packaging materials, focus on lightweight packaging, collaborations across the supply chain, e-commerce-friendly packaging designs.

The expansion of the e-commerce industry is anticipated to drive the growth of the protective packaging market in the future. E-commerce encompasses the buying and selling of products and services online, including various business models such as business-to-business (B2B) and business-to-consumer (B2C). Within the e-commerce sector, protective packaging plays a crucial role in safeguarding products from potential damage during transportation, logistics, and warehousing. This allows companies to manage their logistics chains more effectively and ensures that products reach customers in excellent condition. For instance, in August 2023, data from the United States Census Bureau, a government agency, revealed that e-commerce estimates for the second quarter of 2023 rose by 7.5% (or 1.4%) compared to the second quarter of 2022, while overall retail sales increased by 0.6% (or 0.4%). Online stores accounted for 15.4% of all sales in the second quarter of 2023. Thus, the growth of the e-commerce sector is fueling the expansion of the protective packaging market.

The increasing demand in the food and beverage industry is expected to further propel the growth of the protective packaging market in the future. The food and beverage sector encompasses various operations related to the production, processing, packaging, distribution, and retailing of food and drink products. Protective packaging is utilized to shield food and beverages from moisture, oxygen, and other external factors that could compromise quality, while also providing temperature control, tamper resistance, and hygiene to ensure that products arrive at consumers in optimal condition. For instance, according to USDA Rural Development 2021 Highlights, a US agency under the United States Department of Agriculture, food and beverage sales reached $467.2 billion in 2021. Additionally, a report by Kirin Holdings Company Limited, a Japanese beverage company, indicated that approximately 185.6 million kiloliters of beer were consumed globally in 2021, reflecting a 4% increase from the previous year. Therefore, the growing demand in the food and beverage industry is driving the expansion of the protective packaging market.

Technological advancement is a significant trend in the protective packaging market. Leading companies are prioritizing research and development to drive product innovations, including carbon-neutral products featuring a certain degree of automation. For example, in February 2022, Pregis Corporation, a company based in the Netherlands specializing in protective packaging materials and systems, launched Renew Zero. This recyclable air-cushioning film comprises 50% post-consumer recycled content and 50% renewable plant waste, such as cellulose fiber, making it carbon-neutral without relying on carbon-offset methods like tree planting. Renew Zero has been certified by European legislation for packaging and packaging waste. It is compatible with the Pregis AirSpeed MINI PAK’R machine, which produces air cushions in five film configurations using radio frequency identification (RFID) technology. This technology automatically selects the optimal seal temperature, airflow, and seal pressure for protective packaging.

Key players in the protective packaging market are concentrating on product innovation, exemplified by the Recyclable Flexible Film, to provide reliable services to customers. This ultra-thin, rigid film is composed of over 50% recycled plastic waste and is designed for flexible packaging products. In May 2023, INEOS Group Limited, a chemicals company based in the UK, launched the Recyclable Flexible Film. This film aims to create recyclable, single-polymer flexible packaging products that replace difficult-to-recycle materials. It serves as protective packaging with a low-carbon solution for transporting food and other goods while enhancing food shelf life for consumers.

In July 2023, Specialized Packaging Group, a US-based packaging company, acquired protective packaging solutions for an undisclosed amount. This acquisition strengthens SPG’s capability to offer comprehensive packaging solutions, including innovative designs and sustainable options. The deal aligns with SPG’s long-term strategy to diversify and expand its packaging offerings, enabling it to serve a broader range of markets with enhanced operational efficiencies and an expanded product portfolio. Protective Packaging Solutions is a US-based entity under Specialized Packaging Group.

Major companies operating in the protective packaging market are Sealed Air Corporation, Sonoco Products Company, Huhtamäki Oyj, Dow Inc., Smurfit Kappa Group PLC, DS Smith PLC, International Paper Company, WestRock Company, Ball Corporation, Oji Holdings Corporation, Advanced Protective Packaging Inc., Storopack Hans Reichenecker GmbH, Packaging One GmbH, ITP Packaging Limited, Amcor PLC, Anchor Packaging Inc., ALPLA Werke Alwin Lehner GmbH & Co. KG, Pregis LLC, Ranpak Corp., Pactiv LLC, Intertape Polymer Group Inc., Cascades Inc., Berry Global Group Inc., Mondi Group, Pro-Pac Packaging Group Pty. Ltd., Nefab AB, Unisource Worldwide Inc., Tekni-Plex Inc., Bway Corporation.

Asia-Pacific was the largest region in the protective packaging market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the protective packaging market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the protective packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Protective packaging serves as a specialized form of packaging designed specifically to safeguard shipped items by providing insulation and a shield against physical damage during the often unpredictable shipping process. Its primary purpose is to protect and cushion goods, ensuring their integrity throughout transportation, logistics, and warehousing stages.

There are several key types of protective packaging. Rigid protective packaging involves sturdier materials such as hard plastics, cardboard, metals, and similar substances. On the other hand, flexible protective packaging utilizes materials that offer more adaptability. Additionally, foam protective packaging, known for its shock-absorbing qualities, is another prevalent type used in safeguarding goods during transit. These packaging materials span various categories, including foam plastics, paper and paperboard, plastics, and other similar substances. Protective packaging serves multiple functions critical to preserving goods such as cushioning to absorb impact, blocking and bracing to secure items in place, void fill to prevent shifting, and insulation and wrapping to safeguard against environmental factors. Industries such as food and beverage, industrial goods, automotive, household appliances, pharmaceuticals, and others extensively utilize these protective measures to maintain product integrity throughout the supply chain.

The protective packaging market research report is one of a series of new reports that provides protective packaging market statistics, including protective packaging industry global market size, regional shares, competitors with a protective packaging market share, detailed protective packaging market segments, market trends and opportunities, and any further data you may need to thrive in the protective packaging industry. This protective packaging market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The plastic packaging market consists of sales of protective mailers, bubble packaging, air pillows, paper fill, dunnage bags, insulated shipping containers, molded foam, foam-in-place polyurethane, polyolefin rolled foam, and loose fill. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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