The global corrugated pallet wrap market is anticipated to accumulate a market value of US$ 707.71 million in 2023 and is expected to garner a valuation of US$ 1,420 million by exhibiting a CAGR of 7.2% in the forecast period 2023 to 2033. The market of corrugated pallet wrap market reflected growth with a 6% CAGR in the historical period 2018 to 2022.
Factors such as the reduction of manufacturing costs and the innovation of technologically advanced sensors equipped with pallet warps that help to detect the product height and manage weight are anticipated to augment growth in the market during the forecast period. Furthermore, advanced packaging machines improve the packaging speed and further induce product demand. Also, the increased production for higher line speeds of wider and thinner films has allowed increased production of corrugated pallet wraps to generate lucrative opportunities for market growth.
On the other hand, the increased popularity of e-commerce retail channels among households and rising preference of consumers for online shopping is propelling the market growth. Companies using non-recyclable materials in packaging solutions are facing strong criticism and public debate. This is pushing the manufacturers to adopt recyclable pallet packaging solutions. This is helping the market grow.
Use of plastic in packaging is considered as least sustainable form of packaging and always faces legal obstructions from environmental protection agencies and government authorities. To overcome such public debate, the government is implementing more stringent policies and promoting the adoption of paper-based packaging solutions. This trend is estimated to supplement the market growth.
Recently, the European Union implemented a policy that dictates the full recyclability of plastics by 2030. This move will further increase the demand for paper pallet wraps since they are recyclable in nature. Retailers, brands, and food processing companies are tackling separately to such alarming situations and are aiming to replace the least sustainable packaging materials with fully recyclable ones. For an instance, supermarkets operating in Iceland pledge to go plastic-free for their private-label foods by 2023. This is anticipated to boost growth of the market studied.
With the growing amount of packaging waste generated across the globe, governments are opting toward alternative sources, like corrugated paper wraps and other biodegradable packaging materials. On the other hand, several countries and organizations are trying to scrap the use of single-use plastic packaging, which is further creating a favorable market scenario for paper pallet wraps.
Region-wise, North America is expected to dominate the pallet wrap market by accumulating a 38.8% market share by end of the forecast period. The region will continue to retain its lead throughout the forecast period. The growth is attributed to the increasing demand from end-user industries like food and beverages, pharmaceuticals, construction, and health supplement.
Likewise, the Asia-Pacific region is expected to grow with a significant CAGR of 6.8% during the period of projection. The growth is attributed to the flourishing growth of e-commerce and retail sector, which are the key end-user of sustainable packaging solutions like paper pallet wraps.
In developing countries like India, where packaging waste has become a major concern, state and central governments have begun to take steps to ban the use of single-use plastic. Various companies have started switching to eco-friendly alternatives. This is expected to provide a major boost to the demand for paper pallet wraps during the forecast period.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 707.71 million |
| Projected Market Value in 2033 | US$ 1,420 million |
| Growth Rate (2023 to 2033) | 7.2% CAGR |
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Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing corrugated pallet wraps are expected to create lucrative opportunities for market growth during the forecast period.
Corrugated pallet wraps are made from paper mainly for the protection of palletized cargo either for domestic or international shipment. It is the latest development in the packaging industry to overcome the problems that companies faced while shipping cargo.
The corrugated pallet wrap is made out of paper board material and stretched out with other reinforced materials such as bamboo pulp and soft wood pulp that increase its strength and durability of the same. The corrugated pallet wrap market is showcasing a growing trend from last many years as various end-use industries are using pallet wraps for packaging purposes.
In the modern era of sustainability and people becoming more and more aware of rising environmental concerns, corrugated pallet wrap turns out to be a green& easily recyclable option. Also compared to plastic and metal wraps, corrugated paper pallet wraps are way cheaper and also easily available.
In future, due to strict laws overusing non-biodegradable materials and scrutiny from global environmental organizations, and certain bans on plastics unlock several opportunities for the paper-based products. Therefore, the manufacturers of corrugated pallet wraps have more lucrative opportunity in the market.
Also, more and more countries are promoting and shifting to green packaging options, for either creating a positiveimage in the minds of the consumers or increasing the goodwill in the market. Significant rise in global shipping & logistics due to robust demand of goods manufactured in foreign countries, also acts as a growth driver of corrugated pallet wrap market.
Principal Consultant
A downturn is seen in the global demand due to recession in paper producing countries such as China, Japan and USA due to lack of proper technologies or irregular supplies of useful raw materials. The unusual demand patterns showcasedby small and medium scale industries, which still use plastics for packaging and overlooks the hazards caused by plastic.
The overall trends of the industry may not show the negative trends but some regions like developing countries may face problems that may hinder the corrugated paper wrap's market stability.
The sectors using corrugated paper and wraps for the packaging either as primary, secondary or tertiary forms are continuously rising as companies are moving towards lighter-weight packaging to obtain a protective and economical packaging option which every end-use industry prefers.
The E-commerce industry has made use of corrugated pallet wraps for packaging small as well as large products so that companies can eliminate extra size materials such as fit to product boxes, making these wraps to exactly fit for the product.This also ensures that the package box does not has extra filler materials inside.
Brands accepting sustainable packaging are also switching towards easy to open and light-weighted corrugated pallet wrap packaging for high value as well as low-value products.
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The exponential growth of e-commerce industry and growing consumer awareness towards brands using environment-friendly materials for packaging are affecting the corrugated pallet market positively. Surveys from all over the world show a growing trend towards people choosing more bio-degradable materials for packaging and easier to open, hassle-free packaging which in turn do not negatively affect nature.
Top paper producing companies are making it easier for global manufacturers with eco-friendly packaging materials with increased usage of research and development while they come up with new products or variants of current products.
The highest surge in the number of online shoppers in recent years has proven a boost for packaging as well as corrugated paper industry. As it is a fragmented market, the small and medium scale manufacturers are recording growth because well-known brands in the world are moving and pledging towards manufacturing sustainable packaging and shipping materials.
Thebiggest market players of the e-commerce industry, as well as electrical & electronics manufacturing companies, are focusing towards eco-friendly packaging materials to achieve sustainability goals.
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Corrugated Pallet Wrap Market
