The global layer pads market size is expected to be valued at USD 1,309.8 million in the year 2023, and is estimated to reach a revised size of USD 2,111.8 million by 2033. This market is projected to expand at a CAGR of 5.6% during the analysis period.
In the future, the market is expected to increase faster. This is due to the increasing variety of glass bottles and fragile food products being imported and exported around the globe. As beverage consumption increases and the manufacturing and packaging sectors expand, layer pad sales are likely to grow as well. During transit, layer pads may become widely used by end-users as international trade grows.
The barrier and lightweight properties of layer pads allow businesses to reduce costs, which are significant for supply chain and logistics. Non-alcoholic and alcoholic beverage sales have been driving the layer pad market's revenue growth.
In the layer pads market, substantial revenue streams are expected to be generated from the pressing need for custom layer pad packaging in multiple industries. In particular, end users find these packaging options to be sustainable during logistics and warehousing. Corrugated and paperboard layer pads have long been used to transport various food products.
Food and beverage industry growth, layer pad benefits, and the growing need for improved packaging solutions are all driving market revenue growth. Several countries have taken action to increase environmental-friendly solutions' availability and use, which is also driving market demand.
A key reason for the growth of this market is the increasing demand for paperboard layer pads in the food and beverage industry. This is in addition to other industries, including electronics and chemicals. For packaging purposes, paperboard layer pads are used to protect products from external factors that may damage them, such as moisture and dust particles.
Some of the Growth Factors of the Market:
| Attributes | Details |
|---|---|
| Layer Pads Market Value (2023) | USD 1,309.8 million |
| Layer Pads Market Expected Value (2033) | USD 2,111.8 million |
| Layer Pads Market Projected CAGR (2023 to 2033) | 5.6% |
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The global layer pads market expanded at 5.7% CAGR over the past 10 years. The market is expected to expand at a CAGR of close to 5.6% over the forthcoming decade. As a result of stringent regulations and sustainability concerns, industries are expected to become less dependent on plastic, leading to a higher demand for sustainable paperboard layer pads. As a result, between 2023 and 2033, layer pad sales might increase at a CAGR of 5.6%.
Moreover, layer pads provide enhanced durability to packaging. Thus, industries such as beverages, food & agriculture, chemicals, and electronics are utilizing layer pads more often. Driven by the aforementioned factors, the layer pads market registered year-on-year growth of 5.7% between 2022 and 2023, with sales reaching USD 1239.9 in 2022.
| Historical CAGR (2016 to 2022) | 5.7% |
|---|---|
| Historical Market Value (2022) | USD 1,239.9 million |
| Forecast CAGR | 5.6% |
Rising Demand for Recyclable Products
Recently, layer pads have seen an increase in demand due to the use of recyclable materials during manufacturing. As people become increasingly aware of the damage caused by excessive packaging using thermoform and plastic, layer pads become a viable choice for shipping goods in the safest possible way since they are completely recyclable.
For instance, Amazon has already started using recycled plastic layer pads for their shipping needs, to reduce their environmental footprint.
Increasing awareness is witnessed about traditional packaging materials having an adverse environmental impact. Therefore, increased regulations on non-biodegradable materials are driving the use of eco-friendly and biodegradable materials in layer pads.
For instance, companies such as SouthPack and eco-friendly packaging manufacturers are offering packaging solutions made from recycled materials, such as recycled paper, cardboard, and biodegradable plastics.
Packaging for E-commerce
Since the rise of the e-commerce industry, the consumer goods market has witnessed unprecedented demand. As the internet has reached the farthest corners of the world, goods have traveled further to reach their final destination.
Long-distance shipping has increased the risk of goods being damaged because of multiple external factors. For this reason, layer pads or corrugated cardboard are extensively used to protect products during shipping.
In recent years, layer pads have become increasingly popular as an affordable way to ship goods over long distances. Additionally, this packaging can be customized and protects from water, moisture, and infestation, making it ideal for warehouse storage. According to analysts at FMI, layer pads may be in high demand across the logistics sector as consumerism continues to grow.
Increasing Demand for Shipment of Electronics
In the market for layer pads, sales have increased due to an increase in shipments of consumer electronics, particularly in emerging countries. In recent years, layer pads have become increasingly popular due to the demand for lightweight, safe packaging for electronics. This is mainly due to an increase in the demand for gaming consoles, which has fueled the adoption of layer pads.
Principal Consultant
Product usage is increasing as a result of consumer preferences for recyclable and easy-to-handle products. Moreover, the ability to survive the entire supply chain, stringent regulations against plastic packaging, and an increase in applications from the electronic industry may lead to an increase in the layer pads market’s growth.
Growing trends of online shopping along with increasing demand from the food and logistics industry, the introduction of green packaging, which might further create various beneficial opportunities for the growth of the layer pads market in the upcoming period, may further create numerous beneficial opportunities. Furthermore, a growing number of new markets and strategic partnerships might serve as market drivers and boost layer pad benefits.
In terms of shape type, the market is bifurcated into die-cut shapes and flat shape layer pads. As per the study, flat shape layer pads are expected to account for the lion’s share over the forecast period.
As layer pads with flat shapes are sturdy and have more room for product safety, end-users prefer flat-shaped layer pads for fragile bottles, glass, or any food products. Flat-layer pads offer more durability as compared to die-cut-shaped layer pads.
Hence, key companies are increasing the production of flat-shaped layer pads to meet the surging requirements from end-use industries, especially the beverages sector. On account of this, sales of flat-shaped layer pads are expected to witness the key growth over the forecast period.
In terms of material, plastic layer pads are expected to account for over 80% of the total market share through 2021. As per Future Market Insights, sales of polypropylene layer pads are expected to pick up pace in the coming years, giving tailwinds to the plastic layer pads market growth.
As polypropylene material is cost-effective and durable, the preference for polypropylene (PP) layer pads is higher to reduce product loss and wastage. They are also reusable and support environmental laws in several countries.
Companies such as Smurfit Kappa, Karton Innovative Plastic Solutions, and others are manufacturing solid PP layers pads to meet the surging demand from beverage and food & agro end-use industries.
However, higher demand for eco-friendly alternatives may sway manufacturers away from plastic as their preferred material for layer pad production.
For instance, companies such as GWP Group, Smurfit Kappa, and others are manufacturing corrugated and paperboard layer pads to attract a larger consumer base and adhere to sustainability rules.
Against this backdrop, FMI estimates, the demand for corrugated and solid fiberboard layer pads to outpace the sales of PP layer pads over the forthcoming years.
As per FMI, the beverages industry is expected to remain the leading end-user for layer pads. Sales in the beverage industry are expected to reach USD 1.8 billion, expanding at 5.9% CAGR through 2023 & beyond.
Increasing consumption of alcoholic and non-alcoholic beverages has surged the need for product safety during transportation. As layer pads can decrease the risk of damage when items are in transit, they are extensively used for alcoholic beverage packaging.
To cater to the surging demand from the beverages sector, manufacturers are designing lightweight, reusable, and sustainable layer pads. For instance, Karton Innovative Plastic Solutions have introduced reusable layer pads, widely used in the beverage industry as divider sheets between glass and plastic bottles, which are 100% recyclable.
On account of this, the beverages segment is estimated to hold 80% of the value share, topping a volume of more than 830,520 tons by the end of the forecast period, as per Future Market Insights.
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Due to the strong consumer electronics industry in Asia Pacific, the layer pads market is predicted to grow at a substantial rate over the forecast period. In the coming years, the demand for layer pads is expected to increase as manufacturing activities in China and India increase. Sustainable packaging is becoming increasingly popular among entrepreneurs. This is fueling the market in an unstoppable manner during the forecast period.
Developing countries such as India, China, Malaysia, and Indonesia are experiencing rapid urbanization and industrialization, resulting in the significant use of layer pads in the packaging industry as a result of government initiatives on eco-friendly solutions. As a result of digitalization trends, the Asia Pacific market growth is driven primarily by the use of electronic devices (such as laptops, tablets, digital cameras, and wearable smartphones).
The beverage industry is a key contributor to the United States economy. As per American Beverage, the beverage industry contributed over USD 19.1 billion of significant tax revenue in 2018.
With the increasing consumption of alcoholic and non-alcoholic beverages, the need for safe transit and product safety has fueled the demand for layer pads in the country. As per Future Market Insights, the United States market is identified as one of the key layer pad exporters and producers across the globe.
Growth in the country is also attributable to the presence of leading players, the expansion of the food & beverage industry, and the manufacturing sector. As the United States has substantial manufacturing industries, the import and export of chemical, electronic, and food items have been on the rise, resultantly accelerating the demand for layer pads.
On account of the higher focus on durability, the demand for paperboard layer pads is expected to rise in the United States. A few of the leading market players are introducing and adopting recyclable, non-toxic, sustainable paperboard layer pads to meet the surging demand. Against this backdrop, sales of layer pads in the beverage industry are expected to surpass USD 222 million in North America through 2023.
The food and beverages industry in India is expected to contribute to the high demand for layer pads. Leading layer pad manufacturing companies are collaborating with India’s local glass and bottle manufacturers to increase their revenue.
With the increasing consumption of soft drinks, especially among millennials, the need for layer pads is expected to surge over the forecast period.
Besides this, surging applications in electronic packaging and the packaging and transport of delicate items might remain a chief growth driver for the India layer pads market. The government of India also has imposed stringent regulations favoring the sales of layer pads in the country.
For instance, the Government of India, Ministry of Environment and Forest, 2013, imposed a regulation that mandated the use of layer pads while transporting hazardous goods, such as pharmaceutical drugs, chemicals, or any toxic products.
As a result, the application of corrugated layer pads has increased as industries focus on maintaining sustainability and complying with the rules of packaging.
According to FMI, Europe is expected to be the second leading contributor to the global layer pads market. Sales of layer pads in Europe are expected to increase at 4.2% CAGR between 2023 and 2033.
The United Kingdom is identified as one of the leading exporters of layer pads. Increasing import-export in the country and surging consumption of alcohol and soft drinks are expected to spur the sales of layer pads. Over 84.4% of sales of layer pads in the United Kingdom are contributed by the beverage segment, opines Future Market Insights.
Start-ups in the layer pads market are focusing on sustainability and eco-friendliness. For example, one start-up has launched reusable and compostable bamboo-based pads, making them a more sustainable and eco-friendlier alternative to plastic-based pads.
Their goal is to provide advanced plastic corrugated sheets that are both durable and functional, as well as eco-friendly. Many of these start-ups are committed to reducing waste and promoting a circular economy where layer pads are reused and repurposed rather than discarded.
Several players dominate the global layer pads market, which is moderately competitive. A competitive landscape analysis includes some international and local companies that hold the market share and are well known, such as:
Recent Development:
The strategy of mergers, acquisitions, investments, expansions of capacity, and plant turnarounds by key manufacturers is further strengthening the layer pads market player presence and staying ahead of the competition.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; The Middle East and Africa; East Asia |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Türkiye |
| Key Segments Covered | Material Type, End-user Base, Shape Type, Region |
| Key Companies Profiled | Smurfit Kappa Group; DS Smith PLC; International Paper Company; KapStone Paper and Packaging Corp; KARTON SpA; Corex Plastics Pvt. Ltd.; Alpha Cikupa Makmur PT; GWP Group Limited; Shish Industries Limited; ER&GE Limited; QINGDAO TIANFULE PLASTIC Co. Ltd.; Carton Northrich Inc.; Mulford Plastics Pvt. Ltd.; Romiley Board Mill; Crown Paper Converting; Samuel Grant Group Ltd.; John Roberts Holdings Ltd.; Mount Vernon Packaging Inc.; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Construction, automotive, and aerospace industries are utilizing high-quality layer pads, driving the market's growth.
The rising need for better packaging solutions is a growing trend.
Regarding material, plastic layer pads are expected to lead the market.
The beverages industry is expected to remain the leading end-user for layer pads, expanding at 5.9% CAGR through 2033.
Growth in the country is attributable to the presence of leading players, the expansion of the food & beverage industry, and the manufacturing sector.
1. Executive Summary | Layer Pads Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Material Type 5.1. Plastic 5.1.1. Polypropylene 5.1.2. Polyethylene Terephthalate 5.1.3. Polycarbonate 5.1.4. High Density Polyethylene 5.1.5. Polyethylene 5.1.6. Other Plastic Material 5.2. Paperboard 5.2.1. Chipboard 5.2.2. Solid Fibreboard 5.2.3. Corrugated 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User Base 6.1. Food & Agro Products 6.2. Beverages 6.2.1. Alcoholic Beverages 6.2.2. Non-Alcoholic Beverages 6.3. Electronics 6.4. Chemical 6.5. Others - Manufacturing 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Shape Type 7.1. Die Cut Shape 7.2. Flat Shape 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. Smurfit Kappa Group 16.2. DS Smith Plc 16.3. International Paper Company 16.4. WestRock 16.5. Karton S.p.A. 16.6. Corex Plastics Pvt Ltd 16.7. GWP Group Limited 16.8. Shish Industries Limited 16.9. ER&GE Limited 16.10. Northrich 17. Assumptions & Acronyms Used 18. Research Methodology
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Layer Pads Market
