Pressure on efficient logistics packaging is increasing due to rising burglary, climate stresses, and growing focus on damage prevention. Herein lies the opportunity for logistics packaging players. In 2024, the global Logistics Packaging Market is estimated to be valued at USD 24.5 billion.
Going forward, the market has the potential to reach USD 33.2 billion by 2034, expanding at a CAGR of 3.10%.
| Attributes | Key Insights |
|---|---|
| Estimated Logistics Packaging Market Size (2024E) | USD 24.5 billion |
| Projected Logistics Packaging Market Valuation (2034F) | USD 33.2 billion |
| Value-based CAGR (2024 to 2034) | 3.1% |
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Logistics packaging plays an indispensable role in the supply chain management cycle as it facilitates transit and brings down transportation costs. Robust logistics packaging ensures their effective distribution, provides protection to fragile items, and develops attractive packages to attract customers.
Manufacturers of logistics packaging can integrate their packaging with smart technology to give neck-to-neck competition to their peers. Radio Frequency Identification (RFID) tags and smart sensors are some smart technologies that customers are finding useful as they give complete information about the products.
In addition to these developments, the revenue growth of logistics packaging market players is drive by growing demand for intelligent box recommendation systems that helps save human’s time and energy as it does what its name suggests.
| Leading Material | Plastic |
|---|---|
| Value Share (2024) | 48.3% |
Plastic logistics packaging materials compose 48.3% of the logistics packaging market. This is because plastic is massively used to package consumer goods, foods, and beverages, healthcare products, etc.
Players choose to use plastic material as a resistant and high-quality packaging material and it is suitable for the transportation of an extensive variety of goods. Plastic packaging material is also insensitive to temperature fluctuations and offers excellent insulation.
| Leading Product Type | Protective Packaging |
|---|---|
| Value Share (2024) | 45.20% |
In the logistics packaging industry, the market share of protective packaging is expected to be 43.1% by 2024 end. Value generation from the sales of protective packaging is going to outpace that of other segments. Most commonly purchased protective packaging includes bubble sheets and air bags, edge protectors, layer pads, etc.
The demand for protective packaging is increasing as it protects and buffers the product potential harm or friction during shipping from the warehouse or manufacturer to the consumer. Usually, it is used to pack fragile products, however, it can also be used to package non-fragile items.
Principal Consultant
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 2.10% |
| Canada | 3.50% |
| The United Kingdom | 3.80% |
| China | 5.70% |
| India | 6.40% |
The business activities related to logistics packaging in the United States have the potential to grow at a 2.1% CAGR. Significant advancements in the field of shipping logistics packaging are providing significant stimulus to the market.
The United States has the means to enjoy advanced technology on a prior basis owing to available resources in the country, substantial government funding, skilled human resources, and modern infrastructure that supports research activities.
In August 2023, for instance, researchers from the Case Western Reserve University came up with a revolutionary “smart packaging” system that has the potential to transform food logistics.
The technology is said to elevate food transportation efficiency by monitoring the state of perishable foods during transport. This distinct approach holds the potential to reshape supply chains, curtail costs, and ascertain improved-quality food to be eventually consumed.
The use of logistics packaging is increasing in Canada at an estimated 3.5% CAGR. Key players in the market are seeking ways to expand their customer base, which would lead to higher revenues for them.
In January 2024, for instance, Nulogy, an active solutions provider for supply chain collaborations, officially announced that TCO LLC has entered the Nulogy community. This community includes manufacturers, suppliers, logistics providers, and fast-moving consumer goods (FMCG) brands that operate and work on Nulogy.
TCO LLC, which is a Kentucky-based contract packager, logistics provider, and manufacturer, spotted an opportunity to strategically ramp up its contract packaging operation to ensure business growth. With this intent, the company chose Nulogy’s Shop Floor Solution to boost the digital foundation of its co-pack operation.
Players of logistics packaging can expect a growth of 5.7% CAGR in China over the next 10 years. This growth graph suggests lucrative opportunities as opposed to prospects in matured markets like the United States and Europe.
China has been promoting standardization, minimization, and recycling of express packaging for quite some time now. These steps are aimed at the green development of its logistics packaging sector.
Recently, an intelligent box recommendation system has been introduced which automatically creates a packaging plan for product arrangement, box size, and protection measures. Using this system considerably improves box space utilization.
The logistics packaging industry is in its prime currently. The industry is driven by the growing enthusiasm for online shopping sprees, booming economic activities, and increasing discretionary incomes of people.
The initiative of this burgeoning industry to evolve into green logistics services is incredible, considering the piling of packaging wastes created by the boom of eCommerce.
The market scope for logistics packaging in the United Kingdom has been forecasted to register a 3.8% CAGR in the following decade. Demand in the United Kingdom is expected to be higher than in countries of the European Union.
Key players are employing age-old tried and tested acquisitions and mergers to strengthen their position in the market. For instance, in February 2024, Logson Group, a packaging firm, obtained Challenge Packaging, to scale up its offering in England’s southeast region.
Challenge Packaging is a packaging supply chain solutions provider and corrugated cardboard packaging manufacturer. Logson Group, on the other hand, is an independent group of packaging firms The group has been prominently acquisitive in recent years, which explains the purchase of Challenge Packaging.
This transaction offers continuity for Challenge Packaging to exist as a part of Logson Group, which is an ambitious and exciting growth platform in the sector.
The growth of the logistics packaging market in India remains unparalleled in other Asian countries. FMI analysts have estimated that the logistics packaging sector in India has the potential to expand at a CAGR of 6.4% over the next 10 years.
Soon the logistics firms in India would be required to strictly abide by certain packaging standards within their large warehouses. In a news update in December 2023, it was reported that government of India is actively creating packaging standards to enforce optimum space utilization in warehouses.
This concept aligns with the government’s goal to slash logistics costs, which are presently at 14-15% of GDP, to levels equivalent to advanced economies, which is around 7-8%. Affordab
With the multifold growth in the logistics sector, the demand for logistics packaging is accelerating at an accelerated pace. Significant opportunities in this sector is attracting several logistics packaging startups to expand their business.
FMI has picked the top five entrants from the sea of startups, including SURE Pak, Stockare, Logiun, SECUR LPT, and AeroClay, who hold a lot of promise. These companies are reimagining the shipping logistics packaging solutions to bring efficiencies in the market.
A few key trends set in motion by these startups include
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Key players in the logistics packaging industry are increasing their production facilities to meet the growing demands for logistics packaging. Players are setting up their facilities in high-growth locations, where labor prices are less and/or resources are available in abundance, to reduce their costs.
Industry participants are seeking ways to contribute to a greener world by introducing recyclable products, thus doing their bit to protect the environment. Market contenders are further expanding their network of partners to reach an ever-growing population of clients who require professional packaging solutions.
Players are expanding their product range to include all types of boxes, box pallets, packaging containers, etc. To ensure customer satisfaction so that they repeat these services, players are taking extra measures to ensure high levels of quality.
Market participants are also offering customized solutions to meet storage and transportation needs. Additionally, companies are investing in research and development activities to search for new and distinct designs, production technologies, and raw materials, so that they can develop improved products and lower their impact on the environment.
Latest Developments Taking Place in the Logistics Packaging Market
In 2024, the logistics packaging industry is estimated to be valued at USD 24.5 billion.
The adoption rate of logistics packaging is calculated to be around 3.1% for the forecast period.
The market revenue is expected to shoot up to USD 33.2 billion by 2034.
The protective packaging segment grabs a massive share of the logistics packaging industry.
India is expected to register a higher growth rate in the logistics packaging industry.
Braid Logistics, Trans Ocean Bulk Logistics, and BLT Flexitank Industrial Co. Ltd. are influential players in the logistics packaging industry.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Packaging Durability Type 5.1. Flexible 5.2. Rigid 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material Durability 6.1. Non-durable Goods 6.2. Durable Goods 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Material Type 7.1. Steel 7.2. Plastic 7.3. Corrugated 7.4. Wood 7.5. Plywood 7.6. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User 8.1. Consumer Goods 8.2. Manufacturing 8.3. Food & Beverages 8.4. Healthcare 8.5. Automotive 8.6. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Braid Logistics 19.2. Trans Ocean Bulk Logistics 19.3. BLT Flexitank Industrials Co. Ltd. 19.4. BAG Corp. 19.5. Jumbo Bag Corporation 19.6. Boxon USA 19.7. Buske Logistics 19.8. Zenpack 19.9. TCPL Packaging 20. Assumptions & Acronyms Used 21. Research Methodology
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