The global packaging foam market size is expected to be valued at USD 6.9 billion in 2023. Increasing demand for sustainable packaging solutions, bolsters the overall scope for packaging foam market, which is projected to grow at a CAGR of 5.9% between 2023 and 2033, totaling around USD 12.3 billion by 2033.
| Data Points | Key Statistics |
|---|---|
| Packaging Foam Market Value 2023 | USD 6.9 billion |
| Packaging Foam Market Projected Value (2033) | USD 12.3 billion |
| Packaging Foam Market CAGR (2023 to 2033) | 5.9% |
The rising focus on product safety and protection is a significant trend that is driving the growth of the packaging foam market. Companies in various industries are increasingly recognizing the importance of ensuring that their products reach customers in pristine condition, without any damage or defects. The emphasis on product safety and protection has led to a growing demand for packaging foams that can effectively cushion and safeguard delicate and sensitive items during transportation and storage.
Packaging foams are engineered to provide superior shock absorption properties, which are critical for protecting products from impacts, vibrations, and drops that can occur during handling, loading, and unloading. The foams act as a protective barrier, absorbing and dispersing the forces generated by external shocks, thereby minimizing the risk of damage to the packaged items. The foams' ability to dissipate energy and prevent it from reaching the enclosed products is crucial in maintaining their integrity and ensuring their safe delivery to end-users.
Delicate and sensitive items such as electronics, glassware, ceramics, medical equipment, and fragile components require specialized packaging foams that offer exceptional cushioning properties. The foams are designed to conform to the contours of the products, providing a secure and snug fit that minimizes movement and prevents any potential damage that could arise from contact or collision. The risk of scratches, dents, cracks, and breakage is significantly reduced, by enveloping the products with a protective foam layer.
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The global demand for packaging foam is projected to increase at a CAGR of 4.8% during the forecast period between 2018 and 2022, reaching a total of USD 12.3 billion in 2033.
According to Future Market Insights, a market research and competitive intelligence provider, the packaging foam market was valued at USD 6.5 billion in 2022.
The global packaging foam market, from 2018 to 2022, witnessed steady growth, owing to the expansion of the electronics and automotive industries, which has a significant impact on the growth of the packaging foam market. There is an increasing demand for effective packaging solutions that can provide optimal protection for electronic components and automotive parts throughout the supply chain.
In the electronics industry, the trend towards smaller and more delicate electronic devices creates a need for specialized packaging foams. Packaging foams with customized shapes and designs are used to create precise and snug-fitting compartments for delicate components such as integrated circuits, microprocessors, and sensors. The foams offer cushioning and shock absorption, protecting the components from impact and minimizing the risk of damage during transportation and handling.
The packaging foams used in the electronics industry often possess anti-static properties to prevent the buildup and discharge of static electricity, which can damage sensitive electronic components. Anti-static foam packaging materials help to dissipate static charges, ensuring the safe transportation and storage of electronic devices.
In the automotive industry, packaging foams play a critical role in protecting automotive parts during shipping, assembly, and storage. The foams are used to create custom-fit trays, inserts, and wraps that securely hold and cushion various components, such as engine parts, electronic modules, headlights, and interior components. The foams are designed to absorb impacts and vibrations, preventing damage and ensuring that the parts reach their destinations in optimal condition.
Increasing Demand for Sustainable Packaging is Likely to be Beneficial for Market Growth
The increasing demand for sustainable packaging is a significant trend driving the growth of the packaging foam market. Businesses and consumers are becoming more conscious of the impact of packaging materials on the environment, as environmental concerns continue to rise, which has led to a shift towards sustainable packaging solutions, including packaging foams made from recyclable or biodegradable materials.
One key aspect of sustainable packaging foams is their composition. Traditional foam materials, such as expanded polystyrene (EPS) or polyethylene (PE) foam, are derived from fossil fuels and are not easily biodegradable. In contrast, sustainable packaging foams are often made from renewable resources or recycled materials.
Recyclable packaging foams are designed to be easily separated and processed for recycling. They can be recycled into new foam products or other materials, reducing the consumption of virgin resources and minimizing waste. Recycled content foams utilize post-consumer or post-industrial waste materials, such as plastic bottles or packaging scraps, to create new foam products, which helps to close the loop in the packaging supply chain and reduce the environmental impact of foam production.
Advancements in Foam Manufacturing Technologies to Fuel the Market Growth
Advancements in foam manufacturing technologies play a crucial role in boosting the growth of the packaging foam market. The advancements enable the production of foams with improved properties, making them more attractive to industries seeking high-performance and cost-effective packaging solutions.
One key area of advancement is the development of enhanced cushioning properties in packaging foams. Foam manufacturers are constantly exploring new materials and manufacturing techniques to create foams that offer superior protection for delicate and fragile products during transportation and storage. The foams are designed to absorb and distribute impact forces, minimizing the risk of damage or breakage. Improved cushioning properties provide added peace of mind to companies that rely on packaging foams to protect their products throughout the supply chain.
Another aspect of advancements in foam manufacturing is the focus on better energy absorption. Foam materials with enhanced energy absorption capabilities can effectively absorb and dissipate impact energy, reducing the likelihood of product damage, which is particularly important for industries dealing with sensitive or expensive products, such as electronics or medical equipment. Companies can minimize the risk of costly product losses and improve customer satisfaction, by utilizing foams with improved energy absorption properties.
Weight reduction is another significant advancement in foam manufacturing technologies. Foam manufacturers are developing foams with reduced density, resulting in lighter packaging materials. Lightweight foams not only contribute to cost savings in transportation but also offer convenience and ease of handling for both businesses and consumers. Lightweight foams help reduce the overall environmental impact by reducing fuel consumption and carbon emissions during transportation.
Principal Consultant
Polyurethane (PU) to take the Lion’s Share
Polyurethane (PU) is the most utilized material for the production of packaging foam. It possesses various attractive features such as lightweight, high abrasion resistance, excellent insulation and ecofriendly nature. It can be easily modified to suit a variety of applications. The segment is anticipated to witness a market share of 45.4%.
Polyurethane foam has gained wider popularity, over the last few decades for protecting light and fragile products. It is an ideal packaging solution for shipping foods or moisture sensitive products, due to its excellent resistance to mildew. A significant CAGR of 5.8% has been anticipated for polyurethane segment by FMI.
Consumer Electronics to take the Lion’s Share
Consumer electronics, such as smartphones, tablets, and laptops, are delicate and susceptible to damage during transportation and handling. Packaging foam provides excellent cushioning and shock absorption properties, ensuring that these electronic devices remain safe and undamaged throughout the supply chain. The segment is anticipated to witness a market share of 28.9%.
Consumer electronics come in various shapes and sizes, requiring customized packaging solutions to provide a secure fit. Packaging foam can be easily molded and fabricated into specific shapes, providing a snug and protective enclosure for electronic devices. The segment is expected to hold a CAGR of 5.7% during the forecast period.
Flexible Foam to take the Lion’s Share
As per FMI’s latest market analysis, flexible foam segment will continue to dominate the global packaging foam market, accounting for over 70% share through 2026. Rising adoption of flexible foam for protecting sensitive products including electronic parts, jewelry and computer components is spurring the sales of flexible foam packaging.
Flexible foam is extremely lightweight and thus helps in reducing emission in transport applications. It provides durable protection for many sensitive products and can also be easily customized. The segment is expected to hold a CAGR of 5.6% during the forecast period.
Liners to take the Lion’s Share
Based on the application, the packaging foam market has been segmented into inserts, corner & edge protectors, anti-static ESD foam, liners and others. Among these applications, liners segment is anticipated to lead the market, accounting for a share of 33.7% in 2022.
Foam liners provide positive sealing for foods, beverages, pharmaceuticals, cosmetics, industrial, and household chemicals. Surging demand for foam liners across multiple industries such as food & beverages, pharmaceutical and cosmetics will continue to boost the growth of packaging foam market during the forecast period. The segment is expected to hold a CAGR of 5.5% during the forecast period.
Continuous Technological Advancements to Boost the Market Growth
China has been at the epicenter of growth since last few decades. The continuous advancement in technology and blooming economy has ushered in a new life into China packaging foam market.
Rise in export trade, increasing production of automotive and flourishing electronic & electrical industry are some of the factors driving the packaging foam market in China.
According to the World Trade Organization (WTO), China was the top exporter of merchandise trade in 2020, accounting for 13% of the global trade. The total merchandise export trade in China reached around USD 2,323 billion in 2020.
Strong presence of leading market players along with increasing penetration of e-commerce platforms is supporting the growth of the market. Some of the world’s e-commerce giants such as Alibaba are based in China.
Increasing spending by consumers on purchasing various products through internet will continue to boost the sales of packaging foam across the country. As per FMI, China will continue to dominate the Asia Pacific packaging market during the forecast period. The country is expected to hold a CAGR of 7.0% over the analysis period.
Expanding Food & Beverage Industry to Boost the Market Growth
According to FMI, India is poised to emerge as the second most lucrative market in Asia Pacific through 2026. Expanding food & beverage industry, rising penetration of online shopping platforms such as Flipkart and Amazon, and increasing disposable income are some of the factors driving the packaging foam market in India.
People are spending huge amounts on purchasing products from e-commerce platforms, with changing lifestyle and growing adoption of smartphones. According to the India Brand Equity Foundation (IBEF), the e-commerce market in India is likely to reach a massive valuation of USD 111.40 billion by 2025.
Various investments are being made to further develop and expand e-commerce sector across the country. For instance, in May 2021 Flipkart strengthened its grocery infrastructure to cater to customer demand and safety across India. In April 2021, the company (Flipkart) announced a commercial alliance with Adani Group to enhance its logistics and data center capabilities.
Spurred by the aforementioned factors, demand for packaging foam in India is set to rise exponentially between 2022 and 2026. The country is expected to hold a CAGR of 8.1% over the analysis period.
Presence of Leading Packaging Giants to Boost the Market Growth
The United States will continue to remain the most lucrative market for packaging foam in North America. Growth in the country is driven by the presence of leading packaging giants, continuous technological advancements, rising focus towards sustainability and increasing consumer spending on daily use products. The country is anticipated to witness a market share of 23.1%.
Rising adaption of foam for flexible packaging is boosting the growth of packaging foam market in the country. According to the Flexible Packaging Association (FPA), the flexible packaging industry had USD 33.6 billion sales in the country during 2019.
Expanding food and electronic industries is supporting the growth of the market across the country. Companies are using packaging foams for protecting various delicate products while shipping them.
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Packaging foam market startup players are adopting various marketing strategies such as new product launches, geographical expansion, merger and acquisitions, partnerships and collaboration to create a larger customer base. For instance,
Key players in the packaging foam market are strongly focusing on profit generation from their existing product portfolios along while exploring potential new applications. The players are emphasizing on increasing their packaging foam production capacities, to cater to the demand from numerous end use industries. Prominent players are also pushing for geographical expansion to decrease the dependency on imported packaging foam.
Recent Developments
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Billion for value and Tons for Volume |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; East Asia & Pacific; South Asia; and Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Poland, Russia, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC Countries, South Africa, Israel. |
| Key Segments Covered | Material Type, Product Type, End Use, Application and Region |
| Key Companies Profiled | Armacell; JSP; Zotefoams Plc; BASF SE; Sealed Air Corporation; Synthos SA; Rogers Corporation; Kaneka Corporation; Arkema; FoamPartner Group |
| Report Coverage | Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
During 2018 to 2022, the market recorded a growth rate of 4.8%.
Armacell, JSP, and BASF SE are key market players.
Continuous advancement in technology and a booming economy contribute to attraction.
This market is valued at USD 6.9 billion in 2023.
This market is estimated to reach USD 12.3 billion by 2033.
1. Executive Summary 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. Polystyrene 5.2. Polyurethane (PU) 5.3. Poly Vinyl Chloride (PVC) 5.4. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 6.1. Flexible Foam 6.2. Rigid Foam 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 7.1. Automobile Industry 7.2. Construction Industry 7.3. Food & Beverages Industry 7.4. Consumer Electronics 7.5. Homecare & Personal Care 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 8.1. Inserts 8.2. Corner & Edge Protectors 8.3. Anti-Static ESD Foam 8.4. Liners 8.5. Other 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, 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 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Armacell 19.2. JSP 19.3. Zotefoams Plc 19.4. BASF SE 19.5. Sealed Air Corporation 19.6. Synthos SA 19.7. Rogers Corporation 19.8. Kaneka Corporation 19.9. Arkema 19.10. FoamPartner Group 20. Assumptions & Acronyms Used 21. Research Methodology
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