In an updated edition of the packaging peanut market report, FMI estimates the industry to reach a valuation of USD 507.7 million in FY 2024. A surging inclination for all-natural packing peanuts, driven by increasing protests against plastic packaging products, is positively impacting the sales of packing peanuts. The market is forecast to generate revenue of USD 656.3 million by 2034, expanding at a CAGR of 2.60%.
Following Trends are Helping Packaging Peanut Manufacturers Maximize their Sales
| Attributes | Key Insights |
|---|---|
| Packaging Peanut Market Share (2024E) | USD 507.7 million |
| Market Valuation (2034F) | USD 656.3 million |
| Value-based CAGR (2024 to 2034) | 2.6% |
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| Leading Material | Expanded Polystyrene |
|---|---|
| Value Share (2024) | 91.30% |
Packaging peanuts or foam peanuts made of expanded polystyrene hold a massive market share of 91.30% in 2024. They are commonly used to protect fragile products while shipping. Continuous growth in the eCommerce sector is projected to deepen the penetration of expanded polystyrene-based packing peanuts. Their extensive application is because Styrofoam is a low-cost solution.
Businesses also use traditional packing peanuts due to their relatively lighter weight than starch-based packing peanuts. The production of Styrofoam packing peanuts is also cheaper than the eco-friendly version. Suppliers typically opt for reduced costs than greener and more expensive alternatives.
Several recycling programs are recycling and color coding to recognize material sources. Green peanuts consist of over 70% recycled materials, which enhances its potential in the global market.
| Leading Application | Void Filling |
|---|---|
| Value Share (2024) | 89.40% |
The packaging peanut is heavily used for void filling. FMI estimates that the void filling segment is projected to acquire an 89.40% share in 2024.
Several initiatives are underway to use a packaging material in the size that appropriately fits the shipping product. However, demand for packaging noodles to fill the packaging void to save the content from any damage while in transit.
Businesses opt for these packaging materials to help absorb any shocks and bumps throughout shipping. Additionally, packing peanuts are so small and easily conform to the corners of a box and odd shapes, thus preventing the product from shifting from its place. Their interlocking mechanism distributes the weight of the product evenly.
Foam pop-corns are also used for void filling as they add minimal weight to the packaging, and keep the shipping costs down.
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 1.40% |
| Spain | 2.50% |
| India | 5.50% |
| China | 4.40% |
| Thailand | 3.90% |
The packaging peanut market in the United States is predicted to register a CAGR of 1.4% over the forecast period. Skyrocketing eCommerce sales in the United States are making the country a hotbed for opportunities for players. This can be attributed to the increasing use of void-fill packaging, such as packing peanuts, by leading eCommerce platforms, to protect products from any damage during transit.
The increasing density of prominent players and surging demand for effective foam packaging solutions are other common market drivers. Progressive initiatives in the United States are propelling the market forward. FunPak, a United States-based company, develops compostable packing peanuts. The company develops eco-friendly, non-toxic, and static-free packing peanut that comes in decorative shapes to infuse the unboxing experience with fun and excitement.
Sales growth of the packaging peanut industry in India is estimated to expand at a CAGR of 5.5% through 2034. Market players are anticipated to find significant scope in the Indian economy as exports of electrical and electronic products are consistently surging.
The robust Indian economy is creating a fertile ground for various industries to thrive, including automotive, pharmaceuticals, furniture & home décor, etc. Rapid expansion in these industries is expected to offer business prospects to Indian packing peanut companies.
Sellers, retailers, traders, and manufacturers of packing peanuts are offering competitive prices to boost their sales among end users.
The China packaging peanut market is forecast to record a CAGR of 4.4% over the next 10 years. Fragile valuables are worth the extra packing peanuts. This factor is supported by the increasing shipping services of household items and industrial items.
Continuously expanding the production line of degradable packing foam peanuts is expected to support the market growth in China. The growing eCommerce sector through the forecast period is projected to raise demand for foam peanuts to ensure safety through the distribution process.
The void-fill packaging solutions are being increasingly used across various industries like automotive, electronics, furniture, consumer goods, and logistics, among others. Therefore, growth in these sectors is projected to fuel demand for packing peanuts over the next 10 years.
The demand for packaging peanuts in Spain is predicted to surge at a CAGR of 2.5% through 2034. The popularity of starch-based packing peanuts or noodles is increasing for its use to fill the void in boxes and packages. This product is extensively used to secure the packed contents.
Increasing demand for consumer goods is spurring the prospects for packing peanut manufacturers. Increasing plastic pollution in the Spanish beaches is posing a risk to marine life. As a result, eco-friendly packing peanuts are expected to be excessively used to package products.
The sales of packaging peanuts in Thailand are surging at a CAGR of 3.9% over the forecast period. Packing peanuts is commonly utilized in industrial settings and some lifestyle and consumer electronics manufacturers.
Thailand too is observing a heightened production of biodegradable packing peanuts in response to protests over the harmful impact of petroleum-based foam packing peanuts.
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Key providers of packing peanuts are developing sustainable and recyclable packaging products to gain traction from eco-conscious brands and consumers. Players are also extending their operations in more countries to meet the growing demand for this packaging material therein.
Industry participants are increasing their resources via mergers, partnerships, collaborations, and acquisitions. Market players are also investing in next-generation machinery to elevate upgrade their manufacturing process.
Key merchants are also allying with distributors and suppliers to strengthen their reach as well as annual sales. The non-stop growth in the eCommerce sector is further fueling the packing peanuts demand. This medium is also facilitating the sales of packaging peanuts on the platform.
Recent Public Announcements Shaping the Packaging Peanut Market
Storopack Hans Reichenecker Gmbh
The company is headquartered in Germany and is a leading provider of protective and flexible packaging solutions. Product portfolio of the company include paper cushioning, air cushions, packaging stations, and foam packaging. These materials find application in food, automotive, construction machinery, pharmaceutical, and eCommerce industries.
Willard Packaging Company
The company based in the United States. It is constantly increasing its selection and value of offering to become a premium provider of shipping supplies and custom packaging design in the Mid-Atlantic Region. The company’s product mix consists of packaging supplies, custom foam, custom boxes, displays, etc.
Puffy Stuff Inc.
Puffy Stuff Inc., based in the United States, offers a greener, safer, and cleaner way to ship products. Puffy Stuff is not an average nut. It is 100% biodegradable, has high density, is static-free, and competitively priced.
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Current projections of packaging peanut market indicate a valuation of USD 507.7 million in 2024
Looking ahead to 2034, the current forecast projects a CAGR of 2.6% for the packaging peanut industry.
FMI predicts the market to reach USD 656.3 million by the year 2034.
Expanded polystyrene segment holds a significant market share during the forecast period.
India is predicted to offer opportunities for investors and stakeholders.
Storopack Hans Reichenecker Gmbh, Willard Packaging Company, and Test Valley Packaging are powerful players in the packing peanut 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 Material 5.1. Expanded Polystyrene 5.1.1. Virgin 5.1.2. Recycled 5.2. Starch-Based Polymers 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 6.1. Cushioning 6.2. Void Filling 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 7.1. Electrical & Electronics 7.2. Automotive & Allied Industries 7.3. Construction & Building 7.4. Pharmaceuticals 7.5. Furniture & Home Décor 7.6. Other Consumer Goods 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Storopack Hans Reichenecker Gmbh 18.2. Willard Packaging Company 18.3. Test Valley Packaging 18.4. Pioneer Packaging 18.5. Puffy Stuff Inc. 18.6. Styro Insulations Mat. Ind. LLC. 18.7. President Container Inc. 18.8. AP Packaging Corp 18.9. Polar Tech Industries 18.10. Johnpac LLC 18.11. Supply One Inc. 18.12. Eco Packaging Solutions 18.13. Nefab Group 18.14. Stream Peak International PTE Ltd. 18.15. Green Light Packaging Ltd 19. Assumptions & Acronyms Used 20. Research Methodology
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Packaging Peanut Market
