Protective packaging market expected to rise to $22.2 billion by 2014

-- Packaging Digest, 6/23/2010 11:04:36 AM

According to a new report by Bharatbook, "World Protective Packaging to 2014," world demand for protective packaging is projected to increase 7.8 percent per year to $22.2 billion in 2014. This represents a notable acceleration from the pace of the 2004-2009 period. Advances will be stimulated by an upswing in manufacturing activity and the continued proliferation of Internet shopping in both developed and developing regions.

These factors will necessitate heightened requirements for cost-effective packaging used in the protection of goods from shock, vibration, abrasion and other damaging effects of shipping and handling. Value gains will also be helped by the growing presence of environmentally friendly products -- such as those made from recycled or biodegradable materials -- which tend to be more costly than their conventional counterparts. However, such gains will stem from a low base. Also, the importance of price in the purchasing decisions of most packaging users will moderate demand for green products to some extent.

Good opportunities in China
While the US is by far the world’s largest user of protective packaging, the most rapid increases will occur in developing regions. Asia, Central and South America, and the Africa/Mideast region will all outpace the global average.

Population growth, greater urbanization, industrialization trends and increases in international trade activity will support advances in these regions’ generally underdeveloped packaging sectors. Rising consumer income levels and expanding middle classes will also generate robust internal demand for packaged consumer goods, boosting protective packaging requirements.

Some of the best growth opportunities will occur in Asia, which is expected to see double-digit annual growth through the forecast period. In particular, China alone is expected to account for one-fourth of global value gains in protective packaging demand between 2009 and 2014.

Growth in manufacturing output to boost demand
To a large degree, demand for protective packaging will be fueled by an acceleration in production output. In particular, healthy growth in major manufacturing sectors, such as motor vehicle production, electronic product shipments, and food and beverage output, will create concomitant needs for protective packaging.

However, great disparity in usage intensity will remain among the different regions, with the strongest growth potential existing in developing regions.

Overall, foamed plastic protective packaging will remain the largest product type by a wide margin. Demand will be aided by foamed plastic’s light weight and excellent cushioning capabilities compared to paperboard and other materials. However, the growing emphasis on packaging sustainability -- especially in developed countries with more established environmental regulations -- will constrain potential for conventional foamed plastic protective packaging to some extent.

Protective mailers and other protective packaging products such as air pillows and bubble packaging will continue to experience the fastest gains. Among factors driving growth will be performance and environmental advantages, as well as a continued robust outlook for electronic commerce, which will fuel the need for products offering enhanced resistance to impact, abrasion and temperature changes during movement of goods through the supply chain.

SOURCE: Bharat Book Bureau

.

Talkback

We would love your feedback!

Featured Company

Teledyne Dalsa

Teledyne DALSA is a world leader in the design, manufacture and deployment of digital imaging components for the machine vision market. Teledyne DALSA image sensors, cameras, smart cameras, frame grabbers, software, and vision solutions are used... more
SATO

SATO is a pioneer and leading global provider of integrated Automatic Identification and Data Collection solutions that leverage barcode and RFID technologies. SATO manufactures innovative, reliable auto-identification systems and offers complete... more
ECONOCORP, INC.

ECONOCORP, INC. is a leading worldwide manufacturer of ECONOSEAL cartoning, trayforming, and casepacking caters to moderate volume users and features simplicity in design, operation, and maintenance. ECONOSEALS handle paperboard and corrugated... more
QuickLabel Systems

QuickLabel Systems makes and sells digital color label printers and barcode label printers for use by manufacturers of foods, beverages, pharmaceuticals, chemicals, and more... more
Bosch Packaging Technology

Bosch Packaging Technology, Inc. is one of the world's leading suppliers of packaging machinery. Our diverse portfolio of packaging machines, including the well known Doboy brand, includes robotic automation with pick & place robots (delta robots)... more
Hitachi America, Ltd.

Hitachi America Ltd., Industrial Components & Equipment Division, supplies a broad range of industrial products and services. The division supplies sophisticated industrial equipment, components and services for application in pharmaceutical... more
Markem-Imaje

Markem-Imaje is a trusted world manufacturer of product identification and traceability solutions, offering a full line of reliable and innovative inkjet, thermal transfer, laser, print and apply label systems and RFID-based systems. Markem-Imaje... more
Videojet

Videojet is a world-leading manufacturer of marking systems, fluids, and accessories for the product identification industry. Videojet printers apply high-quality alphanumeric codes, logos and graphics to nearly any surface at virtually any line... more
Fogg Filler

Fogg is a world leader in the design and manufacture of rotary filling, rinsing, capping and enclosure systems for free flowing and viscous liquids. Fogg serves a growing number of dairy, spirits, water, food and beverage, pharmaceutical and... more
Markem-Imaje is a trusted world manufacturer of product identification and traceability solutions, offering a full line of reliable and innovative inkjet, thermal transfer, laser, print and apply label systems and RFID-based systems. Markem-Imaje... more
Microscan Systems, Inc.

Microscan develops barcode and machine vision products that help manufacturers reduce costs, increase yields, improve product quality, and comply with regulations. Designed for precision applications, Microscan's line of 1D and 2D barcode readers... more
National Bulk Equipment, Inc.

National Bulk Equipment dry material handling systems for packaging and processing operations, include: bulk bag fillers, bulk bag unloaders, bulk container dumpers, bulk container fillers, and bulk mixing, weighing, and conveyance systems. NBE... more
Plastic Ingenuity

Plastic Ingenuity is the national leader in providing the best solutions in thermoformed packaging, tooling and extrusion services. A member of the Thermoforming Institute, and a multi-plant manufacturing operation with facilities across North... more
Thermo Scientific

Thermo Scientific Product Inspection and Processing equipment protects your brands by ensuring the quality, accuracy, efficiency and safety of your products. With more than 50 years of making sure little things don't turn into big problems, we know... more
Domino North America

DOMINO is one of the world's largest manufacturers of digital printing solutions and is publicly traded on the London Stock Exchange. Our products are used for date coding, product marking, serialization and variable printing. Among our customers... more