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Molded Pulp Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The molded pulp packaging market was valued at USD 4,000. 0 million in 2021, and it is expected to reach a value of USD 5,661. 23 million by 2027, registering a CAGR of 5. 98% during the forecast period (2022-2027).
New York, June 03, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Molded Pulp Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06283208/?utm_source=GNW
Molded pulp packaging is mainly adopted for its efficient and better recycling systems and creates an increasing demand for customized packaging sizes.
Key Highlights
The molded pulp packaging market is expected to witness high growth due to the rise in the middle-class population, increase in the number of orders from the food packaging, electronics, and healthcare sectors, and preference for convenient and sustainable packaging in the market.
Consumers’ preference for recyclable and eco-friendly materials drives the market. The growing importance of sustainability has helped make pulp packaging an attractive option. Not only can it be made from recycled materials, but it can also be easily recycled again after its useful life cycle. It is manufactured with 100% recycled materials.
Moreover, the demand in the packaging industry to avoid the use of Styrofoam, plastics, and other petroleum-based packaging has contributed to the upward surge of pulp packaging. Also, in a recent study conducted by HC Companies, 88% of respondents demanded companies provide more sustainable product offerings. Such demands may benefit the application of molded pulp packaging in many businesses and industries across the world.
Furthermore, the increased egg consumption and production in various economies worldwide drove the demand for the market studied. In fact, according to PrintWeek, the global consumption of eggs is expected to be nearly 10.3 kg/person by the end of 2030. The need to have a sturdy packaging tray that can hold multiple eggs will result in the growth of the global molded pulp packaging market.
The stringent government standards regulating the emission of greenhouse gases are expected to hinder the market’s growth. According to the statistics from the US government, the manufacturers of pulp and paper are the fourth-largest industrial emitters of greenhouse gases.
The COVID-19 pandemic negatively impacted the market in the short term, owing to the dependence on the production of final products across important manufacturing hubs. The result of the production halt has led to a pile of orders, which is likely to increase the cost of the equipment.
Key Market Trends
Consumption of Eggs Accounts for a Significant Market Share of Trays
Due to the expected increase in the consumption of eggs and fruits in the near future, along with their features, such as low weight and recyclability, the market for trays is expected to grow. Trays are witnessing a high demand for egg packaging.
Egg trays are protective packaging and are made using recycled newspapers. Molded fiber trays offer good air permeability and hygroscopic ability, which play an important role in egg packaging and storage.
Further, these trays have different product dimensions with different holding capacities (number of eggs per tray). For instance, Teo Seng Capital Berhad provides egg trays with different dimensions, such as Multi-K Plus with a dimension of 296 mm x 296 mm(+/- 3 mm) for large eggs and its compact product with a dimension of 273 mm x 273 mm (+/- 3 mm), especially for smaller eggs.
Also, key vendors offering egg packaging solutions are expanding through organic methods, such as launching new products or expanding their manufacturing capacities. For instance, Huhtamaki developed new egg trays for 30 eggs at its Brazilian manufacturing plant.
In the United States, according to the US Department of Agriculture, the per capita consumption of eggs is increasing on an annual basis. This indicates the significant demand for molded pulp trays.
However, the price of molded fibers is higher when compared to plastics. In addition, plastic trays are reusable and washable. This is one of the main factors owing to which plastic is preferred over-molded fiber in egg packaging, which is challenging the market growth.
Asia Pacific to Witness High Market Growth Rate
The Asia Pacific is projected to be the fastest-growing region in the molded pulp packaging market. This is attributed to the presence of an increasing number of molded pulp packaging manufacturing units in countries, such as China, India, Australia, Indonesia, and Bangladesh, in the Asia Pacific.
China, being the major importer of pulp from other countries, is witnessing a significant growth of demand for molded pulp packaged products for end-users, such as food packaging, food service, FMCG, healthcare, and electronics industries and is further expected to drive the molded pulp packaging market.
The growing urban population, development of the e-commerce package industry, and improving population awareness about environmentally friendly packaging are expected to propel China’s paper packaging market.
In addition, according to the estimates from India Brand Equity Foundation (IBEF), the e-commerce market in India is expected to reach a value of USD 200 billion by 2026, increasing from USD 38.5 billion in 2017. Statistics indicate the rise in demand for electronic appliances, which drives the need for trays and clamshells made using molded pulp for electronics packing.
Competitive Landscape
The molded pulp packaging market is fragmented in nature, due to the presence of domestic and global players. The companies mainly offer customized solutions as per customers’ requirements. Further, major players are using various strategies, such as product launches, agreements, and acquisitions, to increase their footprints in the market. The key players in the market are Maspack Ltd, EnviroPAK Corporation, etc. Recent developments in the market include:
January 2022 - Huhtamaki announced that it acquired full ownership of its Polish joint venture company, Huhtamaki Smith Anderson spzoo, from Smith Anderson Group Ltd. The company manufactures and sells foodservice paper bags in Eastern Europe at Huhtamaki’s facility in Czeladz, Poland.
October 2021 - UFP Technologies Inc. announced its acquisition of Contech Medical Inc., a global leader in the design, manufacture, and development of class III medical device packaging, mainly for catheters and guidewires. This helped the company expanding its medical business with Contech Medical Inc.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06283208/?utm_source=GNW
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