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Packaging Foams Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The global market for packaging foams valued at more than USD 10 billion and is expected to grow at a CAGR of around 5% during the forecast period. Increasing demand from the Industrial packaging sector is driving the market of packaging foams globally.
New York, June 01, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Packaging Foams Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06249281/?utm_source=GNW
Due to COVID-19, there was a slowdown in the Industrial Packaging sector in 2020 due to certain rules and regulations being imposed by countries. However, the industry witnessed a recovery in 2021 thus rebouncing the demand for the market studied.
Key Highlights
Over a short time, increasing demand from the industrial packaging service segment is expected to drive the market.
On the flip side, the availability of close substitutes is hindering the market.
The rapid growth of the smart electronic industry is projected to act as an opportunity for the market in the future.
Asia-Pacific is expected to dominate the global packaging foams market and is also forecasted to be the fastest-growing market over the forecast period owing to the increasing consumption from countries such as China, and India.
Key Market Trends
Increasing demand from the Industrial Packaging Sector
Packaging foam is commonly used as a cushioning material for boxes, and this packaging solution is known for its versatility and its ability to be customized.
Foams are used in a wide variety of packaging applications where optimum protection and durability are overriding considerations.
There are many types of packing foam that are used in the shipping and packaging industries, and these include polystyrene, polyurethane, polyolefin like polyethylene, cross-linked polyethylene, expanded polyethylene (EPE), expanded polypropylene (EPP), etc.
Rise in E-commerce: The demand for packaging foam has witnessed a significant increase demand in the past few years. The demand is seen increasing from online shopping for products. Foam wrap has been used an alternative to bubble wrap for wrapping fragile products. It is thin, light, and easy to work with making foam wrap appealing.
From January to September 2021, U.S. retail e-commerce sales amounted to almost USD 652 billion. Sales revenue from April to June of in the same year was neared about USD 222 billion. This quarterly sale was higher than the quarterly results of 2020.
The European e-commerce industry was expected to be worth EUR 717 billion at the end of 2020, which is an increase of 12.7% as compared to the situation last year. The major contribution in the region comes from Western Europe which accounts for 70% of the total e-commerce value.
Thus, the growth in e-commerce, has led to the exponential growth of the packaging sector, with the rising awareness and use of green packaging, therefore expected to have a potentially positive impact on the packaging foam market in the coming years.
Asia-Pacific Region to Dominate the Market
Asia-Pacific region dominated the global market share with around 40% priamrily due to the growing demand for packaging in logistics, the growing aerospace manufacturing industry, and other manufacturing operations.
China is one of the major contributors to the packaging foams market globally, especially in Asia-Pacific. The growing food and beverages, automotive, electronics, personal care, and pharmaceutical industry are expected to boost the growth of the market.
China has one of the largest food industries in the world. The country is expected to witness a consistent growth during the forecast period, due to the rise of customized packaging in the food segment, like microwave food, snack foods, and frozen foods, along with increasing exports. The use of packaging foams is expected to increase in the future. ?
The South Korean e-commerce market stands at over USD 92 billion per annum. A wave of building and investment has been drawing significant interest and capital from international investors, including GIC, APG, Angelo Gordon, Warburg Pincus, and Blackstone. South Korea is also the 4th largest third-party logistics (3PL) market in Asia-Pacific and is growing at an annual rate of nearly 8%, faster than Japan, Australia, and Singapore.
The biggest player in the South Korean eCommerce Market is coupang.co. The store had a revenue of USD 16.6 billion in 2021. It is followed by ssg.com with USD 1.5 billion revenue and yes24.com with USD 541 million revenue. Altogether, the top three stores account for 20% of online revenue in South Korea. Hence, the South Korean logistics market is expected to continue to create opportunities for packaging foams from dunnage manufacturers.
Hence, such rapidly growing packaging industry in Asia-Pacific region, the demand for packaging foams is also expected to rapidly increase over the forecast period.
Competitive Landscape
The global packaging foams market is partially fragmented in nature. The major companies include (not in any particular order) Borealis AG, Sealed AIR, Armacell, Recticel NV/SA among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06249281/?utm_source=GNW
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