MOSCOW (MRC) -- The global flexible protective packaging market is expected to grow at a CAGR of over 6% from 2016 to 2020, according to Technavio.
By product type, this market is segmented into air pillow, bubble wrap, and other types of flexible protective packaging products. One of the most important drivers of this market is that it is suitable for goods with unusual shapes. Large objects, fragile porcelain products, and any other objects that cannot be packed in regularly shaped containers can be packed in flexible protective packaging products like expandable polystyrene beads. Other important drivers of this market are the increased use of these products in the e-commerce industry and their applications in product protection during long transits.
The top three revenue generating geographical segments in the global flexible protective packaging market are:
"The European flexible protective packaging segment occupies the largest share of the global market, being valued at USD 1.65 billion in 2015. This number is expected to grow during the forecast period with a rising demand from consumer services and personal care sector. The healthy growth in the manufacturing of durable goods such as appliances, motor vehicle parts, and industrial machinery and others is creating additional demand, which is driving the market forward," says Sharan Raj, one of the lead research analysts at Technavio for packaging research.
Online retail has the highest requirements for flexible protective packaging products. With an increasing variety of products being shipped, there is an increasing demand for new innovative varieties of products from the flexible protective packaging industry. The UK, France and Germany together account for over 60% of the European online retail market, making them the largest contributors to the flexible protective packaging market.
North America: increased preference for packaged food driving the market - Changing consumer needs and an increased demand for sustainable packaging materials boost the market growth in the region. Changing lifestyles of people is leading to increased adoption of fast and convenience foods in this region. The strict regulations in the region to reduce packaging waste is directly creating an increased demand for flexible protective packaging products. High disposable income among consumers in the region will ensure continued market growth. Retail ecommerce, which is expected to increase by 14.4% in 2016, will drive the demand for flexible protective packaging in the region. The air pillows segment is forecast to grow significantly due to constant increase in Internet shopping and end-user preference for the product.
APAC: fastest growing flexible protective packaging market segment -"APAC is the market with the highest potential for flexible protective packaging and forecast to post the highest growth with a CAGR of almost 9% through 2020. Demographic trends such as population growth and rapid urbanization, economic factors such as industrialization, growth in the manufacturing sector, and increase in international trade will be the major market drivers," says Sharan.
Southeast Asia is on its way to become one of the world's fastest-growing markets for e-commerce. Air pillows are most commonly used in e-commerce packaging and are projected to be the fastest-growing product segment in this region. In response to the growing market in APAC, vendors are undertaking expansion projects in the region. For instance, Storopack, a leading provider of flexible protective packaging products, has established a new facility in Pune, India, to establish an early foothold in the developing market space.
The top vendors in the global flexible protective packaging market highlighted in the report are DynaCorp, Pregis Corporation, Sealed Air, Smurfit Kappa, Storopack.