Packaging Foam Market size is forecast to reach US$ 28.9 billion by 2026, after growing at a CAGR of 6.2% during 2021-2026. The Foam is an object that provides cushioning support to protect breakable items during shipment. Polyethylene foam is an engineering plastic material mostly used for the packaging of fragile goods due to its excellent vibration resistance and insulation properties. The increasing globalization activities along with growing opportunities in the manufacturing, and the industrial sector are driving the market for packaging foam. The increasing demand for lightweight products in the transport sector is increasing demand for polypropylene foam. The growing eCommerce sector along with growing shipment activities globally are driving the market for packaging foam during the forecast period. The increasing effective packaging in various industries such as electronics, consumer goods, and pharmaceutical are boosting the market for packaging foam.
COVID-19 Impact
The COVID-19 pandemic has impacted different industries; one of the few industries that were largely hit to some extent was the packaging industry. The sales of packaging foam have dropped, as all the manufacturing sectors were closed due to complete lockdown and supply of only basic commodities were permitted which has completely dropped the market share as packaging foam are widely used in different industries like aerospace, food & beverages, transportation, personal care and so on. As the Lockdown has been lifted, the manufacturing sector is working to gain profit with innovative technologies for the upliftment of the Packaging foam Market in the forecasted period.
Report Coverage
The report: “Packaging Foam Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Packaging Foam industry.
Key Takeaways
- The Asia Pacific is expected to register a CAGR of 7.4% during the forecast period (2021-2026) due to the rise of the e-commerce industry of Asian countries such as China, India, Japan, and South Korea is driving the market demand for Packaging Foam.
- Increasing demand for polypropylene is estimated to grow market demand in the forecast period. Superior barrier properties, high tensile strength, better surface finish, and low cost allows polypropylene to be a unique product for numerous packaging applications.
- Manufacturers are launching innovative pack formats, sizes, and functionality in response to the consumer demand for convenience, Asia-Pacific is both an exciting and challenging region for packaging manufacturers.
Packaging Foam Market Segment Analysis - By Polymer Type
The polyurethane foam segment accounted for 26% in 2020 and is estimated to grow at a significant CAGR during the forecast period 2021-2026. The factor responsible for its growth is growing end-use industries such as personal care, electronics, automotive, and building & construction, in countries like India, China, Indonesia, Japan, and others. The unique physical properties of polyurethane foams are driving the market growth. The usage of polystyrene foam has developed significantly in the Packaging Foam Market. They are widely used in building and construction activities. Polystyrene foam acts as a good thermal insulator and plays an important role in handling issues relating to insulation in building construction such as insulating concrete foam which is acting as drivers for the segment during 2020-2026.
Packaging Foam Market Segment Analysis – By Technology
The extrusion technology segment will grow at a significant CAGR of 6.9% between 2021-2026. The technology is used in flexible packaging products like pouches, bags, and films are produced with the help of extrusion technology. The growing demand for flexible products due to high durability and lower cost is expected to boost the segment in the projected period. Injection molding technology will show an upward trend during the forecast period. The technology is particularly used to produce rigid products. The increased demand in the manufacturing sector and industrial output has led the opportunities for foam technology in the Packaging Foam Market.
Packaging Foam Market Segment Analysis – By Product
The Flexible Foam segment accounts for the highest share of 60% in 2020 and is expected to grow at a significant CAGR during the forecast period due to its versatility, lightweight, cost-efficient, and high durability properties. The growing e-commerce industry is fueling foam packaging demand for the past decade as it is widely used for packaging electronics components, personal care products, and sensitive products like glass products, computer parts, and others. The increasing digitalization helping in the growth of the e-commerce market which is likely to boost the packaging foam demand between 2021-2026.
Packaging Foam Market Segment Analysis – By Application
The antistatic electrostatic discharge (ESD) segment is accounted for a significant share in 2020 and estimated to grow at a moderate growth rate during the forecast period. Excellent vibration dampening, and cushioning are some of the key factors driving the market growth. Furthermore, the ability of ESD to cut into foam trays, planks, pads, blocks, or any shapes that enhances the demand for antistatic ESD foam. Antistatic ESD packaging is mostly used in electrical and electronic components. The antistatic ESD segment is widely used as compared to other application segments like Inserts, Corner & Edges, Linkers, others. The growing usage of antistatic ESD foam types among packaging industries is also supporting the growth of the Packaging Foam Market.
Packaging Foam Market Segment Analysis – By End-use Industry
The Packaging Industry holds the largest share in 2020 and is expected to grow with a CAGR of 6.5% during the forecast period owing to their excellent properties like shock resistance, corrosion resistance, anti-static, and mechanical shock absorption. The construction industry will also show an increasing trend during the forecast period due to huge investment in infrastructure development, residential and non-residential projects in major countries of Asia Pacific like India, China, Bangladesh, and others. Furthermore, the demand for protective packaging in the electric & electronic and medical & Pharmaceutical sectors across the globe is equally helping in the growth of the Packaging Foam Market.
Packaging Foam Market Segment Analysis - By Geography
The Asia Pacific region holds the largest share of 39% in 2020 and is expected to grow at a rapid pace during the forecast period. The rapid growth in population and the growing packaging industry is one of the major factors driving the regional market. Abundant raw material sources, increasing investments in infrastructure in China, India, and Brazil have also boosted the market growth. According to Invest India, The Construction Industry in India is expected to reach USD 1.4 trillion by 2025 and the Real Estate Industry in India is expected to reach USD1 Trillion by 2030 and contributes to 13% of GDP.
Packaging Foam Market Drivers:
Increasing growth in Consumer Electronics Manufacturing
The Electric and Electronic sector is one of the key end-use of packaging foam. ESD foam packaging is an extensively used electronic sector in the storage and shipping of electronics and semiconductor components to prevent them from getting damaged. The rise in demand for semiconductors is acting as a driver for growth in the Packaging Foam Market. The increasing consumption of wafer foam separators is a key factor helping in the growth of the Packaging Foam Market. According to invest India, the electronics market valued at USD118 Billion in 2019-20 and is expected to reach USD 400 billion by 2025. Thus the electronics packaging market will grow significantly across the globe in the coming years.
Flourishing E-commerce Industry
Rising internet usage and growing access to the internet in developing countries across the globe have created huge potential market opportunities for packaging foam. According to CBRE, global eCommerce sales have been increased by 140% in the past five years and China and the USA are the biggest eCommerce market across the globe, accounts for 57% of the total market sales over the internet. According to data presented by Finaria, the number of eCommerce users has been increased by 9.5% every year and hit over 3.4 billion in 2020. Amazon and AliExpress are the highest sellers and covers 75% of the global e-market across the globe. These are the driving factors that are helping in the growth of the Packaging Foam Market during the forecast period.
Packaging Foam Market Challenges:
Growing Concern on Environmental Protection
Packaging foam is one of the major contributors for harming to wildlife, waterways, and other natural resources. Its lightweight feature is a growing concern as it does not readily biodegrade. The growth of the Packaging Foam Market is also a growing concern of the environmental protection regarding the use of Polyurethane and Polystyrene in making foam due to the high impact on the environment. It is affecting harshly to wildlife, plants, and human beings by increasing health issues. These concerns have led the polyurethane foam to shrink continuously for sustainable development of business.
Packaging Foam Market Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Packaging Foam Market. Major players in the Packaging Foam Market include:
- Armacell
- JSP
- Zotefoams Plc.
- BASF SE
- Sealed Air Corporation
- Synthos SA
- Rogers Corporation
- Kaneka Corporation
- Arkema
- Foampartner Group
Acquisitions/Technology Launches
- In September 2020, the Storopack group introduced new sustainable and eco-friendly FOAMplus 5504RC packaging foam, designed to meet rigorous cushioning requirements
- In August 2020, ExxonMobil has introduced a new foamable Achieve Advanced PP6302E1, affordable and easily applicable for high volume and also providing solutions to food & beverages, industrial, building product, and automotive parts. The high melt strength improves product stiffness by 30%.
Relevant Reports
U.S. Medical Foam Market – Forecast (2021 - 2026)
Report Code: CMR 1299
Expanded Polypropylene (EPP) Foam Market – Forecast (2021 - 2026)
Report Code: CMR 0672
Protective Packaging Market – Forecast (2021 - 2026)
Report Code: CMR 0087
North America Flexible Vacuum Packaging Market – Forecast (2021 - 2026)
Report Code: CMR 1285
For more Chemicals and Materials related reports, please click here
