Global Packaging Foams Market Is Estimated to Witness High Growth Owing to Rising E-commerce Sales and Increasing End-Use Applications
The global Packaging Foams Market is estimated to be valued at USD 14.90 billion in 2024 and expected to exhibit a CAGR of 5.2% over the forecast period 2024-2031. Demand for protective packaging solutions from various end-use industries such as automotive, consumer goods, food, and beverages is driving the demand for packaging foams.
The growth of the global packaging foams market is driven by the rising demand from various end-use industries. Firstly, the growing e-commerce industry is driving the need for packaging solutions for safe delivery of products. E-commerce sales increased significantly during the pandemic and this growth is expected to continue in the coming years. Packaging foams offer protection from impacts and shocks making them suitable for e-commerce packaging applications. Secondly, packaging foams find wide usage in various industries such as automotive, consumer goods, food and beverages for cushioning and protecting products during transportation and storage. The growth of these industries is increasing the demand for protective packaging solutions. Polyurethane foam is widely used for automotive interior parts packaging owing to its shock absorption and cushioning properties.
Increasing Demand from Food and Beverage Industry
The demand for packaging foams is rapidly growing from the food and beverage industry as packaging foams provide protection to products during transportation and storage. Packaging foams offer advantages like lightweight, insulation, durability and sustainability. The growth in the fast moving consumer goods sector coupled with rising disposable income is fueling the demand for packaging solutions from the food and beverage industry which acts as a major growth driver for the packaging foams market.
Growth of E-commerce Industry
The proliferation of e-commerce has been beneficial for the growth of the global packaging foam market. Online retailing requires efficient packaging solutions to prevent damage during shipping. Packaging foams have emerged as the ideal packaging material for e-commerce due to their lightweight, insulation and protection properties. They minimize the risk of damage to products during shipping. The growth in number of online shoppers and increasing orders through e-commerce portals is positively impacting the demand for packaging foams.
Stringent Environmental Regulations
Many governments across the globe have implemented stringent regulations regarding the usage of plastics due to environmental concerns. Packaging foams widely use petroleum-based polymers in their production which has raised concerns about plastic waste generation and landfill issues. Regulations such as plastic ban and tax on plastic usage can hamper the growth of packaging foams market. Companies need to focus on developing sustainable and eco-friendly foam solutions to comply with evolving environmental norms.
Volatility in Raw Material Prices
The key raw materials used in production of packaging foams like PET, polyurethane and polystyrene are petroleum-based and derive their prices from crude oil. Fluctuations in crude oil prices leads to uncertainty in raw material costs which negatively impacts the profit margins of packaging foam manufacturers. High dependency on imported raw materials also impacts the demand-supply scenario. This volatility in raw material prices poses a restraint to the stable growth of global packaging foams market.
Growth Opportunities in Emerging Markets
Emerging economies like India, China, Brazil, Mexico etc. are expected to offer promising growth opportunities for packaging foams market owing to the growing industrial and consumer sectors. Rising disposable incomes, growing middle class population and changing lifestyles are fueling the demand for packaged food and consumer goods in emerging nations. This provides opportunities for multinational foam manufacturers to expand their customer base in high potential emerging markets.
Innovation in Sustainable Foam Solutions
With rising environmental concerns, manufacturers are focusing on developing innovative and sustainable packaging foam solutions made from biodegradable, recycled and renewable materials. Opportunities lie in offering solutions like foam cushions made from grain fibers, molded fiber made from recycled paper etc. Companies investing in R&D of green foam technologies will have a competitive edge in the growing packaging foam market space.
Link - https://www.coherentmarketinsights.com/market-insight/packaging-foams-market-5178
Key Developments
- In February 2024, Pregis, a global leader in protective packaging solutions, introduced an evolution in foam technology supported by certified-circular polyethylene resins
- In April 2022, Sealed Air, a global leader in protective packaging solutions, announced the launch of its digital packaging brand, prismiq. This new brand offers a portfolio of solutions for design services, digital printing, and smart packaging, strengthening Sealed Air's overall packaging segment
- In August 2022, Zotefoams PLC, a global leader in cellular materials technology, launched Ecozote, a range of closed-cell, crosslinked foams specifically designed for product sustainability
- In 2021, Stora Enso, a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper, launched a portfolio of bio-based packaging foams called Fibrease and Papira
Key Players
Armacell, Atlas Molded Products, Borealis AG, Drew Foam, Foam Craft, Inc., TotalEnergies, Huntington Solutions, Recticel Engineered Foams Belgium BV, Sealed Air, Williams Foam, and Zotefoams PLC
