With growing usage across industries like manufacturing, e-commerce and logistics, the overall demand for paper bubble wrap is projected to grow at a CAGR of five per cent between 2022 and 2032, topping a value of US$1.1 billion by 2032, according to the latest report from Future Market Insights (FMI).
FMI’s latest analysis stated that the global paper bubble wrap market size was valued at around US$600 million in 2021, and it is expected to reach US$629 million in 2022.
In total, the bubble wrap market is estimated to hold 18 per cent of the global packaging market worth US$33 billion in 2022. According to PMI analysis, the unbleached kraft paper bubble wrap market revenue totalled US$600 million in 2021.
The report said that demand for paper bubble wrap will accelerate with the top five providers holding 5-10 per cent share of the global market in 2022.
Key trends driving paper bubble wrap demand
The paper bubble wrap demand is underpinned by the strong growth of the logistics industry. The analysis said these wraps are increasingly being used in transportation and logistics packaging, as these types of products need to be more secure to prevent damage.
In addition, the growing demand for paper bubble wrap for palletising in the logistics industry will further accelerate the industry’s growth.
The increasing use of unbleached paper bubble wrap was also found to be contributing towards generating significant revenues in the global paper bubble wrap market.
Further, it is a new development used as an alternative to plastic packaging solutions across packaging industry.
The report said it has enabled manufacturers to protect their fragile products, while complying with the government regulations. Hence, leading manufacturers are continuously doing R&D on the product to make it’s a multi-tasking product for packaging.
Competitive landscape
Since there are so many local and regional competitors, the worldwide paper bubble wrap market is extremely fragmented and competitive in nature. The report said that key bubble wrap manufacturers use a variety of marketing techniques, including mergers and acquisitions, expansions, collaborations and partnerships.
The analysis stated that leading organisations also use new product creation as a strategic way to expand their market presence among customers.
In May 2022, Protégé Global won the 2022 Packaging Innovation Showcase Award for the most innovative product. According to Protégé Global, the UK is a gamechanger to lower their carbon footprint, and they were the only manufacturer of paper bubble wrap in the UK.
In August 2021, Hexcel Pack announced a new pallet wrap, which is an eco-friendly, paper-based protective cushioning solution to replace bubble packaging and other plastic or foam base material. PalletWrap was developed with high-tension Powerstretch technology.
Companies to attract the most attention
Over the years, rising environmental concerns and implementation of stringent regulations have created lucrative opportunities for eco-friendly packaging manufacturers.
In order to capitalise and take maximum benefits of these opportunities, players like DS Smith, Sealed Air Corporation and Protega Global were found to be using various tactics, including launching paper bubble wrap products, and offering customised eco-friendly packaging solutions.
Since the establishment of DS Smith in 1940, the company has emerged as a global leader in packaging solutions, especially eco-friendly ones. It is continuously striving to develop eco-friendly packaging materials to meet end-users demand, as well as to comply with government regulations.
For instance, in 2021, DS Smith explores seaweed as an ideal alternative packaging material to conventional wood and paper material.
The company has been constantly working for the last few years with a number of biotech companies to investigate how seaweed and other alternative fibers could be used as a raw material in products such as paper wraps, cartons and cardboard trays.
In a recent survey commissioned by DS Smith, 41 per cent of consumers want packaging made from alternative renewable sources. This is prompting the company to shift their focus towards packaging products like paper bubble wrap.
Similarly, Sealed Air Corporation is taking the packaging industry by storm, with the company putting various efforts to advance in sustainable packaging.
For instance, in 2022, Sealed Air announced the launch of Bubble Wrap brand paper bubble mailer, a fiber-based padded mailer that can be recycled in kerbside bins.
The Bubble Brand paper bubble mailer offer various advantages including better durability, smaller and lighter features, and kerbside recyclability.
Sealed Air Corporation recorded net sales of US$1.4 billion as per the company’s financial results for Q1 2022.
Another company highlighted that is attracting a lot of attention in the paper bubble wrap industry is Protega Global. The company has been operating as a family business since 1985, selling packaging materials with an emphasis on supplying eco-friendly packaging.
The company recently launched Hexcel Wrap, an eco-friendly packaging solution to meet end user demand. Furthermore, in 2022, Protega announced large investments in new facilities in the U.K.
These insights are based on the report Paper Bubble Wrap Market by Future Market Insights.
