Protective packaging powers to $29 billion

The global protective packaging market was worth $22.25 billion in 2014 and is projected to reach $29.30 billion in 2020, according to a new report.

Online shopping, rising income levels, and urbanisation are among the reasons cited for its 4.7 per cent annual growth rate.

Protective Packaging refers to the use of packaging materials which safeguard and shield a product from damage. It can be used as a primary packaging material or a secondary packaging material, depending upon the products' end use application.

Vendors in this industry provide protective packaging solutions through innovations for end use industries such as automotive, electronics and pharmaceuticals.

According to ResearchAndMarkets’ market trends and forecasts report, the Asia-Pacific region led the protective packaging market with a share of 38 per cent in 2014, and is estimated to grow at an annual rate of seven per cent.

The market is highly consolidated, with its top 11 companies constituting only 20 per cent of market share. The other 80 per cent comprises small, niche players across the globe.

Some of the major vendors mentioned in the report are Automated Packaging Systems, Sonoco, Pregis Corporation and Mold-Rite Plastics.