Industrial packaging products such as pallets, dunnage, cushioning, and shrink films are used for securing, protecting, and transporting industrial and commercial goods. These packaging solutions help organize multiple items, prevent damage during transit through multiple supply chain channels, and simplify material handling across various industries including food and beverages, automotive, electronics, chemicals, pharmaceuticals, and more. Industrial packaging ensures product and supply chain safety through reliable containment and unitization.
The global industrial packaging market is estimated to be valued at US$ 68,677.9 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the industrial packaging market is the rising demand from the e-commerce industry. As e-commerce sales continue to grow globally, there is increasing demand for reliable and efficient industrial packaging solutions that can protect goods during shipping and return processes. Industrial packaging products such as corrugated boxes, protective packaging, cushioning, and palletizing systems play a vital role in the fulfillment and transportation of online orders. Their ability to securely transport single as well as bulk shipments while minimizing damage has fueled their usage across e-commerce supply chains. This rising dependence of the e-commerce sector on secure and sustainable industrial packaging will remain a major driver of market growth over the forecast period.
- Threat of new entrants: The threat of new entrants in the industrial packaging market is low due to significant capital requirements and established brand recognition of existing players.
- Bargaining power of buyers: The bargaining power of buyers in the industrial packaging market is high. Buyers have low switching costs and a variety of packaging options from various manufacturers.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate. There are numerous suppliers in the market that can offer packaging raw materials.
- Threat of new substitutes: The threat of substitutes is moderate as alternative packaging materials still cannot match all requirements needed for the industrial sector.
- Competitive rivalry: Competition in the industrial packaging market is high. Players compete on pricing, product offerings, quality, and packaging innovations.
The global Industrial Packaging Market is expected to witness high growth. The global industrial packaging market is estimated to be valued at US$ 68,677.9 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.
Regional analysis: The Asia Pacific region dominates the global industrial packaging market and is expected to grow at the fastest rate during the forecast period. This growth can be attributed to rapid industrialization, growth of manufacturing sector, growth in e-commerce, and rising number of exports and imports in the region. Countries such as China, India, Japan, and South Korea are major contributors to the regional market growth.
Key players: Key players operating in the Industrial Packaging market are Smurfit Kappa Group, Cascades Inc., Mauser Group B.V., Grief Inc., International Paper, Nefab Group, Schutz, Sonoco, AmeriGlobe, and B.A.G. Corp. Smurfit Kappa Group and International Paper are the market leaders and focus on strengthening their product portfolio and expanding footprint in emerging markets through acquisitions and partnerships.