July 16, 2024

Growing Demand From End-Use Industries to Safeguard Metals During International Shipments to Drive the Volatile Corrosion Inhibitors (VCI) Packaging Material Market

The global Volatile Corrosion Inhibitors (VCI) Packaging Material Market is estimated to be valued at US$ 826 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

VCI packaging material includes films, paper, and other materials that emit corrosion inhibiting chemicals known as volatiles to provide corrosion protection for ferrous and non-ferrous metals. The emitted vapors adhere to the surface of the enclosed metal parts, forming a protective molecular layer. The key advantage of VCI packaging material is that it protects metals from corrosion during storage and shipment without having to unpack the material. It is widely used for packaging of vehicles parts, steel components, mechanical parts, and more during international shipments. The need to prevent damage and corrosion of metal goods during long-distance transportation is driving the demand for effective corrosion inhibiting packaging solutions like VCI packaging material.

Market Key Trends:

One of the key trends in the Volatile corrosion inhibitors packaging material market is the growing demand from the automotive industry. Automotive companies extensively use VCI packaging for international shipments of vehicles parts and components to curb corrosion issues during transit. Innovation in VCI film technology to improve protection duration and develop biodegradable variants is another trend. Manufacturers are focusing on expanding the production capacity of VCI packaging through new plant investments to better serve the rising needs of end-use sectors.
Porter’s Analysis:
  • Threat of new entrants: The threat is moderate as the VCI packaging material market requires huge capital investments and R&D efforts to develop new corrosion inhibition technologies. The established players have strong brand recognition and supply chain dominance.
  • Bargaining power of buyers: The bargaining power of buyers is high as VCI packaging materials are undifferentiated and buyers can easily switch between vendors. Price transparency further increases the buying power.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate as major raw materials like paper, plastic films used for VCI packaging have many substitutes available. Suppliers do not have pricing leverage.
  • Threat of new substitutes: The threat is low as VCI packaging materials are highly specialized for corrosion protection and have no close substitutes. Alternatively greased/oiled papers provide limited corrosion resistance.
  • Competitive rivalry: Intense as major players aggressively compete on pricing, product quality, and innovation to gain market share.

Key Takeaways:

The global Volatile Corrosion Inhibitors (VCI) Packaging Material market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing international trade and demand from automotive and machinery manufacturing industries. The automotive industry accounts for over 30% of global VCI packaging material demand.

Regional analysis: Asia Pacific dominated the global market in 2023 with over 40% share and is expected to maintain its lead position during the forecast period. China, India, and Southeast Asian countries will drive the huge market opportunities owing to widespread industrialization and growth in vehicle production.

Key players operating in the Volatile Corrosion Inhibitors (VCI) Packaging Material market are Cortec Corporation, Branopac GmbH, Armor Protective Packaging, Protective Packaging Corporation, Nefab Group, Daubert Industries, Inc., Zerust Excor, and Metpro Group. These key players are focusing on new product development, mergers, and capacity expansions to strengthen their market presence.