Factors such as rising income levels of population, improving middle class, urbanization, and others are enhancing the affordability of using protective packaging in developing regions.
Also, online shopping, which is growing fast compared to conventional retail shopping, is also driving the market. However, increases in raw material costs represent a restraint to the growing market.
These are among the key factors explored in ResearchAndMarkets’ “Global Protective Packaging Market—By Regions and Vendors—Market Trends and Forecasts (2014-2020).”
Protective packaging refers to the use of various packaging materials to safeguard and shield the core product from damages. Protective packaging can be used either as a primary packaging material or a secondary packaging material depending upon the products' end use application, according to ResearchAndMarkets.
The report indicates that this market is highly consolidated with top 11 companies constituting only 20% of the market share while 80% of the market is by small and niche players across the globe.
The global protective packaging market was worth $22.25 billion in 2014 and is projected to reach $29.30 billion in 2020, with a compound annual growth rate of 4.7%.
Vendors in this industry provide protective packaging solutions through regular innovations for end use industries such as automotive, electronics, pharmaceuticals, and others to safely reach the end consumers.
The Asia-Pacific region led the protective packaging market with a share of 38% in 2014 and is estimated to grow at an annual rate of 7%, with Europe is projected to increase at a CAGR of 2% for the same period.