Market Trends of Asia-Pacific Protective Packaging Industry
This section covers the major market trends shaping the APAC Protective Packaging Market according to our research experts:
Plastic Packaging Holds a Significant Market Share
- Plastic remains the most used raw material for packaging. Plastic provides the flexibility of being cost-effective to manufacturers. Its inert nature to the contents being stored in it has allowed it to be utilized for packaging products in specific industry verticals.
- Plastic continues to be the most used material for the protective packaging of products across various industries. Plastics packaging protects against contamination in foods and medicine and helps prevent the spread of germs during manufacture, distribution, and display. Advanced packaging materials, such as polypropylene, can provide a high barrier against contamination and temperatures, thereby protecting the packaged product from being damaged.
- The wide adoption of plastic packaging in the food and beverage industry, which includes bags, pouches, shrink films, sleeves, and tubes, primarily owing to their flexibility, low weight, and durability, are some of the factors that may continue to create demand for the plastic protective packaging solutions.
- Owing to the need to develop cost-effective and protective packaging solutions for shipping a wide range of livestock feed, the market players operating in the industry are introducing resealable tray lidding films as an excellent solution to protect packaged content are widely being produced by the combination of polypropylene and Polyethylene.
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India Occupies Significant Market Share
- The market's rapid growth is primarily driven by fashion and apparel, consumer electronics, and personal care industries. Considerable investments in the consumer electronics, personal care, and fashion and clothing end-user industries create scope for expansion of packaging opportunities such as for protective packaging. According to IBEF, electronics is the most significant contributor to online retail sales in India, with a 48 % share, followed closely by apparel at 29 %.
- The boost in online shopping among self-isolating consumers has the potential to drive up sales of molded pulp protective packaging. For instance, International Paper APPM Ltd, located in Hyderabad, provides protective packaging solutions for e-commerce (corrugated) and focuses on tamper-proof packaging. Its liner product provides specific features of wet strength grades from 35 to 96 lb/MSF (170 to 469 gsm).
- India's share in paper's global production is about 3.7%, with an estimated production of over 15-million tpa (tonnes per annum). According to Indian Paper Manufacturers Association (IPMA), packaging paper/paperboard has 8.710 million metric ton, in terms of market volume, and it is growing at 8.37%.
- Due to awareness about plastic waste and pressure from government agencies, e-commerce players turn into the more sustainable packaging options, keeping aside plastic packaging. For instance, in August 2019, Indian e-commerce player Flipkart owned by Walmart, introduced eco-friendly paper shreds, replacing bubble wraps and airbags with carton waste shredded material and two-ply roll.
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