Asia-Pacific Protective Packaging Market

APAC Protective Packaging Market Analysis

The Asia-Pacific Protective Packaging Market is expected to register a CAGR of 7.9% during the forecast period.

• The primary aim of packaging is the protection of the product from all hazards it can be exposed to during transport and handling. Recycling has become a significant part of cosmetics, skincare, and perfume companies. For instance, Amazon India is working towards reducing the usage of single-use plastics and optimizing boxes/recycling. The plastic currently used in packaging mailers and bubble bags is made of 20% recycled content. Presently less than 7% of packaging at Amazon India Fulfilment Centres includes single-use plastic.
• Technological advancements leading to the development of recyclable materials for protective packaging have driven the demand for these effective and sustainable packaging solutions in various countries. This increasing demand for sustainable protective packaging solutions is expected to drive the growth of the market. In August 2019, honest Diary and Noluma developed china's first yogurt product contained light protective packaging.
• However, the trade tensions between China and the United States are expected to impact the demand in the electronics market and are expected to be experienced by protective packaging vendors. The economic slowdown fear in the region is also expected to impact the protective packaging, especially in the automotive and industrial sectors.
• With the outbreak of COVID-19, the rising demand for e-commerce is also making the consumers pay more attention to the sustainability of packaging of shipments, forcing the vendor of protective packaging to rethink their packaging and provide the same.
• Moreover, the people have concerns over whether the virus can be transmitted through package deliveries such as bubble wrap and air pillows. But the Korea Centers for Disease Control and Prevention said transmission in this manner was unlikely. This type of concern among the people and the protective packaging vendors, along with their employees, would have somewhat slowed down the market growth during an outbreak of pandemic initially.

APAC Protective Packaging Market Trends

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.

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.

APAC Protective Packaging Industry Overview

The Asia Pacific protective packaging market is moderately fragmented and consists of various vendors providing these products and solutions. Players in the market focus on product innovations and strategic initiatives such as mergers and acquisitions and partnerships to capture the market share. Some of the recent developments in the market are:

• August 2020 - Ester Filmtech planned to invest USD 180 million to build an advanced packaging film manufacturing facility in the Indian state of Telangana.
• May 2020 - Armor Protective Packaging expanded its sales and reaches to customers in markets such as China, India, and other countries that supply protective packaging for automotive markets.

APAC Protective Packaging Market Leaders