Europe Protective Packaging Market

Europe Protective Packaging Market Analysis

The Europe Protective Packaging Market is expected to register a CAGR of 3.4% during the forecast period.

• The market in the United Kingdom is mainly growing due to the Flexible Packaging sector. Global packaging vendors are expanding in this region, and local companies are being acquired, which is indicative of the market potential in the area. For instance, in January 2020, Macfarlane Group acquired protective packaging solutions provider Armagrip for undisclosed sums.
• Beauty brands in the region are taking greater care in packaging and logistics operations. Product innovations, such as downgauging and the emergence of alternative raw materials, are expected to translate into future growth opportunities. Moreover, for industries with a bulk need for packaging materials, the vendors also provide packaging equipment and raw materials to maintain businesses with high volume and huge value customers.
• Moreover, the market is witnessing new partnerships and M&A activities to address new challenges emerging in the market and drive growth. For example, Warburg Pincus, a global private equity firm, agreed to acquire Pregis LLC, protective packaging materials and automated systems manufacturer, from Olympus Partners, which after five years of ownership and a series of acquisitions, resulted in Pregis LLC's growth from 14 to 22 manufacturing sites in North America and Europe.
• Although light-weighting of the board has long been affecting the corrugated industry, light-weighting and proper-sizing play a critically important role in this industry, not only in response to buyer's demands for efficient packaging but also in response to buyer's demands for efficient packaging also in response to the logistics system's adoption of dimensional weight (DIM) pricing, in some scenarios, substituting a heavier board grade can provide a better impact overall as it allows for the eradication of additional protective elements. Light weighting has been quite successful in Western Europe. The importance of lightweighting will continue to be felt even in the coming years as it is cost-saving.
• Due to the outbreak of COVID-19, the lockdown enforced and social distancing norm has elevated the consumer to order their requisite through online medium. The food and beverage sector has also been witnessing rising demand for takeaway and online delivery, driving the growth of the protective packaging market in the region.

Europe Protective Packaging Market Trends

Beauty and Homecare Industry to Drive the Market Growth

• The personal care sector is witnessing significant growth through online channels and e-commerce. Grooming has become an integral part of contemporary lifestyles. Consumers are willing to spend more to look and feel at their best, and online shopping has proved to be a popular choice for customers looking to satisfy their care needs.
• Packaging primarily aims to protect 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, the British Plastics Federation (BPF), in conjunction with the Cosmetic, Toiletry, and Perfumery Association (CTPA) and the Food and Drink Federation (FDF), has announced the launch of new guidelines for the recycled content used in plastic packaging applications.
• Protective mailers are widely used for one or two light cosmetic product shipping. The recycled bubble mailers and recycled padded mailers cater to adopting protective packaging in the cosmetics sector. Both offer the cushioning required to protect personal care items in transit and are 100% recyclable.
• The growth of secondary packages due to increased sales of perfumes in the region would aid the plastic packaging market's growth. Switzerland boasts of an ever-growing fragrance industry. This would bring multiple secondary plastic packaging vendors into the market scenario.

Germany Holds Significant Market Share

• The German online and e-commerce landscape can be likened to the United States: although it only has 79 million internet users, as stated by Disfold, a percentage of the US digital population, the affluence of the Germans, and their habits of utilizing e-commerce make it one of the world's most sophisticated markets.
• Several companies are providing protective packaging, catering to the surging market demand. For instance, the Germany-based company Storopack provides an extensive portfolio of protective packaging solutions such as loose-fill, foam, air pillows, paper cushioning, etc., that are widely used for e-commerce purposes.
• Moreover, vendors are investing in sustainable and recyclable protective packaging offerings in the region., For example, Storopack launched AIRplus, a 50% recycled protective packaging available in void, bubble, and cushion film.
• Further, during the covid-19 crisis, in March 2020, Storopack continued to supply protective packaging materials for essential products such as pharmaceuticals, medical supplies, food and drink, cleaning and hygiene materials, and veterinary supplies, among others.

Europe Protective Packaging Industry Overview

The Europe 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 merger and acquisition, partnerships to capture the market share. Some of the recent developments in the market are:

• July 2021 - Europe will have more packaging technology due to the Sonoco Protective Solutions. Later this year, the business will expand its Sochaczew, Poland, facility to include a Sonopost manufacturing operation, utilizing its current manufacturing infrastructure.

Europe Protective Packaging Market Leaders

Europe Protective Packaging Market News

• July 2022 - Sealedair has introduced the BUBBLE WRAP brand paper bubble mailer, a fiber-based padded mailer that can recycle in curbside bins. This product complements SEE's other paper mailer offerings, which include SEALED AIR brand return-ready mailers, padded mailers, and rigid mailers.