U.S Packaging and Protective Packaging Market Expected to Reach $247.2 Billion by 2032

According to a new report published by Allied Market Research, titled, "U.S. packaging and protective packaging market by material, by function, and by application: U.S. opportunity analysis and industry forecast, 2023–2032," The U.S. packaging and protective packaging market was valued at $185.3 billion in 2022 and is estimated to reach $247.2 billion by 2032, exhibiting a CAGR of 2.9% from 2023 to 2032.

Packaging and protective packaging are designed to protect the consumer and industrial goods from shock & vibration and atmospheric, magnetic, and electrostatic forces. Various boxes, storage containers, packing materials, liners, and spacers made of plastic & plastic foams, paper & paperboards, metals, glass, and woods are used for packaging. Various functions of packaging include electrical insulation, thermal insulation, fireproofing, moisture & vapor protection, shock & vibration damping, and UV & weather resistance. Other types of packaging create a protection barrier from oxygen, moisture, and dust to retain the freshness and efficacy of food products. The type of product being packaged and the environmental conditions from which the product is required to be protected determine the material and type of packaging to be employed.  

Growth in participation of third-party logistic companies, which use packaging and protective packaging for safe distribution of fragile, perishable, high, or low value-added products, positively impacts the market growth. Increase in manufacturing activities globally to meet the rise in demand of the population has led to increased consumption of packaging, which is further expected to fuel the market growth during the forecast period.

However, volatile organic compound (VOC) emission during the manufacturing and curing processes of plastic and plastic foam-based packaging has led to the formulation of various regulations on packaging manufacturers. Moreover, regulatory norms on packaging and protective packaging related to food contact application and pharmaceutical products may hamper the market growth.

On the contrary, increase in R&D activities by various market players to produce biodegradable packaging and protective packaging is expected to provide opportunities for the packaging manufacturers.

The U.S. packaging and protective packaging market is segmented on the basis of material, function, application. On the basis of material, the market is segregated into paper and paperboard, rigid plastics, flexible, metal, glass, and others. The paper and paperboard segment dominated the global market in terms of revenue in 2022, with 33.5% of the total share. Major applications of paperboard in packaging include frozen food packaging, beverage cartons, pharmaceutical packaging, aseptic drink boxes, cosmetic & perfume packaging, candy boxes, paper goods packaging, and cereal boxes.

On the basis of function, the market is classified into cushioning, blocking & bracing, void fill, insulation, wrapping, and others. The insulation segment dominated the global market in terms of revenue in 2022, with 29.1% of the total share. Plastic-based packaging materials, such as expanded polystyrene (EPS) and polyurethane (PUR), are majorly used in insulation packaging, owing to their high resistance to heat and remarkable design flexibility. Insulated shipping containers, vacuum insulated panels, and corrugated fiberboard are used as insulation packaging.

On the basis of application, the market is divided into food, beverage, healthcare, cosmetics, industrial, and others. The food application segment dominated the market in terms of revenue in 2022, with 41.5% of the total share. Active packaging is a major trend witnessed in the U.S. food packaging industry. Active packaging is defined as a package system designed to intentionally incorporate components that would release or absorb substances into or from the packaged food or the environment surrounding the food, and it is anticipated to extend the shelf life or to maintain or improve the condition of the packaged food.

Key players operating in the U.S. packaging and protective packaging market include Protective Packaging Corporation, Protective Packaging Ltd, Universal Protective Packaging, Inc., Sealed Air, Sonoco Products Company, Ivex, Armor Protective Packaging, Polymer Packaging, Inc., PALLITE GROUP, and ProtecPac.

COVID-19 analysis

The novel coronavirus had spread to over 180 countries and caused huge losses of lives and the economy around the globe. The U.S. packaging and protective packaging market had minor impact due to the wake of the COVID-19 pandemic, owing to the disruptions in the supply chain for various personal hygiene, medical products, and other consumer goods. Furthermore, to control the surge of novel coronavirus cases, there was a drastic shift of investments from other sectors toward healthcare. Moreover, several packaging and protective manufacturing companies had either shut down or shrank their operations due to the risk of infection among the workforces. This had temporarily hampered the demand and supply chain of packaging materials amid the COVID-19 pandemic. However, growth in awareness related to personal care & healthcare activities has surged the demand for various anti-bacterial creams, and other products during the COVID-19 pandemic, which in turn has increased led the packaging and protective packaging market to witness significant growth. Furthermore, several packaging and protective packaging manufacturing companies have adopted safety strategies and techniques, which in turn has increased the demand for packaging and protective packaging products as the market starts stabilizing.

In 2020, prices of packaging and protective packaging materials were higher in the U.S. The price rise was, due to continued regional demand trends and tight product availability. Firm downstream packaging demand for the product and stronger upstream costs are expected to sustain the price gain.

However, the packaging and protective packaging market is expected to recover rapidly post COVID-19 situation due to its increased dependency over healthcare, food & beverage, cosmetics, electrical & electronics, and other end use sectors. Furthermore, food & beverage industry has recovered post pandemic owing to the rise in online grocery sales. For instance, according to a report published by a research journal named International Journal of Market Research, the change in purchasing behavior of the customer has increased the sales of online grocery items in 2021. This may surge the demand for packaging and protective packaging market in the growing food & beverage sector. In addition to this, the building & construction activities are projected to get back on track and start functioning at full capacity post COVID-19 period which in turn may enhance the demand for void-fill type packaging materials used to protect various construction materials during their transportation at various construction sites. This factor may augment the growth of the packaging and protective packaging market during the forecast period. Moreover, the rise in e-commerce sector, attributed with increase in online purchasing power of customers is anticipated to create a positive impact on the U.S. packaging and protective packaging market.

Key findings of the study

• By material, the paper and paperboard segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 2.9% from 2023 to 2032.
• By function, the insulation segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 3.2% from 2023 to 2032.
• By application, the food segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 3.2% from 2023 to 2032.