WORLD PROTECTIVE PACKAGING
Market expected to rise by annually 6% to 2018 / Asia to see greatest gains / Growing online market will boost demand / Freedonia report
World demand for protective packaging is forecast to increase by over 6% annually up to 2018, when the market will be worth almost USD 27 bn, according to a recently published report, “World protective packaging”, from US market researcher Freedonia (Cleveland, Ohio; www.freedoniagroup.com).
This growth will be significantly higher than during the 2008 - 2013 period, when demand lagged in many of the largest protective packaging markets, including the US, Japan and western Europe. Going forward, accelerating manufacturing activity in these regions, coupled with continued strong growth in Internet retailing, will boost demand for nearly all types of protective packaging, the report says.
The Asia/Pacific region is expected to register the fastest growth in demand up to 2018, thanks to its large manufacturing sector in an area where countries’ economies are continuing to develop, such as China, India and Indonesia. China, the largest market in the region, will record rapid advances even as its economic growth begins to decelerate from the remarkable pace of the past few decades, the researcher said. The Africa/Middle East region and eastern Europe will also experience above average growth, though both will remain fairly small regional markets.
Meanwhile, Freedonia said that advances will be below the global average in North America and western Europe. However, good opportunities will be found in many developed countries, especially for environmentally friendly, higher value protective packaging such as biodegradable products.
The advent of e-commerce has created great opportunities for manufacturers of protective packaging materials. Online retail still accounts for a small minority of overall retail sales, but its share will continue to grow rapidly as retailers expand their e-commerce presence, Internet accessibility continues to increase, and ownership of smartphones and other mobile devices grows, the report says.
Items purchased through these channels are generally individually wrapped and sent directly to consumers. This increases the requirement for products such as protective mailers, air pillows and other materials used to ensure products shipped from retailer warehouses or third-party logistics service providers arrive without being damaged.
19.11.2014 Plasteurope.com [229770-0]
Published on 19.11.2014