Demand for protective packaging in the US is forecast to increase by 4.9% annually up to 2019, when it will reach USD 6.82 bn. In its recently published study, “Protective packaging”, market researcher Freedonia (Cleveland, Ohio / USA; www.freedoniagroup.com) says that the projected expansion is bolstered by strong gains in internet shopping – leading to an increase in demand for packaging, including air pillows and protective mailers, to protect goods from shock, vibration, abrasion and other effects during shipping and handling.

Continued growth in manufacturing markets and acceleration in construction spending will also support increases for protective packaging, the researcher said, although gains will moderate from those during the 2009 / 2014 period, which were boosted by recovery from the recession. Additionally, the movement overseas of durable goods manufacturing continues to present a challenge to local packaging providers.

Freedonia said that environmental concerns will bring about a number of changes for protective packaging, primarily for goods delivered directly to consumers. For example, foam loose fill is being replaced by air pillows and paper fill products due in part to concerns that foam is harmful to the environment.

Freedonia analyst Katie Wieser said: “The burgeoning internet-based grocery and meal-kit delivery market will support gains for products made from environmentally sustainable insulating products, including jute and reusable vacuum insulated panels, as firms look to make their business as environmentally friendly as possible.” The requirement to reduce packaging weight and bulk has also led to the introduction of packaging which is customised to the specific product.

Flexible packaging products, including protective mailers, bubble packaging, air pillows and paper fill products will continue to dominate the market due to their cost efficiency and ability to package a wide variety of goods, the study says. These products will see the largest segment growth, rising by 5.2% annually to USD 3.25 bn in 2019.

Foam protective packaging will represent the second largest share of total demand, with established applications in manufacturing markets providing growth opportunities, despite competition from rigid and flexible materials with more favourable environmental profiles. Foam products include insulated shipping containers, moulded foams, foam-in-place polyurethane, rolled foam and loose fill. Annual growth in the segment is forecast to be 4.4%, with demand reaching USD 2.46 bn in 2019.

Rigid protective packaging products account for the smallest portion of total demand. However, these products are expected to post healthy gains, with 5.0% annual growth to USD 1.11 bn in 2019, as moulded pulp and paperboard protectors both benefit from a less variable pricing structure and trends toward sustainability.