Insulated Packaging Market

Insulated Packaging Market Overview

Insulated packaging market is forecast to reach $14.2 billion by 2027, after growing at a CAGR of 6.4% during 2022-2027, owing to the wide usage of insulated packaging in various end-use industries such as automotive & transportation, food & beverages, and more. Insulated packaging effectively aids in preventing damage to products from variable temperature & pressure and physical damage owing to which it is extensively used in these end-use industries. The growing demand for packaged materials due to rapid urbanization and increasing population is the major factor driving the growth of the insulated packaging market during the forecast period. In addition, the growing demand for food & beverages globally is anticipated to play a key role in driving the insulated packaging market during the forecast period.

The coronavirus pandemic is causing businesses, consumers, and communities around the globe to be widely concerned and economically deprived. Due to this crisis, the manufacturing of insulated packaging is facing several challenges. Self-isolation has led to a shortage of supplies and a plethora of manufacturing units, affecting the growth of the market in different regions. The covid-19 has a mixed impact on the packaging industry. Most manufacturers of the packaging supply their products and services to major industries, including pharmaceutical packaging, packaged food, labeling of hand sanitizers and disinfectants, and packaging of high-demand soaps, detergents, and hand wash. However, the entire food, pharmaceutical, and consumer goods industries will collapse without significant packaging.

Report Coverage

The report: “Insulated Packaging Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the insulated packaging Industry.

By Type: Rigid, Semi-Rigid, Flexible, and Others

By Product Type: Boxes Liners, Containers, Pallet Covers, Bags & Pouches, Wraps, Cold Packs, and Others

By Material Type: Plastic, Wood, Metal, Glass, Corrugated Cardboards, Papers, and Others

By End-Use Industry: Food & Beverages (Fresh Food, Bakery, Poultry, Dairy, Alcoholic Drinks, Carbonated Beverages, Juices, and Others), Industrial (Raw Materials, Consumables, Manufactured Parts, and Others), Pharmaceutical (Vaccines, Blood, Tissues, and Others), Personal Care & Cosmetics (Skin Care, Nail Care, Hair Care, and Others), Logistics, Automotive (Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV), and Others), Electrical & Electronics (Energy Storage, Home Appliances, Sensors, Semiconductors, and Others), and Others

By Geography: North Americas, South America, Europe, Asia Pacific, and RoW

Key Takeaways

• Asia Pacific dominates the insulated packaging market, owing to the increasing demand for insulated packaging from the automotive industries in the region. According to OICA, the production of passenger cars has augmented by 2.6 % in 2019 in Malaysia.
• Due to its superior insulating and protective properties, the insulated packaging is widely used in the food and pharmaceutical industries, guaranteeing product quality and safety for storage and transportation. It also helps prevent product damage from variable temperature & pressure and physical damage, which boosts the growth of the market.
• The steadily growing demand for cosmetics, ready-to-eat food items, electronics, and automobiles from various regions such as the Asia Pacific and Europe, is projected to flourish the insulated packaging market growth during the forecast period.
• Due to the COVID-19 outbreak, operations of various industries such as automotive, cosmetics, and industrial have been heavily affected, which is limiting the growth of the insulated packaging market.

The flexible segment held the largest share in the insulated packaging market in 2020. Demand for flexible packaging is growing due to its convenient shape, ease of use, resalable properties, lightweight, and lower environmental impact. In addition, the use of flexible packaging in vegetables and ready to eat food products fuels the market growth. According to the Flexible Packaging Association (FPA), flexible Packaging has about 19 percent of the $170 billion packaging market as of June 2019 in the United States, accounting for approximately 59 percent of shipments. All these factors are supporting the demand for flexible insulated packaging during the forecast period.

The corrugated cardboards held the largest share in the insulated packaging market in 2020, owing to their extensive set of advantages such as high bending resistance, burst strength, tear resistance, impact strength, and more. Corrugated cardboard-based insulated packaging offer protection to shipped products. During transport and movement, the combination of rigidity and cushioning traits makes them physically powerful to bear impact. Moreover, they are highly affordable as the raw material required to make corrugated cardboard is cheap and readily available. All these factors are boosting the demand for corrugated cardboards based on insulated packaging during the forecast period.

The food & beverages segment held the largest share in the insulated packaging market in 2020 and is growing at a CAGR of 7.11%, owing to the increasing usage of insulated packaging in the food and beverages industries. Factors such as an increase in demand for packaged food and an increase in ready-to-eat food consumption are responsible for the growth rate. Proper transport and storage of frozen foods are vital to maintaining food safety and quality throughout the distribution process. Packs containing frozen foods should be constructed, thermally insulated, and equipped with sufficient coolants to maintain the continuous temperature of the product at or below 0°C (32°F). As they limit the exchange of heat between the environment and the inside of the package, insulated shipping boxes are required, thereby delaying the time when the temperature inside the package reaches equilibrium with the ambient temperature. Thus, the extensive usage and wide application of insulated packaging in the food & beverage industries is anticipated to substantially drive the insulated packaging market growth in this sector during the forecast period.

Asia Pacific region held the largest share in the insulated packaging market in 2020 up to 32%, owing to the increasing demand for plastic packaging, wood packaging, and glass packaging in the region. According to the Momentum In India: Swiss SMEs Programme (MISSP), the Indian packaging industry is estimated to grow from existing CHF 75 billion in 2020 to CHF 205 billion by 2025. The packaging industry in China is expected to register a Compound Annual Growth Rate (CAGR) of 13.5 percent during the forecast period, according to the Sea-Circular Organization (2020-2025). China's food processing sector continued to grow in 2017, according to the United States Department of Agriculture (USDA). Revenue rose to $1.47 trillion, an increase of 6.3 percent compared to 2016. The increasing population and rapid urbanization in these countries are enhancing the demand for the packaging industry thereby, accelerating the growth of the insulated packaging market in the Asia Pacific during the forecast period.

Insulated Packaging Market Drivers

Growing Consumer Electronics Market

Electronics are relatively fragile and often expensive, so it's important to efficiently pack and ship these products. When shipping almost any type of battery, all terminals must be safeguarded against short-circuiting. To do so, they are completely covered with an insulating packaging to ensure exposed terminals are protected. In the United States, total exports of electronic products grew by $7.9 billion (3 percent) to $268 billion in 2017, according to the United States International Trade Commission. The electronics industry is worth £16 billion every year to the UK economy, according to the Department for International Trade. According to Invest India, the Consumer Electronics and Appliances Industry in India is anticipated to become the fifth-largest in the world by 2025. India is projected to create an $800 billion to $1 trillion digital economy by 2025, and India's digital economy could fuel 18-23 percent of overall economic activity by 2025. And since the demand for insulated packaging is on an upsurge in the electronics industry, the flourishing sector acts as a driver for the insulated packaging market.

Increasing Automotive Manufacturing

In the world of automotive and transportation every high-value part, component, and the surface is packaged and protected during the import and export. The insulated packaging efficiently drives down the cost, fuel production efficiency, and ensure a zero-defect supply chain. China is the world's biggest vehicle market, according to the International Trade Administration (ITA), and the Chinese government anticipates the production of cars to reach 35 million by 2025. Also, according to OICA, the production of passenger cars has increased from in 4,131,358 2018 to 4,149,935 in 2019, an increase of 0.4% in the European Union's new member region due to the rising per capita income of the individuals which further led to the massive demand for insulated packaging manufacturing in the APAC region. Thus, with the increasing automation manufacturing, the demand for insulated packages will also increase, which will act as a driver for the market.

Insulated Packaging Market Challenges

Volatility in Crude Oil Prices

The raw materials often used for the production of insulated packaging are the downstream products of crude oil such as polystyrene, EPS Styrofoam, polyethylene, and polyurethane. So, the price fluctuation of crude oils also hinders the price of insulated packaging raw materials. According to, BP Statistical Review of World Energy, in the recent year there is been a fluctuation in the price of crude oil, for instance, the crude oil price decreased from $98.95/bbl in 2014 to $52.39/bbl in 2015 and increased from $43.73/bbl in 2016 to $71.31/bbl in 2018 and then decreased to $64.21/bbl in 2019. And because of this uncertainty in crude oil prices, the price of insulated packaging also increases. Thus, the volatility in crude oil prices is expected to be a significant challenge for the insulated packaging market manufacturers, which will hinder the insulated packaging market growth during the forecast period.

Covid-19 Impact on the Insulated Packaging Market

The COVID-19 pandemic outbreak, is having a huge impact on the automotive sector. Automotive production has been disruptively halted, contributing to major losses in the automotive industry as a whole. According to the European Automobile Manufacturers Association, In June 2020, demand for new commercial vehicles across the EU remained weak (-20.3%), while France recorded a modest increase (+2.2%). With the decrease in automotive production, the demand for insulated packaging has significantly fallen, which is having a major impact on the insulated packaging market. According to Congressional Research Service (CRS), nearly 80% of Mexican-made vehicles are shipped to its top trade partner, the United States. But due to the export and import restrictions by various governments, there has been a downfall in the export and import of commodities, which is limiting the insulated packaging market growth.

Insulated Packaging Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the insulated packaging market. In 2020, the market of insulated packaging has been consolidated by the top five players accounting for XX% of the share. Major players in the insulated packaging market are Airlite Plastics Co., Amcor PLC, Cryopak, Davis Core & Pad Company, DS Smith PLC, Du Pont, Sonoco Products Company, Innovative Energy, Inc., and Huhtamaki Group.

Acquisitions/Technology Launches

• August 2019, Airlite Plastics Co. acquired a business unit known as Kodiakooler from an insulated packaging producer called Providence Packaging Inc. This acquisition helped Airlite to expand its presence in the industry and offer sustainable and innovative packaging solution for temperature-sensitive products.

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