Thermocol Packaging Market Report 2026

The thermocol packaging market size has grown strongly in recent years. It will grow from $16.97 billion in 2025 to $18.02 billion in 2026 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to growth of electronics and pharmaceutical packaging demand, expansion of cold chain logistics, increasing use of lightweight protective materials, rising demand for damage-resistant packaging, widespread availability of eps-based packaging.

The thermocol packaging market size is expected to see strong growth in the next few years. It will grow to $22.81 billion in 2030 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to increasing shift toward eco-friendly thermocol alternatives, rising demand for sustainable protective packaging, expansion of food and medical packaging applications, increasing regulatory focus on recyclable materials, growing adoption of custom-molded packaging. Major trends in the forecast period include increasing adoption of biodegradable thermocol materials, rising demand for customized protective packaging solutions, growing use of lightweight insulation packaging, expansion of temperature-sensitive packaging applications, enhanced focus on shock and impact resistance.

The increasing e-commerce industry is expected to propel the growth of the thermocol packaging market going forward. The e-commerce industry refers to buying and selling goods or services over the internet. It is growing because more people prefer online shopping for its convenience, allowing them to browse, compare, and purchase products from anywhere at any time without the need to travel to physical stores, saving both time and effort. Thermocol packaging is used in e-commerce to provide lightweight, durable cushioning that protects fragile items during transit. For instance, in February 2025, according to a report published by the Census Bureau, a US-based government agency, e-commerce sales in 2024 reached $1.19 trillion, marking an 8.1% rise from 2023. Therefore, the increasing e-commerce industry is driving the growth of the thermocol packaging market.

The growing preference for disposable and single-use packaging is expected to further propel the growth of the thermocol packaging market. Disposable and single-use packaging is designed to be used once and then discarded, rather than reused or recycled. Its rising popularity is due to convenience, enabling easy use and disposal without the need for cleaning or storage, making it suitable for busy lifestyles. This preference boosts demand for lightweight and low-cost thermocol, as it offers easy disposal and protection for various products. For instance, in May 2024, according to the United Nations Foundation, a US-based international non-profit organization affiliated with the United Nations, more than 430 million tons of plastic are produced each year, two-thirds of which is cast aside as waste after just one use. Therefore, the growing preference for disposable and single-use packaging is driving the growth of the thermocol packaging market.

Key players in the thermocol packaging market are focusing on technological advancements such as biodegradable and sustainable packaging innovations to create eco-friendly alternatives that minimize environmental impact. Biodegradable and sustainable packaging innovations refer to new packaging materials that break down naturally without harming the environment and can be safely reused or recycled. For instance, in December 2023, Kinoko Biotech, an India-based sustainable biotech startup, developed an innovative eco-friendly thermocol using mushroom mycelium and agricultural waste. This serves as a sustainable alternative to traditional polystyrene thermocol, commonly used for packaging due to its cushioning and insulation properties. Kinoko Biotech’s eco-friendly version maintains similar attributes, such as sturdiness and lightweight characteristics, making it ideal for packaging applications. Additionally, this biodegradable material decomposes within 60-90 days and can be used as a fertilizer, helping to address environmental concerns associated with conventional thermocol packaging.

Major companies operating in the thermocol packaging market are Cosmopack India Pvt. Ltd., Beardsell Polymers Pvt. Ltd., EPACK Polymers Private Limited, East India Technologies Pvt. Ltd., ThermoShell Industries, Thermo Shield Packaging Solutions, S.K. Packing Thermocol, VESURA EPS Packers & Mineral, Quality Thermopack and Insulation Industries, Snowpack Polymers Pvt. Ltd., Kiran Packaging Industries, P.S. Enterprises Packaging, Rudrapriya Packaging Private Limited, Kamaksha Thermocol, Prakash Thermocol Packing, Sanjay Thermocole Industries, Vardhman Thermopack Pvt. Ltd., Divya Packaging Industries, Shree Bharath Packing, Rhyno Flexipack Industries, River Insulations Pvt. Ltd., Asian Thermocole Packing, Shrushi Polymers Private Limited.

North America was the largest region in the thermocol packaging market in 2025. The regions covered in the thermocol packaging market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the thermocol packaging market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The thermocol packaging market consists of sales of thermocol boxes, thermocol containers, thermocol molds, thermocol trays, and customized thermocol packaging solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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