Insulated Packaging Market Share, Growth, Opportunities 2030

Report Description

The insulated packaging market size was around USD 12 billion in 2021 and is projected to reach USD 21 billion by 2030, expanding at a CAGR of 7% during the forecast period, 2022 – 2030. The growth of the market is attributed to the rising disposable income of the people in emerging nations.

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Temperature-sensitive goods, including chemicals, cosmetics, biological materials, pharmaceuticals, and food & beverages, are shipped in insulated packaging. It aids in preserving the effectiveness and freshness of the product. Packaging documents and controls the temperature of a product during the whole distribution cycle. The demand for perishable goods delivery without any waste is growing as there are an increasing number of e-commerce websites selling food, drinks, and pharmaceuticals.

As a result, online grocery retailers all across the world are adopting insulated packaging. It is now possible to reduce carbon emissions using innovative materials such as wool and cotton insulation due to significant developments in the protective packaging market.

The U.S. has a significant demand for insulated packaging because it produces the most agricultural goods. Growth of the market in the region is attributed to high product variation, the ability to mass-produce, high disposable income, and large market size. The presence of key market players in the region is estimated to drive the market in the region. Insulated packaging is meant to assist manufacturers in protecting their goods from damage and ensuring safe transportation.

Increasing demand for medicines, carbonated beverages, ready-to-eat food products, and cosmetics from developing countries such as India and China is projected to boost the market during the forecast period.

Insulated Packaging Market COVID-19 Impact

The insulated packaging market was affected negatively during the COVID-19 pandemic across the globe. The pandemic resulted in social distancing policies, travel restrictions, lockdown, and other regulations as a measure of control worldwide. The insulated packaging production plants were shut down, which disrupted the global supply chain. With the lockdown, work from home, and social distancing policies. The lifting of lockdown, canceling of social distancing policies, and slack in other pandemic-related restrictions are expected to drive the insulated packaging market in the coming years.

Insulated Packaging Market Dynamics

The market research report on the global insulated packaging market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine major drivers, existing restraints, key opportunities, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2022 to 2030.

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Major Drivers: Increasing demand for temperature-sensitive goods 

The distance between various parts of the world has decreased due to globalization. As a result, there are more imports and exports between nations. A number of goods can be ruined by changes in temperature and shocks. The only option for products that need specific temperature ranges is insulated packing. Temperature-sensitive goods are in demand as a result of the expansion of the food & beverage and pharmaceutical industries. People now rely on processed and packaged foods as well as luxury goods due to changing lifestyles and high disposable incomes.

Meals that are pre-made from processed and frozen foods are typically ready to eat, saving the time and energy needed to prepare nutritious meals for the working population. Products including fruits, vegetables, meat, fish, frozen foods, and medical supplies need to be packaged in insulated containers to maintain a constant temperature inside the container regardless of the outside environment. 

Existing Restraints: Rising cost of raw material is expected to hinder the market growth

The manufacturers are facing a lack of raw materials such as metal, paper, glass, and plastic. Raw commodities from the global market become expensive as a result of volatile currency exchange rates. Raw material producers face fierce competition for profit margins because of the fluctuating costs of materials and chemicals. The primary barrier to the growth of polymers like polystyrene, polyethylene, and polyurethane is the rising cost of crude oil. Rising cost of raw materials is forcing manufacturers to use plastic waste, recycled paper, and recycled agriculture waste as raw materials.

It takes extensive research and development to create alternatives to insulated packaging materials. Thus, the demand for enhanced R&D and rising raw material costs are hindering market growth.

Key Opportunities: Increasing growth opportunities from the developing countries

Significant opportunities exist for the logistics of insulated packaged products in developing nations such as China, India, and Brazil due to their high growth potential. Moreover, a wide range of raw materials is readily available in these nations. Rapid economic growth in China and India has boosted the manufacturing sector, including chemicals, electronics, automobiles, and food & beverages.

The low cost of labor in China is benefiting the country's manufacturing sector. The market for insulated packaging is being driven by the growing demand for convenience products like ready meals in countries such the UK, Russia, Germany, and France.

Scope of Insulated Packaging Market Report

The report on the global insulated packaging market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Insulated Packaging Market Segment Insights

The corrugated segment is projected to account for a key market share

Based on materials, the market is segregated into plastics, wood, glass, metal, corrugated cardboard, and others. The corrugated segment is projected to account for a key market share in the coming years. There are two types of corrugated cardboard: fluted and linerboard corrugated sheet. Corrugated cardboards are strengthened by these elements, which also enable them to bear intense pressure. Flutes lamination machines, also known as corrugators, are typically used to produce corrugated cardboard. The cardboards have burst strength, tear resistance, bending resistance, and high impact strength.

The glass segment to expand at a rapid pace during the forecast period. Lightweight glass packaging is primarily used for the storage and distribution of alcoholic, carbonated, juice, and energy drinks. The beverages are easily damaged when exposed to a range of temperatures and pressures. Glass packaging helps keep goods fresh and also transports them over large distances without affecting the product’s contents.

The metal segment is estimated to grow at a substantial rate during the projected period. Foam is placed between two sheets of metal that make up the metal IP. Metal sheets can be altered as needed depending on the application. The metal panels used in the production of IP products operate as a moisture and air barrier and produce a vapor inside the stiff core that improves thermal stability. These metal panels come in a variety of shapes and colors and are strong.

The plastic segment is expected to hold a major market share in the coming years. Products that need to be stored at a controlled temperature and pressure are packaged in plastic. The several goods that come in plastic packaging include seafood, poultry, pork, and red meat. Additionally, meat is packaged in plastic for long-term preservation and dry aging, which can last from a few months to many years.

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The flexible segment is anticipated to hold a key market share

On the basis of types, the market is fragmented into flexible, rigid, and semi-rigid. The flexible segment is anticipated to hold a key market share during the forecast period. Plastic films and ply are used to create flexible items. In order to make the package appealing to consumers, graphics are added to it. Products with flexible packaging are sealed using heat and pressure. Products with flexible packaging are made from plastic polymers such as polypropylene, polyethylene, nylon, and polyester. Flexible products are also produced using metalized polymers and aluminum foils.

The rigid segment accounted for a major market share in 2021. Products used for rigid packaging originate from paper, corrugated cardboard, fiberboard, paperboard, and plastics. The materials are used to create hard items such as boxes, pots, cups, cans, bottles, trays, and cases. A variety of color printing techniques and radio-frequency identification (RFID) can be used to manufacture the products.

The semi-rigid segment accounts for a substantial market share. Products that are semi-rigid are neither flexible nor rigid by nature. Some of the semi-rigid products include thermoformed containers, aseptic cartons, lined cartons, and folding cartons. Polyethylene and polypropylene are used in the production of semi-rigid goods.

The boxes & containers segment is estimated to grow at a rapid pace

In terms of packaging types, the market is divided into wraps, bags & pouches, boxes & containers, and others. The boxes & containers segment is estimated to grow at a rapid pace in the coming years. Growth of the segment is attributed to climate change and rising health issues.

The food & beverages segment dominated the market in 2021  

Based on applications, the market is segregated into food & beverages, cosmetics, pharmaceuticals, industrial, and others. The food & beverages segment dominated the market in 2021 and is estimated to continue its dominance during the forecast period owing to rising consumption of ready-to-eat food and packaged foods. Rising popularity of online grocery and restaurant ordering is driving the demand for storage and shipment of perishables in a thermally regulated environment.

The main difficulties faced by the food and beverage industry include increasing the shelf life, maintaining, preserving, and protecting food products. It is important to choose the proper packaging products since food products are prone to deterioration over time, which affects their color, texture, taste, and flavor. In developed countries such as the US, France, Canada, and Germany the consumption of frozen food is rising which is fueling the insulated packaging market growth.

The pharmaceuticals segment is expected to grow at a substantial rate during the projected period. Pharmaceuticals are subject to strict regulations as a result of their use in the healthcare industry and the potential harm that discrepancies could cause to patients. Regulations authorities took into account the following factors such as moisture, heat, sterility, shelf life, patient safety, degradation of drugs by oxygen content, and migration of packaging material into the medicines.

The industrial segment is expected to account for a key market share during the projected period. Products used in industrial packaging are made of paper, fabric, plastic, and metal.

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Asia Pacific dominated the market in 2021

On the basis of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominated the market in 2021. Growth of the market in the region is attributed to the increasing usage of protective packaging in pharmaceuticals and food & beverages industries in countries such as India, China, and Japan. Another major factor driving the market is the increasing disposable income of the population in the region.

The market in North America is projected to expand at a high CAGR during the forecast period owing to expansion of the developing e-commerce industry and rising number of food retail chains in the region. Insulated packaging also plays a significant role in a number of fast-growing sectors in the economy, including pharmaceuticals, cosmetics, food & beverage, and healthcare due to its capacity to avoid damage to temperature-sensitive goods. This factor is projected to boost the market in the region.

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