The global insulated shipping packaging market size was valued at around USD 7.96 Billion in 2022 and is estimated to reach USD 13.68 Billion by 2031, expanding at a CAGR of 6.2% during the forecast period, 2023-2031. The growth of the market is attributed to the growing need for ensuring the quality and safety of temperature-sensitive products in various industries.
Insulated shipping packaging market is projected to have significant growth during the projection period, owing to its extensive use in the food & beverage and pharmaceutical industry, among others. There are several products in the food & beverage industry that are perishable in nature, due to their sensitivity to temperature, including fruits, beverages, ice creams, and vegetables. Consequently, the transportation and shipping of such items require insulated packaging. Moreover, the global rise in the geriatric population has led to an increase in demand for various prescription drugs that are often temperature-sensitive, which boosts demand for insulated shipping packaging solutions.
- As per the report published by the National Institute of Health in March 2021, the pharmaceutical industry has been growing at a rate of 5.8% per year since 2017. The revenue generated in the year 2017 was USD 1143 billion, and by 2021, it came close to USD 1462 billion. The growth of these industries is anticipated to fuel the demand for insulated packaging materials, thus, further propelling the market.
Insulated shipping packaging is used for protecting temperature-sensitive products from factors such as weather changes, the atmospheric pressure of an aircraft, shocks, and vibrations occurring during product transportation. Goods from a range of industries often get affected due to heat damage to the cargo, causing losses of millions annually. Insulated shipping packaging is considered one of the reliable solutions for the protection of products from changing thermal conditions during shipments.
Insulation, safety packaging, and refrigeration are among the most crucial factors that need to be considered to maintain product quality and cut out damages during shipments. Additionally, while packaging with the above factors in mind, it has to be ensured that the product stays safe and intact from any kind of rough handling throughout the shipment procedure.
High-quality thermal packaging is essential to eliminate the risk of heat damage to the products during different supply chain stages. Insulated packaging typically involves a product container or boxes with inner walls insulated with thermal covers made of organic or inorganic material, kraft paper, expandable polystyrene, and aluminum foil. Temperature-reactive Items such as foods, beverages, pharmaceutical products, chemicals, blood, and biomaterials, among others require to be protected from varying conditions during the shipments.
The COVID-19 pandemic has restrained the market, owing to stagnancy in supply chain activities brought by lockdowns implemented by various governments worldwide. The decline in production activities and reduction in customer demand affected the market growth. Furthermore, the Russia-Ukraine conflict also hindered shipments of goods from different industries owing to various sanctions on several countries.
Artificial Intelligence Impact on Insulated Shipping Packaging Market
Artificial Intelligence is expected to boost the market, as this technology enhances the shipping packaging process by streamlining the entire process and optimizing the supply chain. It helps in minimizing labor costs, increase overall savings, better manage the workforce, and enhance the capabilities of packaging machines to perform complicated tasks without any human interference. Furthermore, AI also helps production lines to move faster by quickly identifying defective products and removing them.
Key Trends
The rising shipment of healthcare products is a major trend in the market. The growing health concerns across the world have given rise to the demand for different medicines, vaccines, blood, clinical equipment, and raw materials all over the globe. As healthcare products come under major risk from changing temperature factors, the demand for insulated shipping packaging containers has increased in recent years for medicines to medical device packaging, boosting the market growth.
Major Drivers
The rising shipment of food and beverages is expected to be a major driver for the global market. The consumption of convenience foods, beverages, and frozen food items is increasing owing to rapidly evolving lifestyles in urban and semi-urban parts of the world. Insulated shipping packaging is a major method applied in frozen food packaging, and its high demand is considerably boosting market growth. Moreover, the food & beverage industry is increasingly relying on insulated shipping packaging solutions to ensure proper protection of the consumables from thermal conditions during different logistical operations.
- As per the report published by the United States Department of Agriculture in October 2022, with the increasing requirement for diverse food products, China’s demand for imported food products has increased rapidly. Between the period of 2006 and 2019, there has been an approximate increment of 12%.
Growing demand for the shipment of beauty and personal care products is another major driver fueling the market. The personal care industry is expanding with various innovative products. These products often contain materials that are sensitive to thermal conditions. For protecting the products efficiently manufacturers in the beauty and personal care industry are increasingly trusting insulated shipping packaging solutions.
Existing Restraints
The rising cost of raw materials required for insulated shipping packaging is anticipated to hinder market growth. The prices of materials such as glass, wood, chemicals, and plastic, are becoming dependent on global macroeconomic factors.
The slowdown in supply chain processes due to sanctions on certain countries, as well as regulations imposed by governments on manufacturers and suppliers of raw materials, is likely to limit the market growth in the coming years.
Emerging Opportunities
The growing investment in research and development of innovative insulated packaging solutions is expected to create significant opportunities for market growth. Moreover, the expanding use of insulated packaging for the shipment of various frozen foods, pharmaceuticals, and personal care is further increasing the market scope. The consumer demand for ready-to-eat food along with personal care products is expanding in emerging economies.
Scope of Insulated Shipping Packaging Market Report
The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Insulated Shipping Packaging Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2020 – 2021
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Forecast Period
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2023–2031
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Segmentation
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Product Type (Boxes & Containers, Bags, Flexible Blankets, and Wraps), Material (Wood, Plastic, Glass, Cardboard, and Others), Business (Transportation and Warehousing), and End-user (Food & Beverages, Personal Care, Pharmaceuticals, Industrial Goods, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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DS Smith; Amcor plc; Exeltainer; Drew Foam of Georgia; Cryopak; DuPont; MARKO FOAM PRODUCTS; Innovative Energy, Inc.; Sonoco Products Company; Thermal Packaging Solutions Ltd.; Cascades inc.; The Wool Packaging Company Limited; Insulated Products Corporation; Cambro; ICertech; Provident Packaging Corp.; Carry Cool Enterprise; Peli BioThermal Limited; Hydropac; Valor Industries.; Harwal Group of Companies; Topa Thermal; Sofrigam; Drew Foam; CREOPACK; and COOL Sarl
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Insulated Shipping Packaging Market Segment Insights
Product Type Segment Analysis
Based on product type, the global insulated shipping packaging market is divided into boxes & containers, bags, flexible blankets, and wraps. The boxes & containers segment held the major share of the market in 2022 and is projected to expand at the fastest growth during the forecast period.
The boxes & containers insulated packaging solutions are widely preferred for the shipments of temperature-sensitive goods, which is one of the major factors fueling the segment growth. The rising regional and international trade of foods, vegetables, cereals, healthcare, and personal care products is significantly driving the use of insulated boxes and containers.
Material Segment Analysis
On the basis of material, the market is divided into wood, plastic, glass, cardboard, and others. The glass segment is anticipated to grow at a significant pace during the forecast period. The rising trade of beverages such as alcohol, juices, cold drinks, and energy drinks is fueling the use of glass material in insulated shipping packaging solutions. The glass packaging helps with the protection of these items against damage during transit and is therefore ideal for the transportation of beverages.
The cardboard segment is anticipated to expand at a significant pace in the market, due to its physical properties that are ideal for packaging and shipping. The cardboards have strong resistance to bending & bursting and strength of impact with high tensile strength. The corrugated sheet makes the cardboard stronger and helps withstand high pressure. Online retail is rapidly adopting the use of cardboard due to its quality protection, which is likely to fuel the growth of this segment.
Business Segment Analysis
Based on the business segment, the global insulated shipping packaging market is bifurcated into transportation and warehousing. The transportation segment accounts for a significant share of the market. The rising consumption of convenience foods and beverages is driving the demand for insulated shipping packaging.
The transportation of thermal-sensitive goods over the long distance, from one region to another, in international regions is driving the need for robust packaging solutions that can protect products from varied climatic conditions.
End-User Segment Analysis
On the basis of end-user, the market is classified as food & beverages, personal care, pharmaceuticals, industrial goods, and others. The food & beverages segment is projected to expand at a substantial CAGR during the projection period. The growing consumption of ready-to-eat and ready-to-cook foods is likely to majorly drive the F&B segment growth during the projection period. The insulated shipping packaging solutions are highly beneficial in ensuring the maintenance of food and beverage attributes such as flavor, colors, and taste, that might get affected due to an increase or decrease in the temperature.
- According to a study conducted in 2022, the sales of edible groceries reached 2.8 trillion USD in 2021. This value is projected to grow approximately by 600 billion USD by the year 2026.
The pharmaceuticals end-user segment is projected to witness rapid growth in the market. The healthcare trade is rising all over the globe due to increasing health matters. The COVID-19 pandemic was a key trigger that increased the trade of healthcare goods such as vaccines, drugs, oxygen supplies, and medical devices globally. Healthcare material is highly susceptible to thermal conditions, owing to which insulated shipment packaging solutions are likely to see the expansion of use in the trade of healthcare goods.
Regional Analysis
In terms of region, the global insulated shipping packaging market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period. The increasing transport of food & beverages, pharmaceuticals, and personal care items is driving the market growth in the region.
India and China are major economies in the region with the highest population. The region’s shipment industry is growing at a rapid pace, owing to an increase in demand for consumables in online and offline stores. The players in various industries are relying on insulated shipping packaging methods to transport thermal conditions-sensitive items, which is majorly supporting the market expansion in the region.
North America is expected to expand rapidly in the global market during the projection period. The rising research and development activities as well as supportive government policies to create robust healthcare in the region are anticipated to drive the market in the region. The shipment of items including pharmaceuticals, frozen foods, and beverages is increasing in the region, to meet the growing consumer demands, which is likely to expand the market scope in the region.
Segments
The global insulated shipping packaging market has been segmented on the basis of
Product Type
- Boxes & Containers
- Bags
- Flexible Blanket
- Wraps
Material
- Wood
- Plastic
- Glass
- Cardboard
- Others
Business
- Transportation
- Warehousing
End-user
- Food & Beverages,
- Personal Care
- Pharmaceuticals
- Industrial Goods
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- DS Smith
- Amcor plc
- Exeltainer
- Drew Foam of Georgia
- Cryopak
- DuPont
- MARKO FOAM PRODUCTS
- Innovative Energy, Inc.
- Sonoco Products Company
- Thermal Packaging Solutions Ltd.
- Cascades inc.
- The Wool Packaging Company Limited
- Insulated Products Corporation
- Cambro
- ICertech
- Provident Packaging Corp.
- Carry Cool Enterprise
- Peli BioThermal Limited
- Hydropac
- Valor Industries.
- Harwal Group of Companies
- Topa Thermal
- Sofrigam
- Drew Foam
- CREOPACK
- COOL Sarl
Competitive Landscape
The competitive landscape of the global market report provides key insights into the growth strategies and development initiatives implemented by the key players in the insulated shipping packaging industry.
Key players in the global insulated shipping packaging market are DS Smith; Amcor plc; Exeltainer; Drew Foam of Georgia; Cryopak; DuPont; MARKO FOAM PRODUCTS; Innovative Energy, Inc.; Sonoco Products Company; Thermal Packaging Solutions Ltd.; Cascades inc.; The Wool Packaging Company Limited; Insulated Products Corporation; Cambro; ICertech; Provident Packaging Corp.; Carry Cool Enterprise; Peli BioThermal Limited; Hydropac; Valor Industries.; Harwal Group of Companies; Topa Thermal; Sofrigam; Drew Foam; CREOPACK; and COOL Sarl.
These prominent companies in the market have devised a wide range of business development strategies including acquisitions, mergers, partnerships, collaboration, product launches, and production capacity expansion to improve their consumer base and enhance their market share.
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In February 2023, Amcor plc, a leading global firm in developing and producing responsible packaging solutions announced that it has entered into an agreement to acquire Shanghai-based healthcare packaging firm MDK. The medical device packaging firm has annual revenue of USD 50 million and is expected to give a significant boost to Amcor’s presence in Asia Pacific.
- In March 2020, Huhtamaki took full control of Laminor S.A., a joint venture company in Brazil. Laminor is known for producing exceptional tube laminates, particularly for dental care purposes. The company was established in 2002 as an equal partnership with Bemis Company, which is now a subsidiary of Amcor.
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