Skin Packaging Market Size, Share & Growth | Forecast [2031]

Report Description

The global skin packaging market size was valued at around USD 9.8 billion in 2021 and is expected to surpass USD 14.5 billion by 2030, expanding at a CAGR of 5.2% during the forecast period, 2022–2030. The market growth is attributed to the increasing demand for highly efficient, flexible, and cost-effective packaging materials and solutions across industrial applications, especially in food and consumer goods packaging.

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Skin packaging refers to an innovative packaging method that primarily uses thin plastic film and high-barrier packaging films by using heat sealing to secure products. It is mainly a vacuum-seal packing in which a thin plastic sheet is wrapped around the product to match its shapes and sizes. Vacuum-seal packing is considered to be one of the best options for long-term storage of products as it removes the air before packaging, thus, preventing micro-organisms growth in packed products. Using skin packaging solutions, product manufacturers offer secure, safe, and transparent packaging that allows consumers to have better visibility of the product as well as observe its appearance and conditions clearly before buying it. Skin pack is extensively used in the packaging of various food products including seafood, fresh meat, processed foods, and fresh poultry, which can be preserved for a long-time duration.

One key aspect of the wide usage of skin packaging in food products is that the packaging helps in extending shelf-life and retaining the natural quality of products while storing the items for a longer period of time. Moreover, skin packaging has several applications in consumer goods, personal care, automotive, pharmaceutical, and other industrial goods packing to secure products from contamination and ensure the safety of delicate and fragile items. Carded skin packaging and non-carded skin packaging are two main types of skin packaging. In carded packaging, a tray or paperboard is used to place products and a heated transparent plastic sheet is used to wrap around these products to secure them on a lower web. Meanwhile, the non-carded skin packaging is a vacuum seal without using a tray or paperboard, which ensures better preservation or shelf-life of durable products in a longer duration of storage.

COVID-19 Impact

The market report finds that the COVID-19 pandemic affected the global skin packaging market due to the sharp decline in export and import trade among countries, impacted by the emergency lockdowns imposed across the globe. The sharp decline in global trade and prolonged shutdown of various manufacturing units across industries, mainly food & beverages, automotive, and other industrial units ultimately led to the sluggish demand for the overall packaging market. Moreover, the abrupt disruption in the supply chain led to a raw materials supply shortage for the skin packaging industry, which further adversely impacted the overall skin packaging market growth. Banning of selling non-essential items on online platforms, imposed by governments to curb the virus spreading, resulting in a sales decline of automotive parts and fresh food products. This factor negatively impacted the demand for skin packaging.

Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global skin packaging market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Key Trends: High consumption of meat and seafood, especially in developed countries

The high consumption of fresh meat, processed foods, seafood, and ready-to-eat products, especially in developed regions such as North America and Europe is one of the key market trends. The increasing meat consumption in developed countries is widely influenced by the presence of a health-conscious population and their rising disposable income ultimately led to high spending on food products. The presence of a large working population and their busy-lifestyle increase the overall demand for packaged and processed foods, which can be stored for a longer period of time. With the rising demand for packaged meats worldwide, meat and food manufacturers are relying on flexible yet durable packaging for such items, allowing consumers to store and consume them at their convenience.

Major Drivers: Easy visibility and high shelf-life of skin packaging food products

Skin packaging enhances the visibility of products as it mostly uses a thin transparent plastic sheet to wrap products and consumers can easily observe the appearance and conditions before buying those products from stores. It helps to increase consumer convenience in buying packed food products, especially fresh meats. Moreover, consumers normally prefer products with high-shelf life while minimizing the need for preservation or keeping them in storage for future consumption. Thus, skin packaging is widely adopted in various packing applications that help consumers to see products before buying and choose highly durable products.

Existing Restraints: Strict government regulations regarding eco-friendly plastic materials

Promoting the idea of a sustainable environment, governments across the globe have laid down various environmental regulations to reduce carbon footprint globally. The increasing implementation of strict policies and initiatives from government agencies to direct and encourage manufacturers to use eco-friendly plastic materials and reduce plastic waste in packaging processes acts as a major restraining factor. In addition to the rising environmental concerns, the high price fluctuations of raw materials in the packaging industry are projected to hamper the global skin packaging market in the coming years.

Emerging Opportunities: Ongoing R&D programs for sustainable packaging materials development

With the rising demand for environmentally friendly products from the skin packaging industry, several key players are actively engaged in ongoing research and development (R&D) activities to develop a range of sustainable packaging materials such as bioplastics. Moreover, the rapid technological advancements in skin packaging development and the increasing popularity of green packaging are projected to offer lucrative growth opportunities for the market. The rapid growth of e-commerce platforms selling various packed fresh foods, especially meats and seafood is creating immense opportunities for market growth.

Scope of the Report

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

Market Segment Insights

Non-carded segment to expand at a significant growth rate

Based on types, the global skin packaging market is bifurcated into carded and non-carded.

The non-carded segment accounted for a key market share in 2021 and is expected to exhibit a significant growth rate during the projected period owing to the wide use of the packaging type for a range of fresh food products including fresh meat, poultry, seafood, cheese, vegetables, and pharmaceutical products. The non-carded skin packaging mainly consists of a thin plastic film, which is used to wrap around the product directly to help maintain the essential nutrients of products intact. These types of packaging are widely used to avoid contamination of products with other substances, which is extensively seen in pharmaceutical drug packaging. On the other hand, the carded segment is anticipated to expand at a CAGR of 5.3% during the forecast period owing to the wide use of the packaging type in electrical & electronic as well as automotive industries. A paperboard or tray is primarily used in the carded skin packaging to secure the product, mostly weather-sensitive and loose products during transport and storage. Carded skin packaging is largely used in various automotive applications to secure products including nuts, bearings, bolts, couplings, and windshields. In the electrical & electronics industry, the packaging type is widely used for electronic circuit boards, USBs, and other electric motor parts.

Plastic films segment dominates the market

In terms of materials, the global market is divided into paper & paperboard, plastic films, and others.

The plastic films segment held a dominant market share in 2021 and the trend is likely to continue in the coming years owing to the predominantly use of plastic films in the skin packaging industry to preserve the natural quality and increase the shelf life of products. Plastic materials primarily offer resilient, durable, and tear-resistance packaging that has multiple applications across industries. The segment growth is further attributed to the availability of a wide range of plastic materials and components such as polyethylene terephthalate (PET), polyethylene (PE), polyvinyl chloride (PVC), and others. These materials are extensively used for manufacturing plastic films, which have a wide range of applications for skin packaging owing to their superior characteristics and properties. For instance, PE foam is a lightweight, flexible, and durable material that offers high resistance to moisture and chemicals, thus, widely used in insulation of fragile goods packaging in particular. PET packaging is widely used for electronic and automotive parts due to its properties such as high resistance to alcohols and solvents, impact, and moisture.

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Food segment to register a considerable CAGR

On the basis of applications, the global skin packaging market is segregated into consumer goods, food, industrial goods, and others.

The food segment constituted a key market share in 2021 and is expected to register a considerable CAGR during the forecast period due to the extensive use of skin packaging for various food packaging applications. Skin packaging is widely adopted in food products including fresh meat, processed meat, fish, seafood, fruits, and cheese to retain the original quality and increase the shelf life of foods in the packaging. On the other hand, the industrial goods segment accounted for a large market share in 2021 and is expected to expand at a CAGR of 4.4% during the forecast period owing to the high adoption of skin packaging for various industrial applications. The rapid expansion of industries, especially in emerging economies of developing countries, impacted by urbanization and industrialization drive segment growth. A robust packaging is highly required for sensitive and fragile products such as automotive parts, electronic equipment, and electric components.

North America to dominate the market

In terms of regions, the global skin packaging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
North America held a major market share in 2021 and is expected to dominate the market, expanding at a CAGR of 5.7% during the projected period. The regional market growth is attributed to the wide meat consumption and the presence of a large pool of health-conscious population preferring quality food products including processed meats, seafood, and poultry. Moreover, the rising demand for high protein food items from a large population in the region is likely to boost the market in North America further during the projected period. On the other hand, the market of Asia Pacific is anticipated to expand at a steady growth rate during the forecast period owing to the rising consumers of meat products and the increasing spending on consumer goods by a large portion of the population in the region. The growing demand for processed foods and seafood in the region is widely influenced by the presence of a large population base and the increasing disposable income of the population. Additionally, the massive growth of manufacturing industries in Asia Pacific further increases the demand for convenient packing solutions to improve consumers’ convenience.

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