Dunnage Air Bags Market – By Material Type, By Bag Type, By End-use Industry– Global Forecast, 2025 – 2034

Dunnage Air Bags Market Size

The global dunnage air bags market size was valued at USD 568.2 million in 2024 and is estimated to grow at 4.6% CAGR from 2025 to 2034. The growth of the market is attributed to the expansion of the global e-commerce market and regulatory compliance and cargo safety standards.
 

The dunnage air bags market is largely influenced by the rapid growth in online shopping. With more consumers purchasing goods online, there is increased demand for avoiding product damage during transportation and logistics. Dunnage air bags provide an affordable means of cushioning products during shipping, reducing the possibility of damage to products in bulk shipments. The continuous growth of ecommerce along with the increasing number of shipments is expected to grow the demand for these protective packaging materials including dunnage air bags.  According to a Statista report, in the ecommerce market, the number of users is expected to amount to 3.6 bn users by 2029.
 

Dunnage air bag producers need to prioritize producing cost-effective, high-durability solutions for e-commerce logistics. With increasing online shopping and bulk shipping, the need to optimize air bags for improved cargo protection and regulatory compliance will fuel demand and market expansion.
 

Increased market demand for dunnage air bags is attributed to adherence to regulations and safety precautions in cargo transport. Several authorities and trade associations, including the U.S. Department of Transportation (DOT), International Maritime Organization (IMO), and Association of American Railroads (AAR), set policies that facilitate the proper transportation of goods which also requires the proper securing of cargo to reduce the risk of accidents and loss during shipping.  Hence, increased focus from governments and regulatory bodies on cargo safety is anticipated to generate demand for effective and compliant load-securing solutions, making dunnage air bags an essential part of the global logistics and transportation supply chain.
 

Dunnage air bag producers must develop regulatory-compliant, high-strength solutions to meet strict cargo safety requirements established by regulatory bodies such as DOT, IMO, and AAR. Enhancing compliance-led innovation will fuel uptake in international logistics and transportation markets.
 

Dunnage Air Bags Market Trends

• One of the most important trends that is influencing the demand for dunnage air bags is a shift towards more eco-friendly and cost-effective packages. Companies are trying to mitigate their carbon emissions that is fast becoming the norm when using dunnage air bags. Consequently, there has been a shift as many manufacturers of dunnage air bags now produce these airbags out of plastic kraft paper as well as polyethylene fabric which is biodegradable, recyclable and reusable. These innovations also comply with international environmental standards and promote corporate social responsibility.
   
• In December 2023, Kite Packaging launched its new line of eco-friendly dunnage bags. These bags are ideal for filling voids around goods by reducing the risk of damage and breakage. This dunnage air bags are made from kraft outer layer and a laminated inner polypropylene layer that ensures robust protection against punctures and moisture for multiple uses. These bags are also durable, reusable, and 100% recyclable.
   
• There is a clear shift in the dunnage air bags market towards evolution in the bag designs. The manufacturers are progressively moving to high-strength multi-layered air bags that have an increased resistance to punctures and extremely high pressures due to the use of reinforced polyethylene and kraft paper. Another emerging innovation is the smart dunnage air bag which includes pressure sensors along with automated inflation systems. These innovations facilitate the ability to monitor in real time and ensure that various types of cargo receive sufficient pressure without the risk of over-inflation.
   

Dunnage Air Bags Market Analysis

Based on material type, the market classification includes kraft paper dunnage bags, polywoven dunnage bags, vinyl dunnage bags, and others. The polywoven dunnage bags segment is anticipated to grow considerably due to its high durability, resistance to moisture, and cost-effectiveness.
 

• The polywoven dunnage bags segment is anticipated to surpass USD 305 million by 2034. The polywoven dunnage bags segment is expected to grow at a substantial rate owing to the increasing adoption across industries due to the unique benefits these bags offer. Polywoven dunnage bags consist of woven polypropylene (PP) fabric, which is more tensile and puncture-resistant compared to standard kraft paper-based dunnage bags. This is best suited for securing heavy or unusual-shaped cargo, minimizing damage, and transit delays. Automotive, chemicals, electronics, and food & beverage sectors heavily favor polywoven types for high-load shipments.
   
• Polywoven dunnage bags are also gaining popularity due to their ability to resist environmental factors such as moisture, extremely high or extremely low temperatures, and rough treatment. In addition, the bags help to increase brand reputation as they are easy to recycle or reuse and therefore help comply with environmental regulations and corporate sustainability goals. Subsequently, this has boosted adoption across industries needing long-lasting packaging solutions.
   
• The kraft paper dunnage bags segment, which accounted for USD 181.2 million in 2024.  The segment of kraft paper dunnage bags is expanding rapidly owing to the increasing demand for green and sustainable packaging options. Such bags are manufactured using ecofriendly and recyclable materials and thus they comply with international environmental standards and other corporate sustainability initiatives. Moreover, the enhanced cushioning capability and adaptability to secure cargo also supports the growth of kraft paper dunnage bags.  

Based on bag type, the dunnage air bags market is bifurcated into level 1, level 2, level 3, and level 4. Level 1 dominated the market due to its widespread use in securing light to medium-weight cargo, cost-effectiveness, and ease of handling.
 

• The level 1 segment dominated the market accounting for 31% market share in 2024. Dunnage bags are made in levels with each level catered to a specific weight category, where Level 1 dunnage bags specifically use light or medium weight cargo through the use of dunnage bags. In transportation and logistics sector, these bags are built using materials like kraft paper and polywoven fabric which provides cushioning during the transit period. Thus, increase in usage of economic and safe dunnage bags have accelerated the growth of level 1 dunnage bags.
   
• The level 2 segment is anticipated to reach a CAGR of 6.2% by 2034.  Level 2 dunnage bags are utilized for the transportation of intermediate to heavy cargo. The expansion of the Level 2 dunnage bags segment is fuelled by the growing needs of heavy load industries that demand functional and effective solutions for load securing.
   

Based on end-use industry, the market is bifurcated into automotive, aerospace, electronics, food & beverage, consumer goods, healthcare, logistics and transportation, and others.
 

• The automotive segment dominated the market accounting for USD 122.7 million in 2024.  The dunnage air bags market was led by the automotive sector owing to the high need for reliable and efficient cargo safeguarding during freight movement. Automotive parts like engines, transmissions, and body panels, are large, heavy, and fragile making reliable load stabilization necessary to mitigate potential damage. The increasing trade of automotive parts globally and the demand for just-in-time (JIT) production processes have further boosted the need for improved packaging and cargo protection.
   
• The electronics segment accounted for 16.5% market share in 2024. The electronic industry is contributing to the development of dunnage air bags because of the growing need for sensitive electronic parts to be transported safely and without damage. Moreover, the rapid growth of e–commerce and international trade of electronics have also enhanced the demand for effective protection targeted towards delicate items. The increase of automation and advanced level manufacturing is also a notable contributor in the growth of this segment as  industries like telecommunication, computer and industrial electronics have to ship precision instruments with minimal damage risks.

The North America market is forecasted to reach USD 309.4 million by 2034.Top of Form The region is witnessing a significant increase in the dunnage air bags market because of the growing demand for secure and efficient cargo transportation, stringent regulations on load safety, and the expanding e-commerce and logistics sectors.
 

• The U.S. market for dunnage air bags is predicted to reach USD 279.1 million by 2034. The rapid growth of e-commerce and logistics is propelling the growth of dunnage air bags in the U.S. market. Fedex, Amazon, and UPS are the dominant players in the e-commerce sector, and they are constantly managing a huge number of shipments. As the volume of shipments increases the need for securing cargo also increases. Furthermore, the growing use of intermodal transportation and the shipment of goods by trucks, rail, and ships as well as the need for cost efficient and damage prevention options is also supplementing the growth of dunnage air bags.   
   
• Dunnage air bags market in Canada is predicted to grow at a 2.3% CAGR by 2034. In Canada, the market is growing due to the country's high trade and transportation activities. There has also been an upsurge in the Canadian transportation business, particularly in rail and truck shipping, leading to greater use of dunnage air bags to avoid cargo damage during transport. Furthermore, the stringent policies of Transport Canada regarding safety of freight and securing of loads has made it mandatory for companies to implement better protective measures.
   

The Europe market is anticipated to reach USD 183.4 million by 2034. The dunnage air bags market in Europe is increasing because of strict compliance with European Union (EU) regulations on load securing.
 

• The dunnage air bags industry in Germany is anticipated to reach USD 53.9 million by 2034. As Germany has well-established manufacturing and export-based economy, the dunnage air bag market in Germany is on the rise. The country possesses some of the largest automotive, machinery, and industrial equipment companies, which all need secure transportation for their cargo.
   
• The increased export of high-value goods is fuelling the demand for effective securing solutions, and, in turn, the dunnage air bags market. Moreover, Germany's well developed logistics infrastructure that includes extensive rail and road networks facilitates efficient transportation of foreign goods throughout Europe, which further substantiates the market.
   
• The UK market is anticipated to expand with a CAGR of 4.8% by 2034. The market of dunnage air bags in the UK is expanding largely due to the increasing dependence on oceanic trade. The Port of Felixstowe, Port of Southampton, and the London Gateway have high volumes of international cargo which leads to a heightened demand for effective protection of the cargo. Furthermore, the development of last mile delivery and e-commerce logistics in the UK has increased the use of dunnage air bags, especially for brittle and expensive products.
   
• Dunnage air bags market in France is expected to grow at 3.9% CAGR by 2034. The expansion of market in France is driven by its strong aerospace and wine export industries.  Dunnage air bags are known to be one of the best solutions to protect delicate and high value shipments in France, which is a leading exporter of aircraft components and luxurious wines.
   
• Dunnage air bags market in Italy accounted for 13.2% of the global market share in 2024. Italy is renowned exporter of fashion items, perishable foodstuffs, and ceramics. Thus, the dunnage air bags industry is growing in the country owing to the rising exports in these sectors. In addition, Italy is spending more on smart warehouses and logistics automation which is driving the adoption of dunnage air bag systems that are more sophisticated and mesh with modern cargo handling equipment.
   
• The Spain market is anticipated to expand with a CAGR of 2.1% by 2034. Dunnage air bags market in Spain is growing as a result of increased agricultural exports from the country. The adoption of dunnage air bags for agricultural exports is increasing as shippers look to protect crops from being damaged during shipping.
   

The Asia Pacific market is anticipated to reach USD 287.4 million by 2034. The region holds a significant share in the global market because of the rapid expansion of manufacturing and export activities.
 

• The dunnage air bags market in China is anticipated to reach USD 118.4 million by 2034. China has maintained rapid growth in the dunnage air bags industry due to its position as a leader in global trade, as well as manufacturing. In addition, the expansion of logistics through Belt and Road Initiative (BRI) has increased the need for more sophisticated methods for securing the load throughout Asia, Europe, and Africa.
   
• Dunnage air bags market in Japan held 15.2% market share in 2024. Due to its developed manufacturing base, especially in the high-value-added segments of the automotive, robotics and precision electronics, Japan’s market is on the rise. As Japan trades a large fraction of its industrial goods globally, there has been increasing demand for enhanced load-securing products such as dunnage air bags.
   
• The India dunnage air bags market is anticipated to expand with a CAGR of 7.1% by 2034. The growing market for dunnage air bags in India is a result of the increased investment in the country’s logistics and warehousing sector.  According to the report of Indian Brand Equity Foundation (IBEF) India’s logistics sector is predicted to growth at 10%-12% year-on-year growth rate. Furthermore, the growth of multi-modal transport has increased the need for dunnage airbags to be used during transit.
   
• The increase of organized e-commerce and retail in India has also contributed to the demand. Companies like Flipkart and Amazon India have significantly increased their supply chain networks, increasing the need for effective measures to protect cargo safety.
   

Latin America dunnage air bags market is forecasted to grow at a CAGR of 2.5% by 2034. Latin America is witnessing growth in market owing to increasing expansion of regional trade agreements and rising exports of agricultural and industrial goods. Dunnage air bag use is increasing in Latin America as the region’s exports of agricultural and perishables goods continues to rise. Brazil, Argentina, and Chile export ample amounts of fruits, vegetables, coffee, and meat which require proper packaging to avoid damage during long haul shipment. Therefore, the use of dunnage air bags has become vital in dry cargo and refrigerated container shipments
 

MEA dunnage air bags market is forecasted to grow at a CAGR of 3.6% by 2034. The market for dunnage air bags in the MEA is on the rise owing to the growth of the oil & gas, petrochemicals, and industrial equipment markets. Moreover, with developed ports and bandwidths on the railways, several African countries are furthering their trade under the African continental free trade area (AfCFTA) which is expected to grow the dunnage airbag market significantly. 
 

Dunnage Air Bags Market Share

Cordstrap B.V, Signode Industrial Group LLC, Litco International, Inc., Atlas Dunnage, and Bulk-Pack, Inc., are the top 5 players in the dunnage air bags industry, together accounting for about 28% of the market share. These companies are seeking new markets to expand their reach through mergers and acquisitions in order to improve their supply chain and distribution network. They are focusing on innovation by investing in R&D for the development of new dunnage air bags which are made from eco-friendly and sustainable biodegradable or recyclable materials reflecting the global need for sustainability in packaging. Companies like Cordstrap B.V. and Signode Industrial Group LLC are investing in the latest technologies to manufacture durable and high strength dunnage air bags with maximum load stability. In addition, these companies are also introducing new digital transformation initiatives such as automated filling systems with self-monitored cameras for improved operational efficiency and improved cargo safety during movement.
 

Dunnage Air Bags Market Companies

Some of the prominent market participants operating in the dunnage air bags industry include:

• AB Air bags
• Atlas Dunnage
• Bulk-Pack, Inc.
• Cargo Tuff LLC
• Cordstrap B.V
• Eltete TPM Ltd.
• G&H GmbH Rothschenk
• Green Label Packaging
• International Dunnage
• Litco International, Inc.
• Packbest Air Packaging Co.
• Phoebese Industrial
• Plastix
• Signode Industrial Group LLC
• Southern Bracing Systems
• Tianjin Orville Modern Packing Products
   

Cordstrap B.V. specializes in the provision of cargo securing solutions, which includes the manufacture of dunnage air bags. The company designs lightweight, recyclable Dunnage bags, to preserve high quality at a reasonable price while ensuring reliable load rest during transportation. Cordstrap leverages technology to organize and track dunnage air bag production for specific clients and other shipping customers. This enables the firm to design dunnage air bags that conform to their clients' stringent shipping demands. To uphold their position on the market and provide value to the clients, Cordstrap has a well-developed distribution network in Europe, Asia, and North America. Further, Cordstrap provides digital monitoring of the containers to ensure safety of cargo and achieve better economics.
 

Signode Industrial Group LLC is one of the market leaders in high performance dunnage air bags. The company has a diverse portfolio of products that include dunnage air bags that can sustain different pressure ranges and help to secure shipments in railcars, trucks and ocean containers. Signode's core competence lies in strapping and stretch films, which it incorporates into its dunnage air bags as value added features to increase the product's aerodynamic capabilities.
 

Dunnage Air Bags Industry News

• In May 2024, Shur-Co a portfolio company of Behrman Capital and manufacturer of cargo covering and control systems acquired AB Airbags, a supplier of dunnage airbags. This acquisition aims to expand existing product categories of Shur-Co by leveraging a strong reputation and deep expertise of AB Airbags.
   
• In February 2024, PackBest introduced a new air dunnage bag for the transportation and logistics sector. This new bag is crafted from a blend of kraft paper, PP, and PE. The outer layer made from kraft paper and PP woven composite material enhances its strength safeguarding cargo during ocean, rail, and truck transportation.
   
• In March 2024, Allpack, at the MACH Exhibition, launched its latest dunnage bag solutions under the Contain-A-Pac brand. These bags are designed to enhance cargo protection, ensure load security, and reduce movement during transit. The Contain-A-Pac range focuses on durability and efficiency, specifically catering to sectors like logistics and manufacturing.
   

The dunnage air bags market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Million) and Volume (Kilo Tons) from 2021 – 2034 for the following segments:

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Market, By Material Type

• Kraft paper dunnage bags
• Polywoven dunnage bags
• Vinyl dunnage bags
• Others

Market, By Bag Type

• Level 1
• Level 2
• Level 3
• Level 4

Market, By End-use Industry

• Automotive
• Aerospace
• Electronics
• Food & beverage
• Consumer goods
• Healthcare
• Logistics and transportation
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy 
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE