Foam Packaging Market Analysis

Foam Packaging Market Analysis

Flexible foam packaging was largest product segment and accounted for close to 60% market share in 2018. Rapidly growing e-commerce industry is fueling foam packaging demand from past several years as it used for packaging of electronics and other consumer durables. For instance, worldwide consumers have spent over USD 2.9 trillion on online sales and this spending is likely to grow with a CAGR over 17% in coming years. This high growth in the e-commerce market is likely to boost the foam packaging demand over the forecast period.

Polyurethane foam packaging usage for electronics and automotive packaging is likely experience healthy growth owing to its properties such as high strength, flame retardancy and high temperature resistance. Rapidly growing automotive industry in Asia Pacific due to increasing disposable income and low-cost production in the region expected to accelerate foam packaging demand over the forecast period. Automotive production in countries such as China has seen over tenfold growth in last two decades. This exponential growth in the automotive production is expected to drive the market demand over the forecast time period as it is used for the OEM and other automotive parts packaging in the industry. Steadily growing food & beverages industry across the globe on account of increasing populating and changing lifestyle is expected to drive the flexible foam packaging market growth during the forecast timespan.
 

Electrical & electronics industry has been experiencing consistent growth from past several years. This can be attributed to the introduction of new technologies in the industry such as face recognition, fingerprint sensors, 4G, etc. Furthermore, increasing automation in the industry has resulted into the reduced product prices due to which electronics gadgets has seen exponential demand growth from emerging economies such as India, South Africa, Indonesia and Brazil, which are middle income, cost-sensitive markets. Growing demand for electronics shall have positive impact on the foam packaging demand during the projected time period. Personal care was the one of the major industries in the market and expected to exhibit healthy growth in coming years. Increased focus on aesthetics and appearance will augment the foam packaging industry size.
 

Asia Pacific was the largest region in foam packaging market demand in 2018 and accounted for more than 40% share in the same year. This can be attributed to the high automotive and electrical & electronics production in the region due to the cost competitive labor and abundant availability of raw materials along with favorable government policies. According to the OICA, Asia Pacific accounted for over 60% automotive production in the world. China was the largest automotive producer in the world, with whopping global market share of over 30%. China is also the global manufacturing hub of the electrical and electronics products and largest exporter of the same. This high production of automotive and electrical & electronics in the region shall have positive impact on the foam packaging demand over the forecast period. North America was another major region in the market and expected to grow with CAGR over 3.6% in next few years.