Foam Packaging Market demand is forecast to surpass USD 15.7 billion by 2026; according to a new research report by Global Market Insights Inc.
Escalating medical & pharmaceutical industry in Asia Pacific will boost the market growth over the forecast period. Increasing aged population and medical tourism will boost the medical & pharmaceutical industry growth in the region. Many patients from the developed economies prefer to take treatment in India and other Asian countries due to the quality medical facilities in these countries along with affordable price, as healthcare facilities in the developed countries such as the U.S., UK and Germany are very costly. Thus, indispensable use of foam is in the packaging of medical devices and equipment will complement growth.
Rigid foam packaging market will be driven by the growing automotive and OEM industry
Rigid foam packaging is highly used for the OEM and automotive packaging due to its high strength and impact resistance. Steadily growing automotive & OEM industry will propel its demand over the forecast period. Growing automotive production across the globe has been fuelling the foam packaging demand from past few years. For instance, according to the OICA U.S. automotive production has increased from 5.7 million units in 2009 to over 11.3 million units in 2018. This healthy growth in the automotive industry expected to boost the rigid foam packaging industry growth over the forecast period.
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Browse key industry insights spread across 220 pages with 248 market data tables & 22 figures & charts from the report, “Foam Packaging Market Size By Product (Rigid, Flexible), By Material (Polystyrene, Polyurethane, Polyvinyl Chloride), By Industry (Food & Beverages, Medical & Pharmaceutical, Aerospace & Defense, Electrical & Electronics, Automotive, Consumer Packaging, Personal Care), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2026” in detail along with the table of contents:
Polystyrene foam to witness healthy growth
Polystyrene material demand will grow with a CAGR over 4% in near future. This can be attributed to its low prices compared to the other materials, due to which cost sensitive regions such as Asia Pacific and LATAM are registering high demand. Moreover, increasing usage of polystyrene in the food & beverages industry due to the lightweight is expected to boost its overall foam packaging business size in the coming years.
Growing e-commerce industry will fuel demand for electronics & consumer goods packaging applications
Growing e-commerce and retail industries across the globe are expected to boost demand for electronics and consumer goods packaging in the coming years, as it is used for the packaging of electronic gadgets and consumer durables. Growing urban and middle-income group population is anticipated to boost the retail and e-commerce industry growth in the near future.
North America will be driven by the automotive and food & beverages industry
North America was the one of the major region and accounted close to 20% share in foam packaging market in 2018. Steadily growing automotive and food & beverages industry in the region expected to drive demand in the coming years. Furthermore, massive fast food industry in the region on account of fast-moving lifestyle and high per capita income shall have positive impact on the market growth over the forecast period.
Merger & acquisition is the major strategy adopted by the companies
Companies operating in the foam packaging market share are focusing on merger and acquisition to increase their customer base and product portfolio. For instance, in July 2019, Huntington Solutions, announced that it has acquired Texas Foam, a major company in the U.S. This acquisition will help company to increase its reach across North America. Other major companies operating in the industry are BASF, Smurfit Kappa, SABIC and Armacell.
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