Automotive Parts Packaging Market Is Expected to Expand at a CAGR of 4.0% During the Forecast Period 2017-2027
Friday, February 08, 2019
Press release from the issuing company
According to the latest report the disposable packaging segment will remain the largest contributor to the global automotive parts packaging market during the forecast period, 2017-2027. Global sales were valuated at around US$ 7 Bn in 2017, which are reportedly expected to cross US$ 10 Bn by the end of 2027 at a moderate CAGR of 4.0%.
In addition to ever increasing demand of automobiles and after sales components market globally, continuous research and development in the packaging technology has increased the applicability of the packaging in the automotive sector. For instance, Sealed Air Corporation launched Opti NX shrink films recently in 2016 which possess improved tear resistance properties and enables the application of shrink films on irregularly shaped products. Technological development in production technology has led to the sufficient availability of disposable packaging products. Disposable packaging in automotive sector is driven by the adoption of sustainable development by large number of companies as one of the highly effective marketing strategy. These factors have driven the demand of automotive packaging globally.
In terms of volume, protective packaging is estimated to account for more than one-third of the global automotive parts packaging market. Large amount of protective packaging is incorporated due to high involvement of fragile electrical and electronic components required in automobiles. Since, protective packaging is incorporated only once and then discarded, large volume of waste is generated due to protective packaging. Moreover, the cost of protective packaging produced from non-biodegradable plastics is much lower as compared to that of biodegradable materials, leading to large volume of non-biodegradable waste generated globally. Corrugated packaging products are high in requirement due to huge applicability, light weight, high strength along with biodegradable nature. On the other hand, the trade of pulp for the production of corrugated packaging products has been affected by several political and regulatory barriers. These factors have affected the global market for automotive parts packaging.
The undesirable investment made on the transportation of packaging only has uplifted two of the key trends in automotive parts packaging market. Sealed Air Corporation developed inflatable bubble wrap and introduced it to the global market in 2017. As bubble wraps account for a large volume of air trapped in it, the transportation and storage of it requires huge space conventionally. The air can be released from the inflatable bubble wraps while transporting or storing and it saves on the investment made on the cost of handling. Disposable packaging is produced with the aim of one-time usage only, which saves in the investment made on the return of empty packaging. Also, development in the production technology has resulted in high availability of disposable packaging at low cost.
In terms of regional market scenario, China is the largest automotive industry in the world, as well as the fastest growing as compared to other countries. Although a large number of packaging providers are already established in the Asia Pacific region providing packaging solutions at competitive prices, global leaders of packaging industry has opportunity to penetrate in the China automotive industry and rise with the huge opportunity created with the help of highly developed packaging solutions. R&D investments by packaging providers of Asia Pacific region is much lower as compared to the competitors in Western Europe and North America region. The competition in packaging industry of China is thus focused on conventional packaging products rather than developing product specific innovative packaging solution. Moreover, development in material science has resulted into a large variety of economic bio-degradable plastics that can be incorporated for manufacturing of disposable automotive parts packaging. The automotive industry is shifting towards the adoption of disposable packaging due to its several advantages over reusable packaging. This has created attractive opportunities in the global automotive parts packaging market.
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This research report assesses some of the key players operating in the global automotive parts packaging market include Sealed Air Corporation, Mondi Group Plc, DS Smith Plc, Sonoco Products Company, Smurfit Kappa Group, Deufol SE, Encase Ltd., The Nefab Group, Primex Design & Fabrication Corporation, Sunbelt Paper & Packaging Inc., Loscam Australia Pty Ltd., CMTP Packaging Pty Ltd, JIT Packaging Inc., Pratt Industries, Inc., Signode India Ltd., Pacific Packaging Products, Inc., Monoflo International, Inc., Victory Packaging L.P., Knauf Industries, and Schoeller Allibert Services B.V.
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