Dunnage Packaging Market Report Scope & Overview:

The Dunnage Packaging Market size was USD 4.08 billion in 2023 and is expected to Reach USD 6.55 billion by 2031 and grow at a CAGR of 6.1% over the forecast period of 2024-2031.

The market growth is expected to be driven by increased demand for sustainable and green packaging solutions, which are more cost effective than disposable packaging in the coming years. The product is an integral part of the recycling and reuse packaging sector, which allows businesses to use the same packaging frequently over a period of time, thus optimising the cost of packaging a product.

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The global market for plastic corrugated products dominated in 2022 on the basis of raw materials. This segment is projected to increase in speed thanks to packaging's capacity for control of abrasion, vibration, corrosion, humidity and electrostatic discharge. Over a period of between 2024 and 2031, compound annual growth rates. The flexibility and resistance to impact is provided by the cortan resin. Made from polypropylene (PP) or polyethylene (PE), corrugated plastic is not only environmentally friendly compared to molded plastic packaging but can also be sewn, stapled, cut or heat-sealed to  fit any shape . packaging formula. dunnage solution.

MARKET DYNAMICS

KEY DRIVERS:

• Increased awareness about its benefits of dunnage packaging

Dunnage packaging, which is an eco-friendly packaging solution that is expected to accelerate the growth of the market, offers a number of advantages, such as allowing new design and flexibility, cost effectiveness, good cushioning, and it is an environmentally friendly packaging solution. In addition it helps to create thinner packaging of components, while protecting their structure and reducing handling and road transport costs, which increases the total market growth.

• The growth and development of different end user verticals, e.g. automotive

RESTRAIN:

• Restrictions across various regions to hinder the market growth and expansion

The different environmental conditions in the region and the compatibility of the packaging in the region, which challenge.

• The increased need for high initial investments

OPPORTUNITY:

• ECommerce Growth and Last Mile Delivery Optimization

There is growing demand for effective and reliable packaging solutions in the transit of products, as e.commerce continues to grow. By guaranteeing the safety of shipping and minimising product damage during transit, envelope packaging can offer opportunities to optimise last mile delivery.

CHALLENGES:

• Cost pressures and pricing volatility

The challenges are the volatility of commodity price fluctuations and the pressure on costs to be reduced while maintaining quality. The overall costs of dunnage packaging are affected by price fluctuations in materials, e.g. plastic, wood or metal, which affect profit margins and market competitiveness.

IMPACT OF RUSSIAN UKRAINE WAR

In Europe, the effect of war is being felt particularly strongly. The most important market for dunnage packaging in the world is Europe, accounting for more than 40% of worldwide demand. The war caused disruption to the shipping lines, leading to a downturn in Europe's economy. The demand for dunnage packaging in the area was therefore reduced. The Russian and Ukrainian markets for dunnage packaging are also affected by the war. A major producer of dunnage packaging is Russia and Ukraine. The war led to production interruptions in those countries and the export of dunnage packaging has been adversely affected. This led to the fact that Russia and Ukraine, which relied heavily on imports from these countries, had a shortage of dunnage packaging. Since the beginning of the war, wood prices have increased by more than 50 % as a crucial ingredient in dunnage packaging. As a result, the packaging of dunnage has become more expensive to manufacture.

IMPACT OF ONGOING RECESSION

The commonly used packaging material in the Dunnet sector is wood, plastic and paper but prices of those raw materials have been rising sharply recently. This increase in costs will cause dunnage packaging to be more expensive, which can result in a fall in demand. However, in view of the recession some factors are expected to contribute to the growth of the dunnage packaging market. An increasing demand for e commerce is one of these factors. This is due to the fact that consignments are typically more delicate than traditional deliveries, which means an increased demand for dunnage commerce packaging. However, the market growth is expected to decelerate in the short term as a result of the recession. One of the major reasons for this expected slowdown is a decline in industrial production.

KEY MARKET SEGMENTS

By Material

• Aluminum

• Corrugated Plastic

• Fabric

• Foams

• Corrugated Paper

• Molded Plastic

• Steel

• Wood

• Others

With more than 32% of worldwide revenues in 2023, the corrugated plastic segment led the market. Corrugated plastic is a low-cost material that enables the creation of custom packaging solutions for any type of container, thus offering flexibility in its design. The demand for this material is expected to increase further due to its different characteristics, such as water resistance and density of components in a single container.

By Product Type

• Dunnage Air Bags

• Dividers

• Inserts

• Packaging Peanuts

• Others

By End Use

• Electronics

• Consumer Durables

• Automotive

• Food & Beverage

• Healthcare

• Aerospace

• Others

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The dunnage packaging market was dominated in 2023, with over 33 % of total revenue accounted for by the Automotive end use segment. The automotive industry has chosen to go with packaging solutions offering end of life protection for the most expensive components and goods. A significant proportion of the automotive shipping and logistics packaging solutions consist of products, such as engines, decorative interior items or other small mechanical components.

REGIONAL ANALYSIS:

The Asia Pacific region accounted for more than 38 % of global revenue in 2023 and is expected to maintain its dominance over the forecast period , registering the fastest compound annual growth rate. This growth is underpinned by growing demand from economies, such as China and India, for recycled packaging solutions which ensure the security of products in packaged form, some degree of sustainability and reduced costs.

The regional market is likely to be further stimulated by the growing use of recyclable packaging in food & beverages, healthcare and fast-moving consumer goods industries. Other factors are expected to boost demand for product wastage in the Asia Pacific, which include rising use of multiuse packaging rather than single twinning solutions, continued industrialisation, increasing consumer awareness about green materials and sustainable packaging as well as reduced packaging.

In 2023, it was estimated that the market in North America will hold the market share of around 22% and is anticipated to grow at a stable rate over the coming years. Increased market growth in this region is expected to be driven by increased demand for cardboard fibre products from the industry sectors of aircraft, electronics and cars because of its excellent load stabilizer capacity.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America  

Key Players

Some major key players in the Dunnage Packaging market are Orbis Corporation, Corplex, Ckdpack, Packaging Corporation of America, Salco Engineering and Manufacturing Co., Inc, Interior Packaging Design, LLC., NEFAB GROUP, Dunnage Engineering, JIDA Industrial Solutions, Schoeller Allibert and other players.

Orbis Corporation-Company Financial Analysis

RECENT DEVELOPMENT

• Orbis Corporation announced in May 2023 that it was launching a new addition to its BulkPak container line.

• Corplex announced the launch of AkyPAK PPO and Drop Container in May 2022, both designed to be reused and easy to fold.