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The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic

Market Overview

The insulated packaging market was valued at USD 13.47?billion in 2019?and is expected to reach USD 18.63?billion by 2025,?registering a CAGR of 5.55% during the forecast period of (2020-2025). Thermal abuse is a primary concern during the distribution of temperature-dependent goods in various end-user industries such as food and beverage, pharmaceuticals, electronics, etc. Due to the damage and wastage caused by inadequate temperature, the demand for insulated packaging is growing as it maintains temperatures within the packaging and helps slow down the rate of deterioration of goods during distribution.

  • Moreover, ease of fabrication and transportation, cost-effectiveness, good mechanical strength and high resistance to heat transfer, are some of the features possessed by these materials, which are facilitating the growth of the insulated packaging market.
  • Also, a rise in participation by companies to sustain market interest, coupled with growing government funding, is projected to drive the market over the forecast period. Further, the increase in the consumption of temperature-sensitive goods such as pharmaceutical products, beverages such as alcohols, fresh fruits, and vegetables, etc. is also increasing the demand for insulated packaging.
  • Furthermore, the rise in e-commerce websites for food and beverages and medicines is proliferating the need for delivery of perishable goods without any wastage. This is further increasing the adoption of insulated packaging by online grocery stores across the globe.
  • However, the costs associated with the use of these packaging materials such as the maintenance costs involved are also increasing, hence restricting the market growth. Also, certain government regulations regarding the use of packaging materials such as plastics and paper packaging are hindering the market growth rate.

Scope of the Report

Insulated Packaging is a type of packaging used to ship temperature-sensitive products such as foods, pharmaceuticals, organs, blood, biologic materials, cosmetics, and chemicals. They are used to help maintain product freshness and efficacy. It is also known as an insulated shipping container. The packaging controls and documents the temperature of a product throughout its entire distribution cycle.

Key Market Trends

Food and Beverage Industry to Show the Maximum Application

  • Food and Beverage application in the insulated packaging market are expected to grow significantly in the forecast period (2019 - 2024). The growth rate may be due to factors such as a rise in demand for packaged food and increase in ready-to-eat food consumption.
  • Also, increasing working demographics, and the changing lifestyle and increasing awareness for a healthy lifestyle of people are proliferating the growth of packaged food and online grocery shopping trends.
  • Due to the increasing trends of packaged foods and online grocery shopping, the trend of buying perishables online is also increasing, giving rise to the need for shipment and storage of perishables in a thermally controlled environment.
  • Nearly one-third of digital grocery shoppers in the Netherlands, the UK, Germany, and France had groceries delivered at least once in a week in 2018, according to a study published by Capgemini in 2019.
  • Another important characteristic of insulated packaging is that the container protects the contents from being crushed or squeezed. The products will be safe inside an insulated container.

North America Region Expected to Dominate the Insulated Packaging Market

  • The North America region is expected to dominate the global insulated packaging market. The increasing number of food retail chains and their expansion, and the growing e-commerce industry are certain factors expected to increase the market demand in the region.
  • Also, the presence of major giants such as Amazon and Walmart has significantly changed the buying trends of the grocery shoppers in the U.S. For instance, According to a study from the Retail Feedback Group, 31% of US digital grocery shoppers claimed that they purchased online groceries from Amazon in 2018. Also, 33% of shoppers claimed that they purchased online groceries from Walmart in 2018, which is a 7% increase as compared to 2017.
  • Also, the ability to prevent damage to temperature-sensitive products like pharmaceuticals, foods, and cosmetics, insulated packaging commands a noticeable presence in several high-growth industries in the region like healthcare, food, and beverage, etc. This factor is expected to drive the North America insulating packaging market in the forecast period.
  • Also, the government regulations in the region, for instance, the food-contact packaging sector of the U.S. is highly regulated by the Food and Drug Administration (FDA). With food being one of the most sensitive products to transfer and store, the regulations are expected to promote adoption of insulated packaging such as insulated food bags considerably.

Competitive Landscape

The global insulated packaging market is considerably fragmented owing to many packaging solutions providers introducing insulated packaging in their product line and prevent the new entrants to enter the market. The companies are investing in their R&D to develop innovating packaging solutions so that their solutions cater to the needs of the growing demands of various end-users. A significant number of instances of mergers and acquisitions are also seen as a step towards increasing the market share.

  • August 2019 - Airlite Plastics Co. acquired a business unit of an insulated packaging maker Providence Packaging Inc., known as Kodiakooler. The acquisition is expected to help Airlite expand their firm’s industry presence and product line offering of sustainable and innovative packaging for temperature-sensitive products.
  • August 2019 - NIKU Farms became the first meat company to bring ground-breaking Green Cell Foam insulated packaging to Canada for its farm-to-door meat subscription boxes. The step was taken by the company to provide a packaging material that is compostable, biodegradable and water-soluble. The primary raw material is non-GMO cornstarch, a renewable resource.

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