Foam Packaging Market revenue is expected to exceed USD 15.7 billion by 2026. Booming automotive industry coupled with electrical & electronics industry in Asia Pacific shall propel the market growth.
Some major findings of the foam packaging report include:
- Rapidly growing automotive production in Asia Pacific shall propel foam packaging market growth over the forecast period
- Growing e-commerce industry across the globe anticipated to boost demand for electrical & electronics and consumer packaging applications
- Increasing demand for fast and ready to eat food shall drive the foam packaging market growth in coming years.
- Major companies working in the market are BASF, Smurfit Kappa, SABIC, UFP Technologies, Armacell, Greiner and Foam Partner.
- Companies are engaged in merger & acquisition and new product development strategy to gain more market share
Aerospace and defense were the one of the fastest growing industry in foam packaging market in 2018 and shall exhibit gains of 4.3% CAGR by 2026. Growing defense expenditure by the major countries such as U.S., China, India, Japan, etc. will boost aerospace and defense industry growth over the forecast period. In the aerospace industry, the product is used due to its various properties such as shorter packaging time, minimal damage, long lasting and durable. Growing aircraft manufacturing due to the increasing civil aviation and defense industry will fuel demand in the coming years. For instance, according to Stockholm International Peace Research Institute (SIPRI), global defense expenditure in 2018 was USD 1,822 billion in 2018, which has seen 2.6% growth from the 2017. Increasing threat of terrorism and tension between Asian countries as well U.S. and China is expected to boost the defense expenditure further in near future.
Polyurethane foam packaging has been experiencing healthy growth numbers from past several years and expected to grow with a 4.1% CAGR during the forecast timespan. It is highly used in the electronics, personal care and consumer packaging owing to its low cost compared to its counterparts.
Flexible foam was the largest product segment in 2018 with a market share over 55%. Its anti-static feature makes it most preferred packaging option for electronics, medical equipment, automotive parts, personal care, etc. Rapidly growing e-commerce industry across the globe will complement the flexible type demand over the forecast period.
Medical & pharmaceutical industry is expected to grow with a CAGR over 4% over the forecast period. High healthcare expenditure in the developed countries is expected fuel the foam packaging industry growth in the coming years. For instance, according to the MedTech Europe, European countries spent on an average approximately 10% of their GDP on healthcare. Medical industry in Europe is the second largest after U.S., growing expenditure in this industry expected to drive the demand in during the forecast timespan.
Middle East and Africa has accounted over 10% share foam packaging market in 2018 and expected to growth with a CAGR over 4% during the forecast period. Growing food & beverages, consumer packaging, automotive and electronics industry on account of increasing population and consumer spending power in the region were the major attributed behind industry growth. According to the Gulf Food Outlook, Middle East and Africa soft drink market is projected to grow with a CAGR 4.9% and hot drinks 5.7% CAGR. Foam is a good thermal insulator due to which highly used for the food & beverages packaging. It keeps food or beverages at the temperature when it filled into the it, whether hot or cold.