Molded Pulp Packaging Market Growth & Trends
The global molded pulp packaging market size is expected to reach USD 9.11 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 7.4% during the forecast period. The growing demand for environment-friendly sustainable packaging by end-users, rising awareness toward waste management, and environmental concern on single-use plastic are attributed to be the key drivers of the market for molded pulp packaging.
The escalated production and consumption of plastic has become a major global environmental problem due to inefficient waste management systems. According to a United Nations Principles for Responsible Investment (UNPRI) report, less than 20% of the world’s plastic gets recycled yearly. Plastic is a non-biodegradable substance, resulting in environmental pollution wherein the world’s 40% of plastic waste comes from packaging. Therefore, end-use industries are moving toward sustainable packaging approaches, considering this global issue.
Lately, molded pulp packaging was limited to egg trays, and some basic packaging; however, the demand has increased considerably due to its sustainable properties. Molded pulp packaging is completely renewable and biodegradable as it is made from various plant-based fibers.
The COVID-19 pandemic in 2020 created a positive impact on the molded pulp packaging sector, owing to the increased demand for eggs from the retail segment, followed by rising demand for home deliveries of fresh food, and fruits & vegetables. According to a report by the Council on Foreign Relations, Walmart’s online sales grew by 87 percent, while Amazon experienced a 200 percent increase in profits during the pandemic.
Also, the National Representative Survey stated that 34% of households conducted grocery shopping online more frequently since the beginning of the pandemic, and 60% of these households planned to continue shopping online after the pandemic ends. The rise in online shopping increased the demand for packaging material for safe delivery. However, shortages of raw materials owing to supply chain disruptions have increased the prices of the packaging products.
The industry players are adopting several strategies including mergers & acquisitions, joint ventures, and partnership agreements to increase the customer base and individual market share. For instance, in January 2020, Sonoco Products Company acquired Plastique Holdings, Ltd., and Thermoform Engineered Quality LLC, together known as TEQ, a manufacturer of thermoformed packaging products. It was acquired from ESCO Technologies, Inc. for USD 187 million. This acquisition has further widened the product offerings of Sonoco Products Company.
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Molded Pulp Packaging Market Report
Molded Pulp Packaging Market Report Highlights
- The wood pulp segment dominated the market with a revenue share of 86.2% in the source segment in 2021. The abundant availability of virgin wood and wastepaper at a lower cost is responsible for the highest share of the segment in 2021
- The transfer type segment accounted for the highest share of 57.3% in 2021 owing to the high penetration of transfer molded pulp products such as clamshells and trays for fruits and eggs packaging
- Trays emerged as the dominant product segment with a revenue share of 41.6%. Wide availability, low cost, and good shock absorption capabilities for transport of fragile products including glass beverage bottles, wine bottles, eggs, and other glass products have contributed to the highest share of the segment
- The electronics end-use segment is anticipated to advance at the highest CAGR of 8.8% during the forecast period. Several electronic products such as modems, set-up boxes, refrigerators, inverters, and printers are packaged using molded pulp packaging products such as end caps. End caps protect electronic products during storage and transportation
- New product developments coupled with mergers & acquisitions, and capacity expansions are some of the strategies adopted by industry players. For instance, in December 2019, Huhtamaki launched a packaging product line called Future Smart Duo Fiber Lid, suitable for cold and hot beverages. It is a sustainable packaging solution produced using a mixture of bagasse and wood fibers
