Packaging Foams Market Analysis

Global Packaging Foams Market Overview

Packaging Foams Market Size was valued at USD 17.50 Billion in 2023. The Packaging Foams Market industry is projected to grow from USD 18.64 Billion in 2024 to USD 29.00 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.68% during the forecast period (2024 - 2032). Rapid technological advancements in product packaging and an increase in the popularity of online shopping are the key market drivers enhancing market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Packaging Foams Market Trends

• 
  

  The growing demand from the packaging industry propels market growth.

  
  

Market CAGR for packaging foams is being driven by the increasing demand from the packaging industry. Expanded polypropylene foam is environmentally friendly. It is completely non-toxic and easy to recycle. Polypropylene recycling is rapidly becoming a viable and cost-effective solution on a large scale. Furthermore, the broad range of properties of EPP foam, including as its superior energy absorption, water and chemical resistance, hygienic nature, simplicity of handling, and recyclability, make it a perfect material for food packaging. The rising demand for packaged goods has resulted in significant expansion in the food packaging industry ly.

EPP foams are commonly utilised to construct reusable industrial packaging, often known as dunnage, due to their robustness and natural capacity to absorb energy during travel. Containers, cold-chain transport boxes, and fast-food packaging are in great demand in places such as North America, Asia-Pacific, and the Middle East. Infinity and London Bio Packaging, a trading branch of BunzI UK Ltd., are working on a new invention in sustainable food-to-go PP packaging to provide a totally recyclable option with a microwaveable low carbon footprint that keeps food hotter for longer.

Furthermore, in the previous three years, the popularity of meal delivery surged by 39%. This is expected to result in a rise in packaging demand in the near future. Because of the packaging industry's exponential growth and growing awareness and use of green packaging, it is expected that the growth of e-commerce, the food packaging sector, and online business would favour the packaging foam market in the next years.

Packaging Foams Market Segment Insights

Packaging Foams Material Type Insights

The  Packaging Foams Market segmentation, based on material type includes polyolefin foam, polyurethane foam and others. Polyurethane category is expected to grow at a CAR of 5.27% and currently owns the biggest market share. Packaging commonly makes use of flexible polyurethane foams. Structure exists in open-cell polyurethane (PU) foams. Air freely travels between the cells of PU foam, making it extremely stress-absorbing. Because of its sponge-like feel, polyurethane is an excellent vibration-dampening material. The shine of PU varies in strength depending on the quality. Case inserts are commonly used in conjunction with it. Polyurethane foam eliminates the drawbacks of vinyl films while combining the greatest qualities of plastic and rubber.

Packaging Foams Structure Insights

The  Packaging Foams Market segmentation, based on structure, includes rigid foam and flexible foam. The flexible foam category is predicted to have the greatest market share. It is ideal for particularly sensitive objects such as computer parts, fruits, electronic components, and jewellery. The world population is predicted to grow at a high rate, mostly in key emerging countries such as China and India, and the rate of urbanisation is expected to rise, increasing demand for food and gadgets. Flexible packaging foam demand is predicted to be driven by an increase in consumer income for spending on consumer products and exposure to current retail channels.

Figure1:  Packaging Foams Market, by Structure, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Packaging Foams Service Type Insights

The  Packaging Foams Market segmentation, based on service type, includes protective packaging, food service and others. The protective packaging category is projected to hold the market's dominating position. Packaging foams are most commonly used to protect goods in transit and against mechanical damage. Because of the stability requirements for storage and transportation, industrial items are offered in packages. Increased adoption of industrial electronics items via e-commerce, as well as demand for packaging foam for safe delivery, are projected to drive market expansion.

Packaging Foams End-User Insights

The  Packaging Foams Market segmentation, based on end-user, includes food and beverages, medical and pharmaceutical, automotive, aerospace and defense, personal care, electrical and electronics, consumer packaging and others.  During the forecast period, the food and beverages category is predicted to be the largest end-use industry for foam packaging. Foam packing is commonly used in the food and beverage sector to package a variety of food items, including fruits and vegetables, meat and poultry, and others. The growing demand for packaged food and beverages, owing to consumers' busy lifestyles, is likely to drive the growth of the food and beverage industry's foam packaging market over the forecast period.

Packaging Foams Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Packaging Foams Market area will dominate this market, owing to growing number of services, such as Amazon Fresh; allow users to purchase fresh veggies without ever leaving their homes. The bulk of food and beverage processing facilities in New York are also wineries, establishments for the processing of food and beverages, and facilities for the processing and slaughter of animals. In turn, packaging foam's market is expanded.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2:  PACKAGING FOAMS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Packaging Foams Market accounts for the second-largest market share due to rise in disposable incomes. Further, the German Packaging Foams Market held the largest market share, and the UK Packaging Foams Market was the fastest growing market in the European region

The Asia-Pacific Packaging Foams Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because of the easy availability of raw materials. Moreover, China’s Packaging Foams Market held the largest market share, and the Indian Packaging Foams Market was the fastest growing market in the Asia-Pacific region.

Packaging Foams Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Packaging Foams Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Packaging Foamsindustry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  Packaging Foams industry to benefit clients and increase the market sector. In recent years, the Packaging Foams industry has offered some of the most significant advantages to medicine. Major players in the Packaging Foams Market, including Synthos SA (Poland), Rogers Corporation (U.S.), Kaneka Corporation (Japan), Arkema (France), and Foampartner Group (Switzerland) and others, are attempting to increase market demand by investing in research and development operations.

Zotefoams Plc produces closed cell crosslinked foams from polyolefins and engineering polymers for usage in sports, construction, marine, automation, medical equipment, and aerospace around the world. The company's headquarters are in Croydon, London, and it has foam manufacturing operations in Kentucky, the United States, and Brzeg, Poland. The current chairman is Steve Good, the managing director is David Stirling, and the finance director is Gary McGrath. In 1992, the company was spun off from BP Chemicals. It began manufacturing block foam in the 1920s. The majority of the company's sales come from exporting to other countries, and it has a number of registered trademarks. In February 2021, Zoatfoams announced the virtual opening of its new factory in Brzeg, Poland. With a designed capacity of 13,000 metre square, the new plant adds 50,000 metre cubes of annual foam production to the company, expanding worldwide capacity and optimising service level for its European customers.

Armacell is a Luxembourg-based manufacturer and provider of industrial foams and flexible insulation materials. It employs about 3,135 people and operates 25 manufacturing sites in 16 countries. Armacell was Armstrong World Industries' insulator manufacturing division until a management buyout in June 2000. When Armstrong World Industries began producing insulated corkboard and brick in 1899, founder Thomas Armstrong established the division. In 1954, the business achieved success with the introduction of Armaflex, a flexible technical insulator for pipe connections. In August 2022, Armacell unveiled the ArmaGel HTL, a non-combustible aerogel blanket developed for industrial applications requiring corrosion under insulation mitigation, thermal performance, and non-combustibility.

Key Companies in the Packaging Foams market include

• JSP (Japan),


• Zotefoams PIc (U.K.),


• Armacell (Germany),


• Synthos SA (Poland),


• BASF SE (Germany),


• Sealed Air Corporation (U.S.),


• Rogers Corporation (U S.),


• Foampartner Group (Switzerland),


• Kaneka Corporation (Japan),


• Arkema (France) Among others

Packaging Foams Industry Developments

In March 2021, Recticel has announced the acquisition of FoamPartner, a Swiss-based  provider of high-added-value technical foams. Recticel Engineered Foams is formed by the merger of Recticel Flexible Foams and FoamPartner. The new organisation will capitalise on various resource and talent synergies to promote excellence, expand its  footprint, and speed the commercialisation of sustainable technologies and cutting-edge solutions to  markets.

In April 2020, Borealis AG acquired a 50% acquisition of Nova Chemicals in order to grow its business across North America.

In March 2021, Recticel announced the acquisition of FoamPartner, a Swiss-based  provider of high-added-value technical foams. Recticel Engineered Foams would be formed by the merger of Recticel Flexible Foams and FoamPartner. The new organisation would capitalise on various resource and talent synergies to promote excellence, expand its  footprint, and speed commercialisation of sustainable technologies and cutting-edge solutions to  markets.

Packaging Foams Market Segmentation

Packaging Foams Market Material Type Outlook

• Polyolefin Foam


• Polyurethane Foam


• Others

Packaging Foams Market Structure Outlook

• Rigid Foam


• Flexible Foam

Packaging Foams Market Service Type Outlook

• Protective packaging


• Food service


• Others

Packaging Foams Market End-User Outlook

• Food and Beverages


• Medical and Pharmaceutical


• Automotive


• Aerospace and Defense


• Personal Care


• Electrical and Electronics


• Consumer Packaging


• Others

Packaging Foams Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America