Canadian Plastics

Protective packaging demand will rise 6.2 per cent a year to 2014: study

Demand for protective packaging in the U.S. is forecast to climb 6.2 per cent per year to US$5.2 billion in 20...

March 19, 2010   Canadian Plastics

Demand for protective packaging in the U.S. is forecast to climb 6.2 per cent per year to US$5.2 billion in 2014, reflecting an upswing in manufacturing output as the country recovers from the recent recession, according to a new study by market research firm The Freedonia Group.


“Advances will be boosted by the continued proliferation of Internet shopping,” the company’s “Protective Packaging” report said. “Other segments that are expected to enjoy solid advances include air pillows, molded pulp, bubble packaging, protective mailers and insulated shipping containers.”



Through 2014, demand for air pillows will climb 8.7 per cent per year to US$395 million, the study noted, the result of strong growth in Internet shopping, advantages over other materials in terms of cost and material use, and consumer preference for the product over other materials such as loose-fill.


Foamed plastic protective packaging is expected to rebound substantially from a depressed base in 2009, the report also said. Gains will reflect a significantly improved outlook in the manufacturing sector, especially durable goods, which represent the majority of demand for molded foam, foam-in-place and polyolefin roll protective packaging. However, further shifting of manufacturing to nations that offer lower-cost production will moderate longer-term prospects for foams.


Shifting to bubble packaging, the report said that favorable outlooks for manufacturing activity and electronic shopping would aid demand. Molded pulp will experience some of the fastest gains as a result of heightened interest in environmentally friendly packaging coupled with more stable pricing than petroleum-based plastics. “More moderate gains are anticipated for paperboard protectors, paper fill, dunnage bags and loose-fill, the result of mature applications and/or competition from faster growing product types,” the report concluded. “Nonetheless, prospects for paper fill and biodegradable loose-fill will be helped by growing interest in environmentally friendly packaging.” For more information on the study, visit this link.

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