Dunnage Packaging Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Dunnage Packaging Market is segmented By Raw Material (Corrugated Plastic, Fabric, Moulded Plastic, Steel, Wood, Foams, Aluminum, Others), By Type (Bubble Wrap, Solid Plastics, Kraft Paper, Air Pillows, Corrugated Paper), By End-User (Automotive, Electronics, Food & Beverage, Consumer Durables, Healthcare, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Dunnage Packaging Market Overview

(180pages) A Report by DataM Intelligence estimates the Global Dunnage Packaging market to grow at a high CAGR during the forecast period 2023- 2030. The market is expected to grow due to increasing demand from utomotive, Electronics, Food & Beverage, Consumer Durables, Healthcare. The competitive rivalry intensifies with DS Smith, Nefab., Amatech Inc, and others operating in the market.

Dunnage packaging refers to the protective packaging solution used to control damage to goods in transport and logistics operations. Some of the major benefits of dunnage packing are moisture protection, damage protection, and shock absorption. The packaging is used to describe packaging components such as bubble wrap, crinkle paper, kraft paper, plastic bracing, fillers, planks, blocks, and boards. Packaging has gained popularity in the shipping industry and industrial packaging technicians. In addition, dunnage packaging of materials such as foam dunnage, cardboard dunnage, and honeycomb dunnage is an important solution for major end-use industries such as automotive, food & beverage, advanced and safe packaging consumer products.

Dunnage Packaging Market Scope

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Dunnage Packaging Market Dynamics

The global dunnage packaging market is driven by increasing e-commerce and retail business over the past few years—growing demand for packaging design with cost-effective, environmentally friendly, and resistive external heat & abrasive conditions.

Increasing e-commerce and retail business since the past few years is expected to accelerate dunnage packaging growth in the forecast period.

There is a strong demand for packaging goods in the rapidly expanding e-commerce industry. As per the reports, in 2018, e-commerce revenues reached $25.6 trillion worldwide, up 8 per cent from 2017. The projected e-commerce market volume for 2018, which includes business-to-business (B2B) and business-to-consumer (B2C) sales, was equal to 30 per cent of global gross domestic product (GDP) that year, according to the UNCTAD report. Thus growing business of e-commerce across the globe is triggering the dunnage packaging market in recent times. The significant demand for dunnage packaging in the e-commerce industry is product protection and safe delivery, which is considered highly important among key end-users. This is due to benefits such as cost-effectiveness, space-saving, and lightweight properties that dunnage packaging offers. Their demand is expected to have a positive outlook during the forecast period. Apart from this, the packaging protects the goods from contamination and moisture, and by protecting cargo from damage, dunnage helps improve customer relationships and allows for easier loading of fragile cargo.

Growing demand for packaging design with cost-effective, environmentally friendly and resistive to external heat & abrasive condition

Rising demand for sustainable and green packaging solutions is expected to drive market growth over the coming years, considering their cost-effectiveness instead of expendable packaging. Therefore the growing consumption of sustainable packaging across the automotive, consumer durables, and food & beverage industries are likely to augment the demand over the upcoming years. As a result of the product's ability to ensure partial sustainability, cost savings, and safety of packaged products, China's market is projected to exhibit high growth due to high demand. In addition, due to the lower production costs of the country, the presence of a broad customer base and rising industrialization are expected to drive product demand in the automobile, healthcare, and healthcare sectors.

For instance, in 2019, Amazon India announced in a report to bring paper cushions as a replacement for plastic dunnage like bubble wraps and air pillows. Paper cushions will be used to ensure the packages are protected in transit. The environmentally-friendly and entirely recyclable packaging solutions have been launched in select Amazon India fulfilment centers. They will be expanded by the end of 2019 to all Amazon fulfilment centers in India.

High initial investment and varying environmental conditions in different regions of the globe and compatibility of such packaging in the region is challenging the growing market of dunnage packaging in recent times

The list of advantages of dunnage packaging continues to grow with the arrival of new materials and increasing demand for packaging designs across the globe. However, the market demands high initial investment, which many start-up firms cannot afford, thereby hampering the dunnage packaging market. Varying environmental conditions in different regions of the globe and compatibility of such packaging in the region is another factor challenging the growing market to target a larger base audience in recent times. Besides, changing governmental laws concerning regions does not allow the market to grow on a  larger scale in the maximum audience-prone areas and hurt the growing market of dunnage packaging. 

COVID-19 Impact on Dunnage Packaging

The global dunnage packaging has shown a slight decline due to the COVID-19 pandemic, as several manufacturing plants were shut for months. Further several countries have restricted production activities during the covid-19 pandemic. The major lockdown due to the COVID-19 outbreak leads to suddenly dropping down consumers' interest towards purchasing any goods, and halt in transportation sectors has severely hampered the business of dunnage packaging market due to disruption in the product's supply chain management.

The majority of businesses are shut down, and operations across several end-users of dunnage packaging products such as automotive, consumer durables, and food & beverage industries are also compromised, thus dropping the product's global demand in 2020.

Dunnage Packaging Market Segmentation Analysis

The global dunnage packaging market is segmented based on types, raw material, end-user and region.

The lightweight, low-cost corrugated plastic material that provides a versatile way coupled with different material characteristics, including moisture tolerance and high-density parts per container, is building the market share for the segment

In terms of raw material, the global dunnage packaging market is bifurcated into fabric, corrugated plastic, molded plastic, steel, wood, foams, aluminium, corrugated paper, others. Corrugated plastic is expected to dominate the dunnage packaging market as it is a lightweight, low-cost material that provides a versatile way to build a custom packaging solution that suits any container form. Different material characteristics, including moisture tolerance and high-density parts per container, are expected to increase demand further. As compared to cardboard alternatives, corrugated plastic dunnage offers reliability and excellent safety. Corrugated plastic can survive punctures, tears, and impact and is dust resistant and washable. The material is simple to produce, treat, and convert, and in most temperature ranges and any setting, it provides a long-term and reusable implementation. These variables, in turn, are estimated to spur the segment growth over the forecast period.

Dunnage Packaging Market Geographical Shares

A large number of players in the region, growing R&D operations in different countries and increasing use of multi-use packaging instead of single-use packaging solutions, ongoing industrialization, customer awareness of green and sustainable packaging products is accelerating the Asia-Pacific region's market

APAC is the largest and fastest-growing market in the field of dunnage packaging. The largest buyers of dunnage packaging in the area are the automotive and electronics industries. The involvement of a large number of producers makes dunnage packaging the region's most significant market. The growth is also due to the high demand in the automotive, electronics, and aerospace industries for dunnage packaging.

As a major component of the APAC dunnage packaging industry, China and Japan were considered. As for the rest of APAC, Taiwan, South Korea, Indonesia and other Asian countries have been taken into account, as this competitive technology is not yet commercialized in these countries. R&D operations, however, are performed in Japan and China, making these countries possible markets for this technology.

Likely, the rising use of reusable packaging in the food & beverage, healthcare and fast-moving consumer goods (FMCG) sectors would further improve the regional market. Other factors are anticipated to stimulate product demand in the Asia Pacific, including the increasing use of multi-use packaging instead of single-use packaging solutions, ongoing industrialization, customer awareness of green and sustainable packaging products, and reducing packaging waste.

Dunnage Packaging Market Companies and Competitive Landscape

The dunnage packaging market is highly competitive with the presence of local as well as global companies. Some of the key players contributing to the market's growth include DS Smith, Schoeller Allibert, Nefab, Reusable Transport Packaging, UFP Technologies, Inc, Amatech Inc., Ckdpack, MJSolpac Ltd, GWP Group, Interior Packaging Design, LLC, and among others.

The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the dunnage packaging market's growth globally. The key players are following plant expansion and partnership as the growth strategy to build their business.

• For instance, in May 2016, Schoeller Allibert expanded its operations in Europe by opening a new production plant in Zabrze, Poland. The new plant produces a complete portfolio of products for customers in the CEE area, consisting of the brand new EuroClick, an ultra-versatile box specifically designed for the automotive industry.

DS Smith

Overview: DS Smith is a leading international supplier of sustainable packaging options, paper products and recycling services. Our company and our programs and areas of expertise have evolved significantly over the past 80 years. Today the company is active in more than 30 countries, employing 30,00o people in different company plants.

Key Development

• In March 2018, DS Smith Plastics announced a new manufacturing facility in Romeoville, IL, US. The new facility is the first rigid packaging manufacturing operation of DS Smith in North America. This strategic initiative is expected to enhance its position in the region in response to the rising demand for its rigid packaging products in the US.

Why Purchase the Report?

• Visualize the dunnage packaging market segmentation by types, raw material, end-user and highlight key commercial assets and players.
• Identify commercial opportunities in the dunnage packaging market by analyzing trends and co-development deals.
• Excel data sheet with thousands of data points of dunnage packaging market-level 4/5 segmentation.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global dunnage packaging market report would provide access to an approx: 61 market data tables, 62 figures and 180 pages.

Target Audience 2022

• Service Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals
• Emerging Companies
• Manufacturers
• Distributors
• Supply chain companies.