Description

The global insulated packaging market was valued at USD 14.1 billion in 2020 and is expected to reach USD 18.68 billion by 2027, registering a CAGR of 5.7% over the forecast period. Insulation packaging is vital for combating energy losses during transportation. Some of the significant characteristics of insulated packaging are high resistance to heat transfer, low weight, low cost, low moisture susceptibility, ease of fabrication and transportation, durability, and mechanical strength. Moreover, due to the damage and wastage caused by inadequate temperature, the demand for insulated packaging is increasing as it maintains the temperature within the packaging and helps in slowing down the rate of deterioration of goods during distribution. 

Insulated packaging plays a significant role in other end-user industries, such as pharmaceutical and electronics. Pharmaceutical is one of the major end-users of these insulated packaging as the product is sensitive to temperature. The packaging of temperature-controlled pharmaceutical products and medical devices is witnessing considerable growth in the healthcare industry.

Similarly, the sector has been witnessing developments such as the increased benefit of Woolcool to ensure extra security for products during their transit and, in many cases allowing the use of refrigerated vehicles to be reduced or eliminated. Moreover, to maximize sustainability, many players innovate and develop products made from sustainable materials. Expanded Polystyrene (EPS), also known as Styrofoam, has been the most widely -used insulation across packaging formats. As effective as an insulator, the World Health Organization has regarded disadvantages such as oil-based plastic and likely to be a carcinogen. This has led vendors in the market to study to launch insulated packaging with materials like repurposed plant fiber, recycled PET, and corn starch.

COVID-19 Impact on the Global Insulated Packaging

As a result of the pandemic, a record number of people are shopping for groceries online, and eateries are shifting to off-premises locations. The pharmaceutical industry has also been vocal about the need for insulated packaging for temperature-sensitive pharmaceuticals. Given the increase in e-commerce, the insulated packaging is projected to enjoy high sales with smaller e-commerce and food delivery forms for meal kits and other perishable food and beverage goods. Because many parcels carrying fresh and frozen commodities need adequate insulation, the pandemic-induced behavioral shift has resulted in packages being kept outside for an extended period.

To deliver medicines, vaccines, and other kinds of clinical and medical goods, a client's health could be put at risk if insulation packaging fails. The nature of the products shipped by the Pharma industry means that they must be delivered intact and at the required temperature to ensure the same performance. Thus, creating a substantial development on this format.

As of October 2020, Packaging Technology Group, Inc, a provider of thermal packaging solutions for the biopharmaceutical and life sciences sector, responded to the COVID -19 situation with the launch of its off-the-shelf line pre-qualified shippers with a sustainable alternative. Also, the passive parcel engineering and product teams at CSafe recently revamped the thermal shipper's lineup to offer insulated vacuum panel (VIP) technology. Being pre-qualified to ISTA 7 D and ISTA 3 A (a worst-case challenge testing) is made available in 96 + hour and 120 + hour shipment durations.

Global Insulated Packaging Market Dynamics

Drivers: Rising Consumption of Perishables and Shift to Greener Materials

Insulated/thermal packaging is a crucial aspect undertaken by insulated/thermal packaging. The cold chain marketplace offers various options under packaging toward temperature-sensitive goods (insulated pallet shippers, insulating pouches, hard-cased thermal chests and boxes, cryogenic units, and active thermal systems). With estimations by SoFrigam by 2050, two-thirds of the world's population is expected to live in urban areas. This growth is expected to fuel the demand for goods and services, increasing freight transport flows. This leads to increased demand for transport infrastructure, logistics, and storage.

Another significant trend, such as developing an industry-wide format, has been acting as a front and center for multiple large companies looking for partnerships. The TemperPack is partnering with Albertsons, Diplomat Pharmacy, HelloFresh, and Green Chef to cater to the ready-to-serve food and life sciences markets to create universally recognized standards for insulated packaging.

Restraints: Stringent Government Regulations Adherence Limiting Growth, Maintenance Costs, and Raw Material Issues

Thousands of human or animal origin samples are collected and sent every day by pharmaceutical companies, nursing homes, diagnostic laboratories, and research centers. Being collected as part of medical tests clinical trials, to name a few, any loss on content via changes in temperature, humidity, or pressure may have detrimental effects on the results and patients if administered. Therefore, a comprehensive set of standards are being laid down for vendors to comply.

Additionally, the US FDA, under Regulation 21 CFR 211.150, highlights distribution procedures. It adds on with outlining pharmaceutical products to be shipped within appropriate temperatures and under accurate conditions, as per requirements and appropriate manual, electromechanical, or electronic temperature and humidity recording equipment devices. It logs to be utilized to document proper storage of prescription drugs. This acts as a significant capital requirement toward the market vendors, limiting the newer players in the market and restricting the innovation across insulated packaging instead of expansive adherence.

Scope of the Report

The study categorizes the insulated packaging market based on material, product, and end-users at the regional and global levels.

By Material Outlook (Revenue, USD Million, 2017-2027)

• Plastic
• Wood
• Glass
• Other Materials

By Product Outlook (Revenue, USD Million, 2017-2027)

• Pouch and Bags
• Box and Containers
• Other Product Types

By End-Users Outlook (Revenue, USD Million, 2017-2027)

• Food & Beverages
• Industrial
• Pharmaceuticals
• Beauty & Personal Care
• Other End-user Applications

By Region Outlook (Revenue, USD Million, 2017-2027)

• North America (US, Canada, Mexico)
• South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
• Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
• The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

The plastic segment is projected to account for the largest market share by material

The global insulated packaging market is divided into plastic, wood, glass, and other materials based on material. In 2020, the plastic waste segment accounted for the largest market share of 43.2% in the global insulated packaging market. Molded plastic insulation packaging containers are gaining significant traction in the current market scenario. Typically the plastic insulated packaging solutions in the market are made of two non-collapsible components, a body and a matching lid. It provides the highest protection from damaging shocks and vibrations during transport. The most popular insulation materials used in molded plastic containers are expanded polystyrene (EPS) and polyurethane (PUR).

Additionally, panel-insulated plastic packaging containers are witnessing an upsurge in demand. These are collapsible boxes typically made of six matching components: sides ends, top, and bottom. These boxes are susceptible to greater thermal losses at the edges and may leak cold or let in heat during drops and vibration during transit.

Asia Pacific accounts for the highest CAGR during the forecast period. 

Based on the regions, the global insulated packaging market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, Asia Pacific is estimated to hold the highest CAGR of 7.1% in the global insulated packaging market during the forecast period. High demand for insulated packaging in the rapidly developing pharmaceutical, food, and beverage industries, drives the insulated packaging market in China. The region is emerging as an attractive market for insulated packaging owing to rising industrial networks, improved economic conditions, changing consumer lifestyles, and growing population, thereby enabling customers to spend their money on food, cosmetics, and other products requiring insulated packaging, which is driving the market across the region.

Moreover, Cold storage warehouses in the Tokyo area are operating beyond capacity, as free trade agreements have led to a surge in meat imports, according to the Nikkei Asian Review. According to the Japan Association of Refrigerated Warehouses, freezer and refrigerated warehouses in Tokyo logged an inventory ratio of 40.4% for January, or above the 38% deemed the capacity threshold, according to the Japan Association of Refrigerated Warehouses, consequently encouraging the market.

Key Market Players

The insulated packaging market is mildly concentrated in nature with few numbers global players operating in the market such as Cryopak, Davis Core & Pad Company (Drew Foam of Group), DS Smith PLC, Innovative Energy Inc., Marko Foam Products Inc., Providence Packaging, Sonoco Products Company, The Wool Packaging Company Limited, Thermal Packaging Solutions, Insulated Products Corporation, Exeltainer, and Amcor PLC. Every company follows its business strategy to attain the maximum market share.

Recent Developments

• In August 2019, Amcor announced the successful completion of its acquisition of Bemis company Inc. The acquisition of Bemis brings additional scale, capabilities, and footprint that may strengthen Amcor's industry-leading value proposition and generate significant value for shareholders.
• In March 2020, DS Smith worked closely with food retailers across Europe to design, develop, and produce new boxes that supply emergency provision boxes to the most vulnerable. As the focus quickly turned to home delivery to move goods directly to the front door of those who can make it to the shops, DS Smith developed special new boxes to be filled by food retailers and left on the doorstep.
• In February 2020, Airlite Plastics Co. announced today the unification of their EPS foams brand Arctic Fox into their recently acquired Cold Chain company KODIAKOOLER®. The KODIAKOOLER brand will represent a more extensive product offering, including EPS foam, natural fiber, and reflective insulation, as well as refrigerants and other cold chain packaging products with distribution across the United States.
• In August 2019, Sonoco announced that it completed the acquisition of Corenso Holdings America Inc. from a company owned by investment funds advised by Madison Dearborn Partners LLC and management for USD 110 million in cash.

Key Issues Addressed

• What is the market size by various segmentation of the insulated packaging by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's five forces of the insulated packaging market?
• What are the key opportunities and trends for manufacturers involved in the insulated packaging supply chain?
• What are the market's fundamental dynamics (drivers, restraints, opportunities, and challenges)?
• What and how are regulations, schemes, patents, and policies impacting the market's growth?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of insulated packaging in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.