Molded Pulp Packaging Market Growth Analysis | 2023-2028

Market Insights

The molded pulp packaging market was estimated at USD 5.33 billion in 2022 and is likely to grow at a CAGR of 7.17% during 2023-2028 to reach USD 8.13 billion in 2028.

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Market Dynamics

Introduction

Molded pulp packaging, made from recycled wood and non-wood materials such as paper boards and newsprints, is used for protective packaging and carrier in poultry and food & food service industries. There are different product types, which find specific applications, across key end-user sectors.

Market Drivers

These factors are expected to boost the demand for the market in the coming years:

• Rapidly growing poultry industry, positive regulatory environment, strong product demand from the food & beverages industry, and increasing agricultural output.
• Molded pulp packaging provides a significant opportunity for corporations to achieve their sustainability objectives while also achieving cost savings. The utilization of inexpensive and dependable raw materials helps maintain the low cost of molded pulp packing.
• Stringent government regulations on the use of plastic.
• Increasing demand for sustainable and eco-friendly packaging solutions.
• Growing demand for customized packaging solutions.
• Improved manufacturing processes and technologies.

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Restraints

Strict rules and regulations: Governments are adopting strict policies to address environmental concerns about packaging waste and greenhouse gas emissions from manufacturing plants. Standard tests validate packaging systems' compliance with ISAT standards, focusing on shock, vibration, and compression.

Production costs and limited material sources: The molded pulp packaging market is growing due to its eco-friendly nature, biodegradability, and recyclability, despite initial costs. Limited availability and environmental concerns drive demand for sustainable solutions.

Opportunities

Emerging economies with an abundance of raw materials: Emerging economies like Brazil, India, and China offer logistics opportunities for molded pulp packaging, with abundant raw materials and strong economic development stimulating manufacturing sectors like food, electronics, and healthcare.

Increasing applications and innovation in material sourcing: Molded pulp packaging is experiencing increased demand due to its versatility and protective properties in various industries. Its popularity is driven by its cost-effectiveness and eco-friendliness. Innovations in material sourcing are reducing production costs and making it more competitive. The growing demand for eco-friendly and cost-effective packaging is driven by the growing range of applications and the synergy between expanding applications and sustainable material sourcing.

Challenge

Unstable prices for raw materials: The molded pulp packaging market is facing challenges in the form of fluctuations in the prices of raw materials. The packaging industry is trying to cope with these challenges by undertaking innovative research & development activities. The increasing prices of raw materials such as wood, non-wood pulp, and paper adversely affect operations in the molded pulp packaging industry. In addition to the key raw materials, the prices of other raw materials such as water and fuel are also increasing due to weather conditions, market fluctuations, exchange rates, currency control, and government control.

Segments Analysis

By Product Type

"The trays segment accounted for the largest market share."

The market is segmented as trays, cups, clamshells, plates, splitters, and others. The trays segment held more than 35% market share in 2022 and is expected to dominate the market during the assessment period. The growth of the segment can be attributed to its use as base materials in corrugated shipping boxes to prevent fruits from bruising and catching mold during long-haul and short-haul shipments. Furthermore, high growth is owing to its increasing demand in agro and food & foodservice industries due to its convenient use and environment-friendly nature.

By Type

"The rotary molding pulp segment accounted for the largest market share."

The market is segmented as rotary molding pulp, fiber thermoforming/wet press, and industrial molding pulp/dry press. Rotary molded pulp possesses the highest share of the market as it registered over 55% share in 2022 and is likely to account for the highest CAGR of 5.3% during the assessment period. This unprecedented growth can be attributed to the unique and wider benefits attached to the employed rotary molding process. It offers high molding productivity, consumes less energy with less manufacturing cost, easy interchangeability of mold tooling, and faster setting time.

Regional Insights

"North America accounted for the largest market share."

North America is estimated to be the leading region in the market during the forecast period. The market is driven by the strong presence of other end-user industries such as agriculture, food & food services, and electronics in the region. Furthermore, consumers in the U.S. and Canada have developed a habit of mostly eating out. North America captured a major share of the global outdoor eating market; thus, the food & food services industry ranks as the second-largest consumer of molded pulp in the region. Europe and Asia-Pacific also offer significant growth opportunities during the assessment period.

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Key Players

Some of the key players in the market are:

• Austin Foam Plastics, Inc. (AFP)
• Best Plus Pulp Co., Ltd.
• Alta Global, Inc.
• CMPC
• DS Smith
• Enviropak
• Huhtamaki Group
• Pacific Pulp Molding, Inc.
• Smurfit Kappa Group
• Sonoco Products Company.

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s molded pulp packaging market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our molded pulp packaging market report from the industry stakeholders, we have tried to further accentuate our research scope to the molded pulp packaging market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the global molded pulp packaging market.

The molded pulp packaging market is segmented into the following categories:

By Product Type

• Trays
• Cups
• Clamshells
• Plates
• Splitters
• Others

By Type

• Rotary Molding Pulp
• Fiber Thermoforming/Wet Press
• Industrial Molding Pulp/Dry Press

By Industry Type

• Eggs
• Agriculture
• Food & Food Service
• Electronics
• Appliances
• Other Industrial

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Customization Option

Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players).
• SWOT analysis of key players (up to 3 players).

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com.