Molded Pulp Packaging Market Analysis by Molded Type (Thickwall, Transfer Molded, Thermoformed Fiber, and Processed Pulp); by Source (Wood Pulp, and Non-Wood Pulp); by Product Type (Trays, Clamshells, Cups, Plates, and Bowls); and by End User (Food Packaging, Manufacturing, Electronics, and Healthcare) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4744 | Published Date: Mar 21, 2023
The global molded pulp packaging market is estimated to garner a revenue of around USD 6 Billion by the end of 2035 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of nearly USD 3 Billion in the year 2022. The growth of the market can be attributed to the proactive effort by the government to reduce plastic in all sort of applications including packaging. This step is likely to open more opportunities for molded pulp packaging. The Indian government proposed the Plastic Waste Management Amendment Regulations in 2021 to forbid some single-use plastic products by 2022.
In addition to these, factors that are believed to fuel the market growth of molded pulp packaging include the rise in harmful packaging waste from the healthcare industry. On the other hand, the harmful material can be replaced by molded pulp as they are toxic-free and becomes convenient for manufacturing safe medical packaging. Around 20% to 25% of the 14 000 tons of garbage produced daily in US healthcare facilities is plastic yet, around 91% of plastics, including those used in healthcare, are not recycled and either end up in landfills or have gotten into the environment. Besides this, the rising use of packaged food, water, and beverages is also expected to boost market growth.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 3 Billion |
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Forecast Year Market Size (2035) |
~ USD 6 Billion |
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Regional Scope |
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Growth Drivers
Growing Packaging Waste – After the life of molded pulp packaging expires, it can be recycled again to use in different industries. Moreover, it is lightweight and reduces excess space. Thus, curbing the packaging waste. Nowadays, 91% of packaging trash of the world is dumped in landfills or the environment.
Rising Need for Sustainable Packaging– the production of molded pulp does not emit as much carbon dioxide as produced in other packaging material. Moreover, they are easily decomposed thus driving the packaging industry towards sustainability. In the United Kingdom, around 77% of consumers demand sustainable packaging from businesses. Moreover, nearly 50% of people agreed to pay more for the product if it is sustainably packed.
Increasing Trends of Online Shopping –Online shopping or E-commerce is expected to boost the demand for packaging and is likely to create more opportunities for molded pulp packaging. In 2020, more than 1 billion people worldwide shopped online. Furthermore, this number jumped to more than 2 billion in 2021.
Growing Consumption of Packaged Food – Molded pulp packaging is a safer option than toxic aluminum and petroleum packaging which is highly used in the food industry. The consumption value of packaged organic foods in India totaled USD 15 million in 2021. When compared to the prior year, the consumption value was around USD 14 million.
Rising Efforts to Reduce Plastic – With the growing concern about the use of single-use plastics, molded pulp packaging is becoming more popular worldwide. According to the World Economic Forum, 170 countries made a commitment in 2019 to reduce their use of plastic by 2030. Furthermore, many have already begun by suggesting or enacting regulations for specific single-use plastics.
Challenges
The global molded pulp packaging market is segmented and analyzed for demand and supply by end user into food packaging, manufacturing, electronics, and healthcare. Out of the four end users of molded pulp packaging, the food packaging segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to a rise in the number of people using online food services. By 2027, it is anticipated that almost 2,600 million people would order food online around the world. Besides this, the high non-renewable waste generation from the food packaging industry is also anticipated to augment the segment growth. In the United States, food packaging materials account for around 63% of the millions of tons of solid trash that are produced there. Moreover, in 2018 the United States manufactured close to 2 million tons of aluminum packaging which is a non-renewable packaging material. It can be seen all over the grocery stores from chips bags to soda cans.
The global molded pulp packaging market is also segmented and analyzed for demand and supply by product type into trays, clamshells, cups, plates, and bowls. Amongst these five segments, the cups segment is expected to garner a significant share in the year 2035. The growth of the segment is majorly attributed to the rising use of coffee cups which majorly contributes to pollution. In the UK, almost 3 billion coffee cups are used each year and thrown away, besides this just one in every 400 of these cups is recycled. On the other hand, a rising effort by the government to ban single-use plastic for cups is also expected to boost segment growth. The European Commission decided to ban single-use plastics in 2022, including bags, cotton buds, cutlery, food containers, drinking cups, wet wipes, and others.
Our in-depth analysis of the global molded pulp packaging market includes the following segments:
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By Molded Type |
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By Product Type |
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By Source |
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By End User |
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The Asia Pacific molded pulp packaging market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the rising demand for sustainable packaging in the region. Young people between the ages of 20 and 29 show the most excitement and awareness for sustainable consumption, and Chinese consumers between the ages of 30 and 49 have the highest sustainable consumption abilities. Moreover, before purchasing a product, about 24% of Gen Z and millennial consumers in China check the packaging for sustainability. Furthermore, the rising consumption of eggs, for which generally molded paper tray packaging is used, is also expected to drive market growth in the region. In India, millions of people depend on eggs, and the annual consumption of eggs per person climbed from around 86 in 2019–20 to nearly 91 in 2020–21.
The North American molded pulp packaging market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the rising waste from the packaging industry. According to the United States Environmental Protection Agency, in 2018, 82.2 million tons of municipal solid waste (MSW) were generated, with a large majority of around 28.1% of the total waste being made up of containers and packaging. Moreover, EPA states that containers and packaging goods are presumptively thrown away the same year as the goods in them are purchased.
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a significant share by the end of 2035. The growth of the market can be attributed majorly to the rising efforts put in by the government to reduce the waste generated from packaging. According to the European Commission, packaging waste in the EU is expected to rise by 19% by 2030, and by 46% in the case of plastic packaging. Moreover, around 180 kg of packaging waste is produced annually in Europe. While 40% of the plastic and 50% of the paper used in the EU are intended for packaging. European Commission proposed regulations to manage packaging waste, these proposals include that all packaging sold in the EU must be recyclable in a way that is profitable by 2030 in order to promote high-quality recycling.
SABIC announces the collaboration with Mars Petcare and Huhtamaki for pet food packaging. They aim to advance pet food packaging and to give creative solutions to the leading brand of cat food, SHEBA.
feet area. After this new facility, Sabert will have 4 domestic distribution centers and which is likely to grow the client base of the company in the United States and Western Canada.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Sadaf Naaz, Mohd Shadab
Ans: Increasing restrictions on single-use plastics, higher demand for sustainable packaging solutions, and rising sales from the e-commerce sector are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2035.
Ans: Switching to sustainable packaging is expensive, and it does not have strength to hold heavier objects are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Molpack Corporation Ltd., YFY Jupiter, Inc., Pacific Pulp Molding, Inc., Best Plus Pulp Co., Hartmann, Smurfit Kappa, Western Pulp Products Company, Huhtamaki, SABIC, and Sabert Corporation.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by molded type, product type, source, end user, and by region.
Ans: The food packaging segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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