US: 1.917.963.8646 (24x5)
UK: 44.330.808.0580 (24x5)
Worldwide: 91.703.051.960 (24x7)
p5 Industry Insights The global air cushion packaging market size was valued at USD 2.7 billion in 2018 and is expected to register a CAGR of 7.0% during the forecast period. Factors driving the market include increased consumer spending through e-commerce platforms, high payouts, and consumer preference for environment-conscious brands. The flexible packaging movement has been pivotal in bringing distinct and industry-wide transformation. The trends seem to lean toward consumer demands as major focus of the industry is on the areas of sustainability, convenience, and increased penetration of e-commerce. Based on consumer demographics and preferences, two-thirds of the consumers are willing to pay more for sustainable products. U.S. accounted for the largest share in the North America market in 2018 and is expected to surpass USD 400.0 million by 2025. The beauty and personal care segment is anticipated to witness the strongest growth at a CAGR of 7.6% during the forecast period, which can be attributed to consumer preference for purchasing premium products online. Void filling will continue to remain the dominant functionality air cushions will be serving during the forecast period and this is owing to the practice of vendors using secondary and tertiary levels of packaging to reduce chances of damage. Growing demand for safe and efficient packaging solutions that provide better transit safety to products by offering functionality such as void filling, blocking and bracing, and corner protection will augment the demand for air cushions over the coming years. Furthermore, benefits offered by these solutions, such as lightweight, portability, low storage space requirement, and convenience, will have positive impact on market demand. Most air cushion packaging machines are equipped with auto-shut off and fast filling valves, which reduce the production time and present high safety ratings. Raw materials used in making these air cushions are inflatable and deflatable on will, and this offers higher stackability and requires less storage space compared to other conventional solutions such as bubble wrap. These functionality advantages offered by air cushion packaging solutions will ensure future demand.
End-user Insights of Air Cushion Packaging MarketBased on end-user applications, the global market is segmented into consumer electronics and appliances, home decor and furnishing, beauty and personal care, food and beverage, pharmaceutical and medical devices, and others. Consumer electronics and appliances emerged as the dominant segment in the market in 2018, which can be attributed to increasing online product sales through various e-commerce websites. Electronics require high level of packaging due to their fragility, which directly impacts demand for air cushion packaging solutions. Retail e-commerce sales worldwide accounted for USD 2,774 billion in 2018 and is expected to grow at a rate of over 20.0% over the next five years. It has also been observed that more than 65.0% consumers prefer online retail shopping of electronic devices such as mobile phones and tablets. This creates a demand for safe and protective packaging solutions. Vendors mainly focus on providing the best packaging as consumers believe packaging defines a brand and the product the company has to offer. Introduction of air cushion packaging technology has brought about a shift in consumer buying patterns. Previously, vendors reported that at least 25.0% of the total sales were subjected to returns. Adoption of better packaging options has reduced this by a significant margin. The beauty and personal care segment is anticipated to witness strong growth in the air cushion packaging market over the course of the forecast period. Large number of existing players and new entrants in the market has led to a highly competitive environment for the cosmetic and personal care industry. Packaging plays a defining role in marketing these products. Online shopping sites have emerged as a go-to option for consumers looking to buy cosmetics and personal care products owing to features such as buyback and money back guarantee, easy returns, and customer reviews. High privacy and easy to choose options of products online have also led to increasing sales of cosmetics and personal care products, thus directly impacting the demand for air cushion packaging.
Functionality InsightsBased on functionality offered by air cushion packaging, the market has been segmented into void filling, blocking and bracing, wrapping, and corner protection. Void filling is estimated to be the major functionality offered by these products. The segment accounted for nearly 33.0% of the market size in 2018. However, demand for air cushions for blocking and bracing is expected to grow at the fastest pace as many alternative solutions are being replaced by vendors to attain sustainability and reduced costs. Previously, most wrapping packaging solutions were dependent on bubble wrap. It is a transparent plastic material containing regularly spaced, air-filled bubbles that provide cushioning for fragile items. The problem with this form of packaging, however, is that the bubbles are pre-filled and take up a lot of storage space in warehouse. Most vendors have therefore replaced them with air cushion as the latter offer high stack ability and the air pumped into the packaging solution can be controlled as per requirement. Air cushions also offer quick packaging and ensure high degree of protection of goods from all surfaces and transit conditions.
Regional Insights of Air Cushion Packaging MarketAsia Pacific dominated the global market in 2018, with a revenue share of nearly 42.0% that year. Factors such as shift in consumer behavior, advent and aggressive penetration of e-commerce, rising disposable incomes, and growing demand for consumer electronics in the region will further catalyze product demand. Most western multinational companies are turning their eyes toward the east, due to its cheap and favorable labor laws, government support, and easy availability of raw materials. These factors translate into lower production cost and low final product pricing. These aforementioned factors have led to higher product sales through online shopping applications, which can be directly attributed to increasing demand for safer packaging solutions as offered by air cushions. The North America market is estimated to surpass USD 1.0 billion by 2025 at a CAGR of 5.7% during the projected period. This indicates higher sales of products through e-commerce websites and consumers preferring convenient and safer transit solutions. Most customers in the U.S. have been observed to order food and beverages through online shopping apps, thus leading to increased demand for air cushion packaging.
Market Share Insights of Air Cushion Packaging MarketKey industry participants include Pregis; Sealed Air Corp.; Abriso N.V.; Atlantic Packaging; 3G Packaging Corp.; and Shandong Xinniu. Most of these players are investing heavily in product innovation and expanding their presence in other regions through strategic initiatives such as mergers and acquisitions (M&A) and partnerships. The global industry is moderately fragmented. Sealed Air Corp. and Pregis account for around 40.0% of the global market revenue, with target markets for these companies being India, China, South Korea, and Japan. Innovation in upcoming technologies and their adaptability by vendors is likely to characterize this industry in the coming years. Introduction of eco-friendly product solutions and focus on recyclability will also open avenues for growth.
Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Air Cushion Packaging Market Research ReportThis report forecasts revenue growth at global, regional, and country levels, and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global air cushion packaging market report on the basis of functionality, end user, and region:
Functionality Outlook (Revenue, USD Million, 2019 - 2030)
- Void Filling
- Block & Bracing
- Corner Protection
End-user Outlook (Revenue, USD Million, 2019 - 2030)
- Consumer Electronics & Appliances
- Home Decor & Furnishings
- Beauty & Personal Care
- Food & Beverages
- Pharmaceutical & Medical Devices
Table of Contents Chapter 1. Methodology and Scope 1.1. Market Segmentation & Scope 1.2. Market Definition 1.3. Information Procurement 1.3.1. Purchased Database 1.3.2. GVR’s Internal Database 1.3.3. Secondary Sources & Third-Party Perspectives 1.3.4. Primary Research 1.4. Information Analysis 1.4.1. Data Analysis Models 1.5. Market Formulation & Data Visualization 1.6. Data Validation & P | read more...