Automotive Parts Packaging Market – Growing Preference for Disposable Packaging and Flexible Packaging to Trend in Market Says Report

Global automotive parts packaging market to reach $10 Billion by end of 2027.

According to the latest market report published by Transparency Market Research titled “Automotive Parts Packaging Market: Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017-2027,” the disposable packaging segment will remain the largest contributor to the global automotive parts packaging market during the forecast period, 2017-2027. Global sales were valuated at around US$ 7 Billion in 2017, which are reportedly expected to exceed US$ 10 Billion by the end of 2027 at a moderate CAGR of 4.0%.

New disposable automotive packaging technologies

In addition to ever increasing demand of automobiles and after sales components market globally, continuous research and development in the packaging technology has increased the applicability of packaging in the automotive sector. For instance, Sealed Air Corporation launched Opti NX shrink films recently in 2016 which possess improved tear resistance properties and enables the application of shrink films on irregularly shaped products. Technological development in production technology has led to the sufficient availability of disposable packaging products.

According to the report, there are two key trends related to the transportation of automotive packaging. The first trend has to do with the reduced cube requirement for empty packaging. As an example, it cites Sealed Air Corporation’s  inflatable bubble wrap which was introduced it to the global market in 2017. They second trend relates to the evolution of production technology resulting in the high availability of low cost disposable packaging.

Corrugated automotive packaging remains in high demand

In terms of volume, protective packaging is estimated to account for more than one-third of the global automotive parts packaging market. A large amount of protective packaging is incorporated due to high involvement of fragile electrical and electronic components required in automobiles. Since, protective packaging is incorporated only once and then discarded, it generates a large volume of waste. Moreover, the cost of protective packaging produced from non-biodegradable plastics is much lower compared to using biodegradable materials, leading to large volume of non-biodegradable waste generated globally. Corrugated packaging products remain in high demand due to their versatility, light weight, high strength along with biodegradable nature.

“Due to consumer preference for eco-friendly packaging and high cost of bio-degradable plastic packaging products, corrugated packaging products are widely adopted in the automotive sector and further expected to rise at a high pace,” Transparency Marketing Research writes at its website. “Flexible packaging, specifically bags & pouches segment is projected to grow at the fastest pace among all the packaging products due to large number of small sized automotive components required to be packaged in lightweight and durable packaging.”

On the other hand, it notes, the trade of pulp for the production of corrugated packaging products has been affected by several political and regulatory barriers. These factors have affected the global market for automotive parts packaging.

Regional markets for automotive packaging

In terms of regional market scenario, China is the largest automotive industry in the world, as well as the fastest growing as compared to other countries. Although a large number of packaging providers are already established in the Asia Pacific region providing packaging solutions at competitive prices, global leaders of packaging industry have an opportunity to penetrate in the China automotive industry and grow with it, the report states. The cost of R&D investments made by packaging providers in Asia Pacific region is much lower compared to other regions.

The competition in packaging industry of China is focused on conventional packaging products rather than developing product specific innovative packaging solutions. Moreover, development in material science has resulted into a large variety of economic bio-degradable plastics that can be incorporated for manufacturing disposable automotive parts packaging. The automotive industry is shifting towards the adoption of disposable packaging due to its several advantages over reusable packaging.

“Disposable packaging segment is estimated to account for a larger market compared to reusable packaging, and is further projected to expand at a higher pace as that of reusable packaging segment,” Transparency Market Research writes at their website. “Disposable segment is majorly driven by the savings made by the consumer on the transportation of empty packaging which is required for reusable packaging. Developing production technology has enabled the manufacturing of strong and cost effective disposable packaging for one time use only.”

The report assesses some of the key players operating in the global automotive parts packaging market include Sealed Air Corporation, Mondi Group Plc, DS Smith Plc, Sonoco Products Company, Smurfit Kappa Group, Deufol SE, Encase Ltd., The Nefab Group, Primex Design & Fabrication Corporation, Sunbelt Paper & Packaging Inc., Loscam Australia Pty Ltd., CMTP Packaging Pty Ltd, JIT Packaging Inc., Pratt Industries, Inc., Signode India Ltd., Pacific Packaging Products, Inc., Monoflo International, Inc., Victory Packaging L.P., Knauf Industries, and Schoeller Allibert Services B.V.

Source: Transparency Market Research