Ceepackaging

Analysis

Growth in protective packaging

These factors will fuel demand for cost-effective packaging used in the
protection of goods from shock, vibration, abrasion and other damaging effects of
shipping and handling. Fastest advances are anticipated for air pillows and insulated
shipping containers, with protective mailers and bubble packaging also logging aboveaverage
growth.

All of these products have significant usage in the shipping of goods
purchased via Internet sales channels and will continue to benefit from robust growth for
e-commerce. These and other trends are presented in Protective Packaging, a new
study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Demand for air pillows is expected to climb nearly ten percent annually, driven by
advantages of versatility and excellent performance with light- to medium-weight items,
along with consumer preference for the product over other materials such as loose-fill.
Insulated shipping container demand will be fueled primarily by the increased presence
of temperature-sensitive drugs. Also driving growth will be expanded specialized
delivery requirements resulting from increased online sales of perishable foods. Good
opportunities for bubble packaging will reflect the growing popularity of onsite bubble
packaging systems, which are gaining ground as they offer greater cost-effectiveness
and reduced warehouse space compared to standard bubble materials. Protective
mailer advances will be driven by the need for economical, lightweight, pre-constructed
protective packaging for the shipping of a wide variety of relatively small objects.

Foamed plastic protective packaging demand is forecast to increase 3.5 percent
per year to $1.2 billion in 2012, aided by advantages of light weight and excellent
cushioning capabilities compared to paperboard and other materials. Gains will lag the
overall protective packaging market as resin prices rise more slowly and manufacturing
is outsourced to nations that offer lower-cost production. Polyolefin roll (i.e.,
polyethylene and polypropylene) product demand will outpace the foam average based
on versatility and cost-effectiveness in the protection of furniture, electronics and other
products from scratches and abrasion.