Dunnage Packaging Market: Overview
Dunnage packaging refers to the material that is used in packaging for protecting, supporting, and securing the products in the package. The more delicate the product, the more dunnage it requires. The shipping and handling process is made much smoother when efficient dunnage is used in transportation. It is highly useful because it prevents the products from moving and also absorbs shocks, ensuring that the product remains unharmed. Apart from shock absorption and damage protection, dunnage also protects products from moisture and undesirable climatic conditions such as rain.
As the demand from electronics, automotive, food & beverage, aerospace, and healthcare domains shoots up, the global market for dunnage packaging will gain traction over the forecast period, registering a substantial CAGR.
Dunnage Packaging Market: Growth Factors
As the automotive sector garners increasing demand, the dunnage packaging market is expected to collect significant revenue over the coming years. The dunnage packaging products are widely used in the packing and shipping of automotive components because dunnage guarantees maintenance of structural integrity. Several companies are offering light-weight packaging, which is preferred by several end-users.
Dunnage packaging can significantly reduce the handling and transportation costs due to their damage protection. Therefore, many e-commerce and retailer companies are adopting this packaging technology. Electronic devices are fragile and harm caused to them during transportation can damage them beyond repair. To ensure that the electronic products reach the customers safely, the electronics segment has also been displaying increased demand for dunnage packaging.
Moreover, as the demand for eco-friendly packaging escalates, the market for dunnage packaging will grow further. Dunnage packaging is an integral part of the reusable/returnable packaging industry. Returning/ reusing the packaging equals less harm to the environment and higher profit as the packaging cost is significantly cut down. The affordability and eco-friendly nature of dunnage packaging will bring about an assured growth of the market.
Lack of awareness about the packaging technique can prove to be a main hurdle in the prospects for dunnage packaging market.
Dunnage Packaging Market: Segmentation
The global dunnage packaging market is segmented by type, end-user, material, and region. Bubble wrap, kraft paper, solid plastics, air pillows, and corrugated paper, can be some main categories according to type. By material, some key segments of the global dunnage packaging market are corrugated plastic, fabric, paper, wood, aluminium, steel, and foam. On the basis of end-users, the market can be divided into electronics, aerospace, automotive, consumer durables, and food & beverage. Of these, the automotive and the electronics segments are likely to contribute a significant share in the global dunnage packaging market.
Dunnage Packaging Market: Regional Analysis
North America dominated the scenario up to the recent times and might continue to grow due to a stable demand for eco-friendly dunnage packaging. Driven by exponential demand from the automotive segment, dunnage packaging will witness an increased demand throughout the Asia Pacific region. High concentration of manufacturing plants in the region, high rate of commercialization, and increased preference for advanced technologies are some key reasons for the Asia Pacific region being the fastest growing segment.
Japan and China are likely to be among the leading regional segments, owing to increasing investment in research activities across several end-user segments such as automotive and electronics. China is one of the earliest adopters of dunnage packaging, and might register significant growth over the forecast period.
Dunnage Packaging Market: Competitive Players
Nefab, Menasha Corporation, Reusable Transport Packaging, Ds Smith, UFP Technologies, Myers Industries, and Rehrig Pacific Company, Allibert, and Amatech Inc. are some leading market players in the global dunnage packaging market. The market competitors are engaging in strategic investments, agreements, and divestment with an aim to up their game in the global dunnage packaging market.
Dunnage Packaging Market: Regional Segment Analysis
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