|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 14.98 Billion||USD 24.03 Billion||6.09%||2022|
Thermocol Packaging Market
The global thermocol packaging market size was worth around USD 14.98 billion in 2022 and is predicted to grow to around USD 24.03 billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.09% between 2023 and 2030. The report analyzes the global thermocol packaging market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the thermocol packaging industry.
Thermocol packaging is the industry that deals with the use of expanded polystyrene foam (EPS) which is also known as Styrofoam as a packaging material across several industries. This type of packaging has several advantages and hence has gained high momentum in the last few years. Some of the properties of Styrofoam are lightweight, insulation, and shock absorption. The most common application of thermocol packaging is during the shopping for fragile and delicate items such as electronics, glassware, and other products. The thermocol packaging industry includes the producers and distributors of EPS foam products used extensively for packaging purposes including foam blocks, sheets, molded trays, and other custom-designed packaging solutions. During the forecast period, the market is projected to witness steady growth as the demand from the end-user verticals is expected to continue rising.
Increasing use in the e-commerce industry to propel market growth
The global thermocol packaging market is projected to grow owing to the increasing use of this type of packaging solution in the e-commerce sector. Although the online sales platform has enjoyed massive growth in the last decade, after Covid-19, the industry has gained higher momentum with more people switching to the e-commerce industry for purchasing everyday items to more exclusive products including electronic devices. Several factors have been responsible for driving this growth trend.
For instance, e-commerce companies have consistently worked in improving their supply chain and customer service, two of the main pillars that the sector currently stands on. E-commerce sites are now at a capacity to deliver products on the same day the purchase is made. In addition to this, online platforms tend to have higher consumer reach as compared to brick-and-mortar sales channels leading to a higher influx of consumers. The e-commerce sector is projected to rise even higher during the forecast period, leading to more demand for solid packaging solutions such as thermocol packaging.
High environmental concerns to restrict market expansion
Although thermocol packaging is known to be lightweight and cost-effective, the materials used for the production of thermocol are non-biodegradable materials. These sources cannot be recycled easily and the final product has limited applications. Such factors have led to a rise in environmental concerns since discarding thermocol packaging can lead to piling of non-biodegradable waste that may take more than 100 years or more to decompose leading to severe impact on the environment. Furthermore, the growing number of alternatives present in the commercial market could lead to more consumers switching to eco-friendly options.
Growing innovation to provide growth opportunities
The global thermocol packaging industry is expected to witness a higher number of growth opportunities due to the increasing investment directed toward innovation in packaging designs by improving aspects such as performance and sustainability. For instance, by exploring the use of bio-based materials or alternative forms of EPS foam, the industry players can manage the environmental concerns as the product would be more eco-friendly and easily recyclable.
Strict environmental guidelines to challenge market growth
As world leaders are realizing the impact of commercial operations on the environment, they are laying out more stringent regulations surrounding the use and disposal of non-environment-friendly products such as thermocol packaging solutions. This is projected to act as a challenge for the global thermocol packaging industry players since it may lead to increased manufacturing costs. Furthermore, the rising number of end-users choosing products such as biodegradable plastics and paper-based packaging could lead to a loss of revenue.
The global thermocol packaging market is segmented based on industry, type, and region.
Based on industry, the global market segments are marine industry, agriculture industry, construction industry, pharmaceutical industry, electronics industry, and others. In 2022, the industry witnessed the highest growth in the electronics sector followed by the pharmaceutical industry. The electronic items being delivered to customers need to be stored and transported in a secure environment. They have to be handled with care. With the growing revenue in the electronics industry especially due to the surging sales from e-commerce portals, the demand for thermocol packaging in this sector is higher. On the other hand, the pharmaceutical industry uses thermocol packaging to transport and store temperature-sensitive drugs and other medical supplies. A report by the Ellen MacArthur Foundation claims that almost 165 billion packages are shipped each year globally.
Based on type, the global market segments are thermocol blocks, thermocol sheets, and others. The thermocol packaging industry witnessed the highest growth in the thermocol blocks segment. They are used in packaging and cushioning heavy or fragile products, particularly in the electronics, automotive, and industrial sectors. Thermocol sheets are used for several applications such as insulation, construction, and packaging. This type of packaging is lightweight. They also have good thermal insulation properties and hence are a preferred choice in the construction industry for insulation and as a building material. Additionally, they are also used as protective packaging material to cushion and protect construction products during shipping. In New York City alone, more than 14 million tons of waste is generated every year.
|Report Attributes||Report Details|
|Report Name||Thermocol Packaging Market Research Report|
|Market Size in 2022||USD 14.98 Billion|
|Market Forecast in 2030||USD 24.03 Billion|
|Growth Rate||CAGR of 6.09%|
|Number of Pages||219|
|Key Companies Covered||BASF SE, Sealed Air Corporation, Sonoco Products Company, Synthos S.A., Styropack, Drew Foam Companies, Inc., Ineos Styrolution Group GmbH, Kaneka Corporation, Alpek SAB de CV, Nova Chemicals Corporation, Total SA, Styron LLC, S C Johnson & Son Inc., Flint Hills Resources LLC, Sunpor Kunststoff GmbH, Styrochem, Samsung Fine Chemicals Co. Ltd., LG Chem Ltd., ACH Foam Technologies LLC, Pregis Corporation, Armacell International S.A., Foam Supplies Inc., Jablite, Polystyrene Industries Ltd., and Styromet GmbH & Co. KG.|
|Segments Covered||By Industry, By Type, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
Asia-Pacific to hold its dominance
The global thermocol packaging market is projected to witness the highest growth in Asia-Pacific owing to the extensive use of thermocol as an integral packaging solution across some of the fastest-growing end-users. China and India are projected to emerge as the major contributors to the industry growth, of their large population, expanding middle class, and increasing disposable income.
Europe and North America are considered mature markets for thermocol packaging and are projected to record steady growth with the rising demand in the electronics and food and beverage industries. However, the region can expect more production of recyclable and biodegradable thermocol packaging solutions as the focus on sustainability is growing.
Driven by the increasing demand for thermocol packaging products in the pharmaceutical, electronics, and industrial sectors, Latin America and the Middle East, and Africa are also expected to witness significant growth.
The global thermocol packaging market is led by players like:
Thermocol packaging is the industry that deals with the use of expanded polystyrene foam (EPS) which is also known as Styrofoam as a packaging material across several industries.
The global thermocol packaging market is projected to grow owing to the increasing use of this type of packaging solution in the e-commerce sector.
According to study, the global thermocol packaging market size was worth around USD 14.98 billion in 2022 and is predicted to grow to around USD 24.03billion by 2030.
The CAGR value of thermocol packaging market is expected to be around 6.09% during 2023-2030.
The global thermocol packaging market is projected to witness the highest growth in Asia-Pacific owing to the extensive use of thermocol as an integral packaging solution across some of the fastest-growing end-users.
The global thermocol packaging market is led by players like BASF SE, Sealed Air Corporation, Sonoco Products Company, Synthos S.A., Styropack, Drew Foam Companies, Inc., Ineos Styrolution Group GmbH, Kaneka Corporation, Alpek SAB de CV, Nova Chemicals Corporation, Total SA, Styron LLC, S C Johnson & Son Inc., Flint Hills Resources LLC, Sunpor Kunststoff GmbH, Styrochem, Samsung Fine Chemicals Co. Ltd., LG Chem Ltd., ACH Foam Technologies LLC, Pregis Corporation, Armacell International S.A., Foam Supplies Inc., Jablite, Polystyrene Industries Ltd., and Styromet GmbH & Co. KG.