Global Molded Fiber Packaging Market - 2024-2031

Overview

Global Molded Fiber Packaging Market reached US$ 7.6 billion in 2023 and is expected to reach US$ 9.8 billion by 2031, growing with a CAGR of 3.2% during the forecast period 2024-2031.

Market expansion is being driven by increased need for sustainable and eco-friendly packaging solutions, as well as increased demand from end-use sectors such as food packaging, healthcare, food service, electronics and others. Manufacturers use a variety of techniques to maintain a healthy competitive environment across the market.

For example, in July 2023, Tekni-Plex, Inc. announced the opening of a factory in Ohio to manufacture specialist molded pulp goods, specifically fiber-based egg cartons. Restaurants, caterers, cafeterias, fast-food restaurants and other establishments that prepare, sell and serve food fall under the area of commercial food services. With such organizations looking forward to novel packaging options with a minimum carbon footprint, the molded pulp packaging market is projected to see considerable growth in the coming years.

In 2023, Asia-Pacific is expected to be hold about 1/4th of the global molded fiber packaging market. The region's growth is attributable to a big food and beverage and electronics industry, which is driven by the country's high population and increasing disposable income. Furthermore, the country is home to major electronic enterprises such as Huawei Technologies Co., Ltd, Lenovo, Xiaomi and others, which increases the demand for molded pulp packing to preserve and transport fragile electronic goods.

Dynamics

Rising E-Commerce and Sustainability

As more people resort to online shopping for convenience, the demand for efficient and environmentally friendly packaging solutions increases. Molded fiber packaging has several advantages including lightweight construction, eco-friendly materials and adjustable designs to accommodate a variety of product shapes and sizes. Its shock-absorbing characteristics also ensure safe transportation of items, lowering the danger of damage during transit.

Modern customers think carefully about where and how they spend their money. The awareness is mostly focused on packaging sustainability in the modern day, as environmental concerns grow. According to Trivium Packaging's recent Global Buying Green research, more than 83% of younger consumers (aged 44 and under) are willing to pay more for products that use sustainable packaging.

Growing Advancements in Technologies

Automation, precision molding techniques and enhanced machinery have all contributed to a reduction in production costs and lead times. Furthermore, technical advancements have permitted the development of more complex and adaptable packaging designs, which cater to a wide range of product needs and branding requirements. Increased efficiency leads to increased production volumes and consistent quality, satisfying the growing demand for sustainable packaging solutions in the food and beverage industry.

As a result, technological developments are a major factor driving the growth of the molded fiber packaging market. PulPac's relationship with Matrix Pack, a prominent food and beverage packaging manufacturer, represents a strategic shift toward sustainable packaging solutions. Matrix Pack will use PulPac's revolutionary technology to create lids for both hot and cold takeout drinks, indicating a shared commitment to eco-friendly packaging solutions.

High Costs and Limited Shelf Life

Smaller firms, like larger counterparts, may lack economies of scale, resulting in higher per-unit manufacturing costs due to lower production quantities. Furthermore, smaller firms may be unable to afford the early investments in specialized equipment and technology required for molded fiber production. The obstacles frequently cause difficulty in obtaining price competitiveness and profitability, impeding smaller businesses' market entry and expansion.

As a result, despite the market's potential, larger firms may continue to dominate the molded fiber packaging business, limiting diversity and innovation. Molded fiber's biodegradability can cause degradation over time, especially in humid or damp conditions, compromising its structural integrity and protective properties. The restriction discourages sectors that need extended product shelf life or long-distance shipping, such as certain perishable foods or medications.

Segment Analysis

The global molded fiber packaging market is segmented based on material, product, application, end-user and region.

Rising Online Food Delivery Drives the Segment Growth

Food & beverages are expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Molded fiber materials are increasingly being employed in the food industry to replace plastics and address the rising demand for environmentally friendly and sustainable products. Applications for the food market must meet tight standards. In addition to some basic strength standards, such as tensile and thermal capabilities, increased barrier properties are critical for materials in the food market sector.

Even though people are becoming more anti-plastic, it remains the most widely utilized material for soft drink packaging globally. However, several firms in the molded fiber packaging market are increasing their footprints, which is helping the investigated area of the market. Furthermore, Agriculture and Agri-Food Canada estimates that the sales value of packaged goods was US$ 1 billion in 2018 and will reach US$ 1.42 billion in 2023. Such rise in the food industry will drive the market for molded fiber packaging.

Geographical Penetration

Growing Demand for Eco-friendly Packaging in Europe

Europe is expected to be the dominant region in the global molded fiber packaging market covering about 30% of the market. Germany's packaging sector is well-known for its widespread use in food production. Consumers seek products that give convenience, protection and simplicity of transportation, which fuels demand for varied packaging, particularly plastic alternatives in food products such as dairy, meat and prepared meals.

Europe has grown as one of the most significant markets for mold fiber packaging, with industrialized nations like UK boasting a greater urban population and higher disposable income. According to the Packaging Federation of UK, the package manufacturing industry in UK earns US$ 13.99 billion in revenue each year. It employs more than 85,000 workers or 3% of UK manufacturing workforce. It also makes a significant contribution to UK economy and is a vital link in the packaging supply chain.

Competitive Landscape

The major global players in the market include UFP Technologies, Inc., FiberCel Packaging LLC, Huhtamaki Oyj, Pactiv LLC, Henry Molded Products, Inc, EnviroPAK Corporation, Spectrum Lithograph Inc., ESCO Technologies Inc., ProtoPak Engineering Corporation and Brodrene Hartmann A/S.

COVID-19 Impact Analysis

The pandemic raised consumer awareness of environmental sustainability, resulting in a greater preference for eco-friendly packaging alternatives such as molded fiber. As customers became more mindful of their environmental impact, the demand for biodegradable and compostable molded fiber packaging increased dramatically. The epidemic expedited the trend to e-commerce by limiting in-person buying through lockdowns and social distancing measures.

With the development of online shopping, there has been a greater demand for protective and sustainable packing options for delivering products. Molded fiber packaging became popular due to its protective features and environmental credentials. Food delivery businesses experienced a substantial rise in demand during the epidemic, as eateries closed or operated at reduced capacity.

Russia-Ukraine War Impact

Russia and Ukraine are major exporters of raw materials used in molded fiber packaging, including wood pulp and recycled paper. Disruptions in the supply of the materials caused by the conflict, such as transportation disruptions, export bans or trade restrictions, resulted in shortages and price volatility in the global molded fiber packaging industry. Geopolitical tensions and uncertainty emanating from the war might cause movements in currency exchange rates, commodity prices and financial markets globally.

It influenced the cost of raw materials, production and distribution for molded fiber packaging makers, potentially resulting to price hikes for end-users. Molded fiber packaging producers need to rethink their sourcing strategy and diversify their supply chains to reduce the risks associated with relying on Russian and Ukrainian suppliers. It entails acquiring raw materials from alternate places or investing in indigenous manufacturing capabilities to lessen dependency on imports.

By Material

• Recycled Paper
• Virgin Paper
• Mixed Pulp

By Product

• Trays
• Containers
• Clamshells
• Bowls
• Plates
• Others

By Application

• Protective Packaging
• Food Service Packaging
• Electronics Packaging
• Cosmetic & Personal Care Packaging
• Others

By End-User

• Food & Beverage
• Consumer Electronics
• E-Commerce & Retail
• Agriculture
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In 2023, during the Midwest IDEAS Investor Conference, UFP Technologies, Inc., led by CEO R. Jeffrey Bailly and CFO Ron Lataille, showcases its expertise in creating molded fiber packaging for the medical sector. Its emphasis on sustainability and performance matches with the increasing market expectations.
• In 2022, Huhtamaki strengthens its position in the molded fiber packaging market by expanding its Hammond, Indiana operation, emphasizing environmentally friendly, recyclable solutions made from 100% recycled North American resources. The expansion strengthens Huhtamaki's commitment to environmental responsibility and improves product performance.

Why Purchase the Report?

• To visualize the global molded fiber packaging market segmentation based on material, product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of molded fiber packaging market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Material mapping available as excel consisting of key products of all the major players.

The global molded fiber packaging market report would provide approximately 70 tables, 69 figures and 207 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies