PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462709
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1462709
According to Stratistics MRC, the Global Dunnage Packaging Market is accounted for $3.9 billion in 2023 and is expected to reach $6.3 billion by 2030 growing at a CAGR of 7.0% during the forecast period. Dunnage packaging refers to materials used to secure and protect goods during transportation or storage. Typically made of wood, plastic, foam, or paper, dunnage serves as cushioning, preventing damage from shocks, vibrations, or shifting. Its versatility allows customization to fit various shapes and sizes, ensuring a snug fit within shipping containers or crates. Dunnage plays a vital role in preserving product integrity, minimizing the risk of breakage or deformation.
According to the Germany Trade & Invest (GTAI), due to excellence in engineering, Germany is being recognized in the world for its automotive sector. As production volumes in the automotive sector continue to expand, there is a higher need for effective packaging solutions to protect sensitive and valuable automotive components during transportation.
High demand for dunnage packaging in the automotive industry
Automobile manufacturers transport finished and semi-finished automotive parts, including the supply of body pieces from various suppliers or components to the assemblies. So, the short distance and frequent transport of large and heavy goods have prompted car manufacturers to create sustainable packing solutions as there is a risk of damage. Dunnage packing offers many advantages, such as humidity protection, damage prevention, and stress absorption. Manufacturing companies rely on dunnage packaging due to the benefits. Therefore, increase in demands from the automobile sector to minimize transport damage is expected to boost the growth of the dunnage packaging market.
Fluctuation in the price of raw material
Price volatility is a crucial element that is anticipated to hamper market growth during the forecast period. The disparity between supply & demand, and the fluctuating price of the oil commodity had affected the budget for dunnage packaging as the automotive sector are left with a low amount to carry on the packaging process. The availability of raw resources at lower or cheaper prices has led to some uncertainty. Thus fluctuations in the pricing of commodities have so presented the market expansion with a viable threat.
Growth of e-commerce and the increasing demand for faster delivery times
As online shopping becomes more prevalent, there is a corresponding surge in the volume of goods being shipped. This elevates the need for effective packaging solutions, including dunnage, to ensure products reach customers intact despite the challenges of multiple handling and transportation. Additionally, the pressure to meet shorter delivery windows intensifies, prompting businesses to prioritize packaging solutions that not only provide adequate protection but also enable streamlined handling and quicker processing. Furthermore, the rise of e-commerce encourages innovation in packaging materials and designs to optimize space utilization and minimize packaging waste boosts the growth of the market.
Development of alternative packaging materials
As consumers and regulatory bodies increasingly prioritize sustainability, materials such as biodegradable plastics, recyclable options, and innovative cushioning solutions are gaining traction. This shift threatens traditional dunnage materials like foam, paper, and plastics, as they may be perceived as less environmentally friendly or less effective in protecting goods during transit. Additionally, the adoption of alternative materials could lead to market saturation and increased competition, potentially squeezing profit margins for dunnage packaging manufacturers.
Covid-19 Impact
As the COVID-19 pandemic forced countries to enforce lockdown, the supply and distribution chain was disrupted. The shifting of activities in operations and vendor operations impacted the need for dunnage packaging. The production process for dunnage has become a challenge for companies due to the limited availability of labour, disrupted raw material supply, and logistic issues. The decreased requirement of dunnage packaging in different sectors led to a downfall in the growth of the dunnage packaging market. A fluctuation in the price of raw material occurred due to the implementation of lockdown. Sellers and distributors quoted a high price for raw materials that increased dunnage packaging prices in exchange.
The foam dunnage segment is expected to be the largest during the forecast period
The foam dunnage segment is estimated to have a lucrative growth, due to its lightweight, shock-absorbing properties, has significantly impacted the Dunnage Packaging Market. Its widespread adoption is due to its ability to protect fragile goods during transportation, reducing the risk of damage and minimizing product returns. Foam dunnage offers versatility in design, enabling customized solutions for various industries, including electronics, automotive, and pharmaceuticals. As a result, foam dunnage has fueled market growth by providing cost-effective, efficient packaging solutions that enhance product safety and reduce waste.
The plastic segment is expected to have the highest CAGR during the forecast period
The plastic segment is anticipated to witness the highest CAGR growth during the forecast period, plastic dunnage offers exceptional protection for goods during transit, shielding them from impact, moisture, and other environmental factors. Its lightweight nature also contributes to reduced shipping costs and improved logistics efficiency. However, concerns regarding plastic waste and environmental pollution have prompted efforts to develop sustainable alternatives and promote recycling initiatives. Despite these challenges, the convenience and effectiveness of plastic dunnage continue to drive its demand in the market.
Asia Pacific is projected to hold the largest market share during the forecast period owing to the growth is accredited to the rising demand for reusable packaging solutions from economies, including China and India, as this type of packaging ensures the safety of packaged products, partial sustainability, and cost savings. The growing application of reusable packaging in the food & beverages, healthcare, and Fast-Moving Consumer Goods (FMCG) industries is likely to further propel the regional market.
North America is projected to have the highest CAGR over the forecast period, owing to Growing demand for corrugated paper-based dunnage products from the industries, such as aerospace, electronics, and automotive, owing to their excellent load stabilizing capacity, is anticipated to augment the overall market growth in the region. Moreover the regional market is characterized by key manufacturers that focus on strategic initiatives, such as extensive R&D, mergers & acquisitions, product innovation, and capacity expansion, to increase their sales and meet the rising demand from the automotive, food & beverages and retail industries.
Key players in the market
Some of the key players in the Dunnage Packaging Market include NEFAB GROUP, Amatech Inc., Artisanz Fabrication and Machine, LLC, Ckdpack, Corplex, Dunnage Engineering, GWP Group, JIDA Industrial Solutions, KEENER Corporation, MJSolpac Ltd, ORBIS Corporation, Package Design & Mfg, Packaging Corporation of America, Reusable Transport Packaging, Salco Engineering and Manufacturing Co., Inc, Schoeller Allibert and UFP Technologies, Inc.
In March 2024, AkyVer(R) PanelTherm - the outmost solution double-skin polycarbonate system for facades dup. Corplex has created AkyVer(R), a multiwall panels and systems made of a high quality of polycarbonate for multiple application in the building market.
In January 2024, Corplex launches a reusable and easy to fold AkyPak(R) Pop 'n Drop container, This recently patented eco-efficient packaging solution is part of Corplex' commitment to research, develop, design and launch innovative products bolstering ergonomics and simplicity in intralogistics processes.
In July 2024, Keener Corporation, proudly unveils its new brand identity as Forge Racks & Dunnage. This strategic rebranding represents an exciting milestone in the company's journey while reinforcing its unwavering dedication to delivering high-quality products in a team-oriented environment.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.