Protective Packaging Market

• Publication date: February 2012

US demand to reach $5.9 billion in 2016 Protective packaging demand is expected to reach $5.9 billion in 2016, accelerating from the pace of the 2006-2011 period based on increased manufacturing output following the 2007-2009 recession and continued solid growth for electronic shopping. These factors will necessitate heightened requirements for costeffective packaging used in the protection of goods from shock, vibration, abrasion,...

US demand to reach $5.9 billion in 2016

Protective packaging demand is expected to reach $5.9 billion in 2016, accelerating from the pace of the 2006-2011 period based on increased manufacturing output following the 2007-2009 recession and continued solid growth for electronic shopping. These factors will necessitate heightened requirements for costeffective packaging used in the protection of goods from shock, vibration, abrasion, temperature abuse and other damaging effects of shipping and handling.

Foamed plastics, insulated shipping containers, air pillows among best prospects

Above-average growth is expected for most foamed plastics, as well as insulated shipping containers and air pillows. In addition to benefiting from a recovery in the manufacturing sector, gains for molded and other foamed plastics will be aided by advantages of light weight and excellent cushioning capabilities compared to paperboard and other materials. Further advantages of foamed plastic products include the ability to be custom molded to conform to shapes of sensitive equipment such as computers, consumer electronics and instrumentation, thereby providing enhanced protective capabilities. However, longer-term prospects will be constrained by the outsourcing of manufacturing operations to offshore locales with lower labor costs and competition from greener alternatives. Insulated shipping container advances will be driven by expanding specialized handling requirements for temperaturesensitive pharmaceuticals and increased online sales of perishable foods. Rapid growth for biotechnology drugs and vaccines, which are often temperaturesensitive, will fuel sales of insulated shipping containers in order to maintain product efficacy and prevent losses of high-value drugs due to spoilage caused by temperature abuse. To prevent such losses, drug makers are placing increased pressure on logistics providers to demonstrate quality assurance measures. Healthy demand for air pillows will be based on continued solid growth in Internet shopping, advantages over other materials in terms of cost and material use, and consumer preference for the product over other materials such as loose-fill. Molded pulp protective packaging demand is also expected to increase at an above-average pace, the result of heightened interest in environmentally friendly packaging, ease of disposal and more stable pricing than the competitive petroleum-based plastics. The growing emphasis on packaging sustainability has also fueled numerous introductions of recycled content and biodegradable alternatives to conventional plastic-based protective packaging products. Nontraditional biodegradable alternatives to molded foams have been commercialized in the past few years and are poised to establish themselves as production capacity increases result in expanded availability. More moderate gains are anticipated for paperboard protectors, paper fill, dunnage bags and loose-fill, the result of mature applications and/or competition from faster growing product types. Nonetheless, prospects for paper fill and biodegradable loose-fill will be helped by growing interest in environmentally friendly packaging. In addition, an improved outlook for consumer spending will bode well for demand for paperboard edge protection products, which are used by warehouse club stores, home center stores and other retail establishments to unitize and stack pallets. However, import competition in appliances will moderate paperboard protector demand.

Study coverage

This upcoming industry study, Protective Packaging, presents historical demand data (2001, 2006, 2011) plus forecasts for 2016 and 2021 by function, market and product. The study also considers market environment factors, evaluates company market share and profiles industry competitors.

Packaging Industry in the United States

TABLE OF CONTENTS

INTRODUCTION ix

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Outlook 5
Consumer Income & Spending Trends 8
Demographic Trends 11
Manufacturing Outlook 15
Electronic & Computer Trends 18
Appliance Trends 20
Retail Sales Outlook 22
Internet & Catalog Sales Outlook 24
Packaging Industry Outlook 29
Box Industry Outlook 31
Foamed Plastic Overview 34
Environmental Considerations 36
Regulatory Considerations 40
Pricing Trends 42
International Activity 46

III. OVERVIEW 49

General 49
Products 50
Materials 52
Functions 56
Cushioning 58
Blocking & Bracing 59
Insulation 61
Void-Fill 62
Wrapping 63
Markets 63
Manufacturing 65
Non-Manufacturing 67

IV. FLEXIBLE PROTECTIVE PACKAGING 70

General 70
Protective Mailers 73
Materials & Applications 74
Producers 76
Bubble Packaging 79
Materials & Applications 80
Producers 81
Air Pillows 83
Materials & Applications 85
Producers 87
Paper Fill 89
Materials & Applications 91
Producers 92
Dunnage Bags 94
Materials & Applications 96
Producers 97
Other Flexible Protective Packaging 97

V. RIGID PROTECTIVE PACKAGING 99

General 99
Insulated Shipping Containers 102
Materials 103
Applications 106
Producers 108
Paperboard Protectors 111
Materials & Applications 112
Producers 115
Molded Pulp 117
Materials & Applications 118
Producers 119
Other Rigid Protective Packaging 120

VI. FOAMED PLASTIC PROTECTIVE PACKAGING 123

General 123
Molded Foam 126
Expanded Polystyrene 128
Materials 130
Applications 132
Producers 133
Polyolefins 135
Materials 136
Applications 137
Producers 138
Polyurethane 140
Materials & Applications 141
Producers 142
Foam-in-Place Polyurethane 143
Materials & Applications 145
Producers 145
Polyolefin Rolled Foam 147
Materials & Applications 148
Producers 149
Loose-Fill 151
Expanded Polystyrene Loose-Fill 153
Biodegradable Plastic Loose-Fill 156
Other Foams 159

VII. INDUSTRY STRUCTURE 162

General 162
Market Share 165
Acquisitions & Divestitures 170
Marketing & Distribution 174
Competitive Strategies 178
Cooperative Agreements 180
Company Profiles 184
ACH Foam Technologies LLC 185
American Excelsior Company 187
Automated Packaging Systems Incorporated 188
Barnhardt Manufacturing Company 190
BASF SE 191
Bayer AG 193
Boise Incorporated 195
Buckeye Corrugated Incorporated 197
Caraustar Industries Incorporated 198
Carpenter Company 200
Cascades Incorporated 201
Cellofoam North America Incorporated 203
Cold Chain Technologies Incorporated 204
CPI Packaging, see Sealed Air
Cryopak, see TCP Reliable
Ecovative Design LLC 206
EnviroCooler, see Lifoam Industries
Foam Fabricators Incorporated 207
Free-Flow Packaging International Incorporated 209
FP International, see Free-Flow Packaging International
Great Northern Corporation 212
Huntington Foam LLC 214
HEXACOMB, see Boise
Huntsman Corporation 215
Illinois Tool Works Incorporated 216
ITW Shippers, see Illinois Tool Works
iVEX Protective Packaging, see Specialized Packaging
Group
Koch Container, see Buckeye Corrugated
Landaal Packaging Systems Incorporated 219
Lifoam Industries LLC 220
Marko Foam Products Incorporated 221
Menasha Corporation 223
Multi-Wall Packaging Corporation 225
NanoPore Insulation, see Sealed Air
NOVA Chemicals Corporation 227
ORBIS, see Menasha
Pak-Lite Incorporated 228
Polar Tech Industries Incorporated 230
Polyair Inter Pack Incorporated 231
Pregis Corporation 233
Ranpak Corporation 238
RAPAC, see Ring Companies
Ring Companies 240
Rock-Tenn Company 241
Rogers Foam Corporation 245
RTS Packaging, see Rock-Tenn & Sonoco Products
Sealed Air Corporation 246
Sonoco Products Company 251
Specialized Packaging Group LP 255
Stephenson & Lawyer, see UFP Technologies
Storopack Hans Reichenecker GmbH 258
TCP Reliable 260
Tegrant, see Sonoco Products
Tennessee Packaging, see Buckeye Corrugated
THARCO, see Boise
3M Company 263
True Pack Limited 264
UFP Technologies Incorporated 265
WineLoc Packaging Products, see ACH Foam
Technologies
Other Companies in the Protective Packaging Industry 268

LIST OF TABLES


SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Personal Consumption Expenditures 11
3 Population & Households 15
4 Manufacturers’ Shipments 18
5 Electronic & Computer Product Shipments 20
6 Major Household Appliance Shipments 22
7 Retail Sales 24
8 Electronic & Mail Order Shopping Sales by Type & Product 28
9 Packaging Supply & Demand 31
10 Corrugated & Paperboard Box Shipments by Type 34
11 Protective Packaging Prices 46

SECTION III -- OVERVIEW

1 Protective Packaging Demand by Type 52
2 Protective Packaging Demand by Material 55
3 Protective Packaging Demand by Function 57
4 Protective Packaging Demand by Market 64
5 Manufacturing Market for Protective Packaging 67
6 Non-Manufacturing Market for Protective Packaging 69

SECTION IV -- FLEXIBLE PROTECTIVE PACKAGING

1 Flexible Protective Packaging Demand by Type 72
2 Protective Mailer Demand by Type & Market 74
3 Bubble Packaging Demand by Market 80
4 Air Pillow Demand by Market 85
5 Paper Fill Packaging Demand by Market 90
6 Dunnage Bag Demand by Material & Market 95
7 Other Flexible Protective Packaging Demand 98

SECTION V -- RIGID PROTECTIVE PACKAGING

1 Rigid Protective Packaging Demand by Type 101
2 Insulated Shipping Container Demand by Application & Market 103
3 Paperboard Protector Demand by Market 112
4 Molded Pulp Protective Packaging Demand by Market 118
5 Other Rigid Protective Packaging Demand 122

SECTION VI -- FOAMED PLASTIC PROTECTIVE
PACKAGING

1 Foamed Plastic Protective Packaging Demand 125
2 Molded Foam Protective Packaging Demand 128
3 Molded Expanded Polystyrene Protective Packaging
Demand by Market 130
4 Molded Polyolefin Protective Packaging Demand by Market 136
5 Molded Polyurethane Protective Packaging Demand by Market 141
6 Foam-In-Place Polyurethane Protective Packaging
Demand by Market 144
7 Polyolefin Rolled Foam Protective Packaging
Demand by Market 148
8 Loose-Fill Packaging Demand by Type 153
9 Expanded Polystyrene Loose-fill Packaging Demand 156
10 Biodegradable Plastic Loose-Fill Packaging Demand 159
11 Other Foamed Plastic Protective Packaging Demand 161

SECTION VII -- INDUSTRY STRUCTURE

1 US Protective Packaging Sales by Company, 2011 164
2 Selected Acquisitions & Divestitures 173
3 Selected Cooperative Agreements 183

LIST OF CHARTS

SECTION III -- OVERVIEW
1 Protective Packaging Demand by Material, 2011 55
2 Protective Packaging Demand by Function, 2011 57
3 Protective Packaging Demand by Market, 2011 65
SECTION IV -- FLEXIBLE PROTECTIVE PACKAGING
1 Flexible Protective Packaging Demand by Type, 2011 72
SECTION V -- RIGID PROTECTIVE PACKAGING
1 Rigid Protective Packaging Demand by Type, 2011 101
SECTION VI -- FOAMED PLASTIC PROTECTIVE
PACKAGING
1 Foamed Plastic Protective Packaging Demand, 2011 126
SECTION VII -- INDUSTRY STRUCTURE
1 US Protective Packaging Market Share, 2011 167
2 Protective Packaging Industry Flowchart 177