Protective Packaging Study Says Demand to Expand Due to E-Commerce

Published: May 20, 2002, By PRESS RELEASE

CLEVELAND, OH, USA—According to Freedonia Group, an industrial market research firm, "Protective packaging demand is projected to increase nearly five percent annually to $3 billion (US) in 2006, benefitting from expanding Internet and mail-order catalog sales and the highly customized requirements of end-use packaging applications."

Freedonia says its study, Protective Packaging (published 05/2002, 170 pgs) is available for $3,700. Other trends presented in the study include:

[Additional] factors driving growth include the influential role played by distribution networks in the marketing and sale of protective products and services, and proliferating free-trade agreements that are promoting greater global outsourcing activity. Best opportunities are anticipated for inflatable bags, bubble packaging, molded foams, and protective mailers.

Foamed and other plastic protective packaging will continue to expand at the expense of paperboard and related materials, especially for products such as electronics and instrumentation, as a result of plastic's light weight and excellent cushioning capabilities. Plastics also can be molded into specific shapes to conform to fragile equipment, increasing protective capabilities.

Also covered in Freedonia's Protective Packaging:

• Protective mailer trends: demand will rise 4.7 percent/yr. to $1 billion (US) in 2006;

• Inflatable bag demand will expand at double digit pace; and

• Paperboard protector growth will be stimulated by continued demands from appliance and other durable goods industries.

More information about this study and other market research by Freedonia is available at freedoniagroup.com.