The global honeycomb packaging market is estimated to reach a value of $14.1 billion by the end of 2024, up from $8.6 billion in 2015, according to a Transparency Market Research report.
During the forecast period of 2016 and 2024, the global market is estimated to show a compound annual growth rate of 5.7 percent.
Leading players in the global market — these include BASF, Sealed Air and Sonoco — are expected to make strategic alliances to expand their geographical reach to garner bigger shares in the overall market, the report says.
Honeycomb packaging is replacing materials such as PUF, MDF, bubble wrap, EPE, EP foam, mineral wool and particle boards, among others.
The report comes as companies including Dell and Ikea have begun phasing out polystyrene foam packaging and a shareholder activist group has called on four other major US companies — Amazon, McDonald’s, Target and Walmart – to phase out the foam.
Demand for environment-friendly packaging is a key factor in global market growth, the report says.
On the basis of packaging, the global honeycomb packaging market is segmented into interior packaging, pallets, and exterior packaging. Out of these, the exterior packaging segment has been assessed to dominate the global market in the coming years. This segment is projected to expand at a CAGR of 5.5 percent over the forecast period as the demand for cartons, boxes, crates, and containers continues to rise.
Geographically, the global honeycomb packaging market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The demand for honeycomb packaging is expected to be the highest in North America as the region is expected to acquire a share of 34.5 percent by the end of 2024. The rise of industries such as furniture, automotive, and consumer goods in the coming years is expected to fuel the demand for honeycomb packing across North America.
The demand for honeycomb packaging is attributable to the growing amount of damage and wastage to products that are in transit. The need to protect valuable products such as heavy consumer electronics, industrial machinery, glass items, and other equipment have generated a need for sustainable packaging.
The expanding need for honeycomb packaging is also attributable to the emergence of e-commerce and the reducing footfall of retail outlets, the report says. This, in turn, has led boosted the demand for transport, thereby creating a need for safe packaging methods.
The biggest challenge for the global honeycomb market is the increasing popularity of flexible packaging among various industries and consumers. The growing flexible packaging industry can be attributed to the increasing focus on convenience and sustainability.
Furthermore, the key advantage of flexible packaging is that it is lightweight. All of these factors are likely to pose as a threat to the honeycomb market as several will pick flexible packaging over conventional methods, the report says.