Eco-Friendliness Drives Molded Fiber Packing Demand
The global molded fiber packaging industry has witnessed substantial growth in the past few years driven by higher demand for green packaging. Molded fiber packaging uses recycled paper, repurposing several hundred million quantities of it. Molded fibers packaging can be used in handling and packaging thousands of produced goods as they have offer superior protections while shipping the products, customer convenience, and eco-friendly packaging.
The molded fiber packaging has been serving many industries such as food, industrial packaging, single-use medical, horticulture, electronics, personal care, and others. These molded fibers packaging are sometimes also known as molded pulp packaging since it is primarily made up of wood pulp or other natural fibers making it a biodegradable and compostable alternative to other packaging solutions. The recycled fiber and water in the manufacturing creates no waste or any other toxic waste material and hence favored by many manufacturers. The environmental benefits and its cost-effectiveness have become major value-adding features that are propelling the growth of the molded fiber packaging market during the forecast period.
The Ever Rising Food Industry Benefit the Molded Fiber Packaging Market
Technology innovations in preserving, packaging, and transportation have contributed to the growth of the food industry. The molded fiber packaging has shown dominance in clam-shell and carryout food convenience, egg trays, cartons, cups, bowls, plates, food serving trays, and many others. With the molded fiber packaged products meeting the International Food Safety Regulations, it is increasingly being used in lamination, refrigerating, and sealing food products. The extended liquid retention aspect of molded fiber packaged products is key in the food industry.
The food and beverage industry, valued at more than US$14 trillion in 2020, will witness renewed growth with online delivery, is further expected to fuel demand for molded fiber packaging globally. The demand has been exponentially growing for on-the-go foods and single-serve meals owing to the fast and busy life of the consumers in developed and developing countries. On-the-go snacks, and beverages too push the demand for the molded fiber packaging.
The Transfer Segment will dominate the Global Molded Fiber Packaging
By product type, the transfer segment has been witnessing the fastest gains during the forecast period, owing to shape and size variants. Also, the transfer molded fiber packaging exhibits hygroscopic properties and air permeability which has proven to be the best features suitable for food and beverage industries. The transfer molded fiber packaging increases the ease of transit of goods as well as boosts the shelf life of the food products along with limiting the breakage and damage. It is also leakage-free coverings that protect products from transit shocks.
FMCG companies such as Hindustan Unilever and Proctor and Gamble have been favoring recycled plastics in the form the transfer molded packaging as a part of their green packaging initiatives. The transfer molded fiber packaging is also seen in the electronics goods packaging. Asian countries had been dominating the transfer molded fiber packaging market in the electronics industry. Thus, the transfer molded fiber packaging is expected to demonstrate a positive growth outlook owing to its usability in carrying, shipping, and transporting large consignments.
Asia-Pacific Anticipated to be the Largest Potential Market for Molded Packaging Market
Asia-Pacific is expected to show a prominent presence in the global packaging industry and is expected to exhibit significant CAGR of more than 5% in the molded fiber packaging market. The rapid urbanization of Asian developing countries has been attributed to the dynamically growing middle class, economic growth, rising disposable income, and increased e-commerce business. The Asian countries like India, Japan, and Chine will be the major contributors to the industry owing to the increased attention towards research and development facilities for packaging of the goods.
The stringent government Food Safety Policies in the North American and European countries have been favoring the molded fiber packaging owing to its main constituent wood pulp. Also, electronic manufacturing markets have shown tremendous growth in the above markets owing to the presence of a large number of OEMs. These are also, aiding in pulling the demand for the molded fiber in developing economies of Asian countries such as India, China, and Indonesia.
Competitive Landscape: Slightly Fragmented Market Structure
Some of the key players operating in the molded packaging market are Henry Molded Products Inc., EnviroPAK, Robert Cullen Ltd, Heracles Packaging Co. S.A., James Cropper plc., buhl-paperform GmbH, Pactiv LLC, Footprint, Dentas Romania S.R.L., FiberCel, Nippon Mold Industry Corporation, Okulovskaya Paper Factory, Keiding, Inc., Atlantic Pulp, Western Pulp Products Company, Primapack SAE., Best Plus Pulp. , AFP, Inc, and others. The majority of the key players are focusing on business expansion through different strategies including acquisitions, partnerships, mergers, and product development strategies.
Some key developments witnessed in the Molded Packaging market are: