Honeycomb Packaging Market Size was valued at USD 11.8 Billion in 2023. The Honeycomb Packaging industry is projected to grow from USD 12.47 Billion in 2024 to USD 18.30 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.92% during the forecast period (2024 - 2032). Increasing need for sustainable packaging from numerous businesses, as well as increased use of mobile phones are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for honeycomb packaging is being driven by the growing automotive market in emerging economics. Honeycomb packaging is used in the automobile industry to bundle vehicle parts. The automobile sector is predicted to expand in response to increased demand from emerging economies such as China and India. In comparison to established markets, India and China have low car penetration. The automotive industry's sales are predicted to climb as the middle-class population grows and their disposable money improves, as owning a car is one of their objectives. automotive production is expected to increase during the predicted period. OEMs will expand output of automotive parts utilised in the final automobile vehicle as the automotive industry's market grows. As a result, the growing need for honeycomb packaging required to pack automotive parts will propel the honeycomb packaging market.
Additionally, the products sold in the e-commerce sector must be securely wrapped. Otherwise, they risk being damaged while being sent or moved over large distances. This might raise the likelihood of consumers not using the same supplier again by 50%. As a result, e-commerce companies employ protective packaging, such as honeycomb packaging. Furthermore, consumers may utilise the Internet to openly express their discontent with the supplier's service. This may result in an unfavourable public perception of the supplier. Even if a customer returns a faulty item, the corporation must absorb the additional costs. As a result, it is critical for e-commerce businesses to invest in superior packaging to secure their items. The Internet is widely used at the moment. This has led to the expansion of the e-commerce business in recent years. During the projection period, the industry is expected to grow further. Growing e-commerce sales will enhance the demand for honeycomb packaging, propelling the worldwide honeycomb packaging market forwards.
Furthermore, because to their outstanding compression strength and recyclable nature, paper honeycomb products are increasingly being used in industrial packaging applications, which will drive market revenue growth.
The Honeycomb Packaging Market segmentation, based on packaging type includes interior packaging, exterior packaging, pallets and others. Over the projected period, the exterior packaging segment is expected to have the biggest revenue share, due to its rapidly rising popularity for honeycomb paperboard packaging type. Exterior packaging materials are the outer containers and boxes in which things are packed before being transported or carried. They are the overall outer wrapping that protects the entire goods during shipping from the vendor to the customer. Over the projected period, the exterior packaging category will rise due to consistent demand from end-user industries such as autos, furniture, and consumer products.
Figure1: Honeycomb Packaging Market, by Packaging Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Honeycomb Packaging Market segmentation, based on end-user, includes consumer goods, food and beverages, furniture, industrial goods, automotive. Over the projection period, the furniture segment is expected to rise above all others in terms of revenue generation. The increased demand for furniture is a major factor driving this segment's growth. Furniture applications are projected to drive paperboard honeycomb market share due to rising demand for lightweight and cost-effective materials. The use of materials with high strength to thickness ratios, high strength to weight ratios, and acoustic properties in interior tables, chairs, and other furniture applications is growing. Furthermore, increased aesthetic aspects of paper honeycomb products are expanding their popularity as furniture design materials. As a result, the honeycomb segment promotes market growth revenue.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America emerged as the largest market for Honeycomb Paperboard Packaging in 2022, with the greatest revenue shares due to well-established automotive and furniture end-use industries. The large size of end-user industries in this region promotes market revenue growth throughout the predicted period.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: HONEYCOMB PACKAGING MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Honeycomb Packaging Market accounts for the second-largest market share due to stiff competition from countries that have low production costs. Further, the German Honeycomb Packaging Market held the largest market share, and the UK Honeycomb Packaging Market was the fastest growing market in the European region
The Asia-Pacific Honeycomb Packaging Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rapid urbanization and increased penetration of end-user industries in this region further, contribute to APAC market growth. Moreover, China’s Honeycomb Packaging Market held the largest market share, and the Indian Honeycomb Packaging Market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Honeycomb Packaging Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Honeycomb Packaging industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Honeycomb Packaging industry to benefit clients and increase the market sector. In recent years, the Honeycomb Packaging industry has offered some of the most significant advantages to medicine. Major players in the Honeycomb Packaging Market, including Packaging Corporation of America (U.S, Sealed Air Corporation (U.S), Sonoco Products Company (U S), Smurfit Kappa Group plc (Ireland) and WestRock Company. (U.S) and others, are attempting to increase market demand by investing in R&D operations.
Shiseido firm, Limited is a Japanese cosmetics firm that was formed in 1872 in Tokyo, Japan. Skin care, cosmetics, body care, hair care, and perfumes are among its product categories. The corporation is one of the oldest in the world, celebrating its 150th anniversary in 2022. It is Japan's largest cosmetic company and the world's fifth largest cosmetic enterprise. Shiseido is offered in Japan at cosmetic counters at select department shops and most pharmacies. In addition to its main label, the corporation controls a slew of other brands and subsidiaries around the world. The corporation is based in Tokyo and is publicly traded on the Tokyo Stock Exchange. In June 20, 2022, Shiseido has introduced sustainable product packaging solutions for e-commerce customers. The firm used more environmentally friendly stuffing paper and honeycomb wrap instead of bubble wrap within the e-commerce package. The innovative cushioning honeycomb wrap is made of Kraft paper and is completely recyclable.
BASF SE is a European multinational corporation and the world's largest chemical producer. The company's headquarters are in Ludwigshafen, Germany. BASF has subsidiaries and joint ventures in over 80 countries and runs six integrated manufacturing sites as well as 390 other manufacturing locations throughout Europe, Asia, the Americas, Australia, and Africa. BASF has customers in over 190 countries and serves a wide range of sectors. Despite its size and reach, BASF has gotten little public notice since it stopped manufacturing and selling BASF-branded consumer electronics items in the 1990s. In June 2023, BASF announced intentions to close one of its two ammonia facilities at its Ludwigshafen facility as part of the company's cost-cutting efforts as the organisation has struggled with rising energy expenses.
In May 2022, ALDO Naratama Tbk (ALDO) introduced a green product equivalent for Hexcel Wrap, Indonesia's first plastic bubble wrap. This product is intended to reduce the amount of plastic waste generated by e-commerce enterprises. Hexcel Wrap is a sustainable product and an alternative to bubble wrap in the shape of a honeycomb structure composed of recycled paper used as a protection option in packaging goods shipments, particularly for the e-commerce business.
In September 2021, Ajit Industries Private Limited (AIPL), one of India's top industrial tape makers, has introduced Self Adhesive Kraft Paper Tape and Honeycomb Paper. These environmentally friendly and sustainable packaging alternatives are being developed to eliminate plastic waste in secondary packaging. The company intends to employ these sustainable and biodegradable alternatives to replace non-biodegradable plastic used in secondary packaging.
In March 2022, Antalis Packaging created an easy-to-recycle honeycomb cell design that can be a viable alternative to timber shipping crates, providing greater protection for a corporation that required sustainable crates for the international shipment of big, fragile commodities. A custom-built shipping box constructed of PALLITE, a lightweight, paper-based material reinforced with a 25mm honeycomb cell design, is part of the solution.
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