The global paper bubble wrap market size was valued at around US$ 600 Mn in 2021 and it is expected to reach US$ 629 Mn in 2022. With growing usage across industries like manufacturing, e-commerce, and logistics, the overall demand for paper bubble wrap is projected to grow at a CAGR of 5.0% between 2022 and 2032, topping a valuation of US$ 1.1 Bn by 2032.
The total paper bubble wrap market is estimated to hold 18% of the global packaging market worth US$ 33 Bn, in 2022. The unbleached kraft paper bubble wrap market revenue totalled US$ 600 Mn in 2021, according to FMI analysis. The demand for unbleached kraft paper bubble wrap will accelerate with the top 5 providers holding 5-10% share of the global market in 2022.
What are the Key Trends Driving Paper Bubble Wrap Demand?
“Extensive Usage in Logistics & Transportation Industry Boosting Paper Bubble Wrap Sales”
The paper bubble wrap demand is underpinned by the strong growth of the logistics industry. As transportation and logistics products need to be more secure to prevent damage, hence, these wraps are increasingly being used in transportation and logistics packaging.
In addition, the growing demand for paper bubble wrap for palletizing in the logistics industry will further accelerate the industry’s growth. The increasing use of unbleached paper bubble wrap is also contributing towards generating significant revenues in the global paper bubble wrap market.
Further, it is a new development used as an alternative to plastic packaging solutions across packaging industry. It has enabled manufacturers to protect their fragile products while complying with the government regulations. Hence, leading manufacturers are continuously doing research and development on the product to make it a multi-tasking product for the packaging.
Country-wise insights
Will India Emerge as a Lucrative Paper Bubble Wrap Market?
India’s e-commerce market is expected to grow by 21.5% in 2022 to total US $ 74.8 billion, according to key findings from the India Brand Equity Foundation. In India, 100% FDI is allowed for B2B e-commerce.
100% FDI under the automatic route is allowed in the e-commerce marketplace model. Recent rises in digital literacy have led to an influx of investment in e-commerce companies, opening markets for new players to lay the groundwork, creating innovative patterns and disrupting old ways of working.
According Future Market Insights, the e-commerce market in India is expected to reach the US$ 111 billion by 2024 and US$ 200 billion by 2026. Furthermore, the country’s e-commerce market is expected to reach US$ 350 billion by the end of 2030 and grow at a CAGR of approximately 50-55%. Due to this fast-growing e-commerce market in India, the paper bubble wrap market is expected to seize the opportunity to gain about 8% to 10% of the world market share during the forecast period
Why Does Japan Hold Prominent Share in Global Paper Bubble Wrap Market?
As per FMI’s analysis, the paper bubble wrap market in Japan expanded at a growth rate of 3.7% during the historic period from 2015 to 2021 and is expected to grow at a remarkable growth rate of about 4% over the next 10 years.
Rapid expansion of e-logistics sector, growing focus towards using eco-friendly packaging products, and booming import/export business are some of the key factors driving the sales in Japan.
According to the main survey results of the Japan International Freight Forwarders Association, Japan’s total exports to developed countries such as China and the U.S. surge at 32% from 2021 to 2022 while the total imports grew by 35% -38% in the same year.
In recent years, Japan’s logistics sector grew at a considerable pace and the trend is likely to follow during the forecast period owing to the growing demand for delicate products, this in turn, will propel the growth in the market.
Based on the aforementioned factors, Japan is anticipated to create an absolute $ opportunity of US$ 22 Mn during the forecast period.
Competitive Landscape
Since there are so many local and regional competitors, the worldwide paper bubble wrap market is extremely fragmented and competitive in nature. Key paper bubble wrap manufacturers use a variety of marketing techniques, including mergers & acquisitions, expansions, collaborations, and partnerships.
Leading organisations also use new product creation as a strategic way to expand their market presence among customers. Some of the recent developments in the market are as follows –
In May 2022, Protege Global won the 2022 Packaging Innovation Showcase Award for the most innovative product. According to the protege global, the UK is a game changer to lower their carbon footprint and they were the only manufacturer of paper bubble wrap in the whole UK.
In August 2021, Hexcel Pack announced a new pallet wrap which is an eco-friendly, paper-based protective cushioning solution to replace bubble packaging and other plastic or foam base material. PalletWrap was developed with high-tension Powerstretch technology.
“DS Smith Plc, Sealed Air Corporation, and Protega Global Ltd. to Attract the Most Attention”
Over the years, rising environmental concerns and implementation of stringent regulations have created lucrative opportunities for eco-friendly packaging manufacturers. In order to capitalize and take maximum benefits of these opportunities, players like DS Smith Plc, Sealed Air Corporation, and Protega Global Ltd. are using various tactics including launching paper bubble wrap products and offering customized ecofriendly packaging solutions.
Since the establishment of DS Smith Plc in 1940, the company has emerged as a global leader in packaging solutions, especially ecofriendly ones. It is continuously striving to develop eco-friendly packaging materials to meet end user demand as well as to comply with the government regulations.
For instance, in 2021, DS Smith explores seaweed as an ideal alternative packaging material to conventional wood and paper material. The company has been constantly working from last few years with a number of biotech companies to investigate how seaweed and other alternative fibers could be used as a raw material in products such as paper wraps, cartons, and cardboard trays.
In a recent survey commissioned by DS Smith 41% of consumers want packaging made from alternative renewable sources. This is prompting the company to shift their focus towards packaging products like paper bubble wrap.
Similarly, Sealed Air Corporation is taking the packaging industry by storm. The company is putting various efforts to advance in sustainable packaging. For instance, in 2022, Sealed Air announced the launch of BUBBLE WRAP brand paper bubble mailer, a fiber-based padded mailer that can be recycled in curbside bins.
The BUBBLE Brand paper bubble mailer offer various advantages including better durability, smaller and lighter features, and curbside recyclability.
Sealed Air Corporation recorded net sales of US$ 1.4 billion as per the company’s financial results for Q1 2022.
Another company that is attracting a lot of attention in the paper bubble wrap industry is the Protega Global Ltd. the company has been operating as a family business since 1985 selling packaging materials with an emphasis on supplying eco-friendly packaging.
The company (Protega Global Ltd) recently launched Hexcel Wrap, an eco-friendly packaging solution to meet end user demand. Furthermore, in 2022 Protega announced 1.3 million investments in new facility in the U.K.
