The food and beverage segment is the fastest-growing insulated packaging application, expected to grow at a CAGR of ~5.00% from 2015 to 2020.
Asia-Pacific region is the largest market
The Asia-Pacific region formed the largest market for insulated packaging, in terms of value, after having accounted for $3,391.6m in 2014. Europe formed the second-largest market, with a market share of ~30.0%.
Shankar Rampalli, senior research analyst, M&M, told FoodProductionDaily, factors such as the increasing end-use application fuelled by the growing middle-class population, and a growing workforce, make insulated packaging (plastic, wood, corrugated cardboard, glass) an attractive market.
“It was no surprise to see Asia-Pacific as the fastest-growing region as the finding was directly proportional to population growth. The region dominated the market, with a share of 32.0% in 2014,” he said.
“Its growth is based on a growing population, which is 4.2bn currently, accounting for 60% of world population. Moreover, the strong middle-class population growth will continue to push value sales in Asian countries. Also, the changing lifestyle and high disposable income in developing nations such as China and India.
“The food and beverage industry in this region has seen increasing consumption of perishable and frozen food products. Also, increasing consumption of specialized packaged food is supporting the usage of insulated packaging products.
“Finally, increasing popularity of online shopping is fueling the demand for goods packed in an insulated environment in the Asia-Pacific region.”
Rising middle-class population with high disposable incomes
According to Rampalli, Asia-Pacific will grow at the highest CAGR in terms of volume and value because it has a rising middle-class population with high disposable incomes.
The region has a growing demand for fast-moving consumer goods (FMCGs) for packaged products and the parent packaging industry. Another factor is the densely populated areas of this region that require thermally insulated packaging.
M&M’s report "Insulated Packaging Market by Material Type, Application, by Packaging Type, Type, and Region - Global Forecast to 2020", identifies the driving and restraining factors of the market with analysis of trends, opportunities, burning issues, winning imperatives, and challenges.
Revenues are forecasted on the basis of major regions, such as North America, Europe, Asia-Pacific, and Rest of the World (RoW).
“The growing demand for insulated packaging in developing countries, such as China, India, and Brazil is due to the improved economic conditions and lifestyles, which is driving the growth of the insulated packaging industry,” said Rampalli.
“Key factors, such as growth in the parent packaging market, increasing concern towards product presentation and safety, and development in the pharmaceutical sector are contributing to the growth of the insulated packaging market.”