With the COVID-19 pandemic triggering an increase in the number of orders from the electronics, food packaging, and healthcare sectors, the molded pulp packaging market is witnessing a high growth due to the rise in preference for convenient and sustainable packaging in the market.
The molded pulp packaging market valued at $4,000 million in 2021 is expected to reach $5,661.23 million by 2027, registering a compound annual growth rate (CAGR) of 5.98% during the forecast period (2022-2027). Molded pulp packaging is mainly adopted for its efficient and better recycling systems and creates an increasing demand for customized packaging sizes.
The growing importance of sustainability has helped make pulp packaging an attractive option, especially so with consumer preference for eco-friendly and recyclable materials. Manufactured with 100% recycled materials, it can also be easily recycled again after its useful life cycle. The packaging industry’s demand to avoid the use of Styrofoam, plastics, and other petroleum-based packaging has contributed to the upward surge of pulp packaging and its application in many businesses and industries globally.
Another trend witnessed across the world is an increase in the consumption of eggs amongst humans. According to a market study, the global consumption of eggs is expected to be nearly 10.3 kg/person by the end of 2030. With such a growing demand, the need to have a robust packaging tray that can hold multiple eggs will result in the growth of the global molded pulp packaging market.
The market for trays is expected to grow with an increase in the consumption of eggs. Egg trays made using recycled newspapers offer protective packaging. The molded fiber trays offer good air permeability and hygroscopic ability, which play an important role in egg packaging and storage. Further, these trays have different product dimensions with different holding capacities.
Also, key vendors offering egg packaging solutions are expanding through organic methods, such as launching new products or expanding their manufacturing capacities. Finland-based Huhtamaki, a global provider of sustainable packaging solutions, developed the Multi-E egg tray to hold 30 eggs at its Brazilian manufacturing plant. Continuous Improvement Manager of Fiber Packaging at Huhtamaki Brazil William Rocha says, “When analyzing our offering and listening to our customers, we saw that we could improve our egg trays. We set to reach better efficiency on the customers graders, less egg breakage during long transportation on uneven roads, and suitable for extreme humidity.”
The Asia Pacific is projected to be the fastest-growing region in the molded pulp packaging market with an increasing number of molded pulp packaging manufacturing units in countries including Australia, Bangladesh, China, India, and Indonesia.
As a major importer of pulp, China is witnessing a significant growth of demand for molded pulp packaged products for end-users, be they electronics, FMCG, food packaging, food service, and healthcare industries, and is further expected to drive the molded pulp packaging market. The growing urban population, development of the e-commerce package industry, and improving population awareness about environmentally friendly packaging are expected to propel China’s paper packaging market.
Elsewhere, according to estimates from the India Brand Equity Foundation (IBEF), an Indian Government export promotion agency for the distribution of and sale of Indian products internationally, the e-commerce market in India is expected to reach a value of $200 billion by 2026, indicating a rise in demand for electronic appliances, which drives the need for trays and clamshells made using molded pulp for electronics packaging.
Major companies in the molded pulp packaging market are offering customized solutions as per specific requirements, using various strategies, such as agreements, acquisitions, and product launches to increase their footprints in the market.
