The global market for honeycomb packaging is witnessing stiff competition on account of the strong presence of a copious number of small players. They are posing major challenge to the established key players, namely Sonoco Products Company, BASF SE, DS Smith, Smurfit Kappa Group, Corporation of America, ACH Foam Technologies, Inc., WestRock Company, and Sealed Air Corporation.

In order to further grow their shares in the market, the prominent companies in the market are resorting to strategic alliances which will help them to expand their geographical footprint. Leading players in the global honeycomb packaging market are also seen pouring money into research and development of better products to cater to the different needs of their customers.

A report by Transparency Market Research finds that the global market for honeycomb packaging will likely expand at a steady 5.7% CAGR during the period between 2016 and 2017. Rising at this pace, the market is slated to become worth US$14.1 bn by 2024-end from US$8.6 bn in 2015.

Depending upon the type of packaging type, the global market for honeycomb packaging can be divided into exterior packaging, interior packaging, pallets, etc. Of them, the segment of exterior packaging accounted for maximum share in the market in 2015 and is slated to retain its dominant position in the years to come as well on the back of constant demand from end-use sectors such as automobiles, furniture, and consumer goods. The segment is expected to clock a CAGR of 5.5%.

Geographically, the key segments of the global honeycomb packaging market are North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. North America, among them, currently leads the market and in the near future will steadily grow its share owing to the solid presence of end-use industries in the region. The TMR report forecasts the North America market to attain a share of 34.5% by 2024-end.

Demand from End-use Industries Driving Market

Majorly fuelling the global market for honeycomb packaging is the growth in the end-use industries of food and beverage, furniture, automotive goods, consumer goods, and industrial goods, among others such as logistics packaging, etc. “As the automotive, consumer goods, and furniture industries drive up demand for protective packaging, the honeycomb packaging will see gradual uptake,” explains the lead analyst of the TMR report.

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Need for Protective Packaging Boosts Uptake

The market is also being driven on account of the increasing thrust on environmental packaging. Honeycomb is gradually superseding others forms of packaging such as EPE, bubble wrap, thermocol, mineral wool, EP Foam, rock wool, particle boards, MDF, PUF, and wood. Further, honeycomb packaging is becoming increasingly popular in a variety of end-use industries that need protective packaging. The soaring ecommerce industry has increased demand for transportation of goods and this in turn is providing a boost to the honeycomb packaging market too. The demand for this type of packaging arises from a pressing need to protect the items being shipped from any form of damage.

A noticeable trend in the global honeycomb packaging market is the shift of focus towards Asia Pacific by most keen players as it offers tremendous opportunities owing to the swift pace of urbanization and industrialization.