The world market for honeycomb packaging is forecasted to witness growth at the backdrop of growing demand for environment-friendly packaging system and increased application of honeycomb packaging, as observed by Transparency Market Research in a recent study.
Intense market competition defines the competitive landscape of the world market for honeycomb packaging. Such competition is owing to the powerful presence of several small markets players and those small companies are putting forward considerable challenges to the already established eminent market players. Some of the eminent companies that are active in this market are DS Smith, Smurfit Kappa Group, Sealed Air Corporation, Sonoco Products Company, BASF SE, ACH Foam Technologies, Inc., Corporation of America, and WestRock Company
In a bid to expand their market presence, the eminent market players make use of strategic alliances that assist them in the expansion of their regional footprint. The topnotch companies in the world honeycomb packaging market are investing money into research and development work for improved products that satisfy the needs of different people.
The said market research report by Transparency Market Research mentions that the world market for honeycomb packaging is, in all likelihood, to rise at a healthy CAGR of 5.7% over the timeframe of 2016 and 2017. Expanding at this rate, the market is poised to obtain a valuation of US$14.1 bn by the end of 2024 arising from an amount of US$8.6 bn in the year 2015.
North America to Retain Its Lead in the Industry
The market for honeycomb packaging has been divided into the major regions of Latin America, North America, Europe, Middle East and Africa and Asia Pacific. From the regional point of view, North America has exhibited leadership in the said market. It has led the market back in 2015 and is also forecasted to experience a sound and steady rate of growth over the period of forecast. The regional growth is attributed with the vast size of the end-user industry of North America. Apart from North America, it is forecasted that Asia Pacific is also likely to exhibit a substantial rate of growth in the forthcoming years owing to augmented penetration of the end-user industries for this market. Apart from that, rapid and extensive urbanization and industrialization are also responsible for such a lucrative growth of the said market in the region of Asia Pacific. High Demand for Exterior Packaging to Fuel Market Growth
The world honeycomb packaging market has been segregated into packaging type, end-use type, and by geography
Based on the type of packaging, the world honeycomb packaging market is divided into pallets, exterior packaging, interior packaging, and others. Of all of these segments, exterior packaging accounted for a leading share of the market in the year 2015. It is further expected that the segment will continue to retain its dominance in the years to come as well. Outer boxes and containers which are used for the purpose of packing products before they are being shipped to their destination are called exterior packaging materials. Quality of outer packaging materials ensures safety to the product throughout the period of transportation, from seller to its customer. Crates, cartons, boxes, and containers comprise exterior packaging. This segment of exterior packaging is further anticipated to rise at a robust rate because of its constant need from various end-user industries like consumer goods, furniture, and automobiles.