Padded Mailers Market Growth Sustained By Bioplastics Despite Anti-Plastic Norms, Says FMI

VALLEY COTTAGE, N.Y. – Padded mailers have become prominent packaging format owing to durability and cost-efficiency. With protective packaging industry flourishing modestly, the market of padded mailers has been growing at a moderate pace. Increasing warehousing of automotive equipment, and pharmaceutical products has been prime driver for the market. Yet, sales of padded mailers are increasingly concentrated towards e-Commerce channels, with the industry exhibiting double-digit growth.

However, growth of padded mailers market is obstructed by stringent government regulations regarding reduced plastics usage. As such, manufacturers are turning to sustainable alternatives, such as bioplastics, whose production exceeded 2 MT units in previous year. The Asian market of padded mailers is set to take over its counterparts owing to mounting online retail ecosystem. As per a new report by Future Market Insights (FMI), global padded mailers market is projected to grow at a promising CAGR of ~5% over forecast period (2019-2029).

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Polyethylene Replaces Kraft Paper

Until 2018, kraft paper has been the material of choice for manufacturing padded mailers. However, polyethylene surpassed kraft paper in terms of revenue generation. High expenses per single unit associated with kraft paper are responsible for their modest growth. In polyethylene, LDPE (Low Density Polyethylene) and LLDPE (Linear Low-Density Polyethylene) are expected to be at forefront over forecast period.

On the contrary, growth rate of polyethylene padded mailers is expected to decline in next few years, probably due to strict regulatory norms for reduced plastic usage in tandem with advent of alternative materials, such as paper cushions, and inserts & drivers. Furthermore, manufacturers are turning to padded mailers derived from recyclable plastics.

Preview Analysis of2019 Analysis and Review of Padded Mailers Market by Material – Kraft Paper, Polyethylene, and Fiber-based for 2019 – 2029:

Sales Concentrated Via E-Commerce

Growing pharmaceutical and electrical & electronics industries reflect intensifying need for durable packaging in warehouses. Although manufacturing & warehousing industry is currently the supreme adopters of padded mailers, e-Commerce will surpass it in 2028 in terms of revenue, finds FMI. Developed regions are the early adopters of e-Commerce, yet, arrival of online purchasing has resulted in increasing demand for warehousing space in developing and under-developed nations.

The global retail e-Commerce reached ~ US$ 2.8 Tn in previous year, and is projected to increase in coming years, according to recent estimates. Witnessing a considerable spike in revenues in 2017, adoption rate of padded mailers in e-Commerce sector is paramount and is expected to surpass US$ 1 Bn by the end of forecast period.

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Analysts at FMI remark that “Padded mailers continue to garner huge prominence on back of their lightweight and protective properties. They have emerged as suitable option for flexible and rigid packaging solutions. Compelled by anti-plastic regulations, market players are developing alternative materials, such as bioplastics.”

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