Packing Peanuts Market Report

The global consumer electronics industry can be considered an opportunity for packing peanuts due to its rising and attractive innovations. To simplify human efforts, various consumer electronics products are invented and are considered to be fragile while delivering or during transportation. According to the data from Worldmetrics, the global consumer electronics market is projected to be a US$1.5 trillion industry by the end of 2024. Also, the demand for packing peanuts is being driven by the rising demand for fragile products which include products like photo frames, glass, jars, pottery, etc. It is experienced that while transporting this product, a number of products get cracked, which impacts the overall profit. Hence, packing peanuts plays a crucial role in defending the product from getting cracked by any turbulence experienced while transporting, resulting in minimal loss. Thus, due to the rising demand for fragile goods, the demand for packing peanuts is experiencing a sharp rise.

The challenges faced by the manufacturers of packaged peanuts are the available alternatives. There are numerous alternatives available in packaged peanuts, such as unbuttered popcorn, coconut husk, etc., which are also considered a biodegradable option that is environmentally friendly. Also, the available alternatives are given preference due to their cost compared to the above alternatives, the cost of packaged peanuts is high. The next challenge faced by various manufacturers is regarding the environmental concerns raised by the government. The packaged peanuts are made by expanding polystyrene foam, which takes a long time to decompose, and if disposed of in any waterbody, it floats around the ocean for many years, making it harmful to aquatic animals. Thus, the rising concerns regarding the disposal of plastic packaging are forecasted as the greatest restraining factor in the plastic packaging industry, especially for thermoformed containers.

In February 2024, Antalis increased its range of equipment for e-commerce with the addition of the new FillPak Trident Mini from Ranpak. The Trident Mini tackled head-on the perennial challenge of warehouse and packing space experienced by many e-commerce businesses. By dispensing high speed (up to 1.4 m/s), and paper void fills on demand, the Trident Mini saved valuable warehouse space, while its sleek design, configurable mounting options, and compact footprint made it a great option for busy packing stations where space was tight. In February 2024, Ranpak launched game-changing data-driven solutions that delivered unrivaled ROI for end-of-line packaging. Ranpak Holdings, a global leader in environmentally sustainable, paper-based packaging solutions for e-commerce and industrial supply chains, announced that it enhanced its breakthrough cut! ™ EVO automated in-line packaging machine with three game-changing digital tools that delivered unrivaled ROI to end-of-life (EOL) packaging applications.

North America Due to its rising demand, the home décor industry needs to target as the spending of the average individual on home décor is rising due to a rising standard of living. According to the data from Worldmetrics 2024, an average American spends approximately US$ 1200 on home décor products on a yearly basis. The Asia Pacific region is a prominent region for packaging peanuts due to reasons such as the fact that according to the data of Worldmetrics 2024, the Asia Pacific region dominates the market for home décor, where the total market was valued at US$ 197.1 billion in 2021. Also, according to the data of the International Trade Administration, the total online buyers have reached 710 million, where the transaction amount reached US$ 2.29 trillion in 2020 and is predicted to reach US$ 3.56 trillion by the end of 2024.

Also, China has surpassed the United States and has become the world's largest market for e-commerce by generating a revenue of US$ 1.5 trillion in 2021. The rising demand for the automotive industry in India is also boosting the growth of packing peanuts, as according to the report of the Indian Brand Equity Foundation, the annual automobile production in India has achieved the target of 25.9 million vehicles in 2023. Hence, the rising e-commerce and automotive industries in the Asia-Pacific region fuel the growth of the packing peanuts market.