In 2023, the molded pulp packaging market achieved an approximate revenue of USD 4,780.9 million, and it is anticipated to experience a Compound Annual Growth Rate (CAGR) of 4.5% from 2024 to 2030. The market is expected to reach a valuation of USD 6,469.3 million by the year 2030. This growth of the market can be credited to the growing need for molded pulp packaging with the increasing efforts to decrease the utilization of plastic.
On the basis of source, the wood category held the largest share in the industry because molded pulp is mainly made by removing the fibrous parts of trees, primarily the woody part. Furthermore, it is simply obtainable, inexpensive, and customizable in many shapes and sizes, which fortifies it as an ideal option for food wrapping. Other sectors that use wood pulp molded wrapping are electronics and healthcare.
On the basis of product, trays hold the largest share in the industry as they are utilized for many types of products, like eggs, fruits, and vegetables, in the food service sector. This is mainly because they are very light in weight and have significant shock-absorbing ability.
The major reasons driving the industry are the rising problems of plastic contamination and waste on a worldwide scale. Makers commonly opt for plastics because of their affordability, toughness, and adaptability for numerous applications. Despite these benefits, plastics are non-degradable, leading to the gathering of waste in landfills, where decay can take eras. Additionally, the leaching of toxic chemicals from plastics into water and soil poses detrimental effects on plants and marine ecosystems.
By application, food packaging dominates the molded pulp packaging market with a share of 35%. Molded pulp packaging is used for eggs, fruits, and vegetables to provide support and prevent damage to them during transportation and storage. Further, it allows air to come inside, so that these perishable items remain fresh.
The Asia-Pacific (APAC) region commands a 45% market share, primarily driven by the escalating levels of urbanization, expansion in the food and beverage industry, a growing population, and the flourishing economies of developing nations. Notably, countries like India, China, and Indonesia play a substantial role in contributing to plastic pollution in oceans, leading to an increased awareness of the need for sustainable alternatives to polymers. Consequently, governments have initiated various measures, including the prohibition of plastic usage, aimed at safeguarding the environment and human health.
