Automotive packaging market to soar to USD 13.87-billion

According to a report by Towards Packaging, the global automotive packaging market is poised to surge from its 2022 valuation of USD 8.18-billion. This trajectory is forecasted to continue at a CAGR of 5.4% from 2023 to 2032. By the culmination of this decade, it is anticipated to soar to USD 13.87-billion.

23 Nov 2023 | By Abhay Avadhani

Automotive packaging market roadmap from 2022 to 2032

According to Towards Packaging, the automotive packaging market is projected to surpass around USD 12.48 billion by 2030. The automotive sector has witnessed a surge in packaging developments driven by the rising global demand for automobiles and after-sales components. The industry is undergoing a transformation as mechanical systems are being replaced by electronic assemblies, which in turn impacts automotive packaging requirements.

The driving forces behind the growth are; technological advancements driving innovation, and sustainability initiatives. Companies are embracing eco-friendly packaging solutions to align with global sustainability goals. This shift not only meets consumer expectations but also contributes to the industry's growth by tapping into the market for sustainable practices.

Global expansion and market penetration

The automotive packaging market is not confined by geographical boundaries. As the automotive industry expands globally, the demand for sophisticated packaging solutions follows suit. This global expansion opens new avenues for market players, driving market penetration and fostering growth.

Furthermore, the automotive sector is adopting reusable packaging for heavy components like underbody components, engine components, and cooling systems. This transition toward reusable packaging will contribute to market growth in the coming years. The industry is actively replacing disposable packaging with reusable alternatives, driven by advancements in material science. Developing economically viable and biodegradable plastics has expanded the options for manufacturing disposable packaging for automotive parts.

Protective packaging plays a significant role in the global automotive packaging market, accounting for more than one-third of the market share. This is attributed to the use of fragile electrical and electronic components in automobiles, which require adequate protection during packaging and transportation. However, the nature of protective packaging is used only once and then discarded contributes to a volume of waste generation.

In response to consumer demand for eco-friendly packaging solutions and the high cost associated with biodegradable plastic packaging, corrugated packaging products have gained adoption in the automotive sector. Corrugated packaging offers a sustainable alternative while still providing the necessary protection for automotive parts. The use of corrugated packaging is expected to continue to rise significantly within the automotive industry.

Another packaging segment experiencing rapid growth in the automotive sector is flexible packaging, particularly bags, and pouches. This growth can be attributed to the need for lightweight and durable packaging for many small-sized automotive components. Flexible packaging offers the versatility and efficiency required for packing these components securely. The bags and pouches segment is anticipated to witness the fastest growth rate among all packaging products in the automotive packaging market.

The adoption of eco-friendly packaging solutions and the demand for lightweight and durable packaging options highlight the trends and preferences within the automotive sector. Manufacturers and suppliers in the industry are focusing on sustainable packaging practices and exploring innovative packaging solutions.

Regional market dynamics

During the projected period, it is estimated that around 46.10% of the automotive packaging market's growth will stem from the Asia-Pacific (APAC) region. The primary drivers of this growth in APAC are China, Japan, and India.

Overcoming technical challenges in automotive packaging

The automotive industry is currently driven by four main trends fueling innovation: electrification, autonomous driving, connectivity, and comfort.

One of the key drivers behind these trends is the increasing focus on environmental considerations. Governments worldwide aim to reduce CO2 emissions and promote cleaner energy consumption. This has led to an emphasis on electric vehicles (EVs) and the development of sustainable energy sources within the automotive sector.

Custom packaging for automotive products

When manufacturing vehicles for the market, automakers extensively source parts from various global suppliers.

Given the multitude of parts required to assemble an engine, frame, exterior decorative items, and numerous other automotive components, auto engineers depend on efficient custom automotive packaging to ensure the safe delivery of these parts.

Landscape of the automotive packaging market

This market serves the packaging requirements of automotive manufacturers and suppliers, catering to the safe transportation and storage of automotive components. The landscape's key factors include market size, packaging types, material innovation, customisation and branding, safety and quality standards, sustainability, and environmental impact.

Latest Poll

Which is the sustainable packaging product among MSMEs that is most popular?


Which is the sustainable packaging product among MSMEs that is most popular?

Bagasse and biodegradable boxes



Corrugated boxes



Paper bags



Recyclable plastic (bubble wraps, bio-plastic)



Total Votes : 3


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