Global Air Bubble Bags Market - 2023-2030

Overview

Global Air Bubble Bags Market reached US$ 1.1 billion in 2022 and is expected to reach US$ 1.6 billion by 2030, growing with a CAGR of 4.8% during the forecast period 2023-2030.

The global air bubble bags market is experiencing substantial growth due to the rapid expansion of direct-to-consumer (D2C) e-commerce. Consumer packaged goods companies (CPGs) are shifting toward D2C models to access consumer data and offer personalized experiences. The transition necessitates specialized packaging and automation solutions to ensure error-free shipping.

As e-commerce continues to grow, industry players are focusing on Industry 4.0 technologies to streamline manufacturing and distribution, making automation a crucial component in the air bubble bags market's globally expansion. Furthermore, the growing consumer electronics industry driving the market for the protective packaging, air bubble bags are preferred option by the electronic manufacturers.

The demand for air bubble bags in Asia-Pacific, is surging due to the explosive growth of e-commerce. As per Indian Brand Equity Foundation, India's e-commerce market is expected to reach US$200 billion by 2026, with a rapidly expanding online shopper base, driving the need for protective packaging solutions like air bubble bags.

Dynamics

Rising Demand in Electronics Protection

The growing demand for protective packaging in the electronics industry is driving the market for air bubble bags. Electronic devices such as mobile phones, laptops and TVs are susceptible to damage from impacts, electrostatic discharge, dirt and theft during transit. As a result, the need for high-quality protective packaging solutions has become paramount. Consumers and businesses alike are recognizing the importance of safeguarding their valuable electronic items, driving the demand for protective packaging like air bubble bags.

In November 2022, Cortec Advanced Films introduced the world's first EcoSonic ESD Self-Seal Bubble Bags powered by Nano-VpCI, a breakthrough packaging invention for the electronic and electric vehicle industries. The bags combine Vapor phase Corrosion Inhibitors with self-seal cushioning bubble bags and ESD protection to safeguard sensitive electronics from triboelectric charge generation, corrosion and physical damage.

Surging E-Commerce

The air bubble bags market is expected to be driven with the growing e-commerce industry. The growing e-commerce sector, particularly in retail consumer goods, is a significant driver of increased demand for air bubble bags. As per International Trade Administration report, retail e-commerce accounted for 18% of global retail sales in 2020 and it's projected to grow at an annual rate of over 1%, expected to reach a substantial 22% share of total global retail sales by 2024.

Furthermore, there is a rise in need for protective packaging such as air bubble bags with the growing trends of online electronics shopping. Air bubble bags offer a lightweight, durable and cost-effective solution for safeguarding a wide range of items, from electronics to furniture. The surge in e-commerce increasing the demand for such protective packaging, making air bubble bags an essential resource for e-commerce businesses.

Environmental Concerns Cast a Shadow

The air bubble market is significantly impacted by environmental concerns due to the inherent environmental issues associated with plastic packaging. Improper disposal of plastic, such as air bubble wrap, poses substantial environmental risks. Plastics take centuries to decompose in landfills, releasing toxic chemicals that harm ecosystems and wildlife.

Furthermore, inadequately discarded plastics often find their way into water bodies, posing a direct threat to aquatic life. Marine animals can ingest or become entangled in plastic, leading to injury or death. Plastic pollution disrupts natural habitats, affecting the reproductive success and overall well-being of various species. The production of materials like polyethylene, commonly used in air bubble bags, involves the extraction and processing of natural gas, which has detrimental environmental consequences.

Segment Analysis

The global air bubble bags market is segmented based on material, closure, end-user and region.

Plastic Dominates Air Bubble Bags Market with Cost-Effective Benefits

Plastic holds the 2/3 of share in the air bubble bags market makes it a largest segment, due to its widespread use and several advantages. The key reasons for plastic's dominance is its cost-effectiveness. Plastic materials used in air bubble bags, such as polyethylene, are relatively inexpensive to produce which makes them an better choice for manufacturers. Also, plastic air bubble bags offer excellent cushioning and protection for fragile items.

The plastic air bubble bags are commonly used in various industries, including e-commerce, electronics and manufacturing, to safeguard products during shipping and handling. Furthermore, plastic air bubble bags are lightweight, which can contribute to cost savings in terms of shipping expenses. It are also easy to handle and can be customized to fit specific product sizes and shapes.

However, it's important to note that the dominance of plastic in the air bubble bags market also posses environmental concerns. As per European Environment Agency , nearly 40 percent of plastic demand is driven by plastic packaging and plastic waste, including packaging materials, poses significant environmental challenges. To address these concerns, there is a growing focus on developing more sustainable alternatives and recycling plastic materials to reduce their environmental impact.

Geographical Penetration

Asia-Pacific Leads Air Bubble Bags Market Due to Thriving E-commerce and Electronics Manufacturing

Asia-Pacific holds the largest share in the air bubble bags market with its significant e-commerce market and presence in the electronics manufacturing sector. The countries in Asia-Pacific, particularly in North Asia like China, Japan and South Korea, have become a major hub for electronic manufacturing from last decade. Many popular consumer electronic products, including smartphones and laptops, are produced in this region.

Furthermore, as per Tech Asia article, in 2022, the e-commerce industry in Asia-Pacific experienced significant growth, with total sales reaching US$3,468.6 billion, marking a 12.53% increase. Despite challenges posed by the easing of COVID-19 restrictions and rising inflation rates, the region's e-commerce sector remained robust. The continued growth in online retail is a key driver for the demand for air bubble bags, as they are widely used for packaging and protecting products during shipping in the e-commerce supply chain.

COVID-19 Impact Analysis:

The COVID-19 pandemic had a significant impact on the air bubble bags market and the packaging industry as a whole. While challenges like rising costs, limited demand from certain sectors, labor issues and operational hurdles were prevalent, several positive trends emerged. Increased concerns about health and safety led to a surge in demand for packaged items, benefiting the packaging industry.

E-commerce experienced significant growth, necessitating robust packaging solutions. Sustainability concerns led to a renewed appreciation for the recyclability and lower carbon footprint of plastics. Small packaging businesses found new opportunities and innovative responses helped overcome production challenges. Overall, the pandemic underscored the vital role of packaging in ensuring product integrity and hygiene, driving resilience and adaptation in the industry.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war has profoundly impacted the air bubble bags market and the broader packaging industry. Supply chain disruptions, business exits and operational challenges have led to shortages and interruptions in packaging material supplies, including air bubble bags. Price volatility in commodities like aluminum and paper, driven by the conflict, has further complicated production.

The conflict's long-term effects, combined with globally sanctions, create uncertainty, potentially leading to sustained higher energy prices and supply chain complications. To mitigate these challenges, the packaging industry may pivot toward increased recycling, reducing dependency on affected regions. Overall, the war has reshaped the industry landscape, emphasizing the need for resilience and adaptability in packaging material sourcing and production.

By Material

• Plastic
• Aluminum
• Paper
• Others

By Closure

• Zipper
• Slider

By End-User

• Food Industry
• Pharmaceutical Industry
• E-commerce & Logistics
• Industrial Goods
• Automotive Components
• Electronics
• Other

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In November 2022, the introduction of SUMO marked a significant innovation in the air bubble bags market. SUMO is the industry's first air bubble bag made entirely without plastic. Instead, it is crafted from 100% recycled paper, making it not only an eco-friendly choice but also fully recyclable. The pioneering product aligns with the growing demand for sustainable packaging solutions and provides a greener alternative for protecting various products during shipping.
• In July 2023, Papair initiated production of PapairWrap, a groundbreaking bubble wrap solution crafted entirely from 100% paper, free from synthetic materials and adhesives. Located in Rethem an der Aller, the production site had experienced delays in technology and component deliveries due to global political events and the COVID-19 pandemic. Nevertheless, the company is now progressing with its mission to meet the rising demand for sustainable packaging alternatives.

Competitive Landscape

The major global players in the market include: Sealed Air, Pregis Corporation, Storopack, Intertape Polymer Group, Smurfit Kappa, Barton Jones Packaging, Abco Kovex, iVEX Packaging, Desco Europe, PH Flexible.

Why Purchase the Report?

• To visualize the global air bubble bags market segmentation based on material, closure, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of air bubble bags market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global air bubble bags market report would provide approximately 62 tables, 61 figures and 198 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies