Packaging Peanuts Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global packaging peanuts market size was valued at USD 781.3 million in 2023 and is predicted to surpass USD 988.58 million by the end of 2032. The packaging peanuts industry is expected to grow by a CAGR of 3.10% between 2024 and 2032.

Market Overview

Packaging peanuts refer to the loose materials used to protect items in packaging to avoid damaging products during shipping and transportation activities. These help fill the empty spaces in the packaging boxes, thereby cushioning fragile items. These are versatile in nature and can be used for a diverse range of products, from electronics to glassware. There are different kinds of materials used in manufacturing packaging peanuts, like expanded polystyrene, biodegradable materials made out of wheat or cornstarch, and many others.

Key Insights

• As per the analysis shared by our research analyst, the global packaging peanuts market size is estimated to grow annually at a CAGR of around 3.10% over the forecast period (2024-2032).
• In terms of revenue, the global packaging peanuts market size was valued at around USD 781.3 million in 2023 and is projected to reach USD 988.58 million by 2032.
• Fast expansion of the e-commerce sector is driving the growth of the global packaging peanuts market.
• Based on the end-users, the electrical & electronics segment is growing at a high rate and is projected to dominate the global market.
• Based on applications, the void-filling segment is anticipated to grow with the highest CAGR in the global market.
• Based on the materials, the expanded polystyrene segment is projected to swipe the largest market share.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Fast expansion of the e-commerce sector is likely to drive the growth of the global market.

The growing popularity of online shopping is one of the major factors boosting the growth of the global packaging peanuts market. Online shopping is gaining momentum because of the convenience, comfort, discounts, and large availability of products.

Packaging peanuts has emerged as an ideal option for dealing with bulk orders. Also, packaging peanuts is light in weight, which lowers the overall shipping cost and is therefore much in demand.

However, urbanization and rising disposable income of people in developing regions like APAC are likely to widen the scope of the industry in the coming years. The growing awareness among people regarding product safety is also strengthening the demand for void-filling materials like peanut packaging. Fast-expanding manufacturing and industrial sectors across the globe are also fostering high demand for protective packaging materials like peanut packaging.

For instance, Reusing Agricultural Waste Packaging came up with Test Valley Packaging and Envopap in 2022. It is a branded material made from sugarcane agricultural waste.

Restraints

• High cost of biodegradable peanuts is likely to hamper the growth of the global market.

The high cost of biodegradable packaging peanuts is likely to hinder the growth of the global market. Price sensitivity in developing markets will slow down the growth of the packaging peanuts industry. The limited durability of biodegradable peanuts is due to many factors, like limited cushioning, less moisture resistance, and many others, which are further expected to slow down the growth of the market.

Opportunities

• Increasing shift towards sustainability is expected to foster growth opportunities in the global market.

People are more inclined towards biodegradable and plant-based packaging peanuts because of the rising environmental issues, which is a major factor expected to open numerous growth opportunities in the global packaging peanuts market.

Moreover, the growing demand for customized protective packaging solutions is another crucial factor that is positively impacting the growth of the industry.

However, the increasing investments in advanced manufacturing technologies all across the globe, particularly in biodegradable and plant-based materials, are also likely to accentuate the growth of the market in the coming years.

Restrictions on the usage of plastic waste are also encouraging companies to adopt eco-friendly packaging peanuts, which is further expected to strengthen the market's growth in the coming years.

For instance, Antalis came up with the FillPak Trident Mini in 2024. It is a next-generation piece of eCommerce equipment that is ideal for busy packing stations.

Challenges

• Recycling is a big challenge in the global market.

Recycling packaging peanuts is quite complex as it requires advanced machinery and special units, which is a big challenge in the packaging peanuts industry. Moreover, the increasing landfill waste is further creating complexities, thereby affecting the market's growth.

Report Scope

Segmentation Analysis

The global packaging peanuts market can be segmented into end-users, applications, materials, and regions.

On the basis of end-users, the market can be segmented into furniture & home decor, pharmaceuticals, construction & building, automotive & allied industries, electrical & electronics, and others. The electrical & electronics segment is expected to register the highest CAGR during the forecast period.

Rising demand for consumer electronics is one of the major factors driving the growth of the packaging peanuts industry. Increasing consumption of home appliances, laptops, and smartphones is also fueling demand for protective packaging. Electronic items are more vulnerable to external disturbances like vibration, shocks, and static electricity that could damage the electronic material.

Therefore, packaging peanuts is a preferred choice for vendors in the segment. The fast expansion of e-commerce platforms is another major reason likely to positively impact the growth of the segment. Electrical and electronic components are of high sensitivity in nature and require specialized packaging to protect them from damage.

Advanced packaging peanuts, which are anti-static in nature, are ideal for such purposes as they prevent the building up of static electricity that could damage these components. Technological advancements in the electronics sector, like the growing use of miniaturized devices, further strengthen the demand for packaging peanuts.

On the basis of applications, the market can be segmented into void fillings and cushioning. The void-filling segment accounts for the largest share of the global packaging peanuts market during the forecast period. The fast expansion of the e-commerce sector is one of the major factors driving the growth of the segment.

Packaging peanuts are in demand because they help manufacturers fill up empty spaces in boxes, which can protect against potential damage during storage, handling, and shipping activities. Void filling is more economical in nature than other solutions. Packing peanuts appeals to businesses because they help fill irregular spaces in different sizes and shapes.

Also, these help vendors satisfy customers' expectations of getting the products in perfect condition, thereby helping them to provide satisfaction and fewer returns. Innovation of eco-friendly and sustainable alternatives is also likely to attract end users and foster growth opportunities in the segment. Increasing globalization is strengthening import and export activities, which is further fostering a high demand for void filling to protect goods during transportation.

On the basis of materials, the market can be segmented into starch-based polymers and expanded polystyrene. The expanded polystyrene segment is likely to dominate the packaging peanuts industry during the forecast period. EPS is a cost-effective material as compared to other available options in the market.

Additionally, it offers better performance in terms of cushioning at economical prices, which further increases its demand in the market. Expanded polystyrene is also a lightweight material, which does not add any shipping cost, thereby making it an ideal material in sectors like consumer goods, retail, and electronics.

Also, it is the best material for shock absorption and cushioning, which helps manufacturers protect fragile items during transportation and storage activities.

Moreover, EPS is highly accessible across different markets globally, thereby making it easier for manufacturers to come up with packaging peanuts in bulk volumes and maintaining supply chain consistency. EPS packaging peanuts are quite versatile in nature and can be highly utilized for a diverse range of products, from electronics items to many others.

Regional Analysis

• North America to dominate the global market.

North America is likely to account for the largest share of the global packaging peanuts market during the forecast period. The United States is expected to contribute immensely towards the growth of the regional market because of the fast-growing logistics and e-commerce sector. Canada is also a flourishing market because of the fast-growing import and export activities in the region.

Mexico is another major region that is expected to witness a surge in market revenue because of the high demand for protective packaging solutions. North America is focusing on many recycling programs and initiatives, which is another major factor likely to positively influence the growth of the regional market.

Asia Pacific is also expected to see huge developments in the coming years. China is the fastest-growing country in the regional market because it is the largest manufacturing hub in APAC. India is also likely to see a surge in regional sales volume because of the fast-growing e-commerce sector.

Moreover, many government programs and educational campaigns are also likely to strengthen the demand for protective packaging in the country. Japan and South Korea are also the leading centers in the regional market because of the presence of a strong logistic network in the market.

Many other Southeast Asian countries like Vietnam, Thailand, and Indonesia are likely to lead the market in the coming years because of the growing disposable income of people along with fast proliferating e-commerce platforms.

Therefore, all these factors are likely to positively influence the growth trajectory of the regional market in the coming years. For instance, Ranpak came up with new data-based solutions in 2024 for end-of-line packaging for customers under regulatory requirements.

Competitive Analysis

The key players in the global packaging peanuts market include:

• Green Light Packaging Ltd.
• Stream Peak International PTE Ltd.
• Nefab Group
• Eco Packaging Solutions
• Supply One Inc.
• Johnpac LLC
• Polar Tech Industries
• AP Packaging Corp
• President Container Inc.
• Styro Insulations Mat. Ind. LLC.
• Puffy Stuff Inc.
• Pioneer Packaging
• Test Valley Packaging
• Willard Packaging Company
• Storopack Hans Reichenecker Gmbh

For instance, Storopack Hans Reichenecker Gmbh came up with unique features and products under the loose-fill segment in 2020. These solutions are eco-friendly and help customers customize their products.

The global packaging peanuts market is segmented as follows:

By End-Users Segment Analysis

• Furniture & Home Decor
• Pharmaceuticals
• Construction & Building
• Automotive & Allied Industries
• Electrical & Electronics
• Others

By Applications Segment Analysis

• Void Fillings
• Cushioning

By Materials Segment Analysis

• Starch-Based Polymers
• Expanded Polystyrene

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America