The global Insulated Shippers Market size is anticipated to reach USD 13.9 billion by 2028, accelerating at a CAGR of 10.0% over the forecast period, according to a new report by Grand View Research, Inc. The product is expected to witness significant demand in the coming years on account of its growing use in various end-use industries such as food & beverages and pharmaceuticals.
The penetration of the Internet has increased significantly globally over the past few years and led to the availability of groceries online. In order to deliver fresh produce or temperature-sensitive food products, online grocery stores majorly prefer insulated packaging to prevent the deterioration of fresh produce by maintaining the desired temperature. Therefore, on account of ever-increasing online groceries, home delivery end-use segment is anticipated to experience the highest growth rate in the coming years.
The unavailability of adequate refrigerated logistics, most notably in remote areas, is responsible for drug damage. Moreover, it is not an economical option to invest in large cold chain solutions in such areas. Thus, insulated shippers offer ideal solution in such cases as they help maintain the required temperature at minimal expenditure.
Paper-based insulated shippers emerged as the largest segment in 2018, grabbing a market share of 26.0%. The segment is expected to gain momentum over the forecast period owing to the furtherance of cellulose insulation production technology. In this respect, insulated shippers industry is witnessing an increasing adoption of fiberization technology through which product manufacturers can maximize the function of fiber separation. Research & development activities are likely to surface in the industry over the forecast period with prominent market players keen on global expansion.
Grocery is among the most significant end-use segments in the market for insulated packaging given its growth over the years and is expected to grow at a consistent CAGR of 7.2% over the forecast period. The anticipated growth of the segment is attributable to the increasing consumption of grocery products paired with the mushrooming growth of retail chains, most notably supermarket & hypermarket chains, in emerging economies. The segment includes the packaging and shipping of a wide range of products including bakery products, sauces, milk, and purees, among others.
Central & South America market for insulated shippers is expected to grow at the fastest CAGR of 8.7% over the forecast period. The demand for online groceries is significantly higher in Central & South America compared to other regions, which, in turn, has been augmenting the demand for insulated shippers in the region. Furthermore, factors such as strong demand from end-use industries and expanding online grocery platforms in the region are anticipated to positively influence the growth of insulated shippers market. In Asia Pacific, several key companies, most notably in the food manufacturing space in Europe and North America have been outsourcing production activities to India and China owing to the lower production cost in these countries.
Related Press Release@ Insulated Shippers Market Report
Insulated Shippers Market Report Highlights
- In terms of material, Expanded Polypropylene (EPP) shippers segment is expected to ascend at a remarkable CAGR of 9.4% over the forecast period
- In terms of type, multiple-use segment was valued at USD 2,004.2 million in 2018 and is expected to grow at the highest CAGR over the forecast period
- Home delivery was the largest end-use segment in 2018 and grabbed a market share of 35.3% in 2018, which is expected to reach 39.7% by 2025
- Asia Pacific was the largest regional market for insulated shippers in 2018
- The market is characterized by intense competition with both international and domestic participants sharing the market space and product innovation being observed as the key strategy deployed by various industry participants to stay competitive in the market
- Sonoco Products Company, which offers a wide range of products ranging from cargo insulating solutions to insulated bags and shippers, emerged as a market leader in the public companies category of the insulated packaging market.