Manufacturers mainly use the commodity in automotive applications to move their completed and semi-finished automotive products, including the supply of body parts to assembly parts from the vendor or component supplier. In this sense, short distances and regular shipment of heavy and high-volume goods enable carmakers to opt for reusable packaging solutions.

Customizable dunnage solution manufacturing is a capital-intensive operation that requires a high start-up cost to set up an initial processing facility for the commodity. The manufacture of new machinery, which is expensive to purchase, has given rise to rapid technological developments. As a return on investment is strong in the long run, industry companies with large investment capabilities are expected to enter the market.

This, in essence, poses an entry barrier for small and medium-sized businesses as the high cost of capital per production unit renders it impossible for new entrants to generate dunnage solutions. In addition, consumer preferences vary in terms of package types, products used, and forms, indicating the need for professionally designed manufacturing lines to deliver distinctive solutions.

Material Segment

Based on the Material, the market is segmented into Corrugated Plastic, Molded Plastic, Steel, Aluminum, Foam, Corrugated Paper, Wood, Fabric Dunnage, and Others. The Corrugated Plastic material type segment has the largest share in the market in 2019 and the market is forecasted to grow with a significant rate of above 6.5% CAGR over the forecast period. Corrugated Plastic is projected to record the highest CAGR as it can be shaped into different shapes and sizes. Corrugated plastic packaging is used in a number of applications because of its low cost, flexibility, and simple availability. It has made it popular with consumers with characteristics such as longevity, safety, hygiene, and low weight.

End Use Segment

In terms of the End Use segment, the market is segmented into Automotive, Aerospace, Electronics, Food & Beverages, Consumer Durables, Healthcare, and Others. In 2019, the automotive segment has the fastest growth in the market in 2019, and the market is forecasted to grow with a significant rate of above 6% CAGR over the forecast period. Dunnage wrapping is mainly used while in transit to secure the cargo. This technology's cost-effectiveness and eco-friendly characteristics have led to its intensive application in the automotive end-use market. Dunnage packaging provides outstanding properties that are sufficiently durable to resist environmental conditions such as heat.

The Asia Pacific region has the largest share in the market with a CAGR of more than 35.2% in 2019 and is anticipated to continue with the same position during the forecast years 2018-2028. This growth is accredited to the growing demand from economies, including China and India, for recycled packaging solutions, as packaging styles ensure the protection of packaged goods, partial durability, and cost savings. Growing reusable packaging applications in the food & beverage, healthcare, and fast-moving consumer goods (FMCG) industries are expected to improve the regional demand further.

North America region is anticipated to provide a high CAGR of over 5.5% during the forecast period. Due to the excellent load stabilizing power, increasing demand for corrugated paper-based dunnage products from industries such as aerospace, electronics, and automotive is expected to increase the market growth. Key producers that rely on strategic strategies, such as comprehensive R&D, mergers & acquisitions, product enhancement, and capacity expansion, are distinguished by the regional industry.

The major players of the global dunnage packaging market are ORBIS Corporation (Menasha Corporation); Corplex (DS Smith); NEFAB GROUP; UFP Technologies, Inc.; Reusable Transport Packaging; Amatech Inc.; MJSolpac Ltd. Moreover, the market comprises several other prominent players in the dunnage packaging market as Ckdpack; GWP Group; Interior Packaging Design, LLC. Packaging Corporation of America; Dunnage Engineering; Salco Engineering and Manufacturing Co., Inc.; Package Design & Mfg; KEENER Corporation. The dunnage packaging market consists of top, medium level and a number of domestic players in the global market. In addition to this, the well-established players in the industry have made various strategies and research & developments to compete with other players in the regional and global market.