Nowadays, the demand in the packaging industry to limit the use of plastics, styrofoam, and other petroleum-based packaging and to be resistant to molded fiber packaging. Molded pulp packaging is eco-safe, cost-efficient and long-lasting. It is also made using 100 percent recycled materials. Also, the production process of molded pulp fiber has no waste, because all the residue and water is recycled and reused. Thus molded pulp packaging is gaining broad acceptance in the various end-user industries such as food and beverages, healthcare, automobile, personal, electronics and many others.

Similar to conventional plastic and EPS packaging the molded pulp packaging provides a wide variety of benefits. However, rapid growth in urbanization coupled with increased awareness of better packaging around the globe is driving the global pulp molding industry's growth.. Additionally, the growing demand from the end-user industry for reusable and sustainable packaging is triggering the market growth. In the delivery of wine bottles and retail packaging in personal care items and computer cushions, molded fiber packaging is used. Also, investment in R&D activities and growing demand for sustainable packaging for the global molded pulp packaging industry is creating opportunities for growth in the near future.

The transfer molded segment, by molded type, is projected to dominate the market for molded pulp packaging throughout 2028. The transfer molded segment is expected to account for the largest share of the value and volume of the molded pulp packaging market from 2021 to 2028. While demand for recycled packaging has been rising for years, molded fiber has traditionally been linked to items such as cup trays, egg carton and packaging box inserts, which had limited consumer appeal transfer molded segment, by molded type, is projected to dominate the molded pulp packaging market throughout 2028.

Wood pulp accounted for almost 87 percent of the highest market share of revenues in 2020. This segment is expected to continue to dominate over the forecast era, primarily due to its relatively low cost compared to other traditional packaging materials, combined with a rise in the reach of food packaging solutions. Manufacturers operating on the market for molded pulp packaging primarily use waste paper to produce pulp. Growth in the segment is attributed to the wide availability of waste paper and virgin wood at lower costs. The thick wall category was found to be the second, with a market share of almost 20% in 2020. Such products are primarily used for packaging support applications across a range of industries, including heavy machinery and auto parts.

Due to the growing adoption of the product in the electronics and foodservice industries, the thermoformed molded segment is expected to show the highest growth rate over the forecast period. Thermoformed molded products maintain smooth surfaces and geometric forms which are accurate with minimal design angles. The use of thermoformed molded pulp packaging is expected in highly valued electronics to undergo considerable development.

The global molded pulp packaging market is cumulative to North America, Europe, Asia Pacific, Latin America and Middle East & Africa. However, Asia Pacific is expected to witness the highest growth in the market during the forecast period. Asia Pacific represented the largest market share in 2020 and is also expected to grow from 2021 to 2028 at the highest CAGR of 7.9 %. Factors such as the emergence of a large population with increasing disposable income coupled with robust egg and fresh fruit and vegetable production, and consumption, added to the region's market share. In 2020 Japan's egg consumption per capita was over 300 eggs, the largest in the world. Additionally, egg consumption in other regional countries, including South Korea, China, India, and Indonesia, is increasing significantly. Molded packaging is mainly used for packing eggs, therefore it is anticipated that increased egg consumption would boost.

Over the forecast period, North America is expected to experience steady growth. Increasing emphasis on plastic use reduction, especially by food and foodservice firms, is expected to increase regional growth. Specific molded pulp products are commonly used in the healthcare industry, including portable urinals and bedpan liners, and commode bowls. Therefore, the emergence of the most significant healthcare industry, particularly in the U.S., provides tremendous opportunities to the North American molded pulp manufacturers. Key players such as Henry Molded Products, Inc., Sabert Corporation, Fabri-Kal Corporation, Pro-Pac Packaging Limited, Genpak LLC, UFP Technologies, Inc., Huhtamäki Oyj, Brødrene Hartmann A / S, EnviroPAK Corporation, among others.