Dunnage Packaging Market Size

Global Dunnage Packaging Market size was valued at USD 3.9 billion in 2023 and is poised to grow from USD 4.1 billion in 2024 to USD 6.1 billion by 2032, growing at a CAGR of 5.1% during the forecast period (2025-2032).

Increased e-commerce development has generated increased demand for protective packaging solutions because companies are trying to ensure that the products reach the customers safely. Dunnage packaging in particular plays a significant part in ensuring the goods is well protected during transport, especially in the case of bulk high-volume and large consignments. Increased international supply chains and logistics networks also fuel the need for efficient packaging that minimizes damage during transportation. As the activities of logistics grow, companies require affordable and reusable packaging, thus dunnage packaging is the most desirable alternative. This shift towards safer and more environmentally friendly packaging alternatives is boosting the global dunnage packaging market growth.

The fast-growing automotive industry generates enormous demand for dunnage products as they are cheap and long-lasting. The growing application of dunnage packaging products in the automotive industry because of its improved inventory control, low packing waste and carbon footprint, and excellent protection of the product drives the growth of the market. The auto components, such as engines, gearboxes, propeller shafts, interior trim pieces, and other small parts, require strong packaging materials for shipping, driving the market expansion. The growing application of such packaging materials for the final and half-finished automotive components, such as the movement of body parts from the supplier to the assembly components department, also fuels the growth of the market.

Moreover, as the packaging is protective from damage, humidity, & stress absorption, convenient regular transportation of high-volume goods becomes possible, hence fueling the growth of the global dunnage packaging market. For instance, Cruz Foam introduced bespoke dunnage solutions tailored to product size, weight, and sensitivity. These ensure optimal protection during shipping and storage and reduce the risk of damage during the supply chain. Through eliminating unnecessary packaging material and streamlining processes, Cruz Foam's reusable dunnage conserves waste and optimizes resources according to environmental sustainability goals.

How RFID Technology is Driving Growth in Dunnage Packaging?

The use of smart technology like RFID tracking, Internet of Things sensors, and automation with AI is revolutionizing the dunnage packaging sector. By facilitating real-time monitoring, improved storage, and minimized product damage during transit, such innovations increase supply chain efficiency. To address industry requirements for resilience and affordability, businesses are emphasizing innovative and eco-friendly packaging alternatives. Dunnage packaging is going smarter, safer, and more environmentally friendly with continued innovation.

• For instance, in March 2024, ORBIS Corporation launched RFID-enabled returnable dunnage trays for real-time tracking and inventory management. The technology enhances supply chain effectiveness by providing accurate information regarding the location and status of the trays.

How Start-ups are Changing Game Toward Sustainable Dunnage Packaging Solutions?

The global dunnage packaging market is witnessing an increase in innovation, driven by startups, who are developing eco-friendly, cost-efficient protective packaging materials. Companies are focusing on recyclability, biodegradability, and smart technologies to maximize supply chain efficiency. Startups are transforming the industry by providing eco-friendly solutions and prolonging the shelf life of the packaging.

• Earthodic (Founded in 2018, Australia): Earthodic developed a fully recyclable lignin-based protective coating for paper and cardboard packaging. This innovation strengthens packaging materials, making them waterproof and eco-friendly. Earthodic raised $6 million in capital in October 2024 to expand its business and reduce the environmental impact of non-recyclable packaging materials.

• PakFactory (Founded in 2015, Global): PakFactory delivers sustainable and effective dunnage packaging solutions on a bespoke scale. With bespoke packaging, the organization fulfills the distinctive needs of various industries while providing secure product transportation. PakFactory's innovative strategy enhances value addition to the development of the dunnage packaging business by embracing green principles along with protective features.

• Cruz Foam (Founded in 2017, USA): Cruz Foam manufactures dunnage packaging products made from biodegradable foam with chitin, a biopolymer that is derived from shrimp shells. The company's products are a more environmentally friendly option than traditional petroleum-based packaging foams utilized in the industry, indicative of the interest by the packaging sector in green packaging solutions. Cruz Foam's new materials provide adequate protection to merchandise during transport without damaging the environment.