The Volatile Corrosion Inhibitors (VCI) Packaging Material Market is estimated to be valued at US$ 826 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Volatile Corrosion Inhibitors packaging materials release protective vapors which coat metallic surfaces inside the package and shield them from corrosion. The coating prevents direct contact between air and unpacked metal components, thus effectively inhibiting corrosion. VCI packaging materials find major application in protecting ferrous and non-ferrous metals during storage and transit. They provide cost-effective corrosion protection compared to traditional methods.

Market Key Trends:

Growing emphasis on eco-friendly product trends is driving demand for Volatile Corrosion Inhibitors packaging materials market. Traditional VCI films utilize nitrites as core corrosion inhibitors which have environmental concerns. Leading manufacturers are focusing on developing bio-based and non-nitrite VCI films using natural corrosion inhibitors such as fatty acids from plant oils. For instance, Cortec Corporation produces biodegradable VCI films from corn and other biomass. Such eco-friendly product innovations are boosting the adoption of VCI packaging for sustainable corrosion protection of metal parts and components.

Porter’s Analysis:

• Threat of new entrants: The VCI packaging material market has moderate threat of new entrants as it requires substantial RD investment and compliance with various packaging regulations.
• Bargaining power of buyers: The bargaining power of buyers is moderate to high as there are numerous established players providing VCI packaging solutions. Buyers can negotiate on prices and quality standards.
• Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers such as plastics and paper manufacturers have established presence. However, volatility in raw material prices can affect the industry.
• Threat of new substitutes: Threat of new substitutes is low as VCI packaging effectively protects against corrosion for metallic components during storage and transport.
• Competitive rivalry: High as major players compete on product quality, innovation, and global expansion.

SWOT Analysis:

• Strength: VCI packaging provides effective corrosion protection and extends product shelf life. It is a sustainable and recyclable solution.
• Weakness: High material and production costs. Supplier dependency on raw materials.
• Opportunity: Growing automotive, electronics, and industrial sectors driving the need for robust corrosion protection during international shipments. Development of bio-based and environment-friendly VCI films.
• Threats: Stringent regulations regarding use of certain chemicals in packaging. Economic slowdowns reducing manufacturing output.

Key Takeaways:

The global Volatile Corrosion Inhibitors (VCI) Packaging Material Market is expected to witness high growth, exhibiting CAGR of 6.2% over the forecast period, due to increasing investment in manufacturing sector globally. North America dominates the VCI packaging material market currently due to major automotive and electronics production. Asia Pacific is expected to grow at fastest pace due to expanding manufacturing hub and growth in exports from China and India.

North America accounts for over 30% of the global VCI packaging material market share currently owing to huge manufacturing output in United States. Asia Pacific VCI packaging material market led by China, Japan, and India is anticipated to expand at fastest CAGR of 7.5% through 2030 on back of increasing automotive and electronics FDI investments in the region.

Key players operating in the VCI packaging material market are Cortec Corporation, Branopac GmbH, Armor Protective Packaging, Protective Packaging Corporation, Nefab Group, Daubert Industries, Inc., Zerust Excor, and Metpro Group. The major players are focusing on new product development, global expansion, and acquisitions to gain leading position in the market.