Paper-based Products Segment is the Largest Segment Driving the Growth of Volatile Corrosion Inhibitors (VCI) Packaging Material Market

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The global 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:

VCI packaging materials protect ferrous and non-ferrous metals from corrosion during storage and transportation. They inhibit corrosion through vapors that shield the metal surface from oxygen and moisture. Common materials protected include steel, copper, aluminium, and cast iron.

Market KeyTrends:

The increasing demand from automotive industry is one of the key trends driving the Volatile corrosion inhibitors packaging material market growth. With growth in automobile production globally, demand for metal components in vehicles is rising significantly. Since metals used in vehicles need protection from corrosion during transportation and storage, VCI packaging material finds wide application in the automotive industry. Furthermore, stringent regulations regarding use of environment-friendly packaging materials are also boosting adoption of VCI films and papers made from recyclable raw materials.

SWOT Analysis:

  • Strength: VCI packaging provides effective corrosion protection for metal parts and components during storage and transportation. It helps avoid expensive repairs and replacement of rusted assets.
  • Weakness: Traditional VCIs containing nitrites are toxic in nature and pose health and environmental risks. Proper disposal methods are required for used VCI packaging.
  • Opportunity: Growing end-use industries like automotive, defense and heavy machinery offer significant growth opportunities. Development of bio-based and non-toxic VCIs can further expand the market.
  • Threats: Strict regulations on use of hazardous chemicals in packaging pose compliance challenges. Digital tracking and IoT solutions are reducing demand for physical packaging.

Key Takeaways:

The global volatile corrosion inhibitors (VCI) packaging material market size was valued at US$ 826 Mn in 2023. It is expected to grow at a CAGR of 6.2% during 2023 to 2030.

The global VCI packaging material market is driven by robust growth in automotive, industrial machinery and heavy equipment manufacturing industries. Mass production of vehicles and industrial machinery requires large-scale transportation of metal components and parts which spurs the demand for VCI films, papers and powders to protect them against corrosion during storage and transit.

Regionally, Asia Pacific dominated the global VCI packaging market in 2023 with a share of over 35%, led by China, India and other developing Asian countries. This region is home to huge automobile and industrial manufacturing bases and witnesses highest export activities which sustains the market growth. North America and Europe are other major markets for VCI packaging materials.

Key players operating in the volatile corrosion inhibitors (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.