VCI Paper Market: What’s companies doing to remain competitive in the industry?

Growth Prospects and Emerging Trends

VCI Paper Market: What’s companies doing to remain competitive in the industry?

Press Release

Natural kraft paper that is coated with volatile chemicals is known as VCI (volatile corrosion inhibitor) paper. VCI paper is increasingly used in packaging of metallic items that need optimum protection from corrosion and rust. The rising demand for efficient packaging solutions for metallic goods and components is closely linked with the overall growth of the packaging industry itself. When it comes to transportation or trading of metal based goods, corrosion and rust have always been a matter of concern, especially in sectors such as military and aeronautics where the quality of materials is of paramount importance.

VCI papers undergo advanced chemical treatment, making them suitable for most complex packaging requirements. This, in turn, has encouraged manufacturers of metallic component to opt for VCI paper for packaging of their products. Moreover, new variants such as the polyethylene coated VCI papers come with superior humidity resistance and hence is positively influencing the dynamics of VCI paper market.

Market Dynamics

The high anti-corrosive nature of VCI paper, facilitating effective protection of metal during transportation remains the primary reason behind its robust adoption in the packaging industry. The growth of VCI paper market is expected to be positively impacted by the exponential capability of the paper to prolong the lifecycle of a product without interfering with its mechanical or electrical surface properties.  Moreover, VCI paper is usually eco-friendly and quite affordable, making it popular even among small-scale manufacturers. Factors as such are likely to boost the overall growth of the VCI paper market over the next couple of years. Recyclability and easy and convenience of using the VCI paper are some of the additional factors that are deemed to favor the growth of the market as well.

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VCI paper is also capable of protecting both ferrous and non-ferrous materials including cast iron, copper, chrome, nickel, steel, aluminum, and zinc. Besides, the extreme pliability of the product allows it to be comprehensively wrapped around unevenly shaped metallic parts or components without the use of any packaging tapes, resulting in a more economical and productive packaging practice. Nonetheless, it is seen that some corrosion inhibitor pigments may sometimes develop toxicity, which could be hazardous. A number of pigments are sensitive to resins and may lead to reactions. The growth prospects of the VCI paper market is also imperiled by the products lack of compatibility with smaller sized metallic goods.  

Key Market Segmentation

The VCI paper market has been segmented into packaging type, product type, and end use. Based on packaging type, the market has been segmented into VCI bag format, VCI rolls, and VCI sheets. Both VCI rolls and sheet account for significant market shares as they are preferred highly by market players. By product type, the market has been segmented into waxed paper (used to improve the shelf life as well as to offer protection against extreme conditions) and thick papers (used for wrapping large and rough goods). By end use, the market has been segmented into musical components, automotive components, aerospace parts and components, defense and military components, motors, gears, bearings and others. Over the years, VCI paper has undergone several functional improvement phases owing to research and development programs conducted by packaging manufacturers.

VCI Paper Market: Regional Analysis

Based on regions, the market has been segmented into North America, Europe, Asia Pacific, the Middle East and Africa (MEA), and Latin America. Among these, Europe and North America have emerged as to leading markets for VCI paper. This is primarily owing to growing demand for such advanced packaging products in these regions.  Meanwhile, market players are also making active investments in the emerging market of Asia-Pacific due to the availability of low-cost resource and potential market opportunity in the region.

Competitive Landscape

Some of the leading companies operating in the VCI market include Safepack Industries Ltd., Daubert VCI, Inc., Protective Packaging Corporation Inc., Technology Packaging Ltd, Multitech Group Inc., Branopac India Pvt Ltd, Armor Protective Packaging, Green Packaging, Inc., RBL Industries, and Propack Spa‎.