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 (VCI) packaging material refers to packaging products that contain volatile corrosion inhibitors which emit sacrificial inhibitor vapors that protect exposed metals from corrosion. These materials are primarily used to protect ferrous and non-ferrous metal parts and components during transportation or storage. They find applications across various end-use industries such as electronics, aerospace & defense, automotive among others where metal protection needs are high.

Market Dynamics:

The growth of the Volatile Corrosion Inhibitors Packaging Material market is mainly driven by the increasing demand from automotive and electronics industries where metals often require anti-corrosion protection during international or domestic transportation. The automotive industry accounts for over 30% of the overall VCI packaging demand owing to extensive use of metal alloys in automobile manufacturing. Additionally, growth in international trade has also fueled the need for secure, efficient and corrosion-protected transit of spare parts and components, thereby positively impacting the VCI packaging demand. Rising industrialization and manufacturing activities across developing regions of Asia Pacific and Latin America has further augmented market growth over the forecast period.

Strength: The Volatile Corrosion Inhibitors (VCI) Packaging Material provides effective corrosion protection for metals during transport and storage. VCI materials emit chemicals that reduce corrosion through an inhibition process. VCI packaging is convenient and easy to use as they protect packaged components without any preparatory treatment.

Weakness: Frequent quality issues have been reported with some VCI packaging materials where the corrosion inhibitors fail to disperse properly or stop working prematurely. High costs associated with VCI packaging can reduce its appeal for cost-sensitive applications.

Opportunity: Growing international trade is increasing transportation of metallic components over long distances, boosting demand for effective corrosion prevention. Development ofbio-based VCI formulations can further increase market opportunities due to rising preference for sustainable materials.

Threats: Strict environmental regulations regarding use of heavy metal-based VCI chemicals may limit their applications. Substitutes like dry film lubricants and wax-based products pose a competitive threat.

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 international trade requiring overseas shipments of metalliccomponents and parts. VCI packaging effectively prevents corrosion during transport and storage, helping to eliminate rework and rejections.

Regional analysis: North America dominated the global market in 2023, accounting for over 30% of the overall demand, led by the presence of major automobile and machinery manufacturing industries in the US and Canada requiring export of components and parts. Asia Pacific exhibits fastest growth in the forecast period with CAGR of around 7%, due to expanding industrial and manufacturing sectors along with growing international trade in countries such as China, India, and Japan.

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. These companies are focused on developing innovativebio-based VCI formulations and customized packaging solutions to target specialty applications for achieving competitive advantage.