Volatile Corrosion Inhibitors (VCI) Packaging Material Market Size, Share, Growth, and Industry Analysis, By Type (VCI Paper, VCI Film, VCI Bag, Others5), By Application (Metallurgy Industry, Aerospace Industry, Automotive Industry, Oil, Gas and Process Industries, Electronics Industry, Others), Regional Insights and Forecast to 2033

Volatile Corrosion Inhibitors (VCI) Packaging Material Market Overview

Global Volatile Corrosion Inhibitors (VCI) Packaging Material Market size is projected at USD 743 million in 2024 and is expected to hit USD 1132.95 million by 2033 with a CAGR of 4.8%.

The Volatile Corrosion Inhibitors (VCI) packaging material market plays a critical role in safeguarding metal components from corrosion during storage and transportation. In 2024, over 1.2 million metric tons of VCI packaging materials were utilized globally across key industries such as automotive, aerospace, and oil & gas. VCI films accounted for more than 40% of total consumption due to their flexibility and sealing efficiency. North America alone used over 350,000 metric tons of VCI materials, while Asia-Pacific led in volume with over 500,000 metric tons attributed to large-scale industrial operations in China, India, and Japan.

The rise in global exports of industrial machinery, totaling over 650 million units in 2023, has accelerated the need for corrosion protection, directly influencing the demand for VCI packaging. Furthermore, the automotive sector, producing over 85 million vehicles globally in 2023, continues to drive consumption of VCI bags and films to protect metal parts during international shipment. With the integration of nanotechnology in VCI formulations and increasing regulatory pressure to reduce environmental degradation, the market is experiencing a shift towards biodegradable VCI paper and recyclable films. Manufacturers are increasingly deploying multi-layer coextruded films, which offer improved barrier properties, further fueling industry expansion.

Key Findings

Top Driver reason: Growth in metal-intensive industries such as automotive and aerospace is accelerating the demand for corrosion protection solutions.

Top Country/Region: Asia-Pacific leads due to industrial manufacturing volumes exceeding 7 billion metric tons annually.

Top Segment: VCI films dominate with over 40% volume share due to their mechanical strength and flexibility.

Volatile Corrosion Inhibitors (VCI) Packaging Material Market Trends

The VCI packaging material market is currently undergoing significant technological and material advancements. One of the most prominent trends is the growing use of bio-based VCI films and papers. In 2024, over 22% of newly manufactured VCI materials incorporated biodegradable components, compared to just 11% in 2020. These shifts are driven by rising environmental regulations across Europe and parts of North America, which restrict the use of non-recyclable plastics in industrial packaging.

Another major trend is the shift towards multi-metal protection solutions. Previously, most VCI packaging materials were optimized for ferrous metals only, but now, 38% of new VCI products launched in 2023 are capable of providing protection to both ferrous and non-ferrous metals. This is particularly important for industries like electronics and aerospace where diverse metal alloys are prevalent.

Digital monitoring integration is also trending. Smart VCI packaging embedded with corrosion indicators and sensors has seen deployment in over 7,000 shipments in 2024, mainly within aerospace logistics. These systems allow real-time tracking of corrosion risks, reducing metal rejection rates by 14%.

Furthermore, custom VCI formulations designed for industry-specific requirements are in demand. For example, VCI bags used in the automotive sector now feature zip-seal closures and desiccant integration to manage humidity levels, which accounted for over 85,000 metric tons in production last year. VCI foam is also gaining popularity for tool and machinery packaging, where shock absorption and corrosion protection are needed simultaneously.

Volatile Corrosion Inhibitors (VCI) Packaging Material Market Dynamics

DRIVER

Expansion of global industrial trade and manufacturing activities.

The expansion of international trade involving metallic components has significantly raised the demand for effective corrosion protection. In 2023, global exports of industrial equipment and parts exceeded 8.1 billion units, many of which required specialized packaging. VCI packaging has become a preferred choice due to its ability to prevent corrosion without direct contact with the metal surface. The increasing complexity of global supply chains, where machinery components are shipped across multiple climate zones, has necessitated durable, multifunctional VCI solutions. For instance, the aerospace industry alone saw over 290,000 global aircraft component shipments in 2023, most of which relied on VCI films and papers for preservation.

RESTRAINT

Limited recyclability of multi-layer plastic VCI films.

One of the main restraints in the VCI packaging market is the environmental concern associated with traditional VCI plastics. Multi-layer films, although effective, are difficult to recycle due to the complexity of materials used in their structure. In 2023, over 45% of plastic-based VCI packaging ended up in landfills due to inadequate recycling infrastructure. Regulatory actions in regions like the EU and California have already started discouraging the use of such non-biodegradable materials, which may force certain manufacturers to switch to less effective alternatives, impacting product performance and protection duration.

OPPORTUNITY

Adoption of biodegradable and water-soluble VCI materials.

The introduction of biodegradable VCI paper and water-soluble films presents a significant opportunity. In 2024, over 80,000 metric tons of bio-based VCI materials were produced, marking a 2x increase from 2021. These environmentally friendly alternatives align with green packaging initiatives supported by governments and multinational corporations. Innovations in polymer science now allow for high-performance water-soluble films with vapor transmission rates below 0.01 g/m²/day, which have been adopted by over 1,200 industrial firms in North America and Europe.

CHALLENGE

High cost of advanced VCI materials and lack of standardization.

Advanced VCI packaging products, especially those embedded with smart sensors or formulated for multi-metal protection, cost up to 60% more than conventional packaging. In 2023, the average cost per metric ton of smart VCI film exceeded $1,400 compared to $900 for standard film. Additionally, there is a lack of global standardization in VCI efficacy testing, leading to inconsistent product performance. This inconsistency poses quality assurance challenges for companies shipping high-value components globally, particularly when crossing multiple customs and inspection regimes.

Volatile Corrosion Inhibitors (VCI) Packaging Material Market Segmentation

The Volatile Corrosion Inhibitors (VCI) Packaging Material Market is segmented by type into VCI paper, VCI film, VCI bags, and others; and by application into metallurgy, aerospace, automotive, oil & gas, electronics, and others. VCI film leads the type segment with over 40% share due to its durability and ability to handle large and irregular-shaped equipment. In terms of application, the metallurgy industry accounts for nearly 30% of overall usage owing to its high reliance on export-ready corrosion protection. Aerospace and automotive industries follow closely, contributing a combined volume of over 480,000 metric tons in 2024.

By Type

• VCI Paper: VCI paper is widely used for wrapping metal components and offers ease of use and recyclability. In 2023, global consumption of VCI paper crossed 350,000 metric tons, with Europe accounting for over 120,000 metric tons. These papers often have a basis weight of 60–75 GSM and are impregnated with corrosion inhibitors suitable for ferrous and non-ferrous metals. Over 5,000 manufacturers worldwide use VCI paper in packaging gears, tools, and bearings.
• VCI Film: VCI film leads the market by volume, with over 480,000 metric tons consumed globally in 2024. Its applications span from machine wrapping to pallet covers. Most VCI films are made using LDPE or LLDPE and offer tensile strength exceeding 16 MPa. Coextruded films now dominate the category, providing longer-lasting protection exceeding 24 months.
• VCI Bag: VCI bags offer high convenience and are used in packing smaller precision metal components. In 2024, over 220,000 metric tons of VCI bags were produced. These include zip-lock bags, gusseted bags, and stretch-wrap forms. Automotive parts like fasteners and gears make up 60% of the demand for this type.
• Others: Other VCI products include foams, emitters, and stretch wraps, accounting for around 150,000 metric tons in 2023. VCI foam is particularly prominent in aerospace and tool packaging due to its dual protective and cushioning function.

By Application

• Metallurgy Industry: The metallurgy industry is the largest end-user, consuming over 600,000 metric tons of VCI packaging material in 2024. Export of steel coils, rods, and billets from countries like China and India required corrosion-resistant packaging to minimize rust-related rejections, which stood at 2.1% of total exports. VCI films and papers are primarily used to wrap metal surfaces before long-haul shipping.
• Aerospace Industry: The aerospace sector requires VCI materials for component shipments, including engines and structural metal parts. In 2023, over 120,000 shipments from Europe and North America used VCI packaging. This segment consumed 180,000 metric tons of high-strength VCI films and foams.
• Automotive Industry: In 2024, the automotive industry used more than 400,000 metric tons of VCI packaging for protective transportation of parts such as crankshafts, gears, and brake systems. Japan and Germany together accounted for over 45% of this volume due to their dominance in auto component exports.
• Oil, Gas and Process Industries: The oil and gas sector relies on VCI films and emitters to protect critical parts and heavy equipment. In 2024, over 130,000 metric tons of VCI packaging materials were deployed in the sector, particularly in offshore pipeline and rig components storage.
• Electronics Industry: VCI packaging is increasingly used in electronics to protect metal-rich PCBs and connectors. Over 80,000 metric tons were consumed in 2023 for this purpose. Multilayer VCI films with electrostatic discharge (ESD) properties have become the norm in this segment.
• Others: Other segments include defense and heavy equipment. These accounted for 60,000 metric tons in 2023, with VCI foams and emitters being the preferred format.

Volatile Corrosion Inhibitors (VCI) Packaging Material Market Regional Outlook

The global VCI packaging material market has experienced varied growth across different regions, driven by industrial output, regulatory frameworks, and manufacturing density.

• North America

North America remains a key region, driven by its large industrial base and exports. In 2023, the region accounted for over 340,000 metric tons of VCI packaging consumption. The U.S. alone contributed 290,000 metric tons, with significant use in the aerospace and automotive sectors. Key manufacturing hubs in Texas, Michigan, and California were responsible for 67% of this demand. The transition to biodegradable VCI packaging also saw a sharp increase, with over 28,000 metric tons used in 2023, nearly double that in 2020.

• Europe

Europe is highly progressive in adopting sustainable packaging. In 2024, the region used over 420,000 metric tons of VCI packaging material. Germany led with over 120,000 metric tons, followed by France and Italy. Strict EU regulations have pushed for increased adoption of bio-based VCI paper, which represented 24% of the regional market. Aerospace and industrial machinery exports are the top drivers, and nearly 8,000 European firms now use VCI packaging in export logistics.

• Asia-Pacific

Asia-Pacific dominates the global VCI packaging market by volume, consuming over 510,000 metric tons in 2024. China led with more than 280,000 metric tons due to its heavy manufacturing and export base. India followed with 95,000 metric tons, fueled by steel and automobile component exports. Japan contributed 70,000 metric tons, largely in electronics and automotive. The growth of domestic industries and infrastructural development in Southeast Asia has also boosted regional consumption.

• Middle East & Africa

The Middle East & Africa region consumed over 95,000 metric tons of VCI packaging material in 2023. Saudi Arabia, the UAE, and South Africa were the primary contributors. Oil & gas and mining exports necessitated corrosion-resistant packaging, especially in arid and marine climates. VCI film usage in these sectors accounted for 68,000 metric tons. There is also growing investment in setting up local VCI packaging units, especially in industrial zones like Jubail and Ras Al Khaimah.

List of Top Volatile Corrosion Inhibitors (VCI) Packaging Material Market Companies

• CORTEC
• Aicello
• Branopac
• Armor Protective Packaging
• Oji F-Tex
• Daubert VCI
• Zerust
• Rustx
• Transilwrap (Metpro)
• Protective Packaging Corporation
• Technology Packaging
• Protopak Engineering Corp
• Green Packaging
• CVCI
• Shanghai Santai
• KEYSUN
• Nantong Yongyu Anti-Rust

Top Two Companies with Highest Share

CORTEC: CORTEC holds the leading position globally with over 90,000 metric tons of VCI packaging sold annually. Its product range includes bio-based films, papers, and foams. Over 12,000 customers worldwide utilize CORTEC’s offerings, especially in defense and electronics sectors.

Daubert VCI: Daubert VCI is among the top manufacturers with a volume output exceeding 75,000 metric tons in 2023. The company dominates North America with a 28% share in the regional VCI film segment, supported by seven dedicated production facilities across the U.S.

Investment Analysis and Opportunities

The VCI packaging material market has become a lucrative investment zone, attracting capital in both technological innovation and regional expansion. In 2023 alone, over $900 million was invested globally into VCI packaging material production and R&D units, with 55% of the capital flowing into Asia-Pacific. India saw a 140% rise in plant expansion activities, with over 13 new VCI packaging manufacturing units being established in Gujarat and Maharashtra.

One of the most significant opportunities lies in biodegradable packaging solutions. Over 70 companies globally have shifted at least 40% of their production lines to bio-based VCI materials in 2024. This investment trend is reinforced by rising regulatory pressure and environmental awareness campaigns, which influenced nearly 18% of European clients to exclusively source eco-friendly packaging.

Digital innovation presents another strong investment avenue. Smart VCI packaging embedded with RFID-based corrosion monitors and QR-code traceability has seen over 400 new patents filed between 2022 and 2024. This segment alone attracted over $120 million in VC funding. Multinational logistics firms, especially in the aerospace and defense sectors, are investing in pilot projects that utilize intelligent VCI packaging to reduce corrosion-related failures, which currently affect over $3.5 billion worth of components annually.

Strategic partnerships and acquisitions are also driving investment momentum. In 2024, there were 19 recorded mergers or joint ventures in the VCI space. Notably, a Japanese firm collaborated with a European specialty paper manufacturer to produce dual-layer VCI paper capable of 24-month corrosion protection.

New Product Development

The Volatile Corrosion Inhibitors (VCI) Packaging Material Market has witnessed a surge in product development initiatives aimed at improving performance, environmental compliance, and user convenience. In 2023–2024, over 150 new VCI packaging materials were launched globally. Among these, more than 60 products integrated biodegradable components, while 35 products focused on smart monitoring features.

A major innovation is the rise of water-soluble VCI films, which completely dissolve in aqueous environments, leaving no residue. These films were introduced in 2023 by several European manufacturers and gained rapid acceptance in precision tool packaging. With solubility rates under 30 seconds in hot water, they enable safe disposal and have been deployed in over 2,000 companies.

Another key innovation is multilayer VCI paper. Developed with dual-polymer barriers, these papers offer moisture absorption rates of 8% and corrosion protection for up to 24 months. In 2024, over 45,000 metric tons of such papers were sold, particularly to aerospace and defense sectors in Europe and North America.

Smart VCI packaging, embedded with humidity sensors and corrosion-indicator strips, is now a rapidly growing subsegment. These products allow real-time corrosion detection and condition alerts via smartphone applications. In 2024, more than 800 enterprises integrated smart packaging for high-value shipments, particularly in the U.S. and Germany.

Five Recent Developments

• CORTEC: launched EcoCorr Film Plus in Q2 2023, a 100% biodegradable VCI film with moisture vapor transmission rate (MVTR) under 0.02 g/m²/day. It was adopted by 150+ U.S. firms in aerospace and marine industries.
• Daubert: VCI opened a new 50,000 sq ft facility in Illinois in January 2024 to scale production of their multi-metal VCI paper line. The plant increased capacity by 22% and generated 80 new jobs.
• Armor: Protective Packaging introduced SMARTShield, a VCI packaging solution with embedded corrosion sensors that alert shippers to potential failures. Over 2,000 units were deployed in aerospace shipping in 2023.
• Rustx: launched hydro-soluble VCI film, targeting tool manufacturers. This product dissolves in 90 seconds and was used in over 30,000 packaging units by Indian and German exporters.
• Zerust: developed VCI Emitter Capsules with Bluetooth connectivity, allowing users to monitor humidity levels inside sealed packages. This innovation was piloted in over 50 industrial warehouses in 2024.

Report Coverage of Volatile Corrosion Inhibitors (VCI) Packaging Material Market

This report provides a detailed, data-driven examination of the Volatile Corrosion Inhibitors (VCI) Packaging Material Market. It encompasses an in-depth evaluation of global and regional markets, material types, industry applications, and key market dynamics including drivers, restraints, opportunities, and challenges. The research scope spans more than 25 end-use industries, covering over 40 countries and 5 key regional markets.

The analysis includes a granular breakdown by product type (VCI paper, VCI film, VCI bags, others) and application (metallurgy, aerospace, automotive, oil & gas, electronics, others). It evaluates consumption patterns across over 1 million metric tons annually, detailing the materials' physical properties such as tensile strength, corrosion protection duration, and recyclability indexes.

Further, this report explores emerging trends, such as smart VCI packaging, biodegradable film adoption, and coextrusion technologies. It quantifies shifts in packaging innovation, citing over 150 new product developments introduced between 2023 and 2024. Detailed performance metrics—like water vapor transmission rates, solubility profiles, and protective longevity—are analyzed for leading product lines.

The regional outlook segment reviews market dynamics across North America, Europe, Asia-Pacific, and the Middle East & Africa. This section highlights industrial clusters, regulatory environments, and volume-based demand patterns. For instance, Asia-Pacific’s consumption exceeded 500,000 metric tons in 2024, led by China and India, whereas Europe’s push for eco-friendly alternatives positioned it as the fastest-growing market for biodegradable VCI papers.

Frequently Asked Questions