Physical Media Packaging for Software Market to Reach USD 413 Million by 2036 Amid Premium Shift

Global market to grow at 2.9% CAGR through 2036 as regulation, code-in-box formats, and collector demand reshape packaging dynamics.

Published on Feb. 11, 2026

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The global physical media packaging for software products market is projected to grow from USD 310 million in 2026 to USD 413 million by 2036, registering a compound annual growth rate (CAGR) of 2.9%, according to new analysis by Future Market Insights (FMI). The forecast highlights a sector in transition, as digital distribution continues to dominate software sales worldwide, but a resilient installed base of legacy hardware and collector demand sustains a niche but evolving market for physical packaging formats.

Why it matters

The physical media packaging market is undergoing a structural pivot, moving away from dependency on disc duplication volumes and toward a 'luxury collectible' model. Packaging is increasingly positioned not as a delivery vessel for discs, but as a collectible or merchandising asset, driven by the rise of 'code-in-box' formats and premium, limited-edition offerings. Environmental regulations are also reshaping the industry, compelling manufacturers to upgrade materials and adopt more sustainable designs.

The details

The market for physical media packaging for software products includes the design, manufacturing, and supply of primary and secondary packaging for game discs, Blu-ray/DVD software, and USB or flash-based distribution. Formats range from rigid plastic keep cases and paperboard sleeves to steelbooks and multi-disc collector boxes. The industry is shifting toward higher-margin, collector-grade offerings, with a growing share of physical retail packages now containing digital codes rather than optical media. Environmental mandates, such as India's requirement for thicker plastic packaging and China's restrictions on packaging costs, are also driving changes in design and materials.

  • In fiscal year 2024, Capcom sold 51.87 million game units, yet only approximately 5.42 million were physical—roughly 10% of total sales.
  • In December 2024, Scanavo, a recognized supplier of steelbook packaging, noted the 20th anniversary of the first SteelBook edition on PlayStation 2.

The players

Future Market Insights (FMI)

A market research and consulting organization that provided the analysis and forecast for the physical media packaging for software products market.

Capcom

A major video game publisher that saw a decline in physical game sales, with only 10% of its 51.87 million units sold in fiscal year 2024 being physical.

Scanavo

A supplier of steelbook packaging that celebrated the 20th anniversary of the first SteelBook edition on PlayStation 2 in December 2024.

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What they’re saying

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

The takeaway

The physical media packaging market is undergoing a significant transformation, moving away from a focus on disc duplication volumes and toward a more premium, collector-driven model. This shift is driven by the rise of 'code-in-box' formats, environmental regulations, and the growing demand for high-end, limited-edition packaging as a collectible and merchandising asset. As the digital transition accelerates, the future of physical media packaging will depend on its ability to serve as a compliant, high-value, and collectible extension of the software brand itself.