Our solution consists of a strong paper, telescopic tube with closed ends. Its diameter is wide enough to hold 5 #10 US needles (or many more smaller needles or 2 to 4 larger needles).
The Tubes can extend to hold 10" long needles. It also shortens to a total length of 6-1/2". They have inside diameters of 5/8" and outside diameters of approx. 3/4".