Market Overview The corrugated board packaging market was valued at USD 262. 61 billion in 2019, and it is expected to reach USD 339. 95 billion by 2025, recording a CAGR of 4. 41%, during the forecast period of 2020-2025.
New York, Feb. 27, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Corrugated Board Packaging Market - Size , Growth, Trends, and Forecast (2019 - 2024)" - https://www.reportlinker.com/p05865708/?utm_source=GNW
According to a report by Asia Pulp and Paper’s (APP) 2017 Paper & Packaging Consumer Trends, compared to five years ago, the sustainability of paper-based packaging today is much more important to almost half of the consumers (50%).
- Rising consumer consciousness and rising concerns by regulatory bodies regarding sustainable packaging and the cost benefits associated are encouraging the use of environment-friendly packaging products, and is driving the growth of the corrugated board packaging market. For instance, Singapore’s National Environment Agency (NEA) in July 2016 announced that it would introduce mandatory requirements for companies to adopt sustainable materials in packaging to reduce packaging waste in the next 3-5 years.
- Also, corrugated packaging comprises 88% of recycled content with the additional fresh fibers coming from sustainably managed forests, it is harmless rather than catastrophic. Moreover, if a corrugated box ends up in the ocean, it will be degraded within two months. Prominent e-commerce companies such as Amazon are moving towards corrugated board packaging for e-commerce packaging as it helps in controlling costs apart from offering an environment-friendly option.
- The corrugated board packaging market will also benefit from increased global trade and healthy economic conditions. The rising consumption in developing nations, such as Brazil, Russia, India, and China, provide strong growth prospects for the corrugated board packaging market. Recently, countries like India (State of Maharashtra) have banned the usage of plastic packaging. This is poised to drive the demand of corrugated board packaging.
Scope of the Report
Corrugated board packaging is a versatile and cost-efficient method to protect, preserve, and transport a wide range of products. Attributes such as light weight, biodegradability, and recyclability, are the advantages of this packaging that make them an essential component in today’s modern life.
The market has been segmented by End-user Industry (Processed Foods, Fresh Food and Produce, Beverages, Paper Products, Electrical Products), and Region.
Key Market Trends
Processed Food Segment Expected to occupy Significant Market Share
The demand for convenience foods is on the rise due to the busy lifestyle of people. Hence, processed food, which has a quick cooking time, attracts many consumers. The increasing population also drives the demand for processed food, which is convenient as well as healthy. According to the Bureau of Labor Statistics, the number of employed women in the United States alone has grown from 53.6 million in 1990 to 71.9 million in 2017. These factors are increasing the need to provide high-quality packaged and processed foods to customers.
- As corrugated board packaging keeps moisture away from products and can withstand long shipping times, corrugated board packaging is increasingly being adopted by companies to offer better outcomes to customers, especially as a means of secondary or tertiary packaging.
- Further, innovations in the domain are expanding the scope of applications for corrugated cardboard packaging. Companies such as THIMM Group developed “COOLandFREEZE”, a box made up of corrugated cardboard for temperature-controlled shipping that enables the joint transport of frozen, chilled and non-refrigerated products within one package.
- This innovative packaging ensures effective insulation and the constant refrigeration of fresh products over a period of at least 36 hours. As this corrugated cardboard packaging is a more sustainable alternative to polystyrene or plastic shipping solutions, the demand for this market is expected to rise rapidly over the forecast period.
North-America Expected to Show a Significant Growth
North America’s robust financial position enables the region to invest heavily in advanced solutions and technologies. These advantages have provided the regional organizations a competitive edge, in the market. Moreover, the region enjoys the presence of several major corrugated board packaging vendors, such as International Paper Company (United States), Georgia-Pacific LLC (United States) and Sealed Air Corporation (United States), among others.
- Rising awareness among consumers regarding environment-friendly products is expected to drive the demand for corrugated board packaging market in North America over the forecast period. Government initiatives for stimulating eco-friendly packaging materials coupled with the efforts from CPA (The Corrugated Packaging Alliance), a corrugated industry initiative, with the mission to encourage corrugated packaging; are providing an added impetus to the growth of this market.
- According to Asia Pulp and Paper’s (APP) 2017 Paper & Packaging Consumer Trends, 51% of American consider packaging waste to be a critical environmental issue. Apart from this, e-commerce revenue across all product categories are also likely to reach USD 513 billion by 2021, which will further drive the demand for corrugated board packaging in North America. Almost 95% of the North American consumer goods are transported across the globe in corrugated boxes.
- Many major cities such as California, New York, Washington, Maine and Massachusetts have banned the use of plastics containers and bags and several other single-use non-recyclable products that are harmful for the environment, which in turn, boost the demand for corrugated board packaging.
- However, at a regional scenario, with food chains such as McDonald planning to use 100% recyclable packaging by 2025, manufacturers are choosing to use these opportunities to build consumer trust by proactively addressing the environmental issues than resisting to change. These factors will further augment the demand for corrugated board packaging market over the forecast period.
The market for corrugated board packaging is fragmented with many players in the market providing packaging solutions. Companies are continuously innovating to promote sustainable packaging by providing environment-friendly packaging products.
- In order to leverage the opportunities, companies such as Mondi released corrugated box designs for wine merchants that fulfill online consumer orders. Their latest release of Vino Box Sprint is a corrugated box with an integrated pop-up divider insert that is capable of efficiently packing up to six bottles for safe delivery.
- Apart from this, Mondi has also opened its heavy-duty corrugated plant in Simet, Poland to address the growing needs of the Polish corrugated market. Growing e-commerce in Poland will further augment the demand for corrugated board packaging, which in turn, provides an added advantage to the company.
- WestRock is building a new plant in Brazil which is expected to be completed in mid-2019 to meet the growing regional demand for corrugated packaging. The company also invested to acquire KapStone Paper and Packaging Corp owing to the strong demand for packaging products in the growing US economy.
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