Asia-Pacific Paper Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021-2026)

Asia-Pacific Paper Packaging Market is segmented by Product Type (Folding Cartons, Corrugated board), End User Industry (Food Beverage, Healthcare, Personal Care, Household Care, Electrical Products), and Geography.

Market Snapshot

Market Growth Rate
Study Period: 2018-2026
Base Year: 2020
CAGR: 4.5 %

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Market Overview

Asia Pacific Paper Packaging Market is expected to grow at a CAGR of 4.5% over the forecast period (2021-2026). With the outbreak of COVID-19, the demand for corrugated board packaging in the region is witnessing significant growth due to transport packaging flowing of essentials products, such as packaging for food and other consumer products, medical and pharmaceutical products, and tissue and hygiene products.

  • The demand for paper pulp is growing rapidly in developing countries; China, India and the rest of Asia are the fastest growing users of paper per capita. The increase in the transit packaging sector in China, combined with growing consumerism, is leading to rapidly growing demand for paper packaging. Paper packaging demand has been growing at a rate of 6.5% since 2008, far higher than anywhere else in the world. Along with this demand for paper packaging, the demand for recycled paper is also increasing.
  • The global population will expand and especially in key emerging markets, like China and India, the rate of urbanisation will continue to grow. This translates into increase consumer incomes for spending on consumer goods, as well as exposure to modern retail channels and the aspiration among a strengthening middle class to engage with global brands and shopping habits. These trends will further fuel the market.
  • Recycled corrugation liner (also called Kraft) was always the most significant part of Indian paper production. While current total Indian paper production would be around 18 million tons, recycled corrugated liner makes up more than 8 million tons, and it is growing better than the other varieties. In former days, recycled liner and corrugated boxes were considered low value except by those who could see the future. The per capita packaging consumption in India is quite low at 8.6 kg, compared to countries such as Germany and Taiwan where it is 42 kg and 19 kg, respectively. However, organized retail and boom in e-commerce, which offer huge potential for future growth of retailing, is giving a boost to the packaging sector.
  • The e-commerce industry has emerged as a significant player in the recent years with Amazon using corrugated board boxes for the principal packaging and rely on plastic packaging for individual items. The increasing concerns of Thai people associated with packaging wastes are likely to compel government to make regulations that prompts the citizens to adopt environment-friendly options, such as folding cartons or corrugated boxes as a viable choice for packaging.
  • The acquisition of PT Fajar Surya Wisesa Tbk. will allow SCG Packing PCL to enhance its ASEAN growth platform, especially in Indonesia, which provides a tremendous future growth opportunity for SCG packaging. Recently, Fajar paper installed capacity of 1,300,000 metric ton per year of Kraft Liner Board and Corrugated Medium Paper for carton-box packaging and Coated Duplex Board for display packaging. This is further expected to boost the company’s corrugated packaging capacity in the region.

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, which make it an essential component in modern life. By end-user industry, the market has been segmented into Food, Beverage, Healthcare, Personal Care, Household Care, Electrical Products, etc.

Product Type
Folding Cartons
Corrugated board
Other Types of Products (Flexible Paper & Liquid Paperboard)
End-user Industry
Food
Beverage
Healthcare
Personal Care
Household Care
Electrical Products
Other End-user Industries
Country
China
India
Japan
Indonesia
Thailand
Vietnam
Rest of Asia Pacific

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Key Market Trends

Folding Carton is Expected to Grow Significantly

  • The folding carton packaging is one of the most famous eco-friendly packaging solution. The applications range from simple local store solutions to electrical equipment packaging solutions. The major users of the solutions include food and beverage sector, ecommerce industry, and house hold goods. The ability of the product to be produced in a large variety of sizes makes it feasible in almost all the end-user verticals.
  • The increased prices of the raw material in the recent years has promoted the practice of recycling in the region, especially by the Ecommerce industry. Asia Pacific is the largest Ecommerce economy in the world. With increasing mobile and internet penetration in countries, like India, China, and Indonesia the Ecommerce industry is likely stay ahead of others in demand for folding carton packaging. Campaigns, like Make in India and the preparations for Tokyo Olympics have marginally increased the opportunities for folding carton packaging market in the region. With constant growth in the region forecasted by the World Bank in the near future, Asia Pacific is expected to emerge as a hot spot for folding carton packaging solutions.
  • Folding carton packaging is witnessing significant demand from food and beverage, pharmaceuticals, and retail, among others. According to the India Folding Carton Association, the Indian consumer packaging market is expected to reach INR 1,500 billion by 2021, due to the widespread adoption of organized retail. Additionally, Emami Paper Mills is also investing USD 285 million to set up a 4,50,000 metric ton per annum multi-layer coated paper and packaging board manufacturing plant at Bharuch in Gujarat to cater to the market potential of this untapped market.
  • Some of the end user companies, in terms of packaging, have been observed the demand for a high quality printable material to display brand images on the package. Cartons are regarded to have excellent print reproduction and can provide additional effects and finishes, which can offer a higher visual impact at the point-of-sale and more truly reflect the image displayed on the packaging. This trend is likely to be most apparent in certain sectors of the market, such as beauty and cosmetics.
  • A Canada-based packaging company CCL introduced 'digital folding cartons' that functions with 100% electronic, visual inspection and have customizable features such as serialization, track and trace, brand protection, glued inserts and variable printing. Digital folding cartons will help in reducing production costs and improve customers speed to market. Multiple SKU’s can be easily accommodated with little downtime between copies allowing customers to target specific markets or do seasonal promotions. Company has a strong presence in Asia Pacific region with sales offices and manufacturing facilities in various countries such as Thailand, Indonesia, Australia, Japan, China, etc. This new development from CCL will influence the market positively in this region.
Graph APAC.PNG

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India is Expected to Hold a Significant Market Share

  • In India, packaged foods are gaining high traction, owing to busy work schedules, rising number of working women, and shift toward on-the-go consumption, which is, in turn, expected to ascend the utilization of innovative and sustainable packaging across the food sector. This is likely to fuel the market's growth over the forecast period.
  • E-commerce has transformed the way business is done in India. According to IBEF, The Indian E-commerce market is expected to grow to USD 200 billion by 2026 from USD 38.5 billion as of 2017. The Indian online grocery market is estimated to reach USD 18.2 billion in 2024 from USD 1.9 billion in 2019, expanding at a CAGR of 57%. This growth in both the sectors will further increase the demand for paper-baased packaging.
  • With the growing awareness, the requirement for eco-friendly and sustainable packaging is steadily on the rise. The country is focusing more on sustainable solutions, which is increasingly becoming a business imperative. Companies like Evirocor in India are providing eco friendly food packaging products to food outlets, restaurants, hotels, hospitals, factories, caterers, and all other users. The rise in usage of eco friendly packaging is expected to drive the growth of the market.
  • The Indian government continues to show its commitment in support greener packaging solutions. They have made recyclability, downsizing, and downgauging of packaging top priorities for Indian manufacturers and the multinational companies present here. India’s current direction is to keep packaging products environmentally friendly and ban the usage of toxic material.
  • The ongoing recycling rate and improving logistical efficiency are the major trends of this market due to its lightweight, biodegradable, and recyclable features. According to the All India Plastics Manufacturing Association, India would eliminate single-use plastics by 2022. However, the high cost of production and technological obsolescence are the major market restraints for this market.
Graph India.PNG

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Competitive Landscape

The competitive rivalry in the Asian Pacific Paper Packaging Market is high owing to the presence of some key players such as SCG Packaging PCL, Huhtamaki Group, Tetra Pak, Toppan Printing Co. Ltd, International Paper Company, and many more. But none of them single handedly dominates the market. Through continuous research and development activities, the players in the market have been able to bring about innovations in their offerings that allow them to provide sustainability to its consumers.

  • Novemnber 2020 - Oji Holdings Corporation decided to establish a new corrugated container plant in souther province of Dong Nai, Vietnam. This new opening comes under Oji Group's new strategy 'expansion of overseas business', that it considers one of the major pillars to strive towards the realization of an innovative value-creating company. The new plant will be Oji group's 34th corrugated container plant in South East Asia, India and Ocenia.

Recent Developments

  • May 2021 - SCG Packaging PCL expands packaging investment in Indonesia, as it signed a 75% stake in Intan Group, one of the corrugated packaging manufacturers based in four major provinces. This expansion comes under company's strategy to expand investment in the ASEAN region. Company believes that the expansion of corrugated packaging will benefit the integrated business of packaging.
  • April 2021 - Huhtamaki Group acquired Jiangsu Hihio-Art Packaging Co. Ltd., a prominent manufacturer of paper bags, wraps and folding carton packaging in China. With this acquisition, Huhtamaki continues to strengthen its position as the leading foodservice packaging provider in Asia and expands its product portfolio in China allowing it to better serve its existing and new customers in this exciting growth market.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of the Impact of COVID-19 on the Paper Packaging Market

    4. 4.4 Market Drivers

      1. 4.4.1 Biodegradeable packaging

    5. 4.5 Market Challenges

      1. 4.5.1 Shortage and Rising cost of raw material

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Folding Cartons

      2. 5.1.2 Corrugated board

      3. 5.1.3 Other Types of Products (Flexible Paper & Liquid Paperboard)

    2. 5.2 End-user Industry

      1. 5.2.1 Food

      2. 5.2.2 Beverage

      3. 5.2.3 Healthcare

      4. 5.2.4 Personal Care

      5. 5.2.5 Household Care

      6. 5.2.6 Electrical Products

      7. 5.2.7 Other End-user Industries

    3. 5.3 Country

      1. 5.3.1 China

      2. 5.3.2 India

      3. 5.3.3 Japan

      4. 5.3.4 Indonesia

      5. 5.3.5 Thailand

      6. 5.3.6 Vietnam

      7. 5.3.7 Rest of Asia Pacific

  6. 6. COMPETITIVE CHALLENGES

    1. 6.1 Company Profiles*

      1. 6.1.1 SCG Packaging PCL

      2. 6.1.2 International Paper Company

      3. 6.1.3 Sarnti Packaging Co. Ltd

      4. 6.1.4 Oji Holdings Corporation

      5. 6.1.5 Pura Group

      6. 6.1.6 Huhtamaki Group

      7. 6.1.7 Harta Packaging Industries (Selangor) Sdn Bhd

      8. 6.1.8 Tetra Pak

      9. 6.1.9 Hong Thai Packaging Company Limited

      10. 6.1.10 New Asia Industries Co. Ltd (Rengo Co. Ltd)

      11. 6.1.11 C&H Paperbox (Thailand) Co. Ltd

      12. 6.1.12 Continental Packaging (Thailand) Co. Ltd

      13. 6.1.13 Toppan Printing Co. Ltd

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The APAC Paper Packaging Market market is studied from 2018 - 2026.

The APAC Paper Packaging Market is growing at a CAGR of 4.5% over the next 5 years.

SCG Packaging PCL, Huhtamaki Group, Sarnti Packaging Co. Ltd, International Paper Company, Oji Holdings Corporation are the major companies operating in APAC Paper Packaging Market.

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