Asia Pacific Paper Packaging Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

The Asia-Pacific Paper Packaging Market is segmented by Product Type (Corrugated and Solid Fiber Boxes, Folding Carton), by End-User Industry (Food , Beverage, Healthcare, Home and Personal Care), and Country.

Market Snapshot

Market Growth Rate
Study Period: 2019-2026
Base Year: 2021
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 essential products, such as packaging for food and other consumer products, medical and pharmaceutical products, and tissue and hygiene products.

  • Various paper and packaging vendors operating in the region are optimistic about their prospects in 2021 and the following years, owing to Vietnam's stable business situation. Moreover, according to SSISecurities Joint Stock Company, in Vietnam, the consumption of paper packaging is expected to increase by 12% during the period 2021-2025
  • Over the coming years, paper packaging vendors operating in the country are expected to expand further their production facilities to cater to the increasing demand. For instance, TetraPak Binh Duong has one of the largest capacity factories in Vietnam's paper industry; the company can produce about 12 billion paper boxes/ year and has the ability to expand to 20billion paper boxes a year.
  • 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.
  • The e-commerce industry has emerged as a significant player in recent years, with Amazon using corrugated board boxes for the principal packaging and relying on plastic packaging for individual items. The increasing concerns of Thai people associated with packaging wastes are likely to compel the government to make regulations that prompt the citizens to adopt environment-friendly options, such as folding cartons or corrugated boxes, as a viable choice for packaging.

Scope of the report

The study tracks the demand for Paper Packaging Market through the revenue accrued through the folding cartons, corrugated boxes, and others (flexible paper). The current trade scenario and the major import-export countries are also analyzed in the study. The Asia-Pacific Paper Packaging Market is segmented by Product Type (Corrugated and Solid Fiber Boxes, Folding Carton), By End-User Industry (Food, Beverage, Healthcare, Home and Personal Care), and Country.

By Product Type
Corrugated and Solid fiber Boxes
Folding carton
Other Types of Products (Flexible Paper & Liquid Paperboard)
By End-user Industry
Food
Beverage
Healthcare & Pharmaceutical
Other End-user Industries
By 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 solutions. The applications range from simple local store solutions to electrical equipment packaging solutions. The major users of the solutions include the food and beverage sector, the e-commerce industry, and household 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 raw material in recent years has promoted the practice of recycling in the region, especially in the E-commerce industry. The Asia Pacific is the largest e-commerce economy in the world. With increasing mobile and internet penetration in countries like India, China, and Indonesia, the E-commerce industry is likely to 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 the folding carton packaging market in the region. With the 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 end-user companies require high-quality print media to display their brand image on their packaging when it comes to packaging. Cardboard boxes have excellent print reproducibility and can provide additional effects and finishes that are more visually appealing at the point of sale and more accurately reflect the image displayed on the package. This trend is likely most pronounced in specific market segments such as cosmetics and beauty products.
Asia Pacific Paper Packaging Market

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 sectors will further increase the demand for paper-based 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 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 will eliminate single-use plastics by 2022. However, the high cost of production and technological obsolescence are the major market restraints for this market.
Asia Pacific Paper Packaging Market

Competitive Landscape

Asia Pacific Paper Packaging Market is moderately fragmented, 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 their consumers.

  • 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 the company's strategy to expand investment in the ASEAN region. The company believes that the expansion of corrugated packaging will benefit the integrated business of packaging.
  • July 2021 - Toppan printing acquired InterFlex Group, which is a flexible packaging converter based in the United States and the United Kingdom. With the acquisition of InterFlex, Toppan will establish a flexible packaging production network in the North American and European markets and drive the growth of sustainable packaging products and integrated solutions in the regions.

Recent Developments

  • 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.
  • October 2021 - Oji Holdings Corporation announced the acquisition of a corrugated container manufacturer in India. It acquired 80% shares of Empire Packages Private Limited. Empire has a strong customer base in the Northern Delhi area, and the company is going to expand its corrugated container business in India.

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 INSIGHTS

    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

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Sustained rise in e-commerce sale to drive demand for folding cartons

      2. 5.1.2 Growing emphasis on the use of recycled paper by major end-users to aid the transition to Paper packaging materials

      3. 5.1.3 Growing share of healthcare and cosmetic segments

    2. 5.2 Market Challenges

      1. 5.2.1 Challenges related to availability of raw materials leading to price fluctuations

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product Type

      1. 6.1.1 Corrugated and Solid fiber Boxes

      2. 6.1.2 Folding carton

      3. 6.1.3 Other Types of Products (Flexible Paper & Liquid Paperboard)

    2. 6.2 By End-user Industry

      1. 6.2.1 Food

      2. 6.2.2 Beverage

      3. 6.2.3 Healthcare & Pharmaceutical

      4. 6.2.4 Other End-user Industries

    3. 6.3 By Country

      1. 6.3.1 China

      2. 6.3.2 India

      3. 6.3.3 Japan

      4. 6.3.4 Indonesia

      5. 6.3.5 Thailand

      6. 6.3.6 Vietnam

      7. 6.3.7 Rest of Asia Pacific

  7. 7. COMPETITIVE LANDSCAPES

    1. 7.1 Company Profiles*

      1. 7.1.1 SCG Packaging PCL

      2. 7.1.2 International Paper Company

      3. 7.1.3 Sarnti Packaging Co. Ltd

      4. 7.1.4 Oji Holdings Corporation

      5. 7.1.5 Pura Group

      6. 7.1.6 Huhtamaki Group

      7. 7.1.7 Harta Packaging Industries (Selangor) Sdn Bhd

      8. 7.1.8 Tetra Pak

      9. 7.1.9 Hong Thai Packaging Company Limited

      10. 7.1.10 New Asia Industries Co. Ltd (Rengo Co. Ltd)

      11. 7.1.11 C&H Paperbox (Thailand) Co. Ltd

      12. 7.1.12 Continental Packaging (Thailand) Co. Ltd

      13. 7.1.13 Toppan Printing Co. Ltd

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The APAC Paper Packaging Market market is studied from 2019 - 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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