Market Trends of Asia Pacific Paper Packaging Industry
This section covers the major market trends shaping the APAC Paper Packaging Market according to our research experts:
Folding Carton is Expected to Grow Significantly
- 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 primary users of the solutions include the food and beverage sector, the e-commerce industry, and household goods. The product's ability to be produced in various sizes makes it feasible in almost all end-user verticals.
- The increased raw material prices in recent years have 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, 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. According to the India Folding Carton Association, the Indian consumer packaging market is expected to reach INR 1,500 billion (USD 18.21 billion) by 2022 due to the widespread adoption of organized retail.
- 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 this potential 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.
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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, the rising number of working women, and the 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 changed the way people do business in India. The Indian E-commerce market is expected to grow to USD 200 billion by 2026, up from USD 38.5 billion in 2017. The Indian online grocery market is expected to grow at a 57% CAGR from USD 1.9 billion in 2019 to USD 18.2 billion in 2024., according to IBEF. This expansion in both sectors will increase demand for paper-based packaging.
- With growing awareness, the requirement for eco-friendly and sustainable packaging is steadily rising. The country is focusing more on sustainable solutions, which is increasingly becoming a business imperative.
- Companies like Evirocor in India provide eco-friendly food packaging products to food outlets, restaurants, hotels, hospitals, factories, caterers, and all other users. The rise in the usage of eco-friendly packaging is expected to drive the market's growth.
- Due to its lightweight, biodegradable, and recyclable features, the ongoing recycling rate and improving logistical efficiency are the major trends of this market. 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.
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