Canada Paper Packaging Market Size

Canada Paper Packaging Market Analysis

The Canada Paper Packaging Market size is estimated at USD 17.91 billion in 2024, and is expected to reach USD 24.5 billion by 2029, growing at a CAGR of 6.47% during the forecast period (2024-2029).

The expansion of paper packaging in Canada is fueled by sustainability, innovative technology, and increasing economies. Consumers choose readily recyclable carton packaging over tin or plastic packaging due to a growing focus on sustainability. Paper packaging will likely become a feasible and cost-effective alternative across the country as the market need for customer-friendly packages and enhanced product protection grows.

• The acceptance of the demand for biodegradable packaging as an alternative to plastic is expected to increase the market growth in Canada. Every year, Canadians throw away 3 million tons of plastic waste, only 9% of which is recycled. The vast majority of plastic ends up in landfills, and about 29,000 tons find their way into the natural environment. With the increasing demand for bio-degradable solutions, paper packaging is expected to emerge as a significant competitor to the existing plastic solution segment currently dominating the market studied.
• The growing e-commerce market in the country is creating a particular demand for corrugated and paper products, especially from transportation and logistics players. Paper-based packaging has been an adaptable and cost-efficient method to transport, protect, and preserve many products.
• Moreover, food and beverage are one of the major markets in Canada, and its use of paper-based packaging is naturally increasing. For instance, in Canada, milk, juices, energy drinks, etc., have become increasingly popular among millennials and the next generation due to increasing health consciousness and growing awareness of risks associated with excessive consumption of sweets, carbonated soda, and artificial sugar drinks. Consumers in Canada choose to purchase milk cartons instead of Glass bottles or plastic for eco-friendly concerns and the cost-effectiveness of cartons over glass or plastic bottles.
• As the COVID-19 pandemic swept and its humanitarian impact grew, companies that help meet necessities, such as providing food and other vital commodities to customers securely, were increasingly impacted in Canada. During the COVID-19 pandemic, paper manufacturers suffered a significant loss due to the shortage of raw materials and disrupted supply chains. The coronavirus pandemic has already caused substantial declines for specific packaging solutions while accelerating growth for others, such as e-commerce shipping packaging, swiftly becoming a lifeline in this new era.