Market Trends of Corrugated Board Packaging Industry
Processed Food Segment Expected to Occupy Significant Market Share
- The corrugated board is a popular packaging choice in the processed food industry. There are many different sizes and shapes of boxes. Customers are given a well-known container to enjoy their snacking in. The consumption of cereal, crackers, and other snack foods packaged in corrugated boards spans several generations.
- The corrugated board packaging keeps moisture away from products and can withstand long shipping times, companies are increasingly adopting this packaging to offer better customer outcomes, especially for secondary or tertiary packaging. Processed foods, such as bread, meat products, and other perishable items, need these packaging materials to be used just once, thus driving the demand.
- According to Jamestown Container in September 2023, corrugated food packaging is increasingly considered an eco-friendly alternative to conventional materials. Its versatility spans various food products, including fresh produce, baked goods, and frozen and canned items. The high customizability of corrugated packaging allows businesses to craft distinctive and visually appealing designs. This includes printing brand logos, product details, and other branding elements directly onto the boxes, enhancing brand recognition, and elevating product presentation.
- Corrugated board packaging is becoming a viable alternative to plastic packaging for many food products. Due to the rising accessibility of high-speed internet services and the rise of e-retail and e-commerce channels has been sparked, making it more straightforward for customers to order various kinds of processed food goods online. In addition, the generous savings and convenience it offers draw more consumers, adding to the segment's growth throughout the forecast period. These include cheese, ready-made soups, and canned fish, among others. Corrugated box packaging can be created more simply from recycled or composted materials.
- Consumers, such as millennials, are becoming more aware of the environmental impact of food packaging, production, and waste. According to a Stora Enso survey, 59% of millennials think packaging should be sustainable throughout the value chain. Demand for sustainable packaging products is a key driver in processed food packaging, positively impacting corrugated board packaging market growth.
- According to Suzanne, a Brazilian pulp and paper producer, and AFRY, a critical European engineering, design, and advisory services firm, the global consumption of paper and paperboard was expected to be 415 million tonnes in 2022. Consumption will rise further over the next decade, reaching 476 million tonnes by 2032. Packaging consumes the majority of worldwide paper and paperboard production.
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Asia Pacific is Expected to Hold a Significant Share
- Asia Pacific's corrugated board packaging market is set to grow, driven by an urbanizing population and heightened awareness of eco-friendly packaging. Key industry trends include increased containerboard capacity and technological advancements. However, stringent regulations and product quality concerns could hinder this growth.
- Accelerated growth in Asia's corrugated board packaging market is fueled by a surge in demand for sustainable packaging, a booming e-commerce sector, heightened demand for electronics and personal care products, and rising per capita income amid economic development.
- Rising per capita income and shifting demographics shape China's corrugated board packaging sector, necessitating new packaging materials and processes. E-commerce giants like Alibaba are poised to drive the corrugated packaging market. The International Trade Administration reported that China dominates the global e-commerce landscape, accounting for about 50% of total transactions. With projections of online retail transactions hitting USD 3.56 trillion by 2024, this boom is set to amplify the demand for sustainable packaging solutions, bolstering sales of corrugated board packaging.
- In countries like India, China, and Japan, industries such as food and beverage, IT electronics, and home appliances, which heavily rely on corrugated boxes, are experiencing a trend of consumption upgrading. This shift in leading end-user industries is anticipated to boost the market for mid to high-end corrugated cartons.
- Additionally, the growth of the corrugated board packaging market is spurred by the availability of raw materials in Asia Pacific nations, government regulations curbing single-use plastics, and a rising number of end-use industries across these countries.
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