Market Trends of Folding Carton Packaging Industry
Food and Beverage Segment to Hold a Major Market Share
- The changing lifestyles of the public and the rising demand for ready-to-eat, frozen, and packaged items have fueled the rise of the food and beverage business, which, in turn, is driving the folding cartons market.
- According to the US Census Bureau, the industry revenue from frozen food manufacturing in the United States was USD 33.86 billion in 2021 and is expected to cross USD 36.59 billion by 2024. Such developments have improved the strategic activities in the frozen food market.
- In May 2023, Stora Enso, a Finnish company, launched a new easy-to-recycle packaging board called Tambrite Aqua+. It is appropriate for packing chilled and frozen food. The use of polymers derived from fossil fuels has been minimized with the help of this folding box board solution. It is naturally recyclable and will help to advance the circular economy more generally. Tambrite Aqua+ is created utilizing 'dispersion coating' technology, making it a water-based solution readily integrated with the paperboard surface and offering the necessary protection. Also, devoid of fluorochemicals, the novel solution can endure exterior wetness or grease while protecting the goods from contamination.
- The pandemic has driven the demand for frozen foods through online delivery mediums. In Countries like India, COVID-19 expanded the consumption of frozen foods, and these food habits were expected to remain the same despite the drop in cases. According to the Economic Times, the size of online food delivery across the country is expected to increase from USD 2.9 billion in 2020 to USD 12.8 billion by 2025. The country is also witnessing an increased demand for folding cartons for packaging frozen foods due to the ban on plastic counterparts.
- Further, in the UK, the plastic tax, which came in April 2022 (taxing any plastic packaging not comprising at least 30% recycled plastic), is also likely to increase demand for paper-based packaging as frozen food brands and manufacturers switch.
- Owing to such factors, the demand consumption of folding cartons is expected to increase not only in the food and beverage segment but also in other segments. According to, Suzano, carton board consumption reached 54 million tons in 2022 and is forecast to increase by 12 million tons in 2032. The demand for carton boards is expected to increase further over the next decade. Cartonboard is a type of paperboard used for manufacturing folding cartons.
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Asia-Pacific to Hold the Largest Market Share
- The folding carton packaging industry is experiencing healthy growth, fueled by the increase in the region's consumption of beverages and packaged food. The region focused on sustainable and reusable packaging to reduce global warming and abide by the environmental protection act proposed by the Government.
- Furthermore, according to the company Oizuru, the collection rate of boxes in Japan is as high as 95%, with a recycling rate of 90% at corrugated cardboard facilities, driving manufacturers to reduce costs and increase processing capacity. Additionally, driving demand in the region is the enhanced flexibility of carton boxes, which may be utilized as exterior materials and processed into the interiors of complicated constructions.
- The emergence of direct-to-consumer (D2C) brands in fashion, cosmetics, consumer electronics, and food has also aided this increase in demand. Using a D2C approach and engaging directly with the expanding number of digital shoppers, these new-age digital-first brands are now challenging established brands. Such instances are anticipated to drive market growth.
- Also, there have been various developments, such as product innovations and expansion activities by vendors in the market. For instance, in March 2022, Heidelberg expanded its portfolio for in-mold label and folding carton production by entering into a distribution agreement with Japanese company AN Corporation for the Kawahara TXS-1100 and Kawahara BMS-1100 automated post-press systems.
- In March 2022, Tokyo-based Think of Things shop and cafe offered high-functional cardboard boxes dubbed CARTON 2.0 that are waterproof enough to contain liquid inside. The project is a collaboration with IZAK, a company that produces valuable cardboard boxes. Environmentally sustainable cooling and waterproofing materials are employed in such boxes, which are especially useful for transporting fishery and refrigerated items. However, this is not a permanently waterproof product due to the possibility of pinholes on the surface becoming permeable over time.
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