Global Paper and Paperboard Packaging Market Size

Paper and Paperboard Packaging Market Analysis

The Global Paper and Paperboard Packaging Market size is estimated at USD 398.65 billion in 2024, and is expected to reach USD 501.08 billion by 2029, growing at a CAGR of 4.68% during the forecast period (2024-2029).

Paperboard, like folding cartons, is the most common material used to make containers. The paperboard must undergo processes such as pulping, optional bleaching, refining, sheet forming, drying, calendaring, and winding to manufacture paper. Paper packaging materials can be easily reused and recycled compared to other materials, such as metals and plastics.

• Paperboard packaging is the preferred option in the packaged food market. It can be found in various foods, including soups, seasonings, and dairy products. Paperboard is usually covered with polymers or plastics to keep it clean and unspoiled. Compared to glass and metal, it helps reduce the final product's total weight while maintaining the freshness of the food product. Due to its odor and taste neutrality, paperboard is the perfect packing material.
• The expansion of e-commerce sales and the rising demand for folded carton packaging are two major factors driving the market. However, the availability of high-performance substitutes is likely to restrain the growth of the market. Paperboard packaging is one of the most popular eco-friendly packaging options. Compared to other bulkier packaging solutions, this packaging format can be created in various sizes with a small footprint, making it suitable for use in almost all end-user sectors.
• Consumers worldwide are becoming more conscious of the environmental hazards of packaging and are moving their purchasing habits to more environment-friendly options. Consumers, the government, and the media put pressure on manufacturers to make their products, packaging, and processes more environment friendly. People are willing to pay more for environment-friendly packaging. Thus, the paperboard packaging industry is expected to grow due to these trends.
• However, despite an increase in demand for paper packaging, irresponsible deforestation will severely impact the paperboard packaging industry by causing a loss of raw materials soon. According to the Union of Concerned Scientists, "wood products," such as paper, account for around 10% of total deforestation. Other major contributors include cattle, soybeans, and palm oil.
• The COVID-19 pandemic wreaked havoc on the packaging sector, with the impacts of nationwide lockdowns, corporations shifting their sourcing away from China, and materials used in packaging being reconsidered. Although there has been a substantial impact on the supply side of paper packaging, large growth in end-user demand in specific applications has significantly expanded the scope of paper packaging.