North America Corrugated Packaging Market Size

North America Corrugated Packaging Market Analysis

The North America Corrugated Packaging Market size is estimated at USD 41.62 billion in 2024, and is expected to reach USD 47.5 billion by 2029, growing at a CAGR of 2.68% during the forecast period (2024-2029).

The massive market for automotive spares creates an enormous opportunity for the corrugated board packaging vendors in this segment.

• Corrugated board packaging is a versatile and cost-efficient method to protect, preserve, and transport a wide range of products. The corrugated board's attributes, such as light weightiness, biodegradability, and recyclability, have made it an integral component in the packaging industry. According to the Shopify report, by 2021, North America was contributing USD 552.6 billion, which is next to Asia (USD 831.7 billion in total e-commerce sales).
• The e-commerce industry emerged as a significant player in recent years. Prominent e-commerce companies, such as Amazon, have been using corrugated board boxes for the principal packaging, and they rely on plastic packaging for individual items. Various e-commerce companies have been focusing on replacing single-use plastics with corrugated boxes and paper bags, which is expected to drive the growth of the market. Corrugated boxes used for e-commerce are more likely to be printed with high-quality graphics and customized to fit packaged contents to save on costs and increase the aesthetic impact during unboxing. Furthermore, the corrugated board packaging manufacturers directly collaborate with e-commerce vendors to provide more agile and customizable solutions. Amazon has the greatest number of manufacturers in their Amazon packaging support and supplier network, and in recent years, Canada's largest privately-owned integrated corrugated packaging company, Atlantic Packaging Products, joined this network.
• There have been various expansion, partnership, and collaboration activities by vendors in the region, to enhance their presence and position in the market. For instance, in December 2021, International Paper announced that it would build a corrugated packaging plant in Atglen, Pennsylvania, expanding its footprint in the region. The facility will allow International Paper to expand its Industrial Packaging footprint in the northeastern United States. The construction was set to begin in the first quarter of 2022, and the company expects the plant to be completely operational in the first quarter of 2023.
• The rising consumer consciousness regarding sustainable packaging is encouraging the use of environment-friendly packaging products. Various companies have been focusing on providing recycled cardboard and paper as a part of their sustainability goals. In March 2020, DS Smith, a British sustainable packaging company, opened a recycling facility in Reading, its first in the United States and part of its expanded North America operations. The company's 43,000-square-foot facility will recycle material from DS Smith's Reading corrugated packaging plant and from other companies in the region to recover paper from packaging facilities, print shops, local distribution centers, and retailers. The company's recycling process allows for corrugated packaging to be made, used, collected, and recycled into corrugated boxes within 14 days. The process reduces fiber in the boxes by up to 30%, as per the company. In September 2021, Saica Group announced that it was investing USD 800 million for expansion in the United States over the next five years, with plans to add other manufacturing plants and a paper mill in the Midwest through acquisitions or new plant constructions. Overall, the company plans to spend USD 2.8 billion on expansions globally through 2030.
• However, the COVID-19 pandemic outbreak disrupted the supply of the raw materials involved in manufacturing corrugated boxes across various countries, which has affected the prices involved. A rise in the paper price due to short supply and restriction in imports is pushing up the cost of corrugated boxes and packaging materials, raising worries among industrialists.