Market Trends of North America Corrugated Packaging Industry
This section covers the major market trends shaping the North America Corrugated Packaging Market according to our research experts:
Paper Products Segment Expected to Witness Robust Growth
- Paper products' end-user industry uses corrugated packaging solutions in bulk material handling. The other industries use them in cases, such as in-office supplies of paper products. The use of paper for printing purposes in offices and billing in retail stores has increased adoption. It has created the demand for corrugated packaging solutions in the bulk material handling segment.
- Corrugated boxes are widely employed for case quantities of these products and are also used for shipments of books, which are typically heavy and require shipping containers with adequate strength and durability. The increasing importance of electronic media may negatively impact box growth, as it reduces the sales of hard copy versions of books, newspapers, and magazines and the printing and publishing papers.
- Coated solution demand in this segment is high and, therefore, creates difficulties in recycling such products. Such challenges are expected to drive the market vendors to offer recycling-friendly solutions and meet their sustainability goals. The drive for innovation is also likely to be caused by the increasing corporate customer awareness about environmental issues. The growth in the market is expected to remain higher, owing to the growing parent market.
- Corrugated board is becoming increasingly popular in packaging as sustainability becomes a more relevant concern across the value chain as it is simple to recycle, and the pulp and paper industry is already skilled at converting it into new generations of containerboard. Because of these advantages, corrugated protective forms have become more popular than polymer-based alternatives like expanded polystyrene (EPS) foams.
- While board light-weighting has long impacted the corrugated sector, right weighting and rightsizing are becoming more prevalent in response to customer demand for more efficient packaging and the transportation chain's adoption of dimensional weight (DIM) pricing. In some cases, switching to a heavier board grade has an overall positive impact since it eliminates the need for additional protective components.
- While the corrugated industry is still in its infancy, it has acquired a rising desire for digital print adoption, and technologies are currently being developed to meet the demands of the high-volume liner and post-print industries. The capacity to personalize either concerning brands, regions, stores, or individuals and the level of quality now possible with the latest technology all combine to provide a perfect storm of growth potential for converters and printers.
Understand The Key Trends Shaping This Market
Download Sample
Beverage Segment Expected to Hold Prominent Market Share
- The consumption of beverages has been experiencing a rising trend in the region. The variety of available beverage products has exploded, with more organic products entering the market. Consumers and brand owners are becoming more environmentally aware. Concerns about sustainability, technological innovation, and appealing economics are some of the reasons for the market's growth in liquid carton packaging during the previous two decades. Consumer perceptions and interactions with packaging are rapidly evolving. Traditional rigid packaging solutions are being replaced by new and more sustainable corrugated board packaging as vendors emphasize sustainability. Liquid packaging is predicted to become a feasible and cost-effective solution as the market need for customer-friendly products and enhanced product protection grows.
- Depending on the level of protection required, the corrugated board offered in this market segment comes in different sizes and thicknesses. The end users may get the solutions that have the proper strength to weight ratio to keep beverage products safe during the long-distance transport, handling, and storage.
- Corrugated board packaging for beverages serves different purposes. The packaging is sometimes used to protect heavy bottles from breaking, while sometimes, freshness is the main objective. In some cases, it may be used as a barrier as a form of protection against sunlight exposure. Corrugated boxes' cost-effective feature has driven their adoption. The price pressures are forcing the brand owners to be aware of wastages to streamline their expensive primary packaging. Secondary packaging offers a viable solution, with corrugated boxes being one of the most affordable recyclable, and sustainable packaging options around. Highly skilled labor or costly tools are not required to manufacture and fill corrugated boxes, thereby making it a much easier solution to adopt for end users.
- Corrugated boxes are highly customizable and may combat commoditization with secondary packaging. Many brands strategically use corrugated packaging solutions to achieve differentiation with different fluting, thickness, and design available to make the package fit for its purpose. Complemented with widely customizable printing options, end users may create packages that stand out on the shelf and help grow sales.
- Bottle carriers, bags in tubes, and bulk liquid containers are among some of the corrugated solutions that are offered in this market segment. The wine manufacturers, for instance, using bottle carriers, provide them with a distinct identity. Depending on their products' exposure, packaging production facilities need to have the appropriate food safety quality certifications.
- Moist products require specific packaging with the actual weight of a packaging box subjected to strict requirements. Secondary sources published study findings, which estimate that consumers make 75% of beverage purchase decisions when they stand in the aisle, facing many choices. These findings demonstrate that secondary packaging is of primary importance for driving beverage sales. Multipack solution in this segment is not just merely a necessary container for any product. Still, it is seen as an opportunity to set the brand apart on the shelf and catch the eye of that split-second shopper.
- According to the United Nations' FAO (Food and Agriculture Organization) and the US Department of Agriculture, global cow milk output in 2021 was around 544.07 million metric tons. The United States, which produced roughly 102.6 million metric tons of cow milk in 2020, was the second-biggest producer. This resulted in increased use of corrugated box packaging in the North American region to transport processed milk products and cartons from the source to various destinations.
Get Analysis on Important Geographic Markets
Download Sample
