|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The paper packaging market registered a CAGR of 3.87% during the forecast period of 2021-2026. The packaging industry witnessed some major issues due to the COVID-19 pandemic, including the effects of the nationwide lockdown, companies moving to source away from China, and reconsidering materials used in packaging. Although the supply side of paper packaging has witnessed a significant impact, a drastic increase in the end-user demand in some applications has significantly expanded the scope of paper packaging.
- Paper packaging is a versatile and cost-efficient method to protect, preserve, and transport a wide range of products. In addition, it can be customized to meet the customers' or product-specific needs. The attributes like lightweight, biodegradability, and recyclability are the advantages of paper packaging that make it an essential component for packaging.
- The increasing consumer consciousness regarding sustainable packaging and the strict regulations imposed by various environmental protection agencies (regarding the use of environment-friendly packaging products) are the factors driving the market for paper packaging. The rapid growth of online shopping and delivery-on-demand services has fueled the usage of cardboard and paper-based bags.
- Environment-friendly packaging solutions have become a norm rather than an exception for packaging companies worldwide. The profound change in corporate standards, governmental policies, trade regulations, and consumer tastes have led to a paradigm shift toward eco-friendly solutions in the packaging market. France has banned the use of plastic bags since July 2016. According to the French Government, about 5 billion plastic bags are distributed, and 12 billion are used to pack fruit and vegetables.
- The major challenge faced by the paper packaging market is the inability of paper to package very heavy materials, resulting in the industry being overpowered by the polymers and metal packaging industries. Furthermore, deforestation to acquire raw materials and release dioxins during paper production cause environmental concerns. These factors, in turn, are hindering the growth of the paper packaging market.
- The packaging industry witnessed some major issues due to the COVID-19 pandemic, including the effects of the nationwide lockdown, companies moving to source away from China, and reconsidering materials used in packaging. Although the supply side of paper packaging has witnessed a significant impact, a drastic increase in the end-user demand in some applications has significantly expanded the scope of paper packaging.
- Growth in food packaging and ever-increasing demand for corrugated packages in growing e-commerce shipments are some of the studied market's primary drivers that resulted from the COVID-19 outbreak. In e-commerce portals, demand has sharply increased for grocery packaging, healthcare products, and e-commerce shipments. At the same time, demand for industrial, luxury, and some B2B-transport packaging have declined.
Scope of the Report
Paper packaging materials can be easily reused and recycled, compared to other materials, such as metals and plastics. This is the reason for considering paper packaging as the most eco-friendly and economic forms of packaging. The growing demand for flexible paper packaging, due to the rise in consumer awareness regarding the harmful effects of plastic on the environment, is helping in the growth of the paper packaging industry to grow.
The Paper Packaging Market is segmented by Grade (Carton board, Containerboard), Product Type (Folding Cartons, Corrugated Boxes), End User Industry (Food, Beverage, Healthcare, Personal Care, Household Care, Electrical Products), and Geography.
|End User Industry|
|Other End User Industries|
Key Market Trends
Food and Beverage Expected to Hold Significant Market Share
- Paper packaging is the main asset of the food industry. It is environment-friendly and increases convenience for consumers. Due to this, there is significant competition in the food and beverage market among the players who provide quality products to consumers. Various packaging materials in the market are available to fulfill diverse packaging needs, like corrugated boxes and cardboard boxes.
- There is fierce competition among the quality-product providers in the food market. Due to these reasons, various manufacturers in the food market are continuously making and delivering high-quality products. There is an increase in the number of hypermarkets and supermarkets. This factor is expected to be one of the key factors driving the demand for paper and paperboard containers. This, in turn, is expected to drive the future growth of the packaging market.
- Many retail stores use packaging materials to preserve food and retain its nutritional value of foods. Due to the increase in the number of consumers purchasing grocery items (like includes frozen and chilled foods), the market is expected to witness growth in the future.
- Rising consumer demand for packaged products due to the shift in eating habits and evolving lifestyles may impact the market. A rise in per capita disposable income and a growing population shall aid in the product demand owing to high barrier properties, shelf life, and consumer safety. There is an increasing demand for natural and high‐quality foods that are minimally processed or unprocessed, do not contain preservatives, and offer a longer shelf-life.
- Packaged food is used for various purposes, such as barrier and contamination protection, convenience, and portion control. Sustainable packaging addresses food waste and loss reduction by safety issues by preventing food-borne diseases and chemical contamination and preserving food quality.
To understand key trends, Download Sample Report
North America Expected To Have Significant Market Share
- North America continues to be one of the leading markets for paperboard packaging products, with a host of players operating in the country. The United States dominates the folding carton packaging market in the North American region, where food is expected to continue as the primary end-user of folding cartons. For instance, according to the Association for Packaging and Processing Technologies, the US food industry is expected to increase at a steady rate of 2.9% CAGR through 2022.
- In 2018, the Trump administration levied a tariff of 10% on folding cartons from China, which was scheduled to increase to 25% on January 2019. However, in December 2018, the United States and China agreed on the temporary suspension of any increase in tariffs. If tariffs continue to rise as planned, it is expected to increase domestic production and a more rapid transition to flexible packaging formats. This is expected to impact the market's growth over the forecast period positively.
- Furthermore, market participants are increasing their investments in advanced and customized packaging solutions through increased M&A activity or R&D strategies. Moreover, the market is seeing new players enter the scene. EdelmannUSA has recently joined the PPC. This reflects the company's increased focus on expanding in this market based in Europe.
- Growing consumer awareness of sustainable materials, raising awareness of global ecological issues, its cost-effectiveness and environmentally friendly nature, the recyclable capacity of paper, and others are key factors driving the market growth. Increased deforestation and replacing plastic packaging for food applications are major restraints for the paper packaging market.
- The rise in some hypermarkets & supermarkets and the rapidly growing retail sector lead to rising demand for paper packaging. Paper packaging not only helps retail stores to pack food but also protects and maintains nutritional values. Nowadays government is also implementing stringent rules and regulations to provide safe packaged products by using sustainable materials such as biodegradable products.
- Technological advancements in food applications, such as laminated and coated papers, will further prevent leakages and are estimated to increase the market growth. By Geography, the United States is estimated to have the largest market share during the forecast period owing to individuals' changing lifestyles and rising demand for flexible packaging in that region.
To understand geography trends, Download Sample Report
The paper packaging market is fragmented. It is a highly competitive market with a number of players in the market. There is no dominant player present in the market. The companies keep on innovating and entering into strategic partnerships in order to retain their market share.
- August 2022 - Testronix Launches Next Generation Packaging Testing Instruments.Testronix is the leading testing instruments manufacturer in Asia and has recently launched high-end next-generation packaging testing instruments. Testronix is known for its quality and technology with high-end features in all its testing instruments. With a lot of research and development team, testronix and its highly skilled team of engineers have been able to develop the latest technology instruments to serve the paper and packaging industry.
- December 2021 - Iceland is planning to replace some of its plastic packaging with Mondi's functional barrier paper, which is recyclable in existing waste streams and has the same shelf life as its previous packaging. Iceland has set out ambitious sustainability targets and has already made great strides in reducing plastic packaging.
- August 2022 - Nestle Ice Cream Uses Paper Pack, Online Wine Merchant Launches Paper Bottle; Paper Manufacturer Creates Translucent Barrier Paper. Nestlé Hong Kong has announced that it's Kit Kat stick ice cream packaging is moving from plastic to paper, which is a first for the Innovation Zone. The packaging comprises 100% pure pulp, certified by the Forest Stewardship Council (FSC). Further, British online wine merchant Laithwaites has announced that it has launched its first wine offering in a paper-based bottle. The bottle is made of a 94% recycled board with a recyclable plastic pouch.
- January 2022 -Amcor introduces a new paper-based packaging platform. AmFiberTM is a unique platform of paper-based packaging products launched by a global leader in developing and producing reliable packaging solutions. AmFiber innovations aim to redefine the capabilities of traditional paper packaging by providing a broader range of features and functional benefits to meet consumers' changing needs.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Development of Barrier-coated Paperboard Products
4.2.2 Growing Consumer Awareness on Paper Packaging
4.3 Market Restraints
4.3.1 Effects of Deforestation on Paper Packaging
4.3.2 Increasing Operational Costs
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Industry Value Chain Analysis
4.6 Impact of COVID-19 on PPAER Packaging Industry
5. GLOBAL RECOVERED PAPER PRODUCTION STATISTICS
5.1 Recovered Paper, Production Quantity
5.2 Recovered Paper, Import Value, and Import Quantity
5.3 Recovered Paper, Export Value, and Export Quantity
5.4 Recovered Paper Production, by Leading Countries
6. CARTONBOARD EXIM SCENARIO
6.1 Cartonboard Exports By Value & Volume (USD Million, Million Tonnes)
6.2 Cartonboard Import By Value & Volume (USD Million, Million Tonnes)
7. MARKET SEGMENTATION
7.1.1 Carton board
188.8.131.52 Solid bleached sulphate (SBS)
184.108.40.206 Solid unbleached sulphate (SUS)
220.127.116.11 Folding boxboard (FBB)
18.104.22.168 Coated Recycled Board (CRB)
22.214.171.124 Uncoated recycled board (URB)
126.96.36.199 White-top Kraftliner
188.8.131.52 Other Kraftliners
184.108.40.206 White top Testliner
220.127.116.11 Other Testliners
18.104.22.168 Semi Chemical Fluting
22.214.171.124 Recycled Fluting
7.1.3 Other Grades
7.2.1 Folding Cartons
7.2.2 Corrugated Boxes
7.2.3 Other Types
7.3 End User Industry
7.3.4 Personal Care
7.3.5 Household Care
7.3.6 Electrical Products
7.3.7 Other End User Industries
7.4.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
7.4.3 Asia Pacific
220.127.116.11 Rest of Asia Pacific
7.4.4 Latin America
18.104.22.168 Rest of Latin America
7.4.5 Middle East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 Rest of Middle East and Africa
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 International Paper Company
8.1.2 Mondi Group
8.1.3 Smurfit Kappa Group
8.1.4 DS Smith PLC
8.1.5 WestRock Company
8.1.6 Packaging Corporation of America
8.1.7 Cascades Inc.
8.1.8 Holdings Corporation
8.1.9 Nippon Paper Industries Ltd.
8.1.10 Rengo Co. Ltd.
8.1.11 Graphic Packaging International
8.1.12 Metsä Board Oyj
8.1.13 Sonoco Products Company
8.1.14 Visy Industries
8.1.15 Seaboard Folding Box Company Inc.
9. FUTURE OUTLOOK OF THE MARKET
You can also purchase parts of this report. Do you want to check out a section wise price list?
Frequently Asked Questions
What is the study period of this market?
The Paper Packaging Market market is studied from 2020 - 2027.
What is the growth rate of Paper Packaging Market?
The Paper Packaging Market is growing at a CAGR of 3.87% over the next 5 years.
Which region has highest growth rate in Paper Packaging Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Paper Packaging Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Paper Packaging Market?
Westrock Inc., International Paper Company, Mondi Group, Smurfit Kappa Group, DS Smith PLC are the major companies operating in Paper Packaging Market.