Market Size of Paper Packaging Industry
|2019 - 2029
|Market Size (2024)
|USD 398.65 Billion
|Market Size (2029)
|USD 501.08 Billion
|CAGR (2024 - 2029)
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Paper Packaging Market Analysis
The Paper 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).
- 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.
- Consumers worldwide are becoming more conscious of the environmental hazards of packaging and are moving their purchasing habits to more environmentally friendly options. Consumers, the government, and the media pressure manufacturers to make their products, packaging, and processes more environmentally friendly. People are willing to pay more for environmentally friendly packaging. The paperboard packaging industry is expected to grow due to these trends.
- The expansion of e-commerce sales and the rising demand for folded carton packaging are driving the market. However, the availability of high-performance substitutes will likely restrain the market's growth. Paperboard packaging is one of the most popular eco-friendly packaging options. Compared to 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.
- The major challenge faced by the paper packaging market is the need for 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 witnessed a significant impact, a drastic increase in the end-user demand in some applications significantly expanded the scope of paper packaging.
- According to Packaging Gateway, 5.6 million people left Ukraine since the conflict started on May 3, 2022. Over 300 significant Western corporations left the country due to the conflict, and numerous production and packaging facilities in Russia and Ukraine were shut down. Some businesses initially hesitated to halt, reduce, or shut down operations as they were still determining when it would finish. Early in April, two more companies operating in Russia for over 30 years, Finnish food packaging provider Huhtamäkiand Irish paper packaging company Smurfit Kappa, joined the expanding list of enterprises leaving the country.