South Korea Paper Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South Korea Paper Packaging Market is Segmented by Product (Corrugated Box, Folding Carton, Kraft Paper), Industry (Food, Beverage, Home and Personal Care, Healthcare).

Market Snapshot

South Korea Paper Packaging Market Overview
Study Period: 2019-2026
Base Year: 2021
CAGR: 3.25 %

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Market Overview

The South Korea Paper Packaging Market is expected to grow at a CAGR of 3.25% over the forecast period 2021-2026.

  • According to a survey by Korea Rural Economic Institute (KREI) 2020, roughly 33.6% of South Korean households bought meal delivery or takeaway every two weeks as a result of the COVID-19 Pandemic. A similar proportion of households placed weekly food orders. Only 0.1% of those polled said they purchased takeout or had food delivered every day. Furthermore, there is a strong emphasis on hygiene and product protection. There is a growing demand for paper packaging items in South Korea since they can be used just once, are sustainable, and can be recycled.
  • In terms of pack materials, food and non-alcoholic drinks were the most popular industries. People are becoming more aware of the environmental impact of packaging materials, and their hectic lifestyles demand convenience, so they choose convenient and sustainable packaging items. As a result, demand for paper packaging materials is expected to rise.
  • Taking into account of excessive use of single-use plastics, the government of South Korea in 2019 itself imposed a ban on all types of single-use plastics. Therefore, banning all sorts of packaging and wrapping materials, the food and beverage industry that relies heavily on plastic packaging is since then looking for new methods for packaging products that can keep the wet food items such as fish and meat safe but can also withstand the transportation stress. Moreover, many such products are made out of paper and cardboard available in the market that the Food and restaurant industry can use. With the ban on plastic packaging material, paper packaging can be a suitable alternative to fill the space.
  • The rising retail and e-commerce industries and the growing need for environmentally friendly packaging materials are currently driving the market's expansion. Domestic internet purchases in South Korea reached USD 136.5 billion in 2020, up from USD 116.0 billion in 2019, according to the International Trade Administration of the United States Department of Commerce. The need for secondary and tertiary paper packaging products has increased dramatically as the number of online shopping platforms has grown rapidly.
  • Paper, pulp, resins, paperboard, and adhesives are some of the most popular raw materials utilized by paper packaging industries. The prices of these basic materials have risen dramatically in recent years in the flexible packaging business. COVID-19 has led to unforeseen supply chain obstructions and order backlogs, resulting in a spike in paper prices. The competitiveness of enterprises in the flexible packaging industry has been harmed as a result of this predicament.
  • Consumer packaged goods firms are always looking for new methods to meet consumer wants and improve their offers. They frequently rely on paper packaging firms to develop new products and draw more customers to the store shelf. However, participants in the paper packaging business frequently struggle to keep up with these rapidly shifting expectations. Furthermore, to satisfy these needs, paper packaging companies would need to upgrade their equipment on a regular basis, which will necessitate significant capital investments.

Scope of the report

Paper is one of the most used materials for packaging products. The demand for paper packaging will continue to witness growth over the forecast period. With the focus now shifting towards eco-friendly and sustainability, paper packaging is expected to gain traction over plastic packaging, which poses a significant threat to the environment. Higher recycling demand will push the use of paper as packaging material further, with consumers and businesses looking for solutions that help in cost reduction as well as helps in keeping the environment safe while keeping government regulations intact.

South Korea Paper Packaging Market is Segmented by Product (Corrugated Box, Folding Carton, Kraft Paper), Industry (Food, Beverage, Home and Personal Care, Healthcare).

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Key Market Trends

e-commerce to drive the market

  • In Korea, e-commerce is a significant part of the entire consumer market, and it is continually rising. Korea is a technologically advanced country, with about 99.5 % of Korean households having internet connections through a computer, mobile phone, or another device. Domestic internet sales in 2020 are expected to reach USD 136.5 billion, up from USD 116.0 billion in 2019. According to the United States Department of Commerce's International Trade Administration, high smartphone penetration is the key driver of industry growth.
  • According to Smithers, a multinational provider of testing, consulting, information, and compliance services based in the United States, the global e-commerce market was valued at over USD 3.9 trillion in 2020, with the Asia Pacific accounting for 52 percent of the market share, with India, China, Japan, and South Korea being the largest markets.
  • According to Statistics Korea, the value of e-commerce sales in South Korea in 2020 was more than KRW 159 trillion. Over the last few years, the popularity of online purchasing through various e-commerce channels has steadily increased. This was notably true in the recent year as a result of COVID-19's effects, as the growth of the South Korean e-commerce market unexpectedly increased despite a falling trend since 2017.
  • Domestic e-commerce sales have risen steadily in recent years, becoming Korea's largest retail channel. Naver Shopping, Coupang, Auction, G-market, and 11th are some of the most popular e-commerce sites in Korea. In 2020, Naver Shopping was named the best e-commerce site.
  • As of September 2020, online shopping is the most common kind of e-commerce, with about 70% of South Koreans using it. Although the monthly frequency of online purchasing varied among those surveyed, more than half of all internet shoppers did it three or more times per month. Shopping on the internet is possible on a variety of platforms, including tablets, laptops, and smartphones. As the number of smartphone users in South Korea grows, so does the popularity of mobile shopping.
South Korea Paper Packaging Market

Food and Beverage Industry to drive the market

  • Consumer electronics and consumer goods, such as food and beverages and apparel and household items, are among the most popular online shopping categories. Online grocery shopping has become more popular as more transactions are switched to online interactions rather than purchasing from physical stores, resulting in a large number of consumers using mobile grocery shopping apps.
  • Due to the impact of the coronavirus outbreak, South Korea's internet food business grew at a breakneck pace in 2020. According to Statistics Korea, the value of online food transactions in Asia's fourth-largest economy reached USD 39.2 billion last year, jumping 62.4 percent from the previous year.
  • South Korea's F&B business is defined by hypermarket dominance and expanding sales through e-commerce platforms, according to the British Chamber of Commerce in Korea. The F&B market in South Korea is expected to reach GBP 76.1 billion by 2024, with a CAGR of 3.9 percent over that time (2019-2024).
  • Organic agriculture and food products have a market value of roughly KRW 1.9 trillion in South Korea in 2020. According to the Korea Rural Economic Institute (KREI), it will reach 2.14 trillion South Korean won in 2025.
South Korea Paper Packaging Market

Competitive Landscape

The competitiveness of the South Korean paper Packaging market is high with the presence of major players like Amcor, Mondi Group, Smurfit Kappa, etc.

  • April 2021 - Amcor, a global leader in consumer packaging, has announced a strategic investment in ePac Flexible Packaging, a pioneer in flexible packaging's high-quality, short-run digital printing market. The investment will be in the range of USD 10 to USD 15 million and will include a minority stake in ePac Holdings LLC as well as finance for one or more ePac locations.
  • May 2020 - Metsä Board added three new grades into its Express Board offering. The new eco-barrier paperboard MetsäBoard Prime FBB EB, uncoated folding boxboard MetsäBoard Natural FBB and MetsäBoard Pro FBB OBAfree are now available with enhanced availability and quick lead times via the Express Board service.

Recent Developments

  • September 2021 - Amcor, a researcher, and manufacturer of responsible packaging solutions, have announced the debut of a proprietary healthcare lidding technology used for combination products containing two or more regulated components (device, drug, or biologic). Amcor's most recent invention is based on patented inert film development and laminate design. It offers a lidding solution that can survive heat sterilization, which is the process of conserving and sterilizing products while also inhibiting drug uptake into the package. The packaging solution can integrate healthcare products, such as gadgets, with an API, which is the active ingredient in a drug.
  • December 2020 - Traditionally, the corrugated board has been used to protect berries and fruit throughout the production process. The increased value it can provide to sales awareness and branding, on the other hand, is considerably greater. Together with their partner network, Metsä Board, part of Metsä Group, and DS Smith have established a modern and high-quality berry box. Process color and Full HD technologies were used to print the packaging, lowering ink consumption and extraordinarily high image quality and brilliant colors.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Drivers

    5. 4.5 Market Challenges

  5. 5. IMPACT OF COVID-19 ON SOUTH KOREA PACKAGING INDUSTRY

  6. 6. SOUTH KOREA PAPER PACKAGING MARKET SEGMENTATION

    1. 6.1 BY TYPE

      1. 6.1.1 Folding Cartons

      2. 6.1.2 Corrugated Boxes

      3. 6.1.3 Other Types (Flexible Paper Packaging, Liquid Cartons, etc.)

    2. 6.2 BY END-USER INDUSTRY

      1. 6.2.1 Food and Beverage

      2. 6.2.2 Healthcare

      3. 6.2.3 Personal Care and Household Care

      4. 6.2.4 Industrial

      5. 6.2.5 Other End-user Industries

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Tetra Laval

      2. 7.1.2 International Paper Company

      3. 7.1.3 Rengo

      4. 7.1.4 WestPack

      5. 7.1.5 Graphic Packaging International Corporation

      6. 7.1.6 Sappi Limited

      7. 7.1.7 DS Smith

      8. 7.1.8 Amcor

      9. 7.1.9 Mondi Group

      10. 7.1.10 Oji Paper

      11. 7.1.11 Smurfit Kappa

      12. 7.1.12 Metsa Group

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OPPORTUNITIES

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Frequently Asked Questions

The South Korea Paper Packaging Market market is studied from 2019 - 2026.

The South Korea Paper Packaging Market is growing at a CAGR of 3.25% over the next 5 years.

Amcor Plc, Mondi Plc, Smurfit Kappa Group Plc, International Paper Company, Metsa Group are the major companies operating in South Korea Paper Packaging Market.

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