United States Corrugated Packaging Market Size

US Corrugated Packaging Market Analysis

The US corrugated packaging market is expected to register a CAGR of 3.4% over the forecast period. Compared to plastic packaging, corrugated boards are highly recyclable as they comprise pulp and paper. The fluting medium of the corrugated board acts as a shock absorber, protecting the packaged goods from external impact. The varying layers and thicknesses of the flutes offer benefits, including cushioning to protect packed items, and these containers can withstand high pressure.

• In recent years, e-commerce has become a prominent player in corrugated packaging. The major e-commerce player, such as Amazon, rely on plastic packaging for individual goods while employing corrugated board boxes for the bulk of the packaging. The market is anticipated to grow due to several e-commerce companies focusing on substituting corrugated boxes and paper bags instead of single-use plastics.
• Also, due to the busy lifestyles of people, there is an increase in the demand for convenience foods. Corrugated board packaging protects items from moisture and withstands long transportation durations. Thus, companies use it more frequently to provide better outcomes to clients, particularly as a form of secondary or tertiary packaging. The demand is fueled by processed foods, such as bread, meat products, and other perishable goods, which require these packaging materials for single uses.
• Additionally, various partnerships, collaboration, and expansion activities by players in the country to enhance their presence and position in the market are anticipated to fuel the growth of the market. For instance, in December 2021, International Paper announced that it would build a corrugated packaging plant in Atglen, Pennsylvania, expanding its regional footprint. The facility will allow International Paper to grow its industrial packaging segment 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.
• However, Strict forest laws against deforestation are restraining the market's growth due to the low availability of cellulose fibers. Also, according to Global Forest Watch (GFW), Tree cover loss has increased in the region from 1,966.71 thousand hectares in 2020 to 2,044 thousand hectares in 2021.
• The COVID-19 pandemic outbreak has disrupted the supply of raw materials in manufacturing corrugated boxes across various countries, affecting prices. A rise in the paper price due to short supply and restriction in imports is increasing the cost of corrugated boxes and packaging materials, raising concerns among industrialists. Further, the Russia-Ukraine war has an impact on the overall packaging ecosystem.