Luton, Bedfordshire, United Kingdom, Dec. 07, 2022 (GLOBE NEWSWIRE) -- Exactitude Consultancy, the market research and consulting wing of Ameliorate Digital Consultancy Private Limited has completed and published the final copy of the detailed research report on the corrugated packaging market.
The global corrugated packaging market is expected to grow at 4% CAGR from 2022 to 2029. It is expected to reach above USD 88.25 billion by 2029 from USD 62 billion in 2020.
Corrugated Packaging Market Definition
Corrugated is a high performance packaging material made to pack, protect, and market products. The liner and the medium are the two primary parts of corrugated fiberboard, sometimes known as combined board. Both are constructed from containerboard, a distinct and thick type of paper. Linerboard is the flat surface that clings to the medium and is normally found on the board's exterior surfaces, though it may also be found inside some constructions. The paper that is cut into arches or flutes and sandwiched between the linerboard facings is known as the medium.
Growth Factors
- Corrugated packaging meet CO2 targets
- Corrugated packaging is a recyclable, designed for circularity
- It’s a climate friendly alternative to fossil plastic
- It’s made with 100% sustainable sources - Wood fibers
- It’s packed hygienically for uncompromised food safety
Live Get a Free Sample Report of Corrugated Packaging Market->
https://exactitudeconsultancy.com/reports/3152/corrugated-packaging-market/#request-a-sample
Trends
Five key trends changing the future of the corrugated packaging market
- E commerce: In 2023, it is anticipated that global internet sales would exceed $5.5 trillion. Given that 80% of the demand for packaging in e-commerce is for corrugated products, this will have a significant effect on demand for packaging.
- Fit to product: Fit-to-product (FtP) or box-on-demand delivery systems have emerged as a result of e-commerce, mostly in response to the demands of devoted e-commerce vendors like Amazon and Staples. From its BoD systems and corrugated fanfold, along with its equity position in Panotec and its sole right to distribute Panotec's equipment in the US and Canada, the Michigan-based company obtains 70% of its sales.
- Sustainability:As sustainability becomes a more critical concern throughout the value chain, corrugated board is proving to be popular in packaging since it is simple to recycle and the pulp and paper sector is already skilled at converting it into new generations of containerboard. Western Europe, where box weights currently frequently hover around 80% of US weights, has had significant success with lightweighting. Over the next few years, businesses' efforts to cut costs while still appealing to customers will highlight the significance of lightweighting.
- Retail changes: Retail-ready packaging has proven to be a significant cost-saving tool for merchants, particularly in Western Europe. More retail ready formats are being used as a labour-saving measure as a result of the continued profit pressure, as it is predicted that these secondary packaging formats can save shelf replenishment and handling expenses by up to 50%.
- Digital printing advancements: The corrugated industry has grown increasingly interested in adopting the technique as the digital print market matures; as a result, solutions are currently being created to meet the needs of the high-volume lining and post-print industries.
Market Overview
A business worth $33.1 billion annually, corrugated packaging and displays are essential to American distribution networks. It is the most commonly used shipping material because it is economical, lightweight, practical, and adaptable. In order to deliver food, clothing, and durable items to millions of domestic and international clients, almost 38 billion shipments were sent and carefully packaged. Around 100,000 people work in over 1,154 corrugated manufacturing sites spread across roughly 1,000 American cities and towns.
The packaging sector, particularly that of corrugated boxes, is evolving from a cottage business to a planned, massive, automated setup to serve a range of sectors. In turn, this increased the need for ERP for the packaging industry, such as Corrugated Samadhan ERP built on Microsoft Dynamics Nav or Microsoft Dynamics 365 Business Central. It must fulfil demands for far better goods and services, as well as pressure on costs and adherence to strict environmental and safety regulations.
Segmentation
Based on Liner
- Kraft Liners
At least 70 to 80% of the fibre in Kraft liners is made of virgin chemical pulp. They have a finished surface, are very stiff and strong, and are regarded as the highest material grade.
- Test Liners
Given that Kraft liners contain more recycled fibre, their strength is slightly higher than that of test liners.
- Chip Liners
Chip liners are not as popular as Kraft or Brown Test liners. They are not as high-quality because they are primarily created from unregulated recycled materials.
Based on Material Outlook
- Virgin
- Recycled -> In terms of revenue share in 2021, the recycled segment dominated.
Based on Printing Technique Outlook
- Digital Printing
- Lithography
- Flexography ->In terms of revenue share in 2021, flexography ranked first.
- Others
Based on End-Use
- Food & Beverage ->In terms of sales share, the food and beverage industry led in 2021.
- Pharmaceuticals
- Personal Care
- Home Décor & Electronics
- Paper Products
- Others
Read Full Report->
Restraints
Extreme weather conditions can readily affect corrugated packaging. Manufacturers must invest more time in drying corrugated boxes when humidity and moisture levels are high. Because businesses want to complete this process more quickly, the glue or ink might not completely dry, giving the cardboard a flimsier appearance, much like how a sponge retains water and moisture. Conversely, when cardboard is kept in excessively dry conditions for a long time, the lack of moisture makes the cardboard act like a sponge that has been entirely dried out. Extreme rigidity and fragility set in, making it more challenging to fold a box without damaging the paper. These elements might to some extent limit the market's ability to increase its revenue.
Key Players
Mondi plc, DS Smith plc, The International Paper Company, Georgia Pacific LLC, Oji Holdings Corporation, The Smurfit Kappa Group plc, WestRock Company, Pactiv Evergreen Inc., Tat Seng Packaging Group Ltd., and Packaging Corporation of America are major key players of the Corrugated Packaging Market.
Recent Developments
- 25. November 2022, Mondi, shares its fourth annual consumer trend survey, which offers a deep dive into online shopping behaviour and consumers’ attitudes to packaging. The survey, conducted by RetailX, is the most in-depth study to date, with 1,000 consumers each in France, Germany, Poland, Sweden and Turkey. For the first time it also includes an analysis of generational differences in online shopping patterns.
- 10 September 2021, Saica Group announced a future investment plan of financing USD 800 million in the U.S. development over the following five years, with plans to establish more manufacturing units and a paper mill in Midwest through mergers and acquisitions or new plant constructions. Overall, the corporation intends to invest USD 2.8 billion in global expansion till 2030.
Industry News
- 29 Nov 2022, Stora Enso became a shareholder of PulPac, a Swedish sustainable packaging technology company working to establish Dry Moulded Fiber as the next global standard for sustainable packaging, replacing single-use plastics with circular fibre solutions.
- NOV 24, 2022, Smurfit Kappa has completed significant investments in its manufacturing plants in Olomouc in the Czech Republic and Obaly Štúrovo in Slovakia respectively. The investments of more than €20 million announced last year further highlight Smurfit Kappa’s expansion and commitment to investing in its Central and Eastern European operations.
- October 28, 2022 WestRock Company, earned six awards for packaging design excellence during the 79th annual North American Paperboard Packaging Competition, sponsored by the Paperboard Packaging Council and held October 26 in Austin, Texas.
- Aug. 03, 2022 Pactiv Evergreen Inc. announced that its wholly-owned subsidiary, Evergreen Packaging International LLC, has completed the previously announced sale of its carton packaging and filling machinery businesses in China, Korea and Taiwan to SIG Group Ltd.
- May 18, 2022, Packaging Corporation of America announced that it intends to increase the quarterly cash dividend on its common stock to an annual payout of $5.00 per share from $4.00 per share, a 25% increase. The first quarterly dividend of $1.25 per share will be paid to shareholders of record as of June 15, 2022 with a payment date of July 15, 2022. Future declaration of quarterly dividends and the establishment of future record and payment dates are subject to the final determination by PCA’s Board of Directors.
Market Drivers
Corrugated packing increases productivity, decreases freight and handling expenses, and frequently cubes out a truckload prior to weighing out. Single-use corrugated packaging also lessens the spread of dangerous pathogens from one shipment to another.
Food and beverage products are protected by corrugated packaging because it is sturdy and long-lasting, especially when it is used to transport them over long distances and handle them by numerous workers. Additionally, corrugated boxes offer the option of customisation, allowing for "right-sized" product packaging. Since customised branding is an excellent strategy to impress customers, customization aids in the creation of brand awareness and customers frequently feel impressed because it looks professional and implies business.
Corrugated packaging firms frequently leverage developing technologies like artificial intelligence (AI) and machine learning (ML). Industrial applications for 3D printing are expanding. AI has the potential to visualise a package created by an algorithm that is perfect for a particular product. Machines with AI require 20% less time to learn new information than do humans.
Regional Analysis
- North America includes the United States, Canada and Mexico
- Europe includes Germany, France, UK, Italy and Spain
- South America includes Colombia, Argentina, Nigeria and Chile
- Asia-Pacific includes Japan, China, Korea, India, Saudi Arabia and Southeast Asia
The greatest revenue share in 2021 was attributed to Asia Pacific. The packaging industry in Asia Pacific is growing quickly. In 2021, Europe's revenue contribution was only marginal. The demand for sustainable packaging is rising across a range of end-use industries, including the food and beverage, pharmaceutical, cosmetic, and automotive sectors, and this is fueling the corrugated packaging market's expansion in terms of revenue. In 2021, North America's revenue growth rate remained consistent. The market for corrugated packaging has seen revenue increase due to rising environmental consciousness.
9 Corrugated Box Testing Techniques to Ensure High-Quality Packaging
- Bursting Strength Test
- Edge Crush Test 2 Single
- Water Resistance of the Gluing
- Cobb Sizing Tester
- Paper Grammage and Thickness
- Puncture Resistance
- Scuff Resistance Test
- Box Compression Test
- Chemical Analysis in Corrugated Box Testing
FAQ
- What is corrugated packaging used for?
- Where is corrugation used?
- Which key factors are expected to drive corrugated packaging market revenue growth?
- Which region accounted for the largest revenue share in the global corrugated packaging market in 2021?
- What are the major applications for corrugated packaging?
Related Reports: -
Coated Paper Market
The global Coated paper market is expected to grow at 4% CAGR from 2022 to 2029. It is expected to reach above USD 9.68 billion by 2029 from USD 6.80 billion in 2020.
https://exactitudeconsultancy.com/reports/2889/coated-paper-market/
Polycarbonate Sheets Market
The global Polycarbonate Sheets Market is expected to grow at more than 5.1% CAGR from 2020 to 2029. It is expected to reach above USD 4.2 billion by 2029 from USD 1.25 billion in 2020.
https://exactitudeconsultancy.com/reports/2879/polycarbonate-sheets-market/
Food Packaging Film Market
The global Food Packaging Film Market is expected to grow at 6.2% CAGR from 2019 to 2028. It is expected to reach above USD 194.27 billion by 2028 from USD 125.23 billion in 2019.
https://exactitudeconsultancy.com/reports/2321/food-packaging-film-market/
Medical Coatings Market
The global medical coatings market size is expected to grow at more than 18.6% CAGR from 2019 to 2028. It is expected to reach above USD 28.10 billion by 2028 from a little above USD 6.00 billion in 2019.
https://exactitudeconsultancy.com/reports/1410/medical-coatings-market/
Flexible Packaging Market
The global flexible packaging market is projected to reach USD 216.70 billion by 2029 from USD 216.4 billion in 2021, at a CAGR of 4.1% from 2022 to 2029.
https://exactitudeconsultancy.com/reports/2836/flexible-packaging-market/
