The rise in demand for packaging of food and beverage, coupled with increasing application in pharmaceutical packaging solutions, is driving the Corrugated Packaging market.
The Global Corrugated Packaging Market is forecast to reach USD352.47 billion by 2027, according to a new report by Reports and Data. Corrugated boxes are thick paper material consisting of a compressed layer of paper pulp. It is extensively used for packaging as its easy-to-open and reseal packaging designs provide benefits to the end-users. Besides, it is environment-friendly and can be recycled. Retailers and product manufacturers also enjoy great benefits from corrugated packaging.
These boxes are used to store and transport products. The drivers of the market growth are the crucial properties of paperboard – its recyclability, reusability, and durability. Moreover, the growing awareness of ecological conservation makes consumers inclined to use paperboard. Besides, high-resolution graphics and two-sided printing of paperboard can enhance the brand promotion of products. Therefore, various product manufacturers choose it as packaging material.
Rapid urbanization has changed the lifestyle of the people and, in turn, has increased the prevalence of packaging over a broad aspect, thus, augmenting the demand for the market product. The growing awareness among customers for the sustainable packaging material with the reusability of corrugated packaging is fostering the market demand. However, the usage plastics due to its cost-effective, durable, and reusable properties are hampering the market demand.
COVID-19 Impact Analysis:
As the COVID-19 crisis grows, manufacturers are quickly changing their practice and purchasing priorities to meet the required demand of a pandemic, which has cut demand for many forest product segments, majorly corrugated boxes market. Over a couple of months, there will be a series of both positive and negative shocks, as manufacturers and their suppliers respond to providers changing needs. With an unprecedented global situation, the export-dependent economies of many regions look vulnerable.
Further key findings from the report suggest:
- Rigid boxes have two similar end panels and consists of a body that can be folded from the two side panels, a top, and an unbroken bottom. The flaps are applicable to form the joints. Once these joints are sealed, the box is considered to be rigid. The segment is predicted to grow with a CAGR of 4.0% during the forecast period.
- Single-walled boxes are designed to use only a single layer of fluting. They are used for shipping in the e-commerce sector. These boxes are cost-effective and can provide offer cushioned protection as well as rigidity that is required in a shipping container.
- The food and beverage segment is estimated to capture a massive share of the market because of the flourishing of the take-out food consumption and changing lifestyle patterns of individuals. The segment held a market share of 4.7% in the year 2019.
- The advent of the use of corrugated packaging backed by various government awareness schemes in nations such as India is creating a demand for the use of these boxes in the packaging market. The Asia Pacific region is forecast to grow with the highest growth rate in the forecast period due to the rise in the number of people opting for the manufacturing of paperboards.
- Key participants include Mondi Group, WestRock Company, International Paper Company, DS Smith PLC, Smurfit Kappa Group, Nine Dragons Paper (Holdings) Limited, Georgia-Pacific Equity Holdings LLC, Oji Holdings Corporation, Lee & Man Paper Manufacturing Ltd., and Packaging Corporation of America, among others.
Source: Reports and Data