Paperboard Market to Reach USD665.85 Billion by 2027
The rapid growth of e-commerce and the growing demand for packaging food and beverages are the drivers for the Paperboard market.
The global paperboard market is forecast to reach USD665.85 billion by 2027, according to a new report by Reports and Data. Paperboard is a 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 them and end-users. Besides, it is environmentally friendly and can be recycled. Retailers and product manufacturers also enjoy great benefits from paperboard packaging. It can be placed, stored, and displayed effectively on retail shelves.
The most important properties of paperboard, the driving force of the market, are its recyclability, its reusability and its durability. Also, 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.
As the boxes are not able to withstand the mechanical stress of heavy materials, they are not used in the packaging of heavy materials. Therefore, some heavy goods manufacturers do not prefer paperboard for packaging. Also, strict government regulations on deforestation would slow its growth, since it is produced mainly from wood. Growing environmental awareness among emerging economies in the Asia-Pacific, like India and China, would lead to its usage in packaged foods.
The COVID-19 impact:
The COVID-19 pandemic is expected to have a downward impact on the global Paperboard market in 2020, the reason being the halt in the industrial and commercial production applications of durable goods, which was responsible for the significant demand in 2019. After the pandemic, however, trends discussed in the study of the Global Paperboard Market do hold ground.
Also, fear of contamination from food and beverages from restaurants with most of them closing operations has resulted in a downgraded outlook for the industry, which will have short-term impacts on global sales that could have lasting effects. While the industry expects things to return to near normal state well before the end of 2020, negative demand shock caused by the crisis is likely to last.
Further key findings from the report suggest:
- Asia-Pacific has a significant share of the global paperboard packaging market. Emerging foods and beverages, electronics, consumer products, and the pharmaceutical industry as a result of economic development will fuel the demand soon. Another factor affecting the market is the increase in income level and technological development in the pharmaceutical industry. The region will experience a growth rate of 5.4% during the forecast period.
- North America will experience stagnant growth in the global paperboard packaging sector due to the maturity of the market in this region. In 2019, the segment represented around 22.0% of the entire sales.
- The European region will experience moderate and steady growth due to government-imposed paper recycling regulations. The segment generated USD95.76 billion in the world market in 2019.
- The Containerboard segment held the largest share because of its extensive usage in E-commerce and electronic product packaging.
- Fresh sources are estimated to lead the material type segment with a significant CAGR because of the risks involved in the usage of recycled waste paper.
- 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.
- Key participants include Nippon Paper Industries Co., Ltd., Mondi plc, ITC Limited, International Paper Company, Metsa Group, Smurfit Kappa Group plc, South African Pulp & Paper Industries Limited (Sappi Limited), Stora Enso Oyj, Rock-Tenn Company, and Oji Holding Corporation, among others.
Source: Reports and Data