Market Trends of Canada Paper Packaging Industry
This section covers the major market trends shaping the Canada Paper Packaging Market according to our research experts:
Increased Demand for Eco-friendly Packaging is Driving the Market
- Consumers have recently grown more aware of the environmental consequences of high quantities of plastic trash, particularly single-use plastic waste. Increased demand for biodegradable items, made from byproducts of existing products, and do not include plastic, has resulted from a societal movement encouraging people to be more conscientious of their plastic consumption.
- Increased environmental laws are expected to drive demand for paper packaging over the projected period. As environmental rules become more stringent, demand for eco-friendly packaging made from recycled materials and biodegradable is likely to rise.
- Recently, according to the Food and Agriculture Organization (FAO), Canada's production capacity for paper and paperboard was 10.57 million metric tons, and in 2024, it is expected to reach 10.62 million metric tons. Also, the Forest Products Association of Canada (FPAC) provides the voice for Canada's wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs.
- According to a survey conducted by The Paper and Paperboard Packaging Environmental Council (PPEC) in July 2022, the federal government launched two consultations related to combating plastics pollution, including developing labeling rules for recyclability and compostability and developing a federal plastics registry. The government's guidance documents for selecting alternatives provide info on how to transition away from the banned items, offering that plastics could be reduced by using other materials, including wood, paper, and molded pulp fibre. Companies such as P&G, Carlsberg, Amazon, and others have all recently made announcements regarding changes in some of their packaging, with a clear shift towards paper-based packaging.
- E-commerce packaging is becoming more protective, as well as more efficient, to ensure the quality of its suppliers for its customers. Now that more cardboard boxes are arriving on doorsteps rather than in stores, the sector is counting on more to keep up with recycling. E-commerce is becoming a substantial and high-growth opportunity for the corrugated packaging market through 2023, according to The Future of Corrugated Packaging 2023. E-commerce retail sales have continued to rise, providing significant potential for paper packaging suppliers. These factors drive the market for eco-friendly packaging across the country.
Understand The Key Trends Shaping This Market
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Growing Need For Paper Packaging in Beverage Industry
- In Canada, milk, juices, energy drinks, etc., have become increasingly popular among millennials and the next generation due to increasing health consciousness and growing awareness of risks associated with excessive consumption of sweets, carbonated soda, and artificial sugar drinks.
- Milk production in Canada has been increasing over the years. Most consumers in Canada are choosing to purchase milk cartons instead of Glass bottles or plastic for eco-friendly concerns and the cost-effectiveness of cartons over glass or plastic bottles. Moreover, soft drink consumption has considerably decreased over the past five years, largely due to the aging Canadian population.
- According to Statistics Canada, soft drink consumption by adults sharply decreased with age. In Canada, the adult obesity rates have increased over the past decade, and as Obesity is linked to diabetes, high blood pressure, bone and joint problems, and other medical problem, many consumers have been focusing on being health conscious for the past few years, limiting their soft drink consumption. This has given rise to juices consumption and other healthy drinks such as energy drinks and sports drinks, which is driving the studied market growth for the packaging of these drinks.
- Moreover, in April 2021, Solenis launched a new online hub to help consumer brand owners and packaging converters with sustainable formulations for fast-food packaging, corrugated board, single-use cups, and other food and beverage packaging elements. Such innovations by companies will leverage the market for paper products for beverages in the country.
- Over the last several years, food companies have announced or rolled out new packaging innovations that aim to replace plastics completely with less environmentally harmful materials like paper. Recently, these include Kraft Heinz's collaboration with Pulpex on ketchup bottles created from 100% wood pulp and Chobani's paper-based yogurt cups.
