Market Trends of Corrugated & Paperboard Boxes Industry
Food and Beverage Expected to Hold Significant Market Share
- Amongst end-user applications, food and beverage is the principal end-user segment of the corrugated and paperboard boxes market and are anticipated to advance at a fast speed in the forecast period. The food and beverage industry majorly utilizes coated, unbleached boards for packaging beverages and corrugated container boards for packaging vegetables, fruits, and food products. The accelerated demand for frozen foods is possible to push the demand for folding carton packaging.
- Alterations in lifestyle and a budding young population lead to a greater demand for branded and packaged substances. According to the Flexible Packaging Association, the beverage sector in the United States is valued at nearly 50% of the packaging market. Over 30% of Americans order meals twice a week, which is anticipated to grow to 3% in the coming years.
- Within the market, the food and beverage segment is quickly expanding segment. Because of people's hectic lifestyles, convenience foods are in high demand. As a result, processed food, which takes less time to prepare, attracts a growing number of consumers. The ever-increasing population drives the desire for processed food, which is both convenient and healthy.
- Consumer preferences are shifting toward more convenient and ecologically friendly products, the food industry is growing, and there is a growing need for sustainable packaging solutions. A popular option for the food sector is corrugated board packaging because of its strength, adaptability, and recyclable nature.
- Customers and companies are becoming more conscious of how packaging affects the environment. More people choose corrugated boards over plastic and other nonsustainable materials because they are recyclable and biodegradable. As corrugated paperboard packaging keeps moisture from products and can withstand long shipping times, companies are increasingly adopting this packaging to offer better customer outcomes, especially for secondary or tertiary packaging. Processed foods, such as bread, meat products, and other perishable items, need these packaging materials to be used just once, thus driving the demand.
- Furthermore, on-the-go consumption in countries like China, Japan, India, and Australia further feeds the demand. The use of environmentally friendly packaging solutions is encouraged by Australian regulations that support sustainability and reduction in plastic waste by 2025. For instance, all packaging is to be recyclable, reused, or compostable, according to the National Packaging Targets.
- According to the Australian Bureau of Agricultural and Resource Economics and Sciences, Australia, Canada, Germany, and France are among the world's most food-secure countries. About 20% of domestic manufacturing and service revenue comes from the food industry. Australian farmers grow and supply the great bulk of the food market in this country.
- In countries such as India and China, the demand for food and beverages is always high. This consequently drives the paperboard packaging market. Such assertive growth in the food and beverage industry is supposed to boost the need for paperboard packaging throughout the forecast period.
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Asia-Pacific Expected to Have Significant Growth
- Asia-Pacific is supposed to have significant growth. The growing number of manufacturing plants all over the region, combined with the increasing consumerism and transit packaging sector in the APAC region, is adding to the growth of the corrugated and paperboard boxes market. Due to the growing demand for paper pulp in developing countries such as China and India, the region is anticipated to be the fastest-growing region. There is an addition to the transit packaging sector in China, combined with increasing consumerism, leading to a quickly expanding demand for paper packaging.
- Corrugated and paperboard boxes market demand in the region has been expanding at a rate of 6.5% since 2008, far greater than anywhere else in the world. Along with this requirement for paper packaging, the need for recycled paper is also growing.
- The collaborative initiative of retail businesses and e-commerce fulfillment partners in the country to improve customer experience further augments e-commerce growth among the larger population due to the best customer services driving e-commerce growth and, ultimately, the requirement for corrugated board packaging required for shipping online orders.
- For instance, in January 2024, Australia Post Corporation and Myer, an online Jewellery retailer, strategically partnered to improve Myer’s online customer experience, covering most of Myer’s online orders. The comprehensive partnership also includes Australia Post’s Metro Service, which offers next-day delivery for Myer e-commerce customers in metropolitan Melbourne, Sydney, Brisbane, and the Gold Coast. During the past 12 months, Australia Postal Corporation delivered more than five million parcels for Myer.
- According to the United States Department of Agriculture (USDA), Foreign Agricultural Service, July 2023 Report, Thailand is Southeast Asia's second-largest economy. It remains a strong agricultural competitor and is a major exporter of rice, sugar, canned tuna, canned pineapples, natural rubber, frozen shrimp, cooked poultry, and cassava. Thailand is also the 20th largest export of US agricultural products.
- Moreover, the evolving technology environment, increasing use of smartphones and social media, and changes in the region's traditional online shopping through e-commerce are driving significant growth. More and more business owners and entrepreneurs are setting up social media stores to trade and sell through social media platforms.
- This exponential growth in online shopping across the region is driving demand for corrugated board packaging like corrugated boxes, which are the preferred packaging material owing to their durability and cost-effectiveness. The convenience of online shopping and the ability to shop 24/7 has led to more frequent and smaller orders requiring their own packaging, further driving demand for corrugated packaging.
- There is an escalating rate of exports in the developing logistics sector as corrugated boxes are supposed to dominate the market in this region. Due to sound growth in sectors like (FMCG) and cosmetics, the fast-growing middle-class population is anticipated to boost the demand for the corrugated and paperboard boxes market in the region.
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