Market Trends of Recovered Paper Industry
This section covers the major market trends shaping the Recovered Paper Market according to our research experts:
Containerboard to Dominate the Market
- The containerboard segment is gaining popularity in the global packaging industry. The global containerboard demand is exacted to increase significantly, mainly due to rising e-commerce shipments, and corrugated box shipments, increasing demand for packaged food and companies, and the consumers shifting toward recovered packaging solutions.
- According to Suzano, containerboard accounted for 166 million metric tons of global demand in 2018, 40% of the worldwide market for a paper that year. The second most in-demand end-use of paper at that time was printing and writing paper, which had a total global demand volume of 99 million metric tons.
- In the year 2019, according to Fisher International, the Asia Pacific macro-region had a 53% share of the containerboard market worldwide. Containerboard, also known as corrugated case material (CCM), is a variety of paperboard manufactured to produce the corrugated board.
- The US Census Bureau state that in the year 2019, some 17.6 million tons of all recovered paper and paperboards were shipped out as part of net exports. In that year, some 18.6 million tons of all recovered paper and paperboard were used for the manufacturing of Containerboard.
- According to Berg Mill Supply, a US-based recycled and recovered material supplier, the United States' containerboard capacity is estimated to account for 11.6%, i.e., 4.45 million metric tons by 2021.
- The presence of alternative packaging solutions is one of the critical factors anticipated to hamper growth. However, growing environmental concerns and governments pushing the packaging firms toward the adoption of recovered papers for packaging offer a huge opportunity for the segment.
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North America to Hold a Dominant Position
- With the focus now moving towards eco-friendly and sustainability, packaging with recovered paper is expected to gain attention over plastic packaging, which poses a significant threat to the environment. The United States is expected to drive the paper packaging segment, with applications across industries, like healthcare, personal care, homecare, retail, and others. This, in turn, is urging the demand for the recovered paper market in the coming years.
- The growing number of shipments in the e-commerce industry in the region is also a notable factor for the increasing demand for containerboard, which has a substantial share for the recovered paper market. According to the US Census Bureau & US Department of Commerce, in the first quarter of 2020, adjusted U.S. retail e-commerce sales amounted to over 160.33 billion U.S. dollars. In the first quarter of 2020, the share of e-commerce in total U.S. retail sales was 11.8%, up from 10.5% from the corresponding quarter in the previous year.
- Moreover, the retail value sales of packaged foods are also supposed to grow by 4% in the United States, year-on-year, between 2018 and 2020, due to the growing availability, awareness, and affordability. According to Pitchfork Media, in 2019, the online sales of packaged food in the U.S. amounted to about USD 13.2 billion and is anticipated to reach USD 16.6 billion by 2021.
- Increasing concern over food safety in the food and beverage sector has propelled the need for high-quality food service board and liquid packaging board. Besides this, the development of e-commerce in the United States has promoted the increase in express delivery, further driving the demand for packaging paper, thereby driving the need for a recovered paper market during the forecast period.
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