South Korea Paper Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 17.41 Billion |
| Market Size (2029) | USD 20.49 Billion |
| CAGR (2024 - 2029) | 3.31 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Paper Packaging Market Analysis
The South Korea Paper Packaging Market size is estimated at USD 17.41 billion in 2024, and is expected to reach USD 20.49 billion by 2029, growing at a CAGR of 3.31% during the forecast period (2024-2029).
The strong demand for sustainable packaging solutions due to the increasing packaging waste is expected to drive the growth of the South Korean paper packaging market during the forecast period. Food delivery services and expanding e-commerce are anticipated to continue to develop rapidly over the following years, contributing to the market's expansion.
- Consumers in the country are choosing accessible and sustainable packaging options as they become more conscious of the effects of packaging materials on the environment and, because of their busy lifestyles, demand convenience. The need for paper-based packaging supplies is thus anticipated to increase in the country.
- Considering the excessive use of single-use plastics, the government of South Korea banned all types of single-use plastics. Therefore, since banning all sorts of packaging and wrapping materials, the food and beverage industry that relies heavily on plastic packaging is looking for new methods for packaging products that can keep wet food items such as fish and meat safe and withstand transportation stress. Moreover, many such products are made of paper and cardboard that the food and restaurant industry can use in the market. With the ban on plastic packaging material, paper packaging can be a suitable alternative to fill the space.
- The rising retail and e-commerce industries and the growing need for environmentally friendly packaging materials are driving the market's expansion. The need for secondary and tertiary paper packaging products has increased as online shopping platforms have flourished.
- Paper, pulp, resins, paperboard, and adhesives are some of the most popular raw materials utilized by paper packaging industries. The prices of these essential materials have risen dramatically in the flexible packaging business in recent years.
- In South Korea, the paper packaging landscape is characterized by a focus on innovation and sustainability. Manufacturers employ advanced production technologies to create customizable and eco-friendly solutions, catering to the evolving demands of both consumers and businesses. However, the supply chain is facing challenges, particularly in sourcing raw materials and ensuring efficient distribution, prompting manufacturers to streamline operations and invest in supply chain management strategies to maintain competitiveness in the market.
South Korea Paper Packaging Market Trends
E-Commerce is Expected to Drive the Market's Growth
- In South Korea, e-commerce is a significant part of the entire consumer market, which is continually expanding. Over the last few years, the popularity of online purchasing through various e-commerce channels has steadily increased. According to a news published by Aju Press in February 2024, South Koreans spent more than USD 171.1 billion on e-commerce platforms in 2023.
- The rise of e-commerce platforms in South Korea has significantly reshaped the paper packaging market, particularly impacting products like folding cartons and corrugated boxes. As more consumers turn to online shopping for convenience and variety, there has been a surge in demand for sturdy, reliable packaging solutions to ensure the safe delivery of goods. E-commerce platforms often prioritize efficient packaging to optimize shipping costs and enhance customer satisfaction, driving innovation in the paper packaging industry.
- Furthermore, the dynamic nature of e-commerce requires packaging solutions adaptable to different product sizes and shapes. As a result, paper packaging manufacturers are investing in advanced production technologies to meet the evolving needs of online retailers. Customizable packaging options are becoming increasingly popular, allowing businesses to differentiate their brands and create memorable unboxing experiences for customers.
- Corrugated boxes provide e-commerce companies with durable and tamper-evident solutions, reducing the likelihood of product tampering during transit, thus minimizing return rates and ensuring customer satisfaction. Its protective properties safeguard items while maintaining an eco-friendly appeal, aligning with consumer expectations for secure and sustainable packaging solutions.
- According to the KOSIS (Korean Statistical Information Service), in 2023, the retail sales of food and beverages in South Korea reached USD 135.77 billion, an increase from the previous year. The expanding retail food sales in South Korea have catalyzed a surge in demand for technically advanced paper packaging, particularly folding cartons, as consumers increasingly prioritize convenient storage solutions for their purchases.
The Food and Beverage Segment is Expected to Hold a Significant Share in the Market
- The growth of the food and beverage industry in South Korea has become a key driver for the paper packaging market. As consumer preferences shift toward convenience and sustainability, there is an increasing demand for innovative packaging solutions that meet these evolving needs. Paper packaging, including folding cartons and corrugated boxes, offers versatility and eco-friendliness, making it an ideal choice for food and beverage companies looking to enhance their brand image while meeting regulatory requirements.
- With mobility and ease of use, paper and board packaging are widely employed. The paper and board pack format's disposability and recyclable nature also contribute to its rising popularity. Due to the ease of on-the-go consumption, the packaging is primarily employed in the juice segment. Eco-friendly features mostly drive paper and board packaging in the country.
- Moreover, the rise of e-commerce and delivery services has further propelled the demand for paper packaging in the South Korean food and beverage sector. With more consumers opting to order groceries and meals online, there is an increased need for packaging that ensures product freshness and safety during transit. Paper packaging provides protective properties and offers customizable options for branding and marketing purposes.
- As per Statistics Korea, in 2023, the consumer price index (CPI) for food and non-alcoholic beverages was 120.56. The increased consumer spending in this sector likely drives the demand for paper packaging solutions to accommodate the growing volume of purchases and ensure product safety and freshness during transportation and storage.
South Korea Paper Packaging Industry Overview
The South Korean paper packaging market is semi-consolidated with the presence of major players like International Paper Company, Rengo Co. Ltd, WestRock Company, Graphic Packaging International Corporation, and Amcor PLC. The market has several firms with significant market shares. The market players are focusing on product innovation to enhance their brand presence through sustainable packaging initiatives.
- June 2023: Hansol Home Deco, a division of Hansol Group, launched medium-density fiberboard made from 100% recycled raw materials, which could be used as packaging pallets, wood bobbins, and interior materials.
- March 2023: Hansol Paper Co., South Korea's largest general paper company, signed a business agreement with Samsung Welstory, a food and beverage service specialist, to develop eco-friendly paper packaging. The deal was done to jointly develop such material for packaged food products at Samsung Welstory's company's in-house restaurants. The eco-friendly packaging will feature paper customized exclusively for Samsung Welstory and the water-soluble coating Terravas. The two companies pledged to raise eco-friendliness and minimize damage to the environment by using recycled PET for package lids and covers.
South Korea Paper Packaging Market Leaders
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International Paper Company
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Rengo Co., Ltd.
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WestRock Company
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Graphic Packaging International Corporation
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Amcor Group GmbH
*Disclaimer: Major Players sorted in no particular order
South Korea Paper Packaging Market News
- March 2024: South Korean C-store CU launched a microwavable noodle product in a paper cup, which is home and industrially compostable. The new microwavable paper cup is coated with biopolymer for CU’s own-brand noodle product.
- November 2023: South Korea removed a ban on paper cups at restaurants in a rare backtrack as other governments ramp up curbs to single-use products to protect the environment. The government intends to allow cafe and restaurant owners to use paper cups for non-takeout orders to reduce the financial burden on small businesses.
South Korea Paper Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Import Export Analysis
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 E-Commerce is Expected to Drive the Market's Growth
5.1.2 Increasing Consumer Awareness on Paper Packaging
5.2 Market Challenges
5.2.1 Effects of Deforestation on Paper Packaging
5.2.2 Increasing Operational Costs
6. MARKET SEGMENTATION
6.1 By Product Type
6.1.1 Folding Cartons
6.1.2 Corrugated Boxes
6.1.3 Other Product Types (Flexible Paper Packaging, Liquid Cartons, etc.)
6.2 By End-user Industry
6.2.1 Food and Beverage
6.2.2 Healthcare
6.2.3 Personal Care and Household Care
6.2.4 Industrial
6.2.5 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Tetra Laval Group
7.1.2 International Paper Company
7.1.3 Rengo Co. Ltd
7.1.4 WestRock Company
7.1.5 Graphic Packaging International Corporation
7.1.6 Amcor Group GmbH
7.1.7 Oji Holdings Corporation
7.1.8 Hansol Papertech Co. Ltd
7.1.9 Autajon Group
7.1.10 HB PAPER (HB Group)
- *List Not Exhaustive
7.2 Heat Map Analysis
7.3 Competitor Analysis - Emerging vs. Established Players
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
South Korea Paper Packaging Industry Segmentation
The market for the study defines the revenue generated from the sales of paper packaging products, such as folding cartons and corrugated boxes, across various end-user applications considered under the scope. The market tracks the consumption of paper packaging products in the country. The analysis is based on the market insights captured through secondary and primary research. The market also covers the major factors impacting the growth of the South Korean paper packaging market in terms of drivers and restraints.
The South Korean paper packaging market is segmented by product type (folding cartons, corrugated boxes, and other product types [flexible paper packaging, liquid cartons, etc.]) and end-user industry (food and beverage, healthcare, personal care and household care, industrial, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Product Type | |
| Folding Cartons | |
| Corrugated Boxes | |
| Other Product Types (Flexible Paper Packaging, Liquid Cartons, etc.) |
| By End-user Industry | |
| Food and Beverage | |
| Healthcare | |
| Personal Care and Household Care | |
| Industrial | |
| Other End-user Industries |
South Korea Paper Packaging Market Research Faqs
How big is the South Korea Paper Packaging Market?
The South Korea Paper Packaging Market size is expected to reach USD 17.41 billion in 2024 and grow at a CAGR of 3.31% to reach USD 20.49 billion by 2029.
What is the current South Korea Paper Packaging Market size?
In 2024, the South Korea Paper Packaging Market size is expected to reach USD 17.41 billion.
Who are the key players in South Korea Paper Packaging Market?
International Paper Company, Rengo Co., Ltd., WestRock Company, Graphic Packaging International Corporation and Amcor Group GmbH are the major companies operating in the South Korea Paper Packaging Market.
What years does this South Korea Paper Packaging Market cover, and what was the market size in 2023?
In 2023, the South Korea Paper Packaging Market size was estimated at USD 16.83 billion. The report covers the South Korea Paper Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Paper Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Paper Packaging Industry Report
Statistics for the 2024 South Korea Paper market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Paper analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
