Market Trends of Vietnam Paper Packaging Industry
The Corrugated Boxes Segment to Witness Significant Growth
- Vietnam is aiming for a double-digit annual growth rate in the turnover of e-commerce over the next five years. According to the Vietnamese government's data on e-commerce development strategy, over half of Vietnam's 96 million people are set to shop online by 2025. Such projections would lead to higher demand for corrugated boxes in the e-commerce sector.
- The country's electronics industry is one of Vietnam's fastest-growing and crucial industries. Multinational organizations dominate it, have increased the country's trade volume, and contributed to its GDP in the past decade.
- Electronic products include a wide range of fragile products and require extra shipping care. Thus, the corrugated packaging of these goods requires a protective feature. As the electronics industry expands, there is a parallel increase in the demand for packaging materials to protect electronic products during transit. Corrugated boxes are well-suited for this purpose due to their protective features and ability to cushion fragile items.
- Trends like K-beauty and multi-step cleansing to address skincare concerns, such as acne, large pores, and dark under eyes, are increasing in the Vietnamese beauty industry. Most skincare shoppers in Vietnam still prefer a one-step skincare routine, although it recently lost its appeal while two-step and three-step routines have gained popularity.
- Multi-step skincare routines often involve using several products, each serving a specific purpose. Corrugated boxes can be customized to accommodate these various products in an organized and visually appealing manner. Custom inserts, dividers, and compartments within corrugated boxes can help keep different skincare items separate while also enhancing the overall presentation.
Understand The Key Trends Shaping This Market
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The Food and Beverages Industry to Hold Significant Market Share
- Over the past few years, the food and beverage packaging industry witnessed gains from the development of e-commerce and the rapid spread of app-based delivery businesses. The free trade agreements that Vietnam participated in were another catalyst for growth.
- The growth in the food packaging industry resulted in the increased demand for paper packaging in the country. It is also estimated that eco-friendly products made from paper have the potential for growth in the food packaging industry to replace disposable plastic products.
- According to Tetra Pak, a food processing and packaging solutions company, the liquid food market in Vietnam registered a healthy 6% compound annual growth rate over the last three years. It is projected to grow similarly during the next three years, compared to the 4% yearly growth in Asia-Pacific and 3% globally.
- With higher income and better nutrition awareness, Vietnamese people have sustainably increased their purchase of dairy products. All the dairy supply chain stakeholders have been actively changing and innovating. Distribution channels have also been improved, especially with the thriving of e-commerce.
- Although Vietnam is a lucrative market for alcoholic beverages, especially beer, a dynamic shift occurred, showing a growing demand for healthy soft drinks. Moreover, naturally, healthy beverages, such as tea and fruit or vegetable juices, have been gaining popularity.
- According to the General Statistics Office of Vietnam, the consumption of food and beverages in Vietnam was USD 47 billion in 2023, compared to 2018, which was USD 26 billion. The expansion of retail outlets, supermarkets, restaurants, cafes, and food delivery services often accompanies the growth in food and beverage consumption. These establishments rely heavily on paper packaging solutions to package and present their products to customers. As the food and beverage sector expands, so does the demand for paper packaging products.
