Corrugated Boards Market: Overview
The market size for corrugated boards was USD 91.2 billion in 2021, projected to grow at a CAGR of 6.2 percent during the forecast period. Growing purchases of lightweight corrugated boxes across industries are anticipated to boost market growth; however, stringent government regulations for the packaging of products are anticipated to hamper the global corrugated board packaging market. The increase in acquisition & collaboration between companies is expected to create opportunities for the market to grow. Still, a lack of awareness about the sustainability of the packaging is causing a major challenge for the market's growth.
Increasing industrial activities, particularly in the manufacturing sector, requiring better packaging techniques to preserve and transport goods, are also expected to drive the global corrugated board packaging market. Additionally, growing industrialization and expanding international trade in developing countries like India are anticipated to increase the market's growth.
Market players are adopting several strategies, such as mergers & acquisitions and new product development, to widen their product portfolio and strengthen their presence in the global market. In November 2021 - DS Smith introduced the quickly erectable tray equipped with two automatic lateral bases. The stable and material-optimized packaging solution can be constructed in no time, saving valuable time in logistics. It is evolved with 100% recyclable construction and 100% corrugated cardboard. Moreover, in October 2021, Smurfit Kappa Group PLC acquired a 600,000-ton containerboard mill in Verzuolo, Northern Italy, for a price of EUR 360 million. This mill complements the company's existing operations and is strategically located close to the port of Savona, which provides significant benefits for the company in logistics and operations.
Corrugated Boards Market: COVID-19 Impact
During the COVID-19 pandemic, the demand for corrugated boards increased owing to online shopping. For instance, in August 2021, Mondi rolled out its range of sustainable corrugated packaging solutions for online grocery delivery services in Europe. Seven new packaging solution meets the demand for the new packaging solutions for the delivery of the products. The company launched a new product for delivery during the COVID-19 pandemic. These products for delivery purposes grows the market during the COVID-19 pandemic.
Corrugated Boards Market: Drivers
Various Strategies by Key Players are Anticipated to Drive Market Growth
The market for corrugated board packaging is quite fragmented, with various players providing corrugated board packaging solutions. Companies are constantly innovating to encourage sustainable packaging and supply eco-friendly packaging products. Companies are releasing corrugated box designs for numerous end-user industries to leverage the opportunities. The market is also witnessing yearly partnerships and acquisitions by companies to strengthen their portfolios in the corrugated segment. For instance, in September 2021, Heinz collaborated with WestRock to replace shrink-wrapped multipacks of Heinz beans, Heinz soups, and Heinz pasta varieties on supermarket shelves with recyclable paperboard evolved by WestRock. The Heinz Eco-Friendly Sleeve is reused and comes from sustainably managed forests. The innovative wrap design utilized no glue and 50% less material than a fully enclosed wraparound box and 10% less than a traditional paperboard sleeve design.
Furthermore, in January 2022, Smurfit Kappa, following a collaboration with Juozas Baranauskas, designed innovative packaging for fast food. Smurfit Kappa's Twin Kraft Solid Board, a paper-based mono-material specifically designed for food packaging, is utilized in the new Fresh Post food box. The recyclable material can absorb mineral oils due to the company's MB12 technology, keeping food safe while maintaining fragrance and taste.
Increased Demand for Processed Food Drives Market Growth
The demand for convenience foods is on the rise owing to the busy lifestyle of people. Hence, processed food, which gets cooked in a short while, attracts many consumers. The growing population also drives the demand for processed food, which is convenient as well as healthy. As corrugated board packaging keeps moisture away from products and withstands long shipping times, companies are increasingly being adopted to provide better customer outcomes, especially secondary or tertiary packaging. Processed foods, including bread, meat products, and other perishable items, need these packaging materials to be utilized just once, thereby driving the demand. Paperboard boxes are regularly manufactured entirely of paperboard. However, they occasionally include various material combinations, such as clear or colorful film windows, which allow customers to see the food within the box. This quick wave of popular interest has driven the surge in ecological packaging options. According to Food Dive, 67% of customers believe it is critical that the items they buy come in recyclable packaging, with 54% indicating it is a factor they consider when purchasing. These sentiments aren't going away, with a whopping 83% of younger buyers prepared to expend more on products that are packed sustainably. For various food goods, paper and cardboard are viable alternatives to plastic packaging.
Corrugated Boards Market: Restraints
Lack of Weatherproofing to Hamper Market Growth
Corrugated boards get easily affected by extreme weather conditions. When humidity and moisture levels increase, it becomes necessary for manufacturers to devote additional time to dry corrugated boxes. Companies intend to make this process quicker; as a result, the glue or ink may not dry, making the cardboard look flimsier, much like how a sponge holds water and moisture. On the other hand, when the cardboard is stored in extremely dry conditions for an expanding period, the absence of moisture causes the cardboard to behave like a completely dehydrated sponge. It becomes exceedingly stiff and brittle, making it more difficult to fold a box without the risk of tearing or shattering the paper. These factors could hamper the revenue growth of the market to some extent. Various companies are developing research and development (R&D) activities to overcome this limitation.
Corrugated Boards Market: Segment Overview
Triple-Wall Boards to Dominate Market Due to its Pressure Building Ability
Triple-Wall boards are expected to be the fastest growing segment during the forecast period as triple-wall corrugated boards with three corrugating mediums can withstand higher mechanical stress owing to the additional layers of fluted paper. Therefore, it is utilized in the packaging and shipping of bulky products. It is lighter in weight as compared to crates made from wooden material utilized for transporting heavyweight packages. Thus, it provides a high-strength, cost-effective, and sustainable alternative to traditional timber- or metal-based packaging for heavyweight products.
With Increased Demand for Online Shopping, C-Flute Category to Dominate Market
C-Flute held the highest revenue share in the global corrugated market during the forecast period. It is commonly utilized for shipping cases, packaging glass products, furniture, and products in the automotive industry. For instance, Mondi provides corrugated products for automotive applications, which can be utilized for packaging engines, metal body parts, windshields, airbags, and car headliners. These are stackable and have higher compression strength owing to a comparatively thick corrugated medium. C-flute is coarse and majorly utilized for transit packaging due to its greater thickness, providing a growing protection level. C-flute has about 5 mm thickness, giving a higher cushioning effect, rigidness, and lateral crush resistance to packaged goods.
Corrugated Boards Market: Regional Landscape
Asia Pacific to Dominate Market owing to Growing Awareness About the Environment
The Asia Pacific dominated the market during the forecast period due to rapid urbanization in highly populated countries, such as China, India, and Indonesia, which drives the demand for packaging products. Increasing environmental awareness is expected to increase demand for greener packaging solutions driving the market growth. Government initiatives to ban plastic packaging in various Asian countries are also anticipated to accelerate product consumption. It is also expected to be the fastest-growing regional market, in terms of revenue, during the forecast period. Furthermore, the demand for electronic goods, automotive parts, home care, and beauty & personal care products from domestic and international markets are anticipated to propel the demand for corrugated boxes, thereby driving the market growth. For instance, the report, 'China's Growing Role in U.S. Automotive Supply Chains,' issued in August 2019 by the U.S. International Trade Commission, claimed that the export of automotive parts from China under HS 8708 was valued at USD 12.2 billion in 2007 that grow to USD 34.8 billion in 2018.
Europe is attributed to be the fastest-growing region during the forecast period. The growth of this market can be attributed to the broad product application scope in the regional processed food and electronics industries. As per the European Federation of Corrugated Board Manufacturers (Fefco) Annual Statistics 2019, around 26.8% of the total shipment of corrugated board was captured by the processed food sector in Italy as a percentage of turnover, followed by beverages at 11.4%, 6.2% for FMCG, and dairy products at 10%. Corrugated boxes supply a hygienic solution for goods transportation at long distances; therefore, it is majorly utilized for food products prone to contamination or damage.
Global Corrugated Boards Market: Competitive Landscape
In March 2021, International Paper acquired two corrugated packaging businesses in Spain - Cartonatges Trilla S.A., Tarragona, and La Gaviota, S.L., Madrid. It enlarged its presence in Spain and strengthened its position in the EMEA region. Furthermore, in January 2021, Mondi Group acquired 90.83% shares in the Turkish corrugated packaging company – Olmuksan International Paper Ambalaj Sanayi ve Ticaret (Olmuksan). Mondi Group performed the acquisition to enlarge its presence in Turkey and effectively cater to the region's food & beverage and agricultural sectors. This, in turn, will most likely spur the company's growth in the coming years, thereby contributing to the overall corrugated packaging market share.
Few of the corrugated boards market players include International Paper, Georgia-Pacific, WestRock Company, Packaging Corporation of America, Stora Enso, Oji Holdings Corporation, Smurfit Kappa, Port Townsend Paper Company, Mondi, DS Smith and others.
Global Corrugated Boards Market is Segmented as Below:
By Flute Type Outlook
By Board Style Outlook
Key Elements Included In The Study: Global Corrugated Boards Market
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