Folding Carton Market in APAC 2018-2022
About Folding Carton
Technavio Announces the Publication of its Research Report – Folding Carton Market in APAC 2018-2022
Technavio recognizes the following companies as the key players in the folding carton market in APAC: Mayr -Melnhof Karton, Smurfit Kappa Group, Amcor, WestRock, Graphic Packaging, and All Packaging Company
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Technological innovations in packaging industry. Increasing environmental concerns and strict government regulations are influencing the market to use eco-friendly packaging. Government is also focusing on food safety and prevention of food contamination due to harmful chemicals used in packaging materials. For instance, in 2012, the Food Standards Agency announced the introduction of scanner that enables to detect the transfer of harmful substances from the outer surface of food packaging material to the inner surface of food packaging material.”
According to the report, one of the major drivers for this market is Diversified consumption pattern of customers. Consumption patterns of consumers in APAC is constantly changing due to increasing disposable income levels and rising health consciousness. At the same time, structural shift in the food manufacturing and processing industry has been observed. The major factors for the shift in consumption patterns are the increasing income level of customers that enable them to pay attention to healthy and fresh food, and the fast-growing online food delivery industry. Thus, increasing health consciousness along with rising income levels drive the usage of folding cartons in food and beverage industries. Also, the rising urbanization rate in APAC countries is driving the folding carton market.
Further, the report states that one of the major factors hindering the growth of this market is Limited availability of raw material substitutes to curb input cost of production. The increased cost of kraft paper and paperboard has been the major challenge for the folding carton market from the supply side. Kraft paper accounts for more than 70% of the total input cost in the manufacturing of paperboard packaging material. The price of kraft paper in 2017 has increased by 20%- 25% over the past three years due to the shortage of supply. It negatively impacted the profitability of vendors because paperboard packaging does not have any substitute for raw material. The per kilogram price of the kraft paper has increased by almost 8-10 rupees in January 2017. In the past, the kraft paper and paperboard market witnessed negative returns and vendors were unable to adapt to the rising cost of raw materials.
Mayr -Melnhof Karton, Smurfit Kappa Group, Amcor, WestRock, Graphic Packaging, and All Packaging Company