Global Paper Packaging Market - Segmented by Product Type (Paperboard, Container Board, Corrugated Board), Industry Vertical (Personal Care, Home Care, Healthcare) and Region - Growth, Trends and Forecasts (2018 - 2023)
In 2017, the global paper packaging market was valued at USD 64.4 billion and is expected to reach a value of USD 82.4 billion by 2023, registering a CAGR of about 4.19% during 2018-2023 (the forecast period). The scope of this report is limited to the solutions that are offered by the market players, who include providers of paperboards, corrugated boards, and container boards. The regions considered in the scope of the report include North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
The attributes, like light weight, biodegradability, and recyclability, are the advantages of paper packaging that make them an essential component in today’s modern life. Paper packaging is a versatile and cost-efficient method to protect, preserve, and transport a wide range of products. In addition, it can be customizable to meet the customer or product-specific needs.
Every product, from electronics to food, beverage, and cosmetics, can be packaged using paper, such as corrugated container boxes are used to ship and transport electronics, fragile glassware, and perishable goods. Moreover, the rising consumer consciousness, regarding sustainable packaging, along with the strict regulations being imposed by various environmental protection agencies, regarding the use environment-friendly packaging products, is driving the market for paper packaging. The fact that the developed economies in North America and Europe possess strong paper-recycling capabilities, supported by established infrastructure, has driven the rate of adoption of paper-based packaging. In addition, the rapid growth of online shopping and delivery-on-demand services have fueled the usage of cardboard and paper-based bags.
Regulations, Regarding the Use of Environment-friendly Products, to drive the Market
The environment-friendly packaging solutions have become a norm rather than an exception for packaging companies across the world. Profound changes in corporate standards, governmental policies, trade regulations , and consumer tastes have led to a paradigm shift toward eco-friendly solutions in the packaging market. France has banned the use of plastic bags since July 2016. According to the French Government, about 5 billion plastic bags are distributed at tills and 12 billion are used to pack fruit and vegetables. Many of these bags end up in oceans, where they are life-threatening to the marine life. The non-biodegradability of plastics and their harmful environmental effects have led to the commissioning of regulations that are banning the use of plastics. This factor marks a potential for the growth of paper packaging market.
All the major guidelines on packaging focus on toughness, recyclability, processing, and lightness of the materials. There are several governmental and trade bodies, such as FDA, Fair Packaging and Labelling Act, and federal regulations, entrusted with the task of framing these regulations.
Food and Beverages to Account for a Significant Portion of the Market
A fierce competition exists between the quality-product providers in the food market. Due to this parameters, manufacturers in the food market are continuously making and delivering high-quality products. The increase in the number of hypermarkets and supermarkets is expected to be one of the key factors driving the growth of the paper and paperboard containers and packaging market over the coming years. A rapidly expanding organized-retail sector has led to an augmented demand for food and beverages and other consumer care products. Most retail stores use packaging materials not only to preserve food but also to retain the nutritional value of food. An increasing number of consumers are purchasing grocery items, including frozen and chilled foods, which, in turn, is expected to drive the growth of the paper packaging market.
The food manufacturing companies have become cautious and are making extra efforts in the packaging of products. Various ranges of packaging materials in the market are available to fulfill various packaging needs, like corrugated boxes and cardboard boxes.
Asia-Pacific to Contribute Significantly to the Market Growth in the Forecast Period
Increasing number of manufacturing plants all over the region, combined with the growing consumerism and transit packaging sector in Asia Pacific, is contributing to the growth of paper packaging market. In 2016, among the countries of Asia-Pacific, China occupied the largest market share and India is estimated to be the fastest growing market over the forecast period.
The Indian pharmaceutical manufacturing market is of immense importance as it facilities the manufacturing of generic drugs in India, in a cost effective manner to stay competitive in the market. This factor is making the pharmaceutical companies, across the world, to choose India as their manufacturing destination. Even the Government of India is taking steps to provide incentives in the form of soft loans for the up gradation of Schedule M facilities to WHO GMP compliant units, which leads to additional 1000 units certified as WHO GMP compliant, further boosting the packaging of cartons and folding boxes, thus, driving the market for paper packaging. Corrugated boxes segment is expected to dominate the APAC paper packaging market, owing to the escalating rate of exports and the developing logistics sector of the country. Strong growth in sectors, like fast-moving consumer goods (FMCG) and cosmetics, due to the fast growing middle-class population along with organized retailing, is expected to spur the demand for paper packaging in the region.
Key Developments in the Market
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