Corrugated packaging is manufactured using a corrugated paperboard that encloses multiple rows of air columns. The air columns between the papers make these packaging stronger than usual cardboard packaging. In corrugated packaging, the air acts as a cushion for products placed inside them. The ridges in the paperboard offer flexibility and strength, as required in packaging.
Corrugated Packaging Market was valued at US$ 283.1 Billion in 2021 in terms of revenue, exhibiting a CAGR of 4% during the forecast period (2022 to 2030).
Growth of e-commerce sector is expected to increase demand for corrugated packaging. Also, rising acceptance of retail-ready packaging is gaining traction, owing to its advantage of saving time in managing products. Retail-ready packaging has gradually become common in developed countries due to labor cost and time savings it offers. Corrugated packaging is a sustainable and low cost option when compared to its counterparts such as plastic containers. This is expected to result in increasing demand for corrugated packaging from the packaging sector.
E-commerce sector is continues to propel during the forecast period. The exponential growth of complex logistics chain for direct to door delivery of e-commerce packages is expected to drive demand of corrugated packaging. This means that corrugated packaging can standardize distribution of products better than normal packaging. Thus, it can be concluded that there is rising demand for economic and cost-effective corrugated packaging.
COVID-19 impacted the corrugated packaging market globally as demand of the finished products had gone down which resulted in lower demand of the corrugated packaging. All the regions had to take the strict action towards the increasing count of the coronavirus cases which led to lockdowns in several regions. Hence, resulting into less demand of the consumer goods, and raw materials, which resulted into the loss to the corrugated packaging manufacturers during the pandemic situations.
Asia Pacific accounted for the largest revenue share of 50.5% in the global corrugated packaging market in 2021, followed by North America and Europe.
Figure 1. Global Corrugated Packaging Market Value Share (%), By Region, 2021
Flexible plastic packaging provides the highest advantage for manufacturers and retailers as it reduces the weight of packaging which can result in reduced shipping and warehousing costs, thereby enabling the requirement for significantly less space. For consumers, it provides convenience through features such as single-serve portions, easy-to-open, and easy-peel options, and the food tastes better in retort pouches than that in traditional tin cans. This can lead to competition for corrugated packaging market. People might prefer flexible plastic packaging instead of corrugated packaging because it’s easy to use and plastic packaging also protects product from water.
|Base Year:||2021||Market Size in 2021:||US$ 283.1 Bn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||4.0%||Forecast Period:||2022-2030|
International Paper Company, West Rock Company, DS Smith Packaging Limited, Mondi Group, Nefab Group, Georgia-Pacific, Smurfit Kappa, Stora Enso, Packaging Corporation of America, and Graphic Packaging International, LLC.
|Restraints & Challenges:||
Rising trend of usage of corrugated boxes as secondary packaging by various manufacturing companies to enhance their brand image among the consumers when they unpack their products is expected to drive growth of the corrugated packaging. These factors leads manufacturers to make top quality corrugated packaging to cater the changing packaging need during the forecast period.
Figure 2. Global Corrugated Packaging Market Value Share (%), By End-Use, 2021
Among end use, transportation & logistics segment is expected to witness highest CAGR during the forecast period. However, transportation & logistics segment is expected to hold dominant position in the corrugated packaging market during the forecast period, owing to rising need for transporting products from one place to another, majorly catered by business to business distribution channel.
Major players operating in the global corrugated packaging market include International Paper Company, West Rock Company, DS Smith Packaging Limited, Mondi Group, Nefab Group, Georgia-Pacific, Smurfit Kappa, Stora Enso, Packaging Corporation of America, and Graphic Packaging International, LLC.
Corrugated packaging is a paperboard-based packaging. The corrugated board is made up of a combination of two sheets of liners, which are glued to an inner supporting medium called fluting. These layers of paper together give the overall product a better strength than that of individual layer. The corrugated board is converted into different kind of packaging products for various end-use industries such as e-commerce, electrical & electronics, logistics & transportation, personal care & cosmetics, and food & beverages among others.
Corrugated packaging is strong and durable and provides protection to food and beverage products especially when they are shipped to long distances and handled by various laborers. Corrugated boxes also enable the option of customization such that it has the right size to fit the product. Customization helps in creating brand awareness and customers often feel impressed as it looks professional. Since customized branding is an excellent approach to impress consumers. Companies also add a personal touch to boxes, which is a key to gaining clients' loyalty and encouraging repeat purchases.
Corrugated packaging is very cost-effective and completely biodegradable and it can be recycled and reused multiple times. There is a global desire to eliminate one time use and throw plastics, thus corrugated stands out as the best solution as environmentally concerned population is rapidly increasing and people are willing to prefer such companies who make an attempt toward sustainability.
Artificial Intelligence (AI) and Machine Learning (ML) are emerging trends extensively used by corrugated packaging companies. 3D printing is increasingly being utilized in industrial applications. AI has the potential to visualize an algorithmically produced package that is ideal for certain products. By lowering labor expenses and improving output in corrugated packaging industry, businesses can increase profits. AI helps data processing quickly and efficiently, also AI-enabled machines are more accurate than people.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section
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