Corrugated Packaging Market – Insights
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.
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 continuing 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 the demand of corrugated packaging. It is due to the factor that corrugated packaging can standard distribution of products better than normal packaging. This concludes that there is rising demand for economic and cost-effective corrugated packaging.
Also, 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 the growth of the corrugated packaging. These factors let packaging converters to manufacture top quality corrugated packaging to cater to the changing packaging need during the forecast period.
E-commerce sector introduced a concept of fit-to-product packaging and a concept of box-on-demand packaging. The demand for fit-to-product type corrugated packaging is majorly driven by the e-commerce sellers. The e-commerce service providers can choose the right-sized box so that the packaging would perfectly fit the product, enhanced consumer appeal and appearance of product, and also, it saves packaging material. These factors are likely to increase demand for corrugated packaging during the forecast period.
Moreover, annual test carried out in the U.S. has verified the cleanliness of corrugated shipping containers. The test was carried out by the Fiber Box Association (FBA) and its member company. The laboratory analysis and sampling were performed by a laboratory based in California. The study showed that no micro-organisms were found on 90% of the tested corrugated shipping containers. This study is likely to increase demand for corrugated packaging during the forecast period.
Companies operating in the global corrugated packaging market are focusing on adopting various strategies to offer innovative and sustainable products. The technological advances are made in the packaging manufacturing permits the corrugated package to offer marketing functionality, which means it can help in branding and promotion of products. It is owing to the fact that digital printing technology and capabilities have evolved dramatically during the last decade.
The global corrugated packaging market was valued at US$ 273.7 Mn in 2018 and is expected to exhibit a CAGR of 3.4%, in terms of revenue over the forecast period (2019-2027), to reach US$ 357.6 Mn by 2027.
Figure 1. Global Corrugated Packaging Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Asia Pacific accounted for the largest revenue share of 46.5% in the global corrugated packaging market in 2018, followed by North America and Europe. In Asia Pacific, economies such as China, South Korea, and India are expected to exhibit significant growth in the corrugated packaging market over the forecast period, owing to exponential growth of logistics and transportation, majorly driven by the e-commerce industry. For instance, the e-commerce industry in China is growing and is expected to grow further during the next decade. According to the China E-commerce Report, China’s total e-commerce transactions crossed around US$ 4.2 trillion in 2016. Similar trends are followed in the Indian e-commerce industry as well. These factors are expected to drive demand for corrugated packaging during the forecast period.
Figure 2. Global Corrugated Packaging Market Share (%), By End Use, 2018
Source: Coherent Market Insights, 2018-19
Among end use, electronics & electrical segment is expected to witness highest growth rate 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 B2B 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.