CORRUGATED PACKAGING MARKET ANALYSIS

Market Size and Trends

Global corrugated packaging market is estimated to be valued at USD 152.17 Bn in 2024 and is expected to reach USD 202.95 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.

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Global corrugated packaging market is expected to show steady growth over the forecast period due to the rising demand from industries such as food and beverages, personal care, healthcare, and retail among others. Key growth drivers include sustainable packaging demands, rise of e-commerce, and single serve demands from various end-use industries. Corrugated packaging offers advantages such as durability, lightweight, recyclability, and cost effectiveness. In addition, the growing demand for packaged food & beverages from online grocery channels amid the COVID-19 pandemic is pushing the need for corrugated packaging. However, fluctuations in raw material prices may hamper the market growth to some extent over the forecast period.

Sustainable packaging demands

The growing concerns over environmental degradation and climate change across the globe have brought packaging sustainability to the forefront. More and more companies are committing to use green packaging materials and solutions in response to rising customer demand for eco-friendly products. Corrugated packaging is widely regarded as one of the most sustainable options due to key advantages such as having a high recycled content, being lightweight yet durable, and being reuse and recyclable. Statistically, corrugated board has a 65-75% recycled content on average. This makes it a very resource efficient material. Additionally, corrugated boxes can withstand multiple handling and transport cycles without degradation in structural performance. After use, corrugated boxes can be recycled numerous times into new fiber boxes thereby achieving an overwhelmingly high recycling rate of over 90%.

Sustainabliity credentials of corrugated packaging are proving extremely appealing to major FMCG brands, e-commerce giants, and other industries striving to reduce their environmental impact. More than design, price, or any other factor, sustainability has become a strategic priority and a competitive marketing tool. Players across sectors are integrating sustainability into their brand narratives and greening their supply chains. They realize that sustainable packaging helps address stakeholder expectations while capturing a bigger growth of market share for eco-conscious consumers. Regulatory pushes to curb waste and carbon also necessitate sustainable solutions. With its clear sustainability advantages, corrugated packaging stands to benefit tremendously from this powerful macro driver.

Market Concentration and Competitive Landscape

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Rise of E-Commerce and single-serve demands

E-commerce boom coupled with changing consumption patterns present a massive growth opportunity for corrugated packaging. With the increase in online shopping, there is a higher demand for secure, damage-resistant, and customized packaging for individual product shipments. E-tailers need packaging that can withstand the complexities of a supply chain that involves multiple handlings from warehouse to doorstep. Corrugated boxes fit the need perfectly with their inherent strength, rigidity, and ability to customize print and size. At the same time, consumers are leaning towards smaller, single-serve, and right-sized packages matching their immediate needs. Goods are preferred in single-item or single-serve packages rather than bulk packs.

This rise of single-serve and custom demand favors corrugated packaging over alternatives like plastic. Producing corrugated boxes is a high volume yet flexible process allowing mass-customization.

Key Takeaways from Analyst:

The corrugated packaging market has substantial potential for future growth. Dominated by North America currently, Asia Pacific is expected to take over as the fastest growing regional market. This can be attributed to the rising e-commerce industry and increasing demand from other end-use sectors such as food and beverages, personal care, healthcare and retail in the region.

The demand for sustainable and eco-friendly packaging solutions is driving increased preference for corrugated packaging among manufacturers and brands. Additional use of  cases emerging from the shipping of fragile items requiring protection is another opportunity for corrugated boxes. However, stiff competition from alternatives such as flexible plastic packaging poses a key challenge. Fluctuations in raw material prices also impact profitability.

Stricter regulations regarding single-use plastics are likely to boost the usage of corrugated packaging further. Innovation around barrier coatings and liner qualities will help widen the scope of applications. Automation in production is increasing efficiency. Additionally, the growing last-mile delivery network and emphasis on safe delivery are favoring corrugated boxes.

Market Challenges: Volatility in raw material prices

The volatility in raw material prices has significantly affected the growth of the global corrugated packaging market in recent times. Corrugated packaging is primarily made from linerboard which uses liner and fluting to form the core of packaging boxes and containers. The key raw materials used for producing linerboard are containerboard and kraftliner which are manufactured using pulp. Pulp is produced from wood and other plant fibers and its prices widely fluctuate according to global supply and demand dynamics. In recent years, the prices of wood pulp have witnessed steep increases owing to myriad factors like strong demand from China and other developing nations, supply-side bottlenecks, shortage of raw materials due to deforestation, and high freight charges.

Market Opportunities: Product innovations and development of packaging designs

Product innovations and development of packaging designs presents a major opportunity for growth in the global corrugated packaging market. With companies across industries focusing increasingly on sustainable and environment-friendly packaging solutions, corrugated packaging is poised to grow substantially. Being one of the most recycled packaging materials in the world, corrugated packaging appeals widely to companies aiming to reduce plastic waste. Recent data from the US Environmental Protection Agency shows the corrugated packaging recycling rate was over 87% in 2020, higher than any other material.

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Insights by design: Cost effectiveness drives growth of Single wall boards

In terms of design, single wall boards segment is estimated to contribute 31.8% share of the market in 2024, owing to its cost-effective nature. Being the simplest corrugated packaging solution, single wall boards require only one corrugated material layer between two flat linerboards, making it thinner and lighter than other multi-wall options. This translates to lower material consumption and production costs. It also benefits from relatively low transportation costs owing to its light weight. Compared to double or triple wall boards, single wall boards have a lighter footprint that allows more packaging solutions to fit in the same truck or shipping container. Their affordable price point makes them extremely popular for low to medium strength packaging of non-fragile and low-value products. Various small businesses leverage the cost savings of single wall boards to package everyday items for customers while still staying within tight budgets. Their ubiquity and widespread use continue to drive the highest demand in the design segment.

Insights by product type: Versatility drives Boxes' dominance in Product Type segment

In terms of Product Type, boxes segment is estimated to contribute 30.5% share of the market in 2024, due to its unmatched versatility. Boxes can be manufactured in a variety of shapes and sizes with different opening styles to suit nearly any product dimensions or shipping requirements. Their modular design allows for easy assembly without additional fixtures or fasteners. Boxes also provide protection from damages on all six sides, rendering them suitable for most packaging needs. Compared to alternatives like crates and trays, boxes offer superior substance to withstand pressures of stacking and vibration during transport. These packaging boxes can be quickly branded and customized with company logos or informational text as per the users' needs. Such modular and customizable properties have made boxes ubiquitous across diverse end-use industries for both domestic and international shipments.

Insights by end use: Demand from established industries lifts food & beverage at the top in end use segment

In terms of end use, food & beverage segment is estimated to contribute 39.7% share of the market in 2024, driven by strong demand from some of the largest and most established industries. As a sector, food & beverage companies have wide-ranging packaging needs for various commodities, ingredients, finished products and food services. Non-durable nature of food items necessitates robust yet lightweight and affordable packaging like corrugated to prevent damages and contamination. Stringent government regulations regarding food safety have further increased the reliance on corrugated materials. Moreover, the urbanizing population is driving growth in ready-to-eat and processed food segments which boost corrugated packaging consumption. Established food brands and private label manufacturers continue investing in corrugated boxes, trays, and displays as an economical way to reach customers. Such consistent requirements from mature food industries have positioned this end use segment as the primary driver of overall corrugated demand.

Regional Insights

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North America has been dominating the global corrugated packaging market for decades with an estimated market share of 34.5% in 2024. The well-established packaging industry and strong presence of key players in the region have allowed North America to lead in terms of overall market size and revenue share. Majority of the top corrugated packaging brands globally are headquartered in the U.S., giving them competitive advantage in the home market through strong customer relationships, brand recognition and expertise in producing a wide variety of corrugated products. Moreover, the region's well-connected logistics infrastructure and advanced manufacturing capabilities enable seamless supply of packaging solutions to customers across industries such as food and beverages, chemicals, pharmaceuticals, consumer goods, and e-commerce.

North America remains the market leader, and  Asia Pacific region has emerged as the fastest growing market for corrugated packaging in recent years. Rapid growth of end-user industries coupled with rising domestic consumption has propelled the demand for cost-effective and sustainable packaging formats in Asia Pacific. Two of the world's largest developing economies China and India are spearheading growth in the region supported by their giant manufacturing sectors and growing middle-class populations. E-commerce boom in the region has further boosted the upstream corrugated packaging demand.

Market Report Scope

Key Developments

• In May 2024, Toyota announced the development of new corrugated packaging solutions that boost load capacity and efficiency.
• In February 2024, Canon launched large format printers with cardboard packaging
• In 2023, Macfarlane Packaging relaunched its standard single and double wall 'stock box” range in its most sustainable offering
• In 2023, Bobst’s new launched helped customers thrive in modern packaging industry

*Definition: Global corrugated packaging market consists of companies that produce corrugated boxes and other corrugated container products that are used for packaging and shipping a wide variety of goods. Corrugated boxes are made from corrugated fiberboard, which is a thick paper material made of corrugated or fluted layers of paper that act as a strong yet lightweight material for shipping and storage containers. Corrugated boxes protect products during shipping, storage and distribution, making them an essential part of supply chains for many industries that need to package and ship goods safely and securely.

Market Segmentation

• Design Insights (Revenue, USD Bn, 2019 - 2031)
  • Single wall boards
  • Single Face boards
  • Double wall boards
  • Triple wall boards
•  Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Boxes
  • Crates
  • Trays
  • Octabin
  • Others (Pallet, etc.)
•  End Use Insights (Revenue, USD Bn, 2019 - 2031)
  • Food & Beverage
  • Electrical & Electronics
  • Home care products
  • Personal care products
  • E-commerce
  • Transportation & Logistics
  • Healthcare
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • DS Smith Packaging Limited
  • Menasha Corporation
  • Green Bay Packaging Inc.
  • Georgia-Pacific, LLC
  • Smurfit Kappa
  • WestRock Company
  • Pratt Industries Inc.
  • International Paper
  • Express Packaging Inc.
  • Precision Corr
  • Gabriel Container Co.
  • Paramount Container & Supply Inc.
  • CB Group
  • BC Box Manufacturing Ltd.
  • SeaCa Plastic Packaging
  • Solid Box
  • Acme Corrugated Box Co., Inc.
  • Texas Corrugated Box.
  • General Packaging Corporation
  • Daniel and John Underhill