Paper packaging is the type of flexible and rigid paper packaging which is available in various different formats such as paper sacks, corrugated boxes, clamshells, paper bags, paper cartons, carton & folding boxes, cups & trays, and tapes & labels. Paper packaging has substantial weight related advantages which ensure long term benefits in terms of raw material inputs and distribution efficiencies.
Global paper packaging market was valued at US$ 373.7 Billion in 2021 in terms of revenue, exhibiting a CAGR of 4.7% during the forecast period (2022 to 2030).
Increasing demand for eco-friendly packaging solutions due to growing environmental concerns is projected to augment the market growth of the paper-based packaging. Growing awareness among consumers regarding sustainable packaging is also contributing to the market growth of paper-based packaging. Moreover, rising governmental strict regulations regarding environmental protection will further favor the market growth of paper-based packaging.
Rising production of paper is expected to serve as a major driving factor for the market of the paper-based packaging. According to the International Energy Agency in November 2021, paper and paperboard production is expected to expand 1.5% annually to 2030, and demand is expected to continue rising to 2030, driven by a growing population and economic growth. Thus, growth in paper production will favor the market growth of paper-based packaging.
In terms of revenue, Asia Pacific held a dominant position in market in 2021 and is expected to maintain its dominance throughout the forecast period. The rising number of manufacturing plants all over the region, combined with the growing consumerism and transit packaging sector in the Asia Pacific, contributes to the growth of the paper packaging market. Due to the increasing need for paper pulp in developing countries such as India and China, the region will grow fastest. According to Indian Brand Equity Foundation report in May 2022, Paper and paperboard exports from India reached an all-time high of US$ 1.79 billion in the financial year of 2021-2022, an increase of nearly 80% year on year. The growing production and exports from this region is driving the market for paper packaging in this region.
Figure 1. Global Paper Packaging Market Value Share (%), By Region, 2021
Major challenges associated with the paper packaging are its inability to package heavy materials which result in the manufacturer opting for polymer materials for packaging is expected to restrict the market growth of the paper-based packaging. Strict environmental regulation regarding deforestation due to extracting raw materials for producing paper and the release of harsh chemicals during paper production is expected to hamper the market growth of the paper-based packaging.
|Base Year:||2021||Market Size in 2021:||US$ 373.7 Bn|
|Historical Data for:||2017-2021||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||4.7%||Forecast Period:||2022-2030|
DS Smith PLC, Georgia-Pacific Corporation, Holmen AB, Hood Packaging Corporation, International Paper Company, MeadWestvaco Corporation, OJI Holding Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj, The Mayr-Melnhof Group, Sonoco Products Company, Pratt Industries and WestRock Company.
|Restraints & Challenges:||
The growing trend of liquid packaging cartons such as tetra packs and pouches is expected to foster the market growth of the paper-based packaging. Increasing consumption of beverage among consumers coupled with the growing trade activities around the globe is another major trend in the market. High GDP growth rate across developing regions such as the Asia Pacific along with the development of various end-user industries is further contributing to the market growth.
Figure 2. Global Paper Packaging Market Value Share (%), By Product Type, 2021
On the basis of product type, the liquid packaging carton segment held highest market share of global paper packaging market in 2021. The increasing inclination of the general population against packaged food & drinks is anticipated to expand demand for the liquid packaging cartons market during the projection period. Further, the innovation in packaging, the increasing industrialization & urbanization, and the recyclable nature of cartons are the driving the demand for liquid packaging cartons globally.
Major players operating in the global paper packaging market include DS Smith PLC, Georgia-Pacific Corporation, Holmen AB, Hood Packaging Corporation, International Paper Company, MeadWestvaco Corporation, OJI Holding Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj, The Mayr-Melnhof Group, Sonoco Products Company, Pratt Industries and WestRock Company.
Paper-based packaging is a lightweight and cost-efficient packaging solution that provides proper protection to a wide range of products. Containerboard, paperboard, paper bags, and shipping sacks are type of paper-based packaging. Containerboard is produced by using cardboard, paperboard is thick and paper-based packaging bag comes in various grades that possess unique properties that are ideal for packaging of cereals, cosmetic boxes, and medicine. Paper bag is produced by using Kraft paper and available in different shapes and sizes. Shipping sacks are multi-wall paper sacks and mostly used to ship bulk products.
Increasing adoption of paper recycling technologies and rising R&D activities by the government and manufacturers are expected to present lucrative opportunities to the market. The growing demand for paper packaging to provide an aesthetic look to the packaged product is also expected to augment the market growth of paper-based packaging. Rising demand for corrugated cases for shipping of material in bulk amount is further projected to augment the market growth of the paper-based packaging.
The growing government regulations and ban on the single use plastic items is driving market for the paper packaging market. For instance, according to an Indian government’s Ministry of Environment, Forest and Climate Change on June 22, 2022, India will ban manufacture, import, stocking, distribution, sale and use of identified single use plastic items, which have low utility and high littering potential, all across the country from July 1, 2022. India generates 3.5 million tonnes of single use plastic per day, the ban on the single use plastic will stop the usage of single use plastic.
Paper packaging can be easily recycled and does not pose any threat to the environment. The global push for recyclability in the paper packaging market will create enormous opportunities for recycling companies globally. With the growing demand for packaging in the key end-use sectors such as food & beverages, electrical & electronics, and e-commerce industries, the demand for corrugated boxes and cartons is expected to witness significant growth in paper packaging during the forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section