Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
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.
The global paper packaging market is projected to surpass US$ 485.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 4.4% during the forecast period (2020 to 2027).
Rising production of paper is expected to serve as a major driving factor for the market of the paper-based packaging. According to International Energy Agency, the paper and paperboard production growth rate accelerated to 2.3% in 2017, up from 0.7% during 2010?16, 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.
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.
Regionally, Asia-pacific dominated the global paper packaging market in 2019, reporting 37% market share in terms of revenue, followed by North America and Europe, respectively.
Figure 1. Global Paper Packaging Market, Revenue Share (%), By Region, 2019
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.
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.
Imposing a ban on the use of plastic by the government is expected to open new avenues to the market of paper-based packaging. Various countries such as China, India, and Taiwan has implemented environmental safety policies in order to eliminate the usage of single-use plastic. For example, in January 2020, new policy was implemented by the National Development and Reform Commission and the Ministry of Ecology and Environment, the directive will see non-degradable bags banned in major cities by the end of 2020 and in all cities and towns by 2022.
Figure 2. Global Paper Packaging Market – Opportunity Analysis
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.
The rapid expansion of the frozen and fast food sector in the emerging region is expected to bolster the market growth of the paper-based packaging. High demand for packaged and convenience food due to the busy lifestyle of the consumers in the developed as well as developing regions is again fostering the market growth of the paper-based packaging over the forecast period.
Figure 3. Global Paper Packaging Market, Revenue Share (%), By Product Type, in 2019
On the basis of product type, liquid packaging cartons dominated the global paper packaging market in 2019 with around 42% of market share in terms of revenue, followed by others and carton & folding boxes, respectively.
Global Paper packaging Market - Impact of Coronavirus (Covid-19) Pandemic
Rising demand for packaged food & beverage products among consumers across the globe has fuelled the growth of the market during the pandemic situation. The global paper packaging market is expected to grow at a higher CAGR of around 10% for a short term period till 2021. Major players in the market are expected to adopt mergers and acquisitions with rising turmoil in capital markets in order to maintain stability and create barriers for competitors.
Key players are operating in the global paper packaging market are 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, and The Mayr-Melnhof Group
Few Recent Developments
DS Smith PLC
- In April 2019, DS Smith Plc has announced the sale of two packaging businesses to United States-based International Paper (IP).