PAPER PACKAGING MARKET ANALYSIS

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).

Drivers

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

Market Restraints

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.

Market Trends

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.

Recent Developments

• On June 20, 2022, Central National Gottesman Inc. (CNG), manufacturer of pulp, paper and packaging products, announced that its North American Distribution Division has acquired Lewis Paper International, Inc., a leading distributor of paper, packaging and wide-format products headquartered in Addison, Illinois, U.S. The acquisition of Lewis Paper will grow Central National Gottesman Inc.’s paper business and the commercial printing sector. Addition of the Lewis Paper International, Inc.’s production facilities will allows to strengthen Central National Gottesman, Inc.’s service and grow the production capacity for the paper packaging.
• On Jan 27, 2022, Amcor plc, a developer & producer of packaging solutions for a variety of food, beverage and pharmaceutical products, launched a new platform of paper-based packaging products AmFiberTM. Amcor plc is engaged in developing and producing sustainable packaging solutions. AmFiber innovations aim to redefine the capabilities of traditional paper packaging, providing a wider range of features and functional benefits to meet the changing needs of consumers.
• On March 8, 2022, The International Paper have invested nearly US$ 24.15 million in plants of Mortagne (France) and Chalon (France) to adapt their production capacity to growth of the paper sector and to offer even more sustainable packaging to customers. As part of the project, up to 50 new positions will be created in France.

Competitive Section

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.