Analysts predict that price increases will continue into the New Year, along with the introduction of new hot topics such as tariffs.
Certain trends in the containerboard industry, such as price rises, are likely to continue into 2025. However, other problems, such as new tariff threats, are emerging as rivals for top focus in the coming year.
Packaging Corporation of America became the first major fiberboard producer to disclose these increases for 2025 last month. Soon after, International Paper, Georgia-Pacific, Smurfit Westrock, Pratt Industries, and Cascades all raised their prices, and Greif joined in this month.
At least five domestic uncoated freesheet producers announced January price increases of around 5-10%, said market analysts who reported such news in December.
Several containerboard makers tried to raise prices for various grades twice in 2024.
Industry observers believed that the overall economy, which they said has lacked sufficient demand, could not support one price hike this year, much less multiple ones. However, the following attempts were mostly driven by producers trying again when leading third-party index Fastmarkets RISI indicated that the market did not accept the full increases that producers had stated.
CMI Research: Corrugated Packaging Market Insights
Corrugated packaging industry is projected to grow at a CAGR of 4.2% during 2024 and 2031, Coherent Market Insights reports, driven by growing demand from the food & beverages and personal care industries. Corrugated packaging worth around US$ 152.17 billion in 2024 is estimated to reach above US$ 202.95 billion by 2031.
North America remained the market leader in the corrugated packaging market for a long time, and it is expected to have a market share of around 34.5% in 2024. A significant boom in e-commerce increased the demand for corrugated packaging. Online merchants demand long-lasting, lightweight, and cost-effective solutions for the secure distribution of products.
Analyst's View: Strategic Role in the Growth of the Corrugated Packaging Market
Kalpesh Gharte, senior consultant, feels that the corrugated packaging market has vast potential for growth. Asia Pacific will take the region with the highest growth rate from North America. The growth of this region is due to the rapidly expanding e-commerce industry and other end-use industries such as food and beverage, personal care, healthcare, and retail.
Conclusion
Corrugated packaging is an economical, environmentally conscious, and a long-term package for organizations. It promotes safe products, shipping at low prices, and successive initiatives for eco-friendliness. Innovative designs and materials have the potential to enhance brand images, logistics arrangements, and serve and maintain higher consumer demands to be sustainable in the future.