Corrugated packaging is made from a combination of sheets of paper called liner and flutes. Corrugated boxes protects the products due to its cushioning qualities, rigidity, bursting strength, puncture resistance, and edge crush resistance, which enables them to bear impact through movement and transportation. They are light in weight, which makes them easy to handle and increases the weight of transported goods reducing the transportation expense. The production cost of corrugated boxes is very low, as the raw materials required for production are available in large quantity and are inexpensive. They can work well with printing techniques such as digital, screen, and litho printing, so that companies can print their product information, logos, brand promotion, and contact address. They are available in various sizes, colors, and design, which makes them suitable for a variety of products. They are ecofriendly and can be reused and recycled.

The growing use of this economical, ecofriendly, and light weight packaging by various end users such as electronics, automotive, pharmaceuticals, healthcare, and food and beverages is the major growth driver for corrugated packaging market. Advancement in e-commerce sector is augmenting corrugated packaging market. The durability of corrugated packaging and its inability to withstand harsh outdoor and indoor conditions are the major challenges faced by corrugated packaging market. Developments in corrugated packaging include improved water resistance, corrosion resistance, decreasing the corrugated board weight, cooler corrugating, zero defect technology, and exploring new fields such as microencapsulation and nanotechnology. 

South East Asia Corrugated Packaging - Market Taxonomy

Based on box type, South East Asia corrugated packaging market is segmented into:

  • Folder Box
  • Rigid Box
  • Slotted Box
  • Telescope Box
  • Others

Based on box type, South East Asia corrugated packaging market is segmented into:

  • Food and Beverages
  • Automotive
  • Electronics
  • Health and Hygiene
  • Pharmaceuticals
  • Others

There is a lucrative demand for corrugated packaging material in food and beverages industries, as they are mainly used in packaging of processed food. The use of corrugated boxes in fresh food packaging is fueling the growth of corrugated packaging market.  

South East Asia Corrugated Packaging - Market Outlook

  • The corrugated packaging market started in South East Asia after Second World War, owing to high demand of corrugated packaging for trade.
  • Indonesia has lucrative market for corrugated packaging. The rapid growth in industrial and agricultural sector followed by fast expansion of shopping malls and supermarkets is fueling the growth of Indonesian corrugated packaging market.
  • Vietnam has a rapidly increasing consumer goods market where consumers prefer purchasing food and beverages through box which will drive the corrugated packaging market.
  • The corrugated packaging industry in Thailand has been stimulated due to growing consumer expectations, increase in purchasing power of consumers, and changing lifestyle and preferences.
  • Singapore has a requirement of high quality corrugated boxes for good quality printing that catches consumer attention. In January 2017, the National Environment Agency of Singapore announced to introduce increased sustainability packaging regulation, which will affect corrugated packaging market in this region.
  • In Malaysia and Philippines, the changing industrial structure and economic growth respectively will augment the market for corrugated packaging.
  • Rest of South East Asia will have a significant demand for corrugated packaging, owing to increasing demand by various end-use industries.

The companies are adopting various organic and inorganic growth strategies to retain their market position. For instance, Thai Containers Group Co., Ltd, which is a joint venture between SCG Packaging Public Company Limited has acquired 80% stake in PT Indocorr Packaging Cikarang in April 2017. Key market players operating corrugated packing in the South East Asia corrugated packaging include Perhimpunan Industry Corrugated Cardboard Indonesia, PT. IPI (International Packaging Industries Ltd.), The Box Company, Acter Carton Sdn Bhd, FinePac Industries Sdn Bhd, Stanpack Industries Pte Ltd., Tat Seng Packaging Group Ltd,   Cheng Heng Paper Product Co. Pte Ltd., and  Binh Minh Packaging.

South East Asia Corrugated Packaging – Key Developments

  • In June 2018, the cardboard box company was acquired by the Logson Group, which is an independent supplier of corrugated packaging. The cardboard box company would operate as a stand-alone brand within the Logson Group. With this acquisition, the companies can collectively offer a range of corrugated packaging solutions to its customers from 18 locations across UK.
  • In April 2017, Rengo Co., Ltd. which is a joint venture between SCG Packaging Public Company Limited and Thai Containers Group Co., Ltd, has acquired 80% stake in PT Indocorr Packaging Cikarang. With this acquisition, the distribution operations of the company would increase to seven locations within Indonesia. Rengo Group has also stated that the corrugated packaging business within the South East Asia would be of strategic focus of conducting the overseas operations of the business.
  • In 2014, Tat Seng Packaging Group Ltd established an International Safe Transit Association (ISTA) within its Suzhou Plant. This plant was equipped with cutting-edge testing equipment, which is capable of testing on compression, shock, vibration, stacking and other similar tests on corrugated boxes and the corrugated carton box.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users