Folding cartons are widely used across the packaging industry for packaging of the heavy materials for shipping. They are made up of paperboard which created into box shapes with different sizes. Folding cartons are eco-friendly packaging solutions and are widely adopted across the e-commerce industry, food & beverage, and household goods industry.
The ASEAN Folding Cartons market is estimated to account for US$ 3,541 Mn in terms of value and 1,836.3 kilo tons in terms of volume by the end of 2019.
Growth in the packaging industry especially in India is expected to foster the market growth of the ASEAN folding cartons. Rise in the Indian middle class coupled with the growth in the organized retail sector is also expected to augment the market growth of the ASEAN folding cartons. Increasing demand for better packaging materials and machinery for producing folding cartons is further anticipated to fuel the market growth.
Growth in the ecommerce industry due to increasing users that prefer online shopping is expected to provide enormous opportunities to the market of ASEAN folding cartons. This is attributed to the increasing penetration of the internet in the country. According to McKinsey & Company, India is one of the largest and fastest-growing markets for digital consumers, with 560 million internet subscribers in 2018. Thus growing internet users is augmenting the e-commerce industry which is driving the market growth of folding cartons.
Manufacturing complexities associated with the short-run volume and print-on-demand operations are expected to hamper the market growth. This is attributed to frequent changes in die-cutters and ink for printing.
In terms of material type, solid bleached surface segment in the ASEAN folding carton market is expected to dominate the market throughout the forecast period.
By order type, customized order type segment dominated the ASEAN folding carton market in 2019, accounting for 78.5% share in terms of volume, followed by polypropylene segment
By end-use, food & beverage segment is expected to dominate the ASEAN folding carton market throughout the forecast period.
Product innovation by major manufacturers for global as well as regional expansion is the current trend in the market. For instance, in June 2017, PaperWroks has launched three new coated recycled board (CRB) Kraft back folding carton options. They’re engineered as cost-effective, 100% recycled alternatives to virgin kraft, with multiple appearance and performance benefits. Kraft back (general folding carton use), Kraftback Beverage (treated to provide tear strength for beverage applications) and Kraftback Freeze (moisture resistance for refrigerator or freezer applications.) are three product launches.
Key players are adopting advanced printing solutions for folding cartons by entering into a strategic alliance is expected to be a major trend in the market. For instance, in April 2019, Durst Phototechnik and Koenig & Bauer, are joining forces, with the goal of making production-level digital printers for both folding carton and corrugated applications. The newly combined forces have the potential to serve both folding cartons and corrugated – packaging applications.
ASEAN Folding Carton Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic has negative impact on the global economy during the first two quarters of 2020. The folding carton has high demand in the e-commerce industry across the ASEAN region. Amid COVID-19, the demand for the folding carton has witnessed drop. However, the requirement of folding cartons are not in e-commerce industry only, the food industry is expected to witness high demand for folding cartons post COVID.
Few Recent Developments
By End Use
By Order Type
By Material Type