Paper-based packaging includes a wide range of packaging solutions such as corrugated boxes, cartons, clamshells, cups & trays, paper sacks & bags, wrapping paper, inserts & dividers, display packaging, and tapes & labels. All these are efficient and lightweight packaging solutions. Moreover, paper-based packaging is one of the most eco-friendly and economic types of packaging. They also offer an advantage in terms of handling and attractive packaging. Paper-based packaging is used to pack a wide range of products such as fast foods, beverages, fresh foods, dairy & bakery, cosmetic products, and frozen foods.
The global paper packaging market was estimated to be valued more than US$ 345.0 billion in terms of revenue in 2019 and is predicted to grow at a CAGR of 4.4% during the forecast period (2020 to 2027).
Growing demand for flexible packaging that is available in the form of bags, pouches, envelopes, and cellulose is expected to fuel the market growth of paper-based packaging. Increasing demand for paper-based packaging in food, cosmetic, beverage, and other products is projected to augment the market growth of the paper-based packaging. Growth in the overall economic development in the developing region is further expected to fuel the market growth of the paper-based packaging.
Increasing online food delivery across developing and the developed region is expected to offer potential growth opportunities to the market of the paper-based packaging. This is attributed to the rising use of the internet and smartphone coupled with the increasing popularity of the online platform. Moreover, various discounts and schemes offered by online food delivery are further expected to fuel the market of online food delivery which in turn is propelling the market growth of paper-based packaging.
The availability of other substitutes of paper-based packaging is expected to curb the market growth of the paper-based packaging. Some of the substitutes available are glass, plastic, etc. Therefore, the availability of such a cost-effective packaging solution is expected to hamper the market growth of paper-based packaging.
On the basis of application, beverages dominated the global paper packaging market in 2019 with around 42% of market share in terms of revenue, followed by others and fast foods, respectively.
The increasing focus of the manufacturer to increase the production capacity of the paper is expected to positively impact the market growth of the paper-based packaging. For instance, in September 2019, JK Paper has announced that it is planning to augment production capacity from 4.5 lakh tons per annum to eight lakh tons per annum by 2020, with an outlay of around USD 27.91 million. The company will increase the manufacturing capacity from 4.5 lakh tons per annum to 6.5 lakh tons per annum through internal expansion, and then to 8.0 lakh tons per annum.
Increasing demand for paper-based packaging for cosmetic products due to rising environmental concerns is expected to augment the market growth over the forecast period. For instance, in October 2019, L’oréal launched the first paper-based cosmetic tube in collaboration with Albéa, a provider of cosmetic packaging. This breakthrough innovation offers brands from the L’Oréal group to replace the majority of the plastic currently used in their tubes with new bio-based and certified paper-like material.
Global Paper packaging Market - Impact of Coronavirus (Covid-19) Pandemic
Consumers are encouraging the use of packaged foods owing to the long shelf-life which has fuelled the growth of the market during the pandemic situation. This scenario is expected to continue with the extension of lockdowns in various countries across the globe.
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
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Hood Packaging Corporation
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