Corrugated Equipment Market Size

Corrugated equipment Market Size

Corrugated equipment market size was USD 226.77 million in 2020 and will grow at a CAGR of 3.3% from 2021 to 2027. The global paper consumption is increasing steadily, year on year and recently exceeded 400 million tons per year. More than half of this consumption can be witnessed in the U.S., China, and Japan. The growing sustainable packaging industry and the penetration of paper & paperboard products have resulted in the growth of packaging machinery worldwide.

End-use industries, such as food & beverage, pharmaceuticals, and electrical & electronics, are shifting their packaging preferences to ecofriendly materials such as paper & paperboard; therefore, rising demand for green packaging will drive the corrugated equipment market demand.

The increasing adoption of automated machines that can be used for a variety of paperboard substrates with ease-of-operation and high versatility, particularly for rather long printing runs on paperboard surfaces, is expected to fuel the corrugated machinery market adoption. These machines can operate at high speeds and their applicability with water- and oil-based inks will encourage the packaging industry. The product demand will be driven by the growing use of corrugated boxes in different packaging applications and transportation. Strong growth in e-commerce and retail-ready packaging will propel the corrugated equipment market share in the near future.
 

Corrugated equipment for the paperboard industry is experiencing strong technological advancements. This can be attributed to the high research & development expenditure and the introduction of automation and robotics in the field. The integration of IoT and automation into HQ flexo machines ensure repeatable process consistency, minimum waste, and easy manufacturing. Increasing demand for corrugated packaging and the rising trend of Fit-To-Product packaging will drive the corrugated equipment market growth.
 

The food & beverage industry is a major consumer of paperboard-based corrugated packages that are printed using flexographic printing machines. They are commonly used for packaging juices, milk, and cereal products. Moreover, paperboards generally outperform plastic materials in terms of light blocking properties. Paperboard packaging includes diverse physical formations such as blister backings, solid-fiber boxes, folding cartons, trays, set-up boxes, fiber drums, and convoluted & spiral-wound cans. The increasing consumption of such packaging is expected to bolster the corrugated equipment market sales for corrugated machines by 2027.
 

The corrugated machines market for paperboard manufacturing is closely related to the performance of paper & paperboard-based products across end-user industries. According to the American Forest & Paper Association reports, the U.S. containerboard volume escalated 1.9% in 2018 accounting for 39.7 million tons and 1.5% in 2019, accounting for 40.3 million tons. The overall growth registered was around 1.7% CAGR in the U.S. market. The rising demand for smart packaging in the e-commerce industry coupled with increased consumption of online products will boost the corrugated equipment market in the packaging sector.
 

Corrugated equipment is large and capital intensive to manufacture, thus the producers have to face many challenges in the development of the equipment as the market is quite competitive. End-user industries are constantly demanding world-class technologies and are expecting a higher efficiency and return of investment from industrial equipment; thus, the rapid design & development is the main challenge for industry participants.
 

The covid-19 pandemic had a significant impact on the global market and an unprecedented and disruptive impact on the global economy since its inception. Disruption in the supply chain is majorly attributed to the sudden creation of bottlenecks in raw material supply due to lockdowns and social distancing measures around the world. Temporary trade restrictions imposed by key nations created numerous challenges for industry stakeholders around the world. Moreover, a decline in consumption has forced manufacturers to decrease inventory and reduce the corrugated equipment market prices.