Paperboard Packaging Market size worth over $200 billion by 2026
Published Date: October 9, 2020 Authors: Kiran Pulidindi, Akshay Prakash
According to a new research report by Global Market Insights, Inc., the Paperboard Packaging Market size will exceed USD 200 billion by 2026. Development in the sustainable packaging industry owing to increasing consumer awareness toward environmental protection.
Rising packed food consumption to emerge as a major growth engine
Paperboard is a natural fiber-based packaging material manufactured through wood pulp and recovered fibers. The typical paperboard packaging comprises a top ply of bleached or unbleached pulp surface to provide structural integrity and printability. The material is increasingly gaining adoption from major players especially in the F&B industry owing to material degradability. As the material is mostly made out of bio-materials, it is easier to decompose and recycle relatively to petroleum-based plastic packaging options.
Supportive government policies and initiatives to reduce environmental pollution are augmenting paperboard packaging market growth. In October 2019, the Food Safety and Standards Authority of India’s (FSSAI) launched sustainable packaging campaign promoting the use of natural sources such as bamboo, compostable plastic, and paperboard, etc. Similarly, big FMCG brands, such as Nestle, are also increasingly inclined toward natural packaging solutions.
As of August 2019, the company’s Japanese division announced a switch from plastic to paperboard-based packaging solution for its KitKat candy bars.
In wake of the ongoing COVID-19 pandemic, the sudden surge in demand for packed food and other products during the first two quarters of 2020. Growth in packaged good demand will induce significant growth potential in the industry landscape. Further, the gradual opening of the economy is expected to stabilize the supply chain and demand curve.
Browse key industry insights spread across 195 pages with 302 market data tables & 27 figures & charts from the report, “Paperboard Packaging Market By Raw Material (Fresh Sources, Recycled Waste Paper), By Product (Boxboard [Folding Boxboard, Solid Unbleached Board, Solid Bleached Board, White Lined Chipboard], Containerboard), By Application (Food & Beverages, Non-Durable Goods, Durable Goods, Medical), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Fresh source will witness over 2% CAGR in paperboard packaging market share through 2026. The key fresh raw material source is wood, a naturally renewable resource. Wood pulp acquired a significant market share compared to the other fresh source types such as sugarcane bagasse, straw, hemp, cotton, etc. The use of paper and paperboard packaging accelerated during the end of the 19th century to meet the increasing needs of the manufacturing industry.
Pulpwood is mainly produced in industrialized countries present in temperate, boreal, & warm-temperate zones and in these areas forest cover is increasing and there is a significant annual increment in which new growth exceeds the amount harvested. This paperboard packaging market segment is analyzed to continually spur as global demand for high-quality packaging increases.
Container board to likely remain as a dominant shareholder amidst strong demand from developing regions
Containerboard held a dominant share of over 75% in paperboard packaging market volume in 2019 and is anticipated to witness significant growth. Containerboard is primarily manufactured from natural unbleached wood fibers and pulp. It can be coated to enhance its presentation whenever required. Increasing usage of containerboards for various creative and functional packaging purposes will foster industry demand. Asia Pacific and Latin America are fast-growing consumers of containerboard packaging solutions owing to fast economic growth and stabilizing geopolitical conditions.
The medical product segment registers over 3.5% CAGR in paperboard packaging market owing to increasing investments from manufacturers to product safety. As products are on average covering more distance in the age of globalization, pharma manufacturers are integrating secondary paperboard packaging material to protect sensitive vials and other medical supplies.
Europe to hold dominant share after Asia Pacific
Europe accounted for over 20% share in in 2019. Food & beverages and medical are the fastest-growing application segments in the region. Western Europe is one of the leading markets for paperboard packaging in the region. Fast-growing economies including Hungary, Ireland, Poland, and Romania are anticipated to continually fuel the paperboard packaging market growth.
Manufacturers are engaged in partnership & relationship building to gain market share
In November 2019, Smurfit Kappa announced a partnership with Mitsubishi HiTec Paper to create innovative food packaging solutions. Key paperboard packaging industry players include Mondi plc., ITC, International Paper Company, Oji Holdings Corporation, Mesta Board, Stora Enso Oyj, Sappi Ltd., Cascade Inc., Westrock Company, and DS Smith, among others.