A recent survey on the corrugated boxes market by Future Market Insights (FMI) examines the historic outlook and uncover key factors that will favor the growth in market over the assessment period. The report aims at projecting future growth potential of the corrugated boxes market across different segments such as material type, board type, grade type, product type, and end use.
As per a detailed analysis by FMI, the global corrugated boxes market is poised to exceed US$ 128.3 Bn in 2021. Surging applications of corrugated boxes in diverse end-use industries such as pharmaceuticals, consumer electronics, healthcare, textiles, chemicals, and others are propelling the demand in the market.
Corrugated boxes are finding a wide range of applications across the food and beverage sector. It is increasingly being used as secondary packaging solutions for processed food, dairy products, and confectionaries among others. On account of this, the market is estimated to expand at 4.3% CAGR during the forecast period 2021-2031.
Implementation of stringent regulations on the use of plastic as secondary packaging solutions is favoring the growth in the market. For instance, according to a report by The Energy and Resource Institute (TERI), in January 2019, the Government of an Indian State, Tamil Nadu, placed a ban on the use of plastic carry bags and other plastic-based secondary packaging solutions.
A slew of such initiatives are expected to propel the demand for corrugated boxes, with the market registering 4.4% year-on-year growth in 2021.
In terms of material type, the recycled segment is projected to register the high demand, expanding at nearly 4.7% CAGR between 2021 and 2031. Growing sustainability concerns regarding environmental conservation, high availability of raw material, and less cost & energy for manufacturing recycled corrugated boxes are driving the growth in the segment.
“Growing inclination towards green packaging and surging demand for customized, safe, and shock-absorbing packaging solutions across personal care and cosmetics industry for shipment of e-commerce purchases is augmenting the growth in the market,” says a FMI analyst.
Key Takeaways from Corrugated Boxes Market Study
- The U.S. is projected to hold for the lion’s share in the North America market, accounting for around 90% of the demand through 2031.
- Germany is expected to emerge as the most remunerative market in Europe, creating an incremental opportunity of US$ 4 Bn by the end of 2021.
- India is forecast to hold a significant share in the Asia Pacific excluding Japan market, accounting for sales of more than 20% through 2021.
- China is anticipated to emerge as a highly lucrative market, exhibiting sales at a CAGR of 4.4% between 2021 and 2031.
- On the basis of board type, the single wall segment is estimated to register the fastest growth in the market, accounting for around 70% of the sales in 2021.
- Increasing use of virgin corrugated boxes for the packaging of premium personal care and cosmetic products to offer the luxurious appeal is propelling the demand for corrugated boxes across the virgin segment.
- Surging demand for corrugated boxes for the food delivery of ready-to-eat products such as pizza, cookies, cakes, and burgers among others is accelerating the sales across the food and beverages segment.
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- Rising concerns regarding the deforestation and high cost of manufacturing virgin corrugated boxes are hindering the growth in the virgin segment.
- Low durability in moist weather and vulnerability to water are the factors hindering the sales of corrugated boxes.
Top five companies in the global corrugated boxes market are Smurfit Kappa Group plc, International Paper Company, WestRock Company, Georgia Pacific LLC and DS Smith plc. As per FMI, these players are estimated to collective account for nearly 30% to 35% of the revenue share in 2021.
Some of the key players operating in the market profiled by FMI are: Smurfit Kappa Group Plc, Mondi Group plc, International Paper Company, WestRock Company, Georgia Pacific Packaging LLC, Pratt Industries, Inc., Oji Holdings Corporation, DS Smith Packaging Limited, Tat Seng Packaging Group, VPK Packaging Group nv, STORA ENSO OYJ, Nelson Container Corporation, Great Little Box Company Ltd., Action Box Inc., Acme Corrugated Box Co. Inc., Wertheimer Box Corporation, Shillington Box Company
Leading manufacturers are aiming at adopting strategies such as product launches, expansions, mergers, acquisitions, and strategic partnerships with other players to expand their product portfolio, manufacturing capabilities, and global presence. For instance,
- In June 2021, Smurfit Kappa Group LLC, a leading providers of paper-based packaging, announced the opening a new e-commerce corrugated packaging facility in Northampton, U.K. This will assist the company to launch and test new solutions in the e-commerce sector certified with reliable The International Safe Transfer Association (ISTA) certification.
- In February 2021, Mondi, a British multinational packaging and paper group, annocuned launching its new sustainable e-commerce product BCoolBox, which can carry fresh produce and food. The corrugated range of the product comes with thermo-insulation that make sure the food is chilled to less than 7 degrees Celsius for a minimum of 24 hours without the support of any external cooling device.