04 NOV, 2020

Topic: Article, Market Forecast 

The market for global corrugated boxes stood at USD 61.29 Billion in 2015 and is projected to reach USD 76.76 Billion by 2021, at an estimated CAGR of 3.94%. The market is growing in accordance with the growth trends of the converting and packaging industries. Factors such as increasing demand from fresh food and beverages, home & personal care goods, and electronic goods industries, logistics application, increasing consumer awareness towards sustainable packaging, and growth of the e-commerce industry have propelled the growth of the global corrugated boxes market.

Globally the corrugated boxes market is gaining momentum in the food & beverages and e-commerce industries. Asia-Pacific is estimated to be the fastest-growing region during the forecast period. Growth in the e-commerce industry is expected to benefit corrugated boxes manufacturing companies in the Asian markets. The growth of the corrugated box market in this region is driven by factors such as the growing food & beverage industry, the rise in demand for packed products, and economic development.

The corrugated box market is segmented on the basis of type, printing technology, printing ink, material, end-use industry, and region. On the basis of type, slotted boxes held the largest market share, in terms of both volume and value. Flexography printing was the most widely used printing technology among other technologies, in terms of both volume and value. In terms of printing ink, the water-based ink is projected to grow at the highest rate, during the review period. On the basis of material, linerboard held the largest market share, in terms of both volume and value. On the basis of end-use industry, the food & beverage, held the largest market share, in terms of both volume and value. Increasing disposable incomes of people in developing countries and changing preferences of manufacturers for sustainable packaging are some of the factors that are driving the corrugated box market. Certain factors such as increasing cost of raw materials hinder the growth of this industry.

On the basis of key regions, the market for corrugated boxes is segmented into North America, Europe, Asia-Pacific, and the Rest of the World (RoW). The Asia-Pacific region held the largest share among all the regions in 2015. This is mainly due to emerging economies in China and India, coupled with growing applications of corrugated boxes in the food & beverage and electronic goods industries.

Availability of low-cost alternative to corrugated boxes is a major restraint for the market. Corrugated plastic containers are available which are more durable, attractive, and economical than corrugated boxes, thus hindering the demand for corrugated boxes. Also the increasing prices of raw materials obstructs the demand for corrugated boxes.

Mergers and aqusitions and agreements, partnerships, contracts, and joint ventures were the major strategies adopted by most players in this market. Companies such as Mondi Group Plc (South Africa), International Paper Company (U.S.), WestRock Company (U.S.), DS Smith Plc (U.K.), Smurfit Kappa Group (Ireland), and Rengo Co. Ltd. (Japan), KapStone Paper and Packaging Corporation (U.S.), Cascades Inc. (Canada), Packaging Corporation of America (U.S.), WestRock Company (U.S.), and Georgia-Pacific LLC (U.S.) were the key players who adopted these strategies to increase the customer base  in key markets. The leading corrugated boxes manufacturers are focusing on emerging countries that are estimated to show potential for industrial development in the near future.

Note: Report conducted by MarketsandMarkets