Global Corrugated Packaging Market is valued at USD 290.02 Billion in 2022 and it is expected to reach USD 396.00 Billion by 2029 with a CAGR of 4.55% over the forecast period.
Corrugated Packaging is a type of packaging made of corrugated cardboard, which is composed of three layers: an inside liner, an outside liner, and a fluted medium in between. The fluted medium provides strength and cushioning for the package while the liners provide a smooth surface for printing and labeling. Corrugated packaging was first invented in the 19th century in England, but it wasn't until the early 20th century that it became widely used in the United States. In the 1920s, corrugated boxes replaced wooden crates as the preferred packaging material for shipping goods. Since then, corrugated packaging has become the most popular form of packaging in the world.
Corrugated packaging is used in a wide variety of industries, including food and beverage, electronics, cosmetics, pharmaceuticals, and e-commerce. It is commonly used for shipping boxes, retail displays, and point-of-sale packaging. The end-users of corrugated packaging include manufacturers, distributors, retailers, and e-commerce companies.
The COVID-19 pandemic has had a mixed impact on the corrugated packaging market. On the positive side, the pandemic has led to an increase in e-commerce sales, which has in turn increased the demand for corrugated packaging. With people staying at home, the demand for food delivery services has also increased, leading to an increased demand for corrugated packaging for food delivery.
However, on the negative side, the COVID-19 pandemic has disrupted global supply chains and caused a shortage of raw materials, which has affected the manufacturing of corrugated packaging. Additionally, the closure of many retail stores and businesses has led to a decrease in demand for corrugated packaging for brick-and-mortar stores.
As of February 28, 2023, there have been over 437 million confirmed cases of COVID-19 worldwide, with over 5.9 million deaths. The pandemic has had a significant impact on global economies and industries, including the corrugated packaging market.
Some major key players for the global Corrugated Packaging market report cover prominent players like
North America is a significant market for corrugated packaging, driven by the growing demand for eco-friendly and sustainable packaging solutions, increasing e-commerce sales, and the growth of the food and beverage industry. For example, the e-commerce sector in the United States has experienced significant growth in recent years, with online sales reaching $791.7 billion in 2020, up 32.4% from the previous year, according to the US Department of Commerce. And the food and beverage industry is also a significant driver of the corrugated packaging market in North America, with the industry valued at $7.2 trillion in 2020.
Europe is a significant market for corrugated packaging, driven by the growth of the e-commerce industry, the increasing demand for sustainable and eco-friendly packaging solutions, and the growth of the food and beverage industry. The European Union has strict regulations regarding packaging waste and has set ambitious targets for reducing waste and increasing recycling rates. As a result, there is an increasing demand for sustainable packaging solutions, such as corrugated packaging, which is recyclable, biodegradable, and compostable.
In addition, the e-commerce industry is rapidly growing in Europe, with online sales reaching €717 billion in 2020, up 12.7% from the previous year, according to Eurostat. This has led to a significant increase in the demand for corrugated packaging, which is commonly used in the packaging of goods for online delivery.
Moreover, the food and beverage industry is also a significant driver of the corrugated packaging market in Europe. The industry is valued at €1.2 trillion in 2020.
The revenue generation model for the corrugated packaging market is based on the sale of packaging materials, as well as design and customization services.
The supply chain for corrugated packaging includes raw material suppliers, manufacturers, distributors, and end-users. Raw materials, such as paper and adhesives, are sourced from suppliers and then processed by manufacturers into corrugated cardboard. The finished product is then distributed to end-users, such as retailers and manufacturers.
The value chain for corrugated packaging includes design, manufacturing, distribution, and end-use. Design involves creating packaging solutions that meet the specific needs of customers, while manufacturing involves the production of corrugated cardboard from raw materials. Distribution involves getting the finished product to customers, and end-use involves the application of the packaging for its intended purpose.
The growth of e-commerce has been driven by factors such as increasing internet penetration, the proliferation of smartphones, and the convenience and ease of online shopping. As more consumers turn to online shopping, the demand for corrugated packaging for shipping and delivery of products has increased significantly. Global e-commerce sales are projected to reach $6.5 trillion by 2023, up from $3.5 trillion in 2019. This growth in e-commerce is expected to continue to drive demand for corrugated packaging. For example, US Census Bureau, e-commerce sales in the United States totaled $791.7 billion in 2020, an increase of 32.4% from 2019. And in India, e-commerce sales are projected to reach $120 billion by 2025, up from $30 billion in 2019.
The growing demand for pharmaceuticals is a major driver of the corrugated packaging market. Corrugated packaging is widely used for the packaging and transportation of pharmaceuticals due to its durability and protective properties. As the global population grows and ages, the demand for pharmaceuticals is expected to increase. However, According to the World Health Organization, the global pharmaceutical market is expected to grow by 4-5% in 2021, driven by the COVID-19 pandemic and the need for treatments and vaccines. The International Federation of Pharmaceutical Manufacturers and Associations, global pharmaceutical sales are projected to reach $1.5 trillion in 2023
Fluctuating raw material prices are a significant restraint for the corrugated packaging market. Corrugated packaging is made from paper, which is derived from wood pulp, a commodity that is subject to price fluctuations based on supply and demand dynamics. The price of wood pulp fluctuates between $900 and $1,200 per metric ton. For example, the Confederation of European Paper Industries, reported the price of wood pulp increased by 20% from the beginning of 2020 to September 2021, due to high demand and supply chain disruptions caused by the COVID-19 pandemic. In the US, the Producer Price Index for pulp, paper, and allied products increased by 4.4% from August 2020 to August 2021.
Environmental regulations are a significant restraint for the corrugated packaging market. Corrugated packaging is a paper-based product, and the production of paper involves a significant amount of natural resources, energy, and water. As a result, environmental regulations related to deforestation, greenhouse gas emissions, and waste management can significantly impact the operations and profitability of corrugated packaging manufacturers. Additionally, increasing consumer demand for sustainable packaging solutions is putting pressure on manufacturers to adopt eco-friendly practices and materials, which can be costly and challenging to implement.
Further, the European Union's Packaging and Packaging Waste Directive set targets for reducing the environmental impact of packaging waste, including corrugated packaging. The directive requires EU member states to achieve a recycling rate of 70% for paper and cardboard packaging by 2030.
The opportunity factors for the corrugated packaging market include the increasing demand for sustainable packaging solutions, the growth of e-commerce, and the need for innovative packaging designs that can enhance brand identity and consumer engagement.
Product And Technology Development: The market trend for corrugated packaging is towards the development of sustainable and eco-friendly materials, as well as increased automation and digitization in manufacturing and design. Advances in technology are also driving the development of innovative packaging designs, such as smart packaging and anti-counterfeiting solutions.
Customer Trend: Customers are increasingly demanding sustainable and eco-friendly packaging solutions that can reduce their environmental impact. They also want customizable and innovative packaging designs that can enhance brand identity and consumer engagement.
The market for corrugated packaging is highly competitive, with a large number of players offering a wide variety of products and services. Key market players compete on price, quality, customization, and innovation.
Some past/future strategies to be built by key market players: Key market players are likely to focus on sustainability, automation, and customization to differentiate themselves in the market. They may also invest in research and development to create new products and technologies, as well as partnerships and collaborations to expand their reach and capabilities.