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Paper Packaging Market 2019: Helps Retail Stores to Pack the Food, To Protect and Maintain Nutritional Values

04-29-2019 12:21 PM CET | Industry, Real Estate & Construction

Press release from: Paper Packaging Market

Paper Packaging Market 2019: Helps Retail Stores to Pack

MarketResearchReports.Biz presents this most up-to-date research on "Paper Packaging Market: Global Industry Analysis 2013-2017 and Opportunity Assessment 2018-2028"

Paper packaging market is a traditional market. It contributes more than 30% to overall packaging market share and dominates other packaging domains. In 2016 overall market size of paper packaging was estimated to be $243 Billion and forecasted to reach $450 Billion by 2027. Paper packaging market is estimated to be growing at a CAGR of 7%. Paper packaging is used in variety of applications ranging from food & beverages to pharmaceuticals to cosmetics. Different grades of papers and products are used in packaging. Paper packaging is the most preferred packaging among all other types of packaging, because of its lightweight and flexible features. In heavy-duty packaging paper packaging is not the suitable or preferred packaging. Paper packaging is majorly used as a tertiary packaging.

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Paper packaging: Market Dynamics

Paperboard is estimated to be the fastest growing product segment with estimated growth rate of 7.5% among all other product segments of paper packaging. APAC region leads the paper packaging market (estimated revenue share of 35%). Europe region follows APAC, North America follows Europe. The demand in APAC is driven by India & China. The carton board market is dominated by European paper packaging manufacturers because of lack of facility and capacity in APAC region. Flexible plastics packaging is posing a tough competition to paper packaging. Rising oil prices work in favor of paper packaging market, but in recent times the oil prices are so volatile and declining due to over production and over supply. The rise in the number of hypermarkets and supermarkets is influencing the growth of the paper packaging market. A rapidly growing organized retail sector is leading to rise in demand of food & beverages and other. Paper packaging not only helps retail stores to pack the food but also to protect and maintain nutritional values.

Global paper packaging market is consolidating to gain new capacities, expertise and new markets. Major M&A deals happened in 2016. Clearwater Paper Corporation has acquired Manchester Industries of Richmond, Virginia, from PaperWorks Industries, an integrated full-service packaging provider for a purchase price of $68.25 million. Mondi Group has acquired 100% of the outstanding share capital of LLC Beepack from a private investor for a consideration of RUB 2,825 million (EUR41 million) on a debt-and-cash-free basis. Packaging Corporation of America acquired Columbus Container, Inc., an independent corrugated products producer in a cash-free, debt-free transaction of $100 million.

Growing public private deals in forest leasing or opening the management of forest land management to private players helps paper and paperboard packaging market players to secure the supply of raw materials (timber). Recently Indian government opened up the management of almost 40% forest land by private players.

Paper packaging: Market Segmentation

Different grades of paper used in paper packaging market are Solid bleached sulfate, coated recycled board, MET-PET Board, uncoated recycled board, Clay Natural Kraft, Coated Unbleached Kraft Paperboard, FBB, WLC, Glassine & Greaseproof, and Label Paper. On the basis of application paper packaging market is segmented into food & beverages, pharmaceuticals, personal care, cosmetics, homecare, and others. The paper packaging market has been segmented by product as container or corrugated or shipping box, kraft paper or paperboard or cardboard, folding carton and others.

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As we said earlier, paperboard dominates the paper packaging market. Application wise food & beverages creates highest demand among others. SBS is extensively used in North America and European region. Uncoated recycled board and coated recycled board are produced from 100% recycled paper and containers including newspapers, old containers etc. Paper industry is an energy intensive industry. So growing crude oil prices is the major concern. However R&D, Innovation and explorations are happening to optimize energy consumption and producing 100% recyclable paper.

Paper packaging Market: Regional outlook

Paper packaging market has been segmented on the basis of region into North America, Latin America, Eastern Europe, Western Europe, Asia Pacific Excluding Japan (APEJ), Middle East & Africa (MEA), and Japan.

United States has the highest density of usage (More than 50 times). It shows there is high penetration ability. Countries like Russia, China and Brazil have excess supply, so they are exporting to other nations. APEJ and Japan collectively dominate the paper packaging market. Above 25% population in Africa region are below 25 and by 2100 it is expected to reach 50 %. Changing lifestyle, growing consumer consumption power in MEA driving the demand for paper packaging. Paper packaging costs low compared to other packaging. So it is best suitable for the price sensitive markets, where GDP and purchasing power is low. Manufacturers of paper packaging can tap these untapped markets by innovating and exploring low cost paper packaging solutions for low GDP under developed and undeveloped markets.

Per capita paper consumption in US is estimated to be around 300Kg and in China it is around 150 Kg. In India per capita paper consumption is around 6 to 8 Kg and in Africa (all 20 nations) it is 3-4Kg. Due to stagnation in population growth and rise in migration in United States, UK, Canada and Russia demand for paper packaging is declining. Growing population in India and China driving demand for paper packaging. China paper packaging growth rate stands at 7 to 8% and India at 3-4%.

Paper packaging Market: Key players

Some of the players in the global paper packaging packaging market are Amcor Ltd., International Paper Company, Kapstone, Evergreen Packaging Inc., West Rock Packaging Company, Packaging Corporation of America, Sappi Limited, DS Smith, Mondi Group, Oji Paper Company, Smurfit Kappa, Metsäliitto Cooperative, Tetra Laval Group, Georgia-Pacific, Sonoco Products Company, Caraustar Industries Inc., Clearwater Company, Rengo, MeadWestvaco Corporation, Graphic Packaging International Corporation, Sappi Limited, DS Smith, Austrlian Paper, Visy, GH Packaging, KR Papers, GS Paper and Packaging group, Malex Paper products, Junopack, Napco, Middle East paper company, AlMasah, Transpaco.

MRR.BIZ has been compiled in-depth market research data in the report after exhaustive primary and secondary research. Our team of able, experienced in-house analysts has collated the information through personal interviews and study of industry databases, journals, and reputable paid sources.

The report provides the following information:

Tailwinds and headwinds molding the market’s trajectory
Market segments based on products, technology, and applications
Prospects of each segment
Overall current and possible future size of the market
Growth pace of the market
Competitive landscape and key players’ strategies

The main aim of the report is to:

Enable key stakeholder’s in the market bet right on it
Understand the opportunities and pitfalls awaiting them
Assess the overall growth scope in the near term
Strategize effectively with respect to production and distribution

MRR.BIZ is a leading provider of strategic market research. Our vast repository consists research reports, data books, company profiles, and regional market data sheets. We regularly update the data and analysis of a wide-ranging products and services around the world. As readers, you will have access to the latest information on almost 300 industries and their sub-segments. Both large Fortune 500 companies and SMEs have found those useful. This is because we customize our offerings keeping in mind the specific requirements of our clients.

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