Press release
Fiber Based Packaging Market is projected to witness growth of 3.6% by the end of 2025
Transparency Market Research delivers key insights for the fiber based packaging market in its published report, which include global industry analysis, size, share, growth, trends, and forecast for 2021-2025. In terms of growth, the global fiber based packaging market is projected to witness growth of 3.6% by the end of 2025, owing to the increasing scope of fiber based packaging in end use industries such as food & beverages, electrical & electronics, healthcare, industrial packaging, etc. About which TMR offers detailed insights and forecasts in the fiber based packaging market report.Fiber based packaging products have different visual appeal compared to conventional flexible packaging. Fiber based packaging can resist humidity and other solvents, and maintains integrity. The fiber based packaging market is expected to grow followed by the push of end-use industries, such as food & beverages and personal care & cosmetics, which are registering significant growth in several regions due to increased consumption. The decorating surface of carrying units with fiber based packaging is likely to augment market growth during the forecast period.
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Adoption of Fiber Based Packaging Product by Fast Food Companies, Retailer across Globe to Drive Market
The rising use of sustainable resources is driving the production rate fulfilled by manufacturer and environment conscious consumers around the world. This impacts significantly on the use of biodegradable, ecofriendly packaging materials among various fast food companies and retailers such as QSRs (such as MC Donald's, Walmart, etc.). These companies tie up with multi-stakeholders such as Environmental Defense Fund, WWF with an ambition to lessen different types of environmental hazards, which recommend the required changes in packaging materials to emphasize and widen the use of paper based packaging. These paper based products help in reducing the cost of the manufacturer companies at the initial level, which ultimately helps the consumer to buy more cost effective packaged products. According to a report, fast food companies and retailer are getting benefitted extensively with the help of using paper and paperboard packaging. This trend of using paper and paper board packaging has created a gigantic income of revenue across the world.
Flourishing Growth of Fiber Based Packaging Products in APAC to Provide Growth Opportunities
Countries such as China and India are among the major consumers of fiber based packaging products. Rapid urbanization and increase in consumers spending pattern are prominent factors, which are pushing the demand for fiber based packaging. Additionally, increasing consumption of processed food, cosmetic, and generic medicine has accelerated the growth of the fiber based packaging market. Advancement in technological innovation and growth in use of manufacturing and packaging tool across the APAC market have further created a tremendous opportunity for companies and future growth in neighboring market.
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Huge Installation Cost of Machinery and Equipment to Negatively Affect Revenue Margin in Long Run
Paper manufacturing process consists of multiple stages ranging from designing to installation. However, installation process sustained by the manufacturer is a cost oriented and an expensive procedure, which is hampering the growth of the fiber based packaging market. Additionally, the cost of running paper-based machinery equipment is large, which is creating difficulties for the fiber based packaging market to grow in some countries such as Poland, Russia, etc. These factors lead to the phenomenon of importing various essential packaging products at higher margin, which ultimately forces the market to be suppressed by other packaging material markets.
Additionally, majority of small-scale manufacturers is failing to adopt these kinds of packaging development due to the highest operation cost, which is leading them to huge losses and acting as a restraint in the growth of the fiber based packaging market.
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Fiber Based Packaging Market: Competition Landscape
The global fiber based packaging market is highly fragmented in nature into which, a large portion of market share is held by domestic market players. Some of the key players operating in the global fiber based packaging market are International Paper Company, Smurfit Kappa Group PLC, Georgia-Pacific LLC, WestRock Company, Reynolds Group Holdings Ltd, Stora Enso Oyj, DS Smith Plc, Huhtamaki Oyj, Sonoco Products Company, Pratt Industries Inc., KapStone Paper and Packaging Corp, Mayr-Melnhof Karton AG, Rengo Co., Ltd., Mondi Group, AR Packaging Group AB, BillerudKorsnäs AB , U.S. Corrugated, Inc, UFP Technologies, Inc. and ESCO Technologies Inc, and Brodrene Hartmann A/S, etc.
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The tier structure is formulated on the basis of segmental revenue and market share of the company. As per tier structure, International Paper Company, Smurfit Kappa Group PLC, Georgia-Pacific LLC, WestRock Company, Reynolds Group Holdings Ltd, Stora Enso Oyj are the tier 1 players in the fiber based packaging market. All the players are focusing on widening their product portfolio for multiple applications to gain a competitive edge in the market. Tier 2 players include DS Smith Plc, Huhtamaki Oyj, Sonoco Products Company, Pratt Industries Inc., KapStone Paper and Packaging Corp, Mayr-Melnhof Karton AG, Rengo Co., Ltd., Mondi Group, AR Packaging Group AB, BillerudKorsnäs AB and Tier 3 players include U.S. Corrugated, Inc, UFP Technologies, Inc. and ESCO Technologies Inc, and Brodrene Hartmann A/S.
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