Paperboard Packaging Market - Demand, Size, Share, Growth, Trends, and Forecast 2016 – 2024
Paperboards are manufactured from wood pulp or layers of paper. The thickness of paper piles defines the paperboard, which is usually larger compared to paper in order to maintain the weight to area ratio. For instance, according to the International Organization for Standardization, the weight should be 224g/m2 to consider it as paperboard. Depending on application, paperboard can be single ply or multi-ply. Paperboard offers good printing surface and excellent print quality, which makes it ideal information carriers and brand builders. Paperboard finds its application in cosmetics, clothing, footwear, and food industries. Paperboard is a strong, lightweight, smooth, versatile, and cost-effective packaging solution. Approximately 70% of paperboards are recycled, making these ideal for sustainable packaging compared to plastics, metals, and glasses.
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The global paperboard packaging market can be segmented into product type such as boxboard and containerboard. Boxboard includes folding, kraft, and laminated boxboards. Depending on the grade and processing of the boxboard, it can be further sub-segmented into folding boxboard (FBB), solid unbleached boxboard (SUB), solid bleached boxboard (SBB), and white lined chipboard (WLC). Demand for WLC was the highest compared to other boxboards in 2015. Containerboard includes corrugated containerboard and linerboard. In terms of volume, containerboards was the majorly used type of paperboard across the globe in 2015. The market for containerboard is estimated to increase significantly during the forecast period owing to high demand from applications in regions such as Asia Pacific and Latin America. Based on application, the global paperboard packaging market can be segmented into food & beverages, non-durable goods, durable goods, medical, and others. The others segment includes industrial and machineries packaging.
Food & beverages accounted for the major share of the global paperboard packaging market in 2015 due to growth in the packaged food industry. Expansion in e-commerce and cosmetic & personal care packaging industries is anticipated to drive the global paperboard packaging market in the near future. Food & beverages segment is anticipated to be the fastest growing segment due to exemplary growth in the market drivers during the forecast period. Furthermore, growth in the medical industry that forms a major part of non-durable goods is estimated to boost the paper packaging market. Large brand end users are focusing on sustainable packaging. This rise in demand for sustainable packaging has boosted the market share of paperboard packaging, as paperboard is an ideal option for sustainable packaging vis-à-vis plastics and metal.
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Asia Pacific was the largest market for paperboard packaging in 2015, led by growth in the packaged food and cosmetic & personal care packaging industries. Europe and North America are relatively matured markets as compared to other regions. Hence, growth of the paperboard packaging in these regions is expected to be sluggish in the next few years. Asia Pacific is anticipated to be the fastest-growing region, followed by Latin America. Expansion in the e-commerce and cosmetic & personal care industry in countries such as India, China, and Japan is likely to propel the demand for paperboard packaging in Asia Pacific during the forecast period.
The global paperboard packaging market is moderately concentrated, with the top six players accounting for more than 60% of the market share in 2015. A few large market players have established their own distribution channels through subsidiaries and joint ventures. These companies typically offer products through supply agreements, distributors, and suppliers. A few paperboard manufacturers have partnered with logistics companies in order to diversify their field of operations and increase their presence across the value chain.
Major players in the paperboard packaging market include International Paper, STORA ENSO, NIPPON PAPER INDUSTRIES CO., LTD., Smurfit Kappa Group, WestRock Company, Mondi, ITC Limited, METSÄ GROUP, Clearwater Paper Corporation, Sappi, Bohui Group, and Svenska Cellulosa Aktiebolaget (SCA).
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