Corrugated Board Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021- 2026)

2022-05-06 18:42:02 By : Ms. Nancy Chen

The corrugated board packaging market is expected to grow at a CAGR of 3. 43% during the forecast period of 2021-2026. From the past few years, delivery boxes have been witnessing a significant surge in front of people’s doorsteps.

New York, Dec. 15, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "Corrugated Board Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021- 2026)" - In apartment buildings across the United States, Faster delivery, more relaxed return policies, and free shipping has fueled growth in the retail e-commerce space. Key Highlights Corrugated board packaging is a versatile and cost-efficient method to protect, preserve, and transport a wide range of products. The corrugated board’s attributes, such as light weightiness, biodegradability, and recyclability, have made it an integral component in the packaging industry. The e-commerce industry emerged as a significant player in recent years. The prominent e-commerce companies, such as Amazon, have been using corrugated board boxes for the principal packaging, and they rely on plastic packaging for individual items. According to the Shopify report, by 2021, global e-commerce was projected to be worth USD 4.97 trillion, without considering COVID-19 impact on the market, almost a 400% increase in seven years, with North America contributing USD 552.6 billion, which is next to Asia (USD 831.7 billion in total e-commerce sales), with China as the largest (and quickest growing) single market. The corrugated board is highly versatile. Thus, they can take various forms other than the box, and due to sustainability issues, they are slowly replacing flexible plastic bags. Moreover, the corrugated boxes act as a perfect base to hold several printing techniques. Due to this, companies tend to prefer corrugated packaging as a marketing tool. They act as a mobile billboard, where the companies do not have to spend additionally on marketing. The corrugated board packaging has benefitted mainly from its biodegradable properties. Vendors who have shifted to other packaging solutions have faced a lot of backlash from the consumers. For instance, a survey conducted by GreenBlue in the United States found that 65% of its respondents were extremely concerned about plastic packaging. While in Spain, the Spanish Association of Corrugated Cardboard Packaging Manufacturers (AFCO) concluded that cardboard is the highest rated packaging material by Spanish consumers, with the most commonly used being cardboard, plastic, and wood. The inference from the study shows that 75.2% of Spanish consumers prefer to purchase products in cardboard packaging when compared to only 11% who choose plastic. The growth in food packaging and ever-increasing demand for corrugated packages in growing e-commerce shipments are some of the primary drivers of the studied market resulting from the Covid-19 outbreak. In e-commerce portals, demand has sharply increased for packaging for groceries, healthcare products, and e-commerce shipments. At the same time, the demand for luxury, industrial, and some B2B-transport packaging has declined. For instance, India has over 15 lakh modern retail stores that generate INR 4.74 lakh crore worth of business, and approximately 60 lakh people are employed in the retail sector, which the COVID-19 pandemic has severely hit. According to a Retailers Association of India report, by the end of February 2020, the business had already dropped 20-25 percent, which will surely hit the corrugated board packaging market as they are used to ship significant products in the retail stores. However, the increased usage of e-commerce to buy the essentials, especially in developing countries such as India, is expected to impact the market positively. Key Market Trends Processed Food Segment Expected to Occupy Significant Market Share The demand for convenience foods is expected to rise due to the busy lifestyle of people. Hence, processed food, which gets cooked in a short while, tends to attract consumers. The increasing population is also expected to drive the demand for processed food, which is convenient as well as healthy. As corrugated board packaging keeps moisture away from products and withstands long shipping times, it is increasingly being adopted by companies to offer better outcomes to customers, especially as a means to secondary or tertiary packaging. Processed foods, such as bread, meat products, and other perishable items, need these packaging materials to be used for just one time, thereby driving the demand. This rapid wave of popular interest has driven the surge in ecological packaging options. According to Food Dive, 67% of customers throughout the world believe it is critical that the items they buy come in recyclable packaging, with 54% indicating it is a factor they consider when purchasing. These sentiments aren’t going away, with a whopping 83% of younger buyers prepared to spend more for products that are packed in a sustainable manner. Furthermore, innovations in the domain are expanding the scope of the applications for corrugated cardboard packaging. The companies, such as THIMM Group, which is a solutions provider for the packaging and distribution of goods, developed "COOLandFREEZE," a box that is made up of corrugated cardboard for temperature-controlled shipping that enables the joint transport of non-refrigerated, frozen, and chilled products, within one package. This innovative packaging ensures effective insulation and constant refrigeration of processed foods over at least 36 hours. As corrugated cardboard packaging is posing as a more sustainable alternative to polystyrene or plastic shipping solutions, the demand for this market is expected to rise rapidly over the forecast period. North America Expected to Hold Significant Share The growing awareness among consumers regarding the usage of environment-friendly products is expected to drive the demand for the corrugated board packaging market in North America over the forecast period. Government initiatives for stimulating eco-friendly packaging materials, coupled with the efforts from CPA (The Corrugated Packaging Alliance), a corrugated industry initiative with an aim to encourage corrugated packaging, are providing an added impetus to the growth of this market. Moreover, there has not been much consumer or regulatory pressure in the United States earlier for cardboard recycling due to the relatively low price of pulp and a historical record of recycled boxes not being strong enough to survive the journey intact. However, due to the rise of e-commerce, there has been an increased demand for cardboard, which, in turn, is creating a need for corrugated boxes. Many major cities, like California, New York, Washington, Maine, and Massachusetts, have now banned the use of plastic containers and bags and other single-use non-recyclable products that are harmful to the environment, in turn boosting the demand for corrugated board packaging. Furthermore, e-commerce has been one of the leading drivers of corrugated boxes. The market witnessed a rapid spike in demand in March 2020, tailed off in April and May; however, it then increased in June and reached record levels again in September and October. The United States has more than 1,100 corrugated production facilities, with an average corrugated box comprising 52% recycled content. This further makes the region a net exporter of fiber from trees for corrugated boxes. Competitive Landscape The market for corrugated board packaging is quite fragmented, with many players in the market providing corrugated board packaging solutions. Companies are constantly innovating to promote sustainable packaging and are providing environment-friendly packaging products. To leverage the opportunities, companies are releasing corrugated box designs for various end-user industries. The market is also witnessing multiple partnerships and acquisitions every year by the companies to strengthen their portfolio in the corrugated segment. September 2021 - Heinz Partners with WestRock to replace shrink-wrapped multipacks of Heinz beanz, Heinz soups, and Heinz pasta varieties on supermarket shelves with recyclable paperboard developed by WestRock. The Heinz Eco-Friendly Sleeve is recyclable and comes from sustainably managed forests. The innovative wrap design uses no glue and 50% less material than a fully enclosed wraparound box and 10% less than a traditional paperboard sleeve design. August 2021 - Mondi group launched seven new sustainable corrugated packaging solutions for growing online grocery delivery services across Central Europe. Grocery retailers can deliver a variety of goods, from perishable food to wine bottles, in these fit-for-purpose packaging. All boxes in the eGrocery portfolio are fully recyclable. Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support Read the full report: About Reportlinker ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place. __________________________

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