October 21, 2020

What are Key Factors Responsible for Surge of Global Corrugated Packaging Market?

Rapid Industrialization, especially in the developing nations, is one of the biggest factors fuelling the rise in the demand for corrugated packaging solutions across the globe. According to the Central Intelligence Agency’s (CIA) World Factbook, the value of the industrial production in China was $3.7 trillion in 2012, as compared to its value of $2.9 trillion in the U.S. during the same year. Furthermore, the increasing per capita income, soaring international trade activities, and expansion in several industries are further boosting the requirement of corrugated packaging solutions throughout the world.

Corrugated packaging solutions offer numerous advantages over the conventionally adopted packaging methods such as higher cost-effectiveness, greater recycling rate, and environment-friendly characteristics, on account of being made from natural materials, which make these packaging techniques highly sought after all over the world. Moreover, the increasing government support in many countries for the usage of natural and eco-friendly materials are significantly contributing toward the growing popularity of corrugated packaging solutions.

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Due to the above-mentioned factors, the value of the global corrugated packaging market is expected to increase from $237.5 billion to $294.3 billion from 2017 to 2023. The market is predicted to register a CAGR of 3.7% during the forecast period (2018—2023). In corrugated packaging, corrugated boxes are used which are made from the joining of two sheets of paper, also known as liners, that are joined to a corrugated inner medium (called fluting) with the help of a glue. These three layers are combined together and assembled in a way that provides the whole structure high strength.

Corrugated packaging solutions are extensively adopted in a plethora of applications— personal and housed care, paper products, chemicals, electrical and electronics goods, direct mail and dispatch, fresh food and produce, processed food, beverages, tobacco, glassware and ceramics, transport, textiles, wood and timber, and various others such as furniture, footwear, and apparel. Out of these, the utilization of corrugated packaging was observed to be the highest in the applications pertaining to the processed food sector in 2017, owing to the high requirement of flexible and strong packing materials in this sector, in order to ensure the safety of the food items.

One of the major trends currently being witnessed in the corrugated packaging market is the increasing usage of corrugated packaging solutions in online or internet shopping applications. Corrugated packaging is one of the most affordable and convenient methods of packing, especially for online shopping applications and the e-commerce industry. This is mainly ascribed to the low costs and light weights of the materials used in this packaging technique, which allows for the easy and convenient home delivery of products.

Across the globe, the Asia-Pacific (APAC) region is predicted to observe the highest adoption of corrugated packaging solutions during the forecast period. This is primarily credited to the rising requirement of packaging materials in the processed food industry, especially in the various APAC countries such as India and China. In addition to this, the surging industrial production in China is expected to further boost the demand for corrugated packaging solutions in the region in the coming years.

Hence, it can be concluded that the utilization of corrugated packaging methods will escalate all over the world in the upcoming years, mainly on account of the rising industrial production in the developing nations and the flourishing e-commerce industry across the world.