Globally, the corrugated box market is set to witness substantial growth with an estimated CAGR of 4.3% between 2023 and 2033, propelling its value from US$ 140.4 billion in 2023 to an impressive US$ 213.9 billion by 2033.
During the forecast period, the Asia Pacific region, notably the Association of Nations in Southeast Asia, anticipates robust growth with a high Compound Annual Growth Rate (CAGR), driven by escalating demand and supply dynamics in key sectors like food and beverage, electronics, and personal care, especially in China, India, and Japan.
In Europe, key players such as Mondi Group, DS Smith, and Smurfit Kappa Group dominate the corrugated box market. The region experiences a remarkable 20% annual growth rate in e-commerce trade, propelled by increased online shopping in Central and Eastern Europe. The corrugated metal planter box market is gaining traction, fueled by a surge in online shopping activities and a growing emphasis on sustainability, reshaping trade dynamics. This convergence of factors underscores the transformative trends in packaging across the Asia Pacific and Europe.
The recession following the pandemic had a negative impact on the packaging industry, exacerbated by the uncertainties in raw material prices. Packaging solution manufacturers globally faced significant challenges due to the COVID-19 pandemic.
The rising popularity of online shopping in Central and Eastern Europe, coupled with a focus on sustainability, is a driving force behind the corrugated box market.
Corrugated boxes used in Central and Eastern Europe prioritize sustainability and eco-friendly materials, resonating with nearly 80% of the population. Sustainable corrugated packaging solutions are preferred in 77% of cases for online shopping, reflecting a growing consumer preference for environmentally conscious choices.
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The growth of the corrugated box market is slowed by fierce competition from flexible plastic packaging Flexible packaging provides the best value for manufacturers and retailers. This is due to its ability to reduce packaging weight which results in reduced shipping and warehousing costs. Consequently, less space is needed for the packaging.
Digitalization is being implemented by Smurfit Kappa in the market for corrugated boxes through the development of a range of new products. The corrugated industry has been enriched by the introduction of digitalization by Smurfit Kappa, a renowned manufacturer of corrugated packaging solutions.
Graphic design customized for each client has produced various benefits, such as increased sales and greater flexibility. As well as developing new technologies and improving current ones, the company also looks forward to increasing its sustainability efforts. Innovations in these areas are driving the digitalization of paper-based packaging and creating substantial opportunities for the expansion of the corrugated box market.
The Major Key Payers Are:
- Mondi Group Plc
- Bee Packaging
- DS Smith Packaging Limited
- Oji Holdings Corporation
- Smurfit Kappa Group Plc
- International Paper Company
- others
Recent Developments by the Corrugated Box Industries
- Mondi announced the addition of a new product, BCoolBox, to its sustainable e-commerce portfolio on 1st February 2021, which could include fresh produce and food. It is a packaging solution made up of a corrugated range with thermo-insulation that is might keep food cold without having to rely on external cooling. As per the company, this new solution is designed to keep stored commodities at a consistent temperature of fewer than 7 degrees for 24 hours.
- International Paper completed the acquisition of two state-of-the-art corrugated box plants in Spain in March 2021. By acquiring this company, the company is likely to be able to enhance its capabilities in Madrid and Catalonia. Regarding EMEA, the corrugated box business is of strategic importance for the company. With a focus on fruit and vegetable packaging and e-commerce solutions, it offers high-quality packaging solutions in the industrial segment. The two businesses have been part of International Paper since April 1, 2021.
What is Limiting the Growth of the Corrugated Box Market?
- Environmental Concerns: With increasing emphasis on sustainability and environmental responsibility, the use of corrugated boxes, which are made from paper and cardboard, can be limited by concerns about deforestation and the overall carbon footprint of the packaging industry. This has led to a push for alternative, eco-friendly packaging materials.
- Competition from Digital Media: In an increasingly digital world, there is a decline in the demand for physical products and, consequently, for corrugated boxes used in packaging. Many companies have shifted towards digital advertising and communication, reducing the need for physical packaging.
- E-commerce Packaging Efficiency: While e-commerce has driven demand for packaging, it has also led to a focus on optimizing packaging size and material to reduce shipping costs. This can limit the growth of corrugated boxes as companies seek more efficient and cost-effective packaging solutions.
- Price Volatility of Raw Materials: Fluctuations in the cost of raw materials, particularly paper and cardboard, can affect the pricing and profitability of corrugated boxes. Price volatility can limit market growth as businesses seek more stable and cost-effective packaging options.
- Technological Advances: Advancements in packaging technology, such as the development of new materials and more efficient packaging machinery, can lead to alternatives that are seen as more effective or innovative than traditional corrugated boxes.
- Trade Tariffs and Supply Chain Disruptions: International trade tensions and supply chain disruptions can affect the availability and cost of corrugated materials, impacting the growth of the market.
Growth Drivers of the Corrugated Box Market
The sustained growth of the Corrugated Box Market can be attributed to several key factors:
Globalization of Trade
The interconnectedness of economies has fueled the need for efficient and secure packaging for international shipments. Corrugated boxes provide the required protection while optimizing storage and transportation.
Increased Online Shopping
The proliferation of online shopping platforms has led to a surge in demand for packaging materials. Corrugated boxes are the preferred choice due to their durability and suitability for various products.
Sustainability Initiatives
Government regulations and consumer preferences favor sustainable packaging solutions. Corrugated boxes, being recyclable and biodegradable, align with these initiatives and contribute to their widespread adoption.
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Key segments
By Material Type:
- Virgin
- Recycled
By Board type:
- Single Face Board
- Single Wall Board
- Double Wall Board
- Triple Wall Board
By Grade type:
- Liner
- Fluting Medium
By Product Type:
- Slotted Box
- Folder Box
- Telescope Box
- Die-Cut Box
By End Use:
- Food
- Beverages
- Electricals & Electronics
- Healthcare
- Textiles & Apparels
- E-commerce
- Building & Construction
- Personal Care & Cosmetics
- Chemical & Fertilizers
- Others
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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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