Paperboard Packaging Market (By Raw Material: Fresh source, Recycled Waste Paper; By Product: Boxboard, Containerboard; By Application: Food & Beverages, Non-durable Goods, Durable Goods, Medical, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 - 2030

The global beverage packaging market size was valued at US$ 199.2 billion in 2021 and is expected to hit US$ 260.3 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 7.4% from 2021 to 2030.

Growth Factors:

The rise of the e-commerce industry has also played a significant influence in the growth of the paper & paperboard packaging market. Corrugated packaging is commonly used by e-commerce firms for secondary and tertiary packing due to its lightweight and inexpensive cost. Furthermore, growing plastic material sustainability problems are driving e-commerce firms to replace flexible plastic packaging with paper packaging, which is projected to boost development in the paper & paperboard industries.

Report Scope of the Paperboard Packaging Market

COVID-19 Impact

As the coronavirus pandemic spreads and its humanitarian effect grows, sectors that assist meet basic requirements, such as transporting food and supplies to customers securely, are being increasingly impacted. With food packaging being the main sector of activity in the packaging business, the $900 billion per year global industry is on the front lines. The coronavirus epidemic has already resulted in some of the steepest drops in demand for certain types of packaging in recent times, while driving growth for others, such as packaging for e-commerce shipments, which are emerging as lifelines in this new world.

Such developments are posing new problems for many packaging firms. However, growing demand for paperboard packaging in healthcare has helped the market situation. Because e-commerce fosters social distance, there has been an exponential rise in online purchases of essential consumer items such as groceries and hygiene products, which drives the expansion of the paperboard packaging sector. E-pharma and e-consultations witnessed a 55-70 percent increase in growth. However, a lack of labor, a scarcity of raw resources, and transportation constraints impede product delivery.

Paper & Paperboard Packaging Market Dynamics:

Driver: Growing consumer awareness regarding sustainable packaging material

Consumers nowadays prefer products that are eco-friendly in nature. The packaging industry is no exception and has been witnessing a similar trend. Eco-conscious consumers nowadays prefer paper or paperboard packaging over other types of packaging solutions.

The waste or recovered paper market is expected to grow, and the consumers have also shown an increased interest in purchasing products that are recycled. It is also expected that the developing countries that are witnessing industrialization will soon generate increased demand for paper and paperboard packaging products. The containerboard packaging market is expected to see the highest increase as it is one of the widely used recycled paper packaging products in the market.

Currently, paper and paperboard containers are biodegradable and are more sustainable than plastic, making them more acceptable to consumers. Some factors that make paper and paperboard containers environment-friendly are that they are recyclable, reusable, save energy, and conserve natural resources. Thus, the environmental benefits associated with paper and paperboard containers will increase the adoption of such products by enterprises in several industries, such as retail, which will drive the global paper and paperboard container and packaging market.

Restraint:Fierce competition from flexible plastic packaging

Flexible plastic packaging provides the biggest advantage for manufacturers and retailers as it reduces the weight of packaging, which can result in reduced shipping and warehousing costs, thereby creating more space. For consumers, it provides convenience features such as single-serve portions, easy-to-open, and easy-peel options, and the food tastes better in retort pouches than that in traditional tin cans. Flexible packaging is 40% less in terms of the overall packaging cost, which amounts to a 50% reduction in landfill waste and 62% reduction in greenhouse gas (GHG) emissions over rigid packaging. Hence, factors such as convenience, portability, cost savings, sustainability, and health benefits encourage product packaging manufacturers and packaging converters to move away from standard rigid materials to flexible materials.

Convenience and portability rank highly for most modern shoppers, so package design has taken a turn toward flexible, easy-to-handle containers. Snacks once packaged in jars and tins, for example, now stand up on store shelves in gusseted flexible pouches. Gels and liquids are also well-suited for flexible pouches, which serve food producers as well as nutraceutical packagers.

Opportunity: Replacing plastic packaging for food application in developing countries

India and China are among the fastest-growing economies in the world. As compared to the developed countries of the west, developing countries are still using plastic packaging to a large extent. The reason is that plastic is cost-effective and it is convenient for consumers.

With the increasing environmental issues and stringent government policies, companies are slowly moving towards providing paper and paperboard packaging solutions. A lot of effort has been put into innovation to provide cost-effective products that have similar utility and add satisfaction to the consumers. As part of the “BioActiveMaterials” project, researchers at the Fraunhofer-Gesellschaft have developed an eco-friendly coating for paper packaging. With this coating, not only is plastic saved, but the coating of plant-based proteins and waxes extends the shelf life of the food. After use, the packaging can be placed in the waste paper recycling bin for disposal. In the BioActiveMaterials project, researchers use paper as the base material for producing typical and functional packaging materials: resealable bags or wrapping paper. The paper is provided with a special coating using standard processes. The coated papers developed as part of the “BioActiveMaterials” project are an alternative to the packaging currently used for all kinds of food, including fruits and vegetables, meat and fish, cheese, and even confectionery.

Challenges: Impact on the environment during production & recycling of paper

The paper manufacturing cycle involves a broad range of natural resources and environmental impacts because fiber supply relies on trees, paper manufacturing requires fuel inputs, and paper waste disposal can contribute to emissions of a GHG, i.e., methane (CH4). Paper and paperboard packaging products have high demand among consumers. However, its high consumption of energy and its impact on the environment act as a major hindrance for it being considered as the most sought-after raw material for making packaging products. For every ton of recovered paper that is converted into new recycled paperboard for packaging and other end uses, 3.6 million metric tons of CO2 emissions are eliminated. When paper is not recycled, 80% of it ends up in landfills. Decomposition of the paper in landfills produces methane, a greenhouse gas with 21 times the heat-trapping power of carbon dioxide (CO2). The US EPA has identified landfills as the largest source of methane emissions in the US, and the decomposition of paper is the largest contributor to the methane being generated. For the paper & paperboard packaging industry, one of the major challenges over the period would be to reduce GHG emissions and develop more efficient and eco-friendly methods of manufacturing products.

Regional Insights

Asia Pacific paperboard packaging market generated the highest revenue in the global paperboard packaging market and it is estimated to continue in the forecast period. Over the last several years, globalization has resulted in a surge in commercial activity in nations such as China, India, South Korea, and Malaysia. Rapid urbanization, robust economic growth, and increased consumption of packaged food items are some of the key drivers driving growth in the region's packaging industry. The intense competition is likely to create possibilities for future market growth. Furthermore, positive trends in the cosmetics and medical industries would increase the paperboard packaging market sales in this area.

With a presence of large companies, North America remains one of the primary marketplaces for paperboard packaging materials. In 2018, North America consumed 74.21 million metric tons of paper and paperboard. According to FAO and UNECE data, this is the case. In the North American area, the US dominates the folding carton packaging industry, with food projected to be the leading end-user of folding cartons. According to the Association for Packaging and Processing Technologies, for example, the food sector in US is anticipated to expanding at a CAGR of 2.9% by 2022. Such trends in North America are expected to continue which will create a positive impact on the paperboard packaging market.

Some of the prominent players in the Paperboard Packaging Market include:

• Nippon Paper Industries Co., Ltd.
• Stora Enso
• South African Pulp & Paper Industries
• Mondi plc
• ITC Limited
• Smurfit Kappa Group
• Oji Holding Corporation
• International Paper Group
• Svenska Cellulosa Aktiebolaget

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

By Raw Material

• Fresh Source
• Wood pulp
• Others
• Recycled Waste Paper

By Product

• Boxboard
• Folding boxboard (FBB)
• Solid unbleached board (SUB)
• Solid bleached board (SBB)
• White lined chipboard (WLC)
• Containerboard

By Application

• Food & beverages
• Non-durable goods
• Durable goods
• Medical
• Others

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Points Covered in Paperboard Packaging Market Study:

• Growth of Paperboard Packaging in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Paperboard Packaging and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Paperboard Packaging Consumption Analysis
•  Paperboard Packaging Production Analysis
•  Paperboard Packaging and Management