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Global Corrugated Packaging Market Size, Share, Development, Growth and Demand Forecast to 2020 - Industry Insights by Application


News provided by

ReportBuyer

Mar 10, 2016, 05:53 ET

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LONDON, March 10, 2016 /PRNewswire/ -- The global corrugated packaging market was worth $150.1 billion in 2014, and it is expected to grow at a CAGR of 4.6% during 2015-2020. The processed food corrugated packaging dominated the global corrugated packaging market in 2014, with 25.4% market share. Both the consumer and regulatory bodies have raised their concern towards the environment and sustainability, since the growing number of landfills is becoming more challenging for governments in the developed countries. Therefore, the demand for environment friendly and easily recyclable packaging material is increasing, especially in the non-durable consumer goods segment. Europe has the highest paper recycling rate (78%), while the developing countries are also aiming towards lowering of carbon footprints. China is expected to increase its paper recycling rate up to more than 72% by the end of 2015. Governments in the developing market are also providing a helping hand to the corrugated packaging material suppliers.

The small and regional corrugated packing suppliers are finding it hard to manoeuvre profitably in the corrugated packaging market, owing to the increasing prices of raw materials, such as paper pulp. The corrugated packaging market has witnessed large numbers of mergers and acquisitions (M&A), in recent years. The falling profit margin, particularly for small players have led to market consolidation in the developed markets of North America and Europe. Rock-Tenn Company, Smurfit Kappa Group, Georgia-Pacific, Packaging Corporation of America, Mondi PLC, DS Smith PLC, International Paper Company, and Oji Holdings Corporation are among the key acquirers in the corrugated packaging market.

The high impact graphic design on the corrugated board has made corrugated packaging very popular, in both the primary and secondary consumer goods packaging during the recent years. The industrial secondary shipping remains one of the largest markets for the corrugated packaging. The consumer electronics section of corrugated packaging is also expected to witness a considerable growth in the forecast period, owing to the increasing shipments of consumer electronics products, such as tablets, smartphones, laptop, and flat screen televisions, especially in the emerging markets of Asia-Pacific. However, the low strength and poor barrier properties of corrugated material is limiting its acceptance among many applications. Corrugated packaging is best suited for bulky solid materials, such as industrial products. The corrugated packaging it still not well suited for liquid packaging, due to their poor barrier properties. Moreover, moist and humid weather decreases the firmness and strength of the corrugated boxes. Corrugate packaging also poses poor fire resistibility.

Most of the global corrugated board production is done through the recycled materials including corrugated containers, crafts, and papers. Over the past few years, the supply of virgin paper pulp remained tight, due to growing concern for deforestation. The overall recycling rate of corrugated materials is highest among all other packaging material. In 2012, 91% of the total container boards used in packaging were recovered and reproduced.

The global corrugated packaging market is marginally consolidated, with top ten players accounting for approximately 68% share, in terms of production volume. Major players such as IPC, Nine Dragons, and Rock-Tenn Company are expected to increase the name plate capacity in the corrugated packaging market, during the forecast period. This is mainly because of their M&A activities in the developing countries.

Major players in the corrugated packaging market include Nine Dragons Paper (Holdings) Limited, RockWest Company, International Paper Company, Lee & Man Paper Manufacturing Ltd., Georgia-Pacific Equity Holdings LLC, Smurfit Kappa Group, Mondi Group, Packaging Corporation of America, Oji Holdings Corporation, and DS Smith PLC.

Report Coverage

Provides comprehensive understanding of the market with the help of informed market outlook, opportunities, challenges, trends, size and growth, competitive analysis, major competitors and Porter analysis
Identifies the key drivers of growth and challenges of the key industry players. Also, assesses the future impact of the propellants and restraints on the market
Uncovers potential demands in the market
Porter analysis identifies competitive forces within the market
Provides information on the historical and current market size and the future potential of the market
Provides sizes of key regional markets using yardsticks of processes, segments, products, end user and technology, etc (as applicable)
Highlights the competitive scenario of the market, major competitors, market share, benchmarking, investments and merger acquisitions
Provides profiles of major competitors of the market including details of their operations, product and services, recent developments and key financial metrics. Profiles provide better understanding of competition as well as the demands of the market.
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