by The paper packaging market comprises corrugated boxes, cartons, wrapping paper, tape, wooden pallets and other packaging materials. Paper packaging provides protection from damage during transportation and storage of food products, beverages, consumer goods, pharmaceuticals and other items. Rising online shopping trends are boosting demand for paper packaging for safe delivery of products. Paper packaging is sustainable and recyclable alternative as compared to plastic packaging.
The Global Paper Packaging Market is estimated to be valued at US$ 373.7 Bn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period from 2023 to 2030.
Key Takeaways
Key players operating in the Paper Packaging market are DS Smith PLC, Georgia-Pacific Corporation, Holmen AB, Hood Packaging Corporation, International Paper Company, MeadWestvaco Corporation, OJI Holding Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj, The Mayr-Melnhof Group, Sonoco Products Company, Pratt Industries and WestRock Company. These key players are investing in innovations and expanding their production facilities to meet the growing demand.
The demand for paper packaging is increasing owing to convenience of online shopping and wide applications in food, beverages, consumer goods and other industries. Sustainable paper packaging alternatives are gaining popularity as compared to plastic packaging due to stringent regulations on single use plastic. E-commerce companies are adopting paper packaging for parcel delivery to promote sustainability.
The paper packaging companies are expanding their geographic presence globally to tap opportunities in emerging economies of Asia Pacific, Middle East, Africa and South America. Companies are strengthening distribution channels and catering to variety of customer requirements through product innovation and customization.
Market key trends
Sustainable development is one of the major trends being witnessed in the paper packaging market. With increasing awareness about negative impact of plastics, there is a shift towards recyclable and eco-friendly paper packaging solutions. Paper packaging has highest recycling rate and can be recycled numerous times without loss of quality. Companies are developing packaging with recycled content and options for renewal to promote circular economy. Innovation in paper packaging with optimized designs for logistics also supports sustainable development and resource efficiency.
Porter’s Analysis
- Threat of new entrants: Medium barrier as large capital investments are required to set up paper packaging manufacturing units. However, fragmented industry structure provides opportunities for small players.
- Bargaining power of buyers: Moderate as buyers have numerous suppliers to choose from but switching costs are low. Large retail buyers can negotiate lower prices compared to SME buyers.
- Bargaining power of suppliers: Low as key inputs such as paper, board are available from many global and domestic suppliers. Buyers can switch suppliers easily.
- Threat of new substitutes: Medium threat from other packaging materials such as plastic but stricter regulations favor paper packaging.
- Competitive rivalry: High as the industry is highly fragmented with many global and local players. Intense price wars between suppliers to gain market share.
Geographical Regions
North America accounts for the largest share of the global paper packaging market in terms of value. This is attributed to high demand from industries such as food, beverages and consumer goods in the US and Canada. Growth in e-commerce is further driving the use of corrugated boxes, paper bags and envelopes in the region.
Asia Pacific region is expected to be the fastest growing market during the forecast period. China dominates Asia Pacific market led by food packaging needs of its huge population. Growing middle class and adoption of Western lifestyles in India and Southeast Asian nations will boost use of paper packaging for consumer goods. Shift of manufacturing base to Asia Pacific from developed regions increases regional market scope.
