Market Trends of Corrugated Board Packaging Industry
This section covers the major market trends shaping the Corrugated Board Packaging Market according to our research experts:
Processed Food Segment Expected to Occupy Significant Market Share
- The demand for convenience foods is rising due to people's busy lifestyles. Hence, processed food, which takes less time to cook, attracts many consumers. The increasing population also drives the demand for processed food, which is convenient.
- As corrugated board packaging keeps moisture away from products and can withstand long shipping times, companies are increasingly adopting this packaging to offer better customer outcomes, especially for secondary or tertiary packaging. Processed foods, such as bread, meat products, and other perishable items, need these packaging materials to be used just once, thus driving the demand.
- Corrugated board packaging is becoming a viable alternative to plastic packaging for many different food products. Corrugated box packaging can be created more simply from recycled materials and recycled or composted.
- Consumers, particularly millennials, are becoming more aware of the impact of food packaging, food production, and food waste on the environment. According to a Stora Enso survey, 59% of millennials think that packaging should be sustainable throughout the value chain. Demand for sustainable packaging products is a key driver in processed food packaging positively impacting corrugated board packaging market growth.
- According to the Ministry of Economy, and Industry of Japan, volume consumption of corrugated cardboard boxes for processed food and beverages has been steadily rising. In 2017, the consumption volume was 3.93 billion square meters for processed food and beverages which increased to 4.14 billion square meters in 2021 in Japan.
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China is Expected to Hold Significant Share in Asia Pacific
- The Chinese corrugated board packaging sector is heavily influenced by the rising per capita income, changing social atmosphere, and demographics. As a result of this shift, new packaging materials, processes, and forms are required. Over the forecast period, growing e-commerce companies such as Alibaba are expected to fuel the corrugated packaging market.
- For example, Chinese shoppers purchased a total of CNY 540.3 billion (nearly USD 84.54 billion) value merchandise during Alibaba's Double 11 shopping event in 2021. In addition, according to the e-commerce vendors like Alibaba and JD.com, Chinese shoppers spent USD 139 billion during the Single's day festival, thus raising the inventory and storage of various goods and driving the demand for corrugated packaging.
- The growing urban population, developing e-commerce package industry, declining pulp prices, and improving population awareness about eco-friendly packaging are expected to propel China's corrugated board packaging market. Increased containerboard capacity and technological breakthroughs are among the industry's key trends and developments. However, some obstacles, such as tight rules and product quality, can stifle market expansion.
- Industries, including food and beverage, IT electronics, and home appliances, which have a huge demand for corrugated boxes, are currently witnessing a trend of consumption upgrading in China. The trend of upgrading packaging in leading end-user industries is expected to lead to continued growth in the market size of mid to high-end corrugated cartons.
- Further, factors that are contributing to the acceleration of the corrugated packaging market in the country are the growing environmental awareness by the urban population, demand for sustainable packaging, increasing demand for convenient packaging, growth in e-commerce activity, and rising demand for electronic goods and home and personal care products.
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