Market Trends of North America Secondary Packaging Industry
Consumer Electronics to Witness Significant Growth
- Consumer electronics firms are being pushed by government and legislation in addition to consumer-driven sustainable packaging. This is notably true in the United States, where legislation for expanded producer responsibility programs, single-use packaging limitations, and other issues is being examined.
- Secondary packaging, such as folding cartons and corrugate boxes, is used for heavy and small electrical component packaging. Corrugated boxes pack consumer products, such as home appliances, refrigerators, HVAC units, etc. Apart from these, smaller electrical components and accessories, such as circuit breakers, tapes, light bulbs, etc., also use paper-based materials for secondary packaging.
- According to Consumer Technology Association, the retail sales of consumer electronics (CE) in the US market increased steadily from 2015 to 2022. According to forecasts, retail sales of consumer electronics are expected to grow by USD 485 billion in the United States in 2023. Revenue from OLED Televisions is expected to reach USD 2.3 billion in 2023.
- A strong need for anti-counterfeiting in electronics packaging drives the North American market. The packaging uses overt and covert technology, such as barcodes, holograms, sealing tapes, and radiofrequency identifying devices, to protect the integrity of items. The rapid growth of e-commerce in emerging economies has benefited the worldwide anti-counterfeit electronics packaging industry.
- Furthermore, environmental-friendly packaging is becoming popular for electrical devices. Government authorities and regulators have made a strong push for the adoption of green packaging. Both brands and customers are becoming more aware of environmentally friendly packaging and the importance of safeguarding the environment from non-biodegradable packaging trash.
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Canada Expected to Witness Significant Growth
- The Canadian secondary packaging market was valued at USD 6.79 billion the year before. Corrugated board packaging is an economical way to safeguard and transport various goods. The corrugated board's qualities, such as light weightiness, biodegradability, and recyclability, have made it a vital component in the packaging business. Sealed Air will focus on creating 100% recyclable or reused packaging by 2025. Around 50% of its solutions have already been made with recycled material.
- To improve their presence and position in the market, vendors in Canada have focused on growth, partnership, and collaboration initiatives. Similarly, in December 2022, Titan Corrugated and its associate All Boxed Up were acquired by UFP Packaging, a branch of UFP Industries, a US-based holding firm. The acquired company manufacture standard-sized distributed across the United States via All Boxed Up.
- The country's developing e-commerce market generates demand for corrugated and paper goods, notably from players in the transportation and logistics sectors. Paper-based packaging, which is adaptable and affordable, has been used to carry, protect, and preserve many items.
- According to Worldpay, mobile e-commerce earned over USD 28 billion in Canada in 2021, compared to USD 53 billion from desktop e-commerce. Additionally, it predicts that these amounts will rise to USD 57 billion and USD 81 billion in mobile and desktop sales by 2025. This growth is anticipated to show a proportionate rise in the nation's demand for corrugated packing boxes within the specified time frame.
- Canada's e-commerce infrastructure is highly developed and closely integrated with the United States. The major online retailers in Canada include Amazon, Wal-Mart, Canadian Tire, Costco, Best Buy, Hudson's Bay, and Etsy.
- Canadian consumers rely upon the internet to place orders. Internet consumer sales have risen more in the past decade than traditional retail sales. Most Canadian retail firms have adopted wireless technologies and internet-based systems to improve business-to-business and business-to-consumer relations.
- As Canada is one of the heaviest internet users, consumers have embraced electronic commerce amid a significant disruption in retail channels. According to Edge by Ascential, retail chain e-commerce gross sales in Canada accounted for USD 47.3 billion in 2022. Retail e-commerce sales are estimated to total USD 73.9 billion by 2027.
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