Market Trends of United States Corrugated Packaging Industry
This section covers the major market trends shaping the US Corrugated Packaging Market according to our research experts:
Strong Demand from the E-commerce Sector
- The demand for corrugated boxes is expected to increase with growing e-commerce packaging due to the high-quality graphics capabilities and strength of white-top and other higher-value paperboard grades. They are available in standard boxes and can be customized as well. The customization is not limited to the size but includes flaps and printing. The corrugated box supports inkjet and laser printing, which has widely gained popularity in the e-commerce and subscription e-commerce sectors.
- The rapid expansion of e-commerce has raised environmental concerns regarding transaction volume and value due to the potential for packaging waste it may produce. After buyers get the goods from single-use shipping packaging, stacks of cardboard, plastics, and seal tapes are frequently left behind. Reusable shipping packaging for e-commerce products was created as a creative response to overcome this issue. For instance, according to the American Forest & Paper Association (AF&PA), old corrugated containers (OCC) are commonly known as cardboard and are one of the most recycled packaging materials in the United States. The recycling rate of OCC in the United States was 91.4 % in 2021, an increase from 88.8% in 2017.
- COVID-19 increased demand for packing materials for online sales, which fueled development in the corrugated paperboard packaging sector. The most recent Amazon Prime Day served as a reminder of the value of online retail sales to the modern economy. The shipping boxes used by Amazon and other retailers represent e-commerce. They are also one of the main drivers of the increase in the demand for corrugated packaging in the United States.
- Players are also focused on increasing innovation and a new facility in corrugated packaging, which is expected to support the market's growth. In February 2022, WestRock Company announced its plans to construct a new corrugated box facility in Longview, Washington, to address the rising demand from its local clients in the Pacific Northwest. The company's Pacific Northwest corrugated packaging business is still doing well and has solid ties with clients in promising growth regions.
Understand The Key Trends Shaping This Market
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Beverage Segment Expected to Hold Significant Market Share
- Corrugated packaging is simple to recycle, and the pulp and paper industry is already skilled at turning it into new generations of containerboard. It is gaining traction in packaging as sustainability becomes a critical problem across the value chain. Due to these qualities, corrugated protective forms are gaining popularity among beverage manufacturers over other polymer-based alternatives, such as expanded polystyrene (EPS) foams.
- Also, companies in the region are focusing on reducing plastic use as far as possible to reduce the ill effect of plastic on the environment. For instance, in August 2022, Graphic Packaging International installed a KeelClip 1600 multi-packing machine at Liberty Coca-Cola Beverages' Elmsford, NewYork, production facility.KeelClip also offers protective can tops and features such as finger holes and easy-remove cans for ergonomic carrying. Graphic packaging estimates the technology saved over 1.3 million kilograms of plastic in 2021 and was used with over 550 million packs worldwide.
- The corrugated packaging supplied in this market sector comes in various thicknesses and sizes depending on the amount of protection needed. The end users may obtain the appropriate strength-to-weight ratio solutions to transport, handle, and store beverage items safely over long distances.
- Corrugated board packaging for beverages serves different purposes. Sometimes the packaging is used to protect heavy bottles from breaking, while sometimes, freshness is the main objective. In some cases, it may be used as a barrier or a form of protection against sunlight exposure.
- The cost-effective feature of corrugated packaging has driven its adoption. The price pressures are forcing the brand owners to be aware of wastage to streamline their expensive primary packaging. Secondary packaging offers a viable solution, with corrugated boxes being one of the most affordable recyclable, and sustainable packaging options. Highly skilled labor or costly tools are not required to manufacture and fill corrugated boxes, making it a much easier solution for end users.
- The rising consumption of alcoholic and non-alcoholic beverages is anticipated to aid the use of sustainable packaging solutions in the transport, handling, and storage of the beverage sector, and corrugated packaging is expected to benefit from it, especially in premium-priced beverage products such as wine. For instance, according to the International Bottled Water Association (IBWA), bottled water and carbonated soft drinks (CSD) held the highest share of beverages in the United States in 2021.
