Paperboard packaging market exceeding at 7.5% CAGR to cross USD 240-bn by 2024
Paperboard packaging market size will likely surpass USD 240-billion by 2024; according to a new research report by Global Market Insights.
18 Apr 2019 | By Dibyajyoti Sarma
Corporate lifestyle of people and odd working hours result in home delivering and on-the-go eating habits. These factors are boosting the packaged food industry in the emerging countries. Rising number of working women in these countries is also one of the factors driving the packaged food industry in these regions. China is one of the leading packaged food manufacturer with huge bakery, processed food, sauces, dressings, and baby food production.
In 2016, China packaged food market was valued over USD-275 billion and is poised to grow at a significant rate in the forecast period. Increasing consumption of such packaged food and beverages by consumers in the emerging countries due to rapidly changing lifestyles will positively influence the paperboard packaging industry in coming years.
Plastic, metal, and glass packaging are a few factors that may affect paperboard packaging market in coming years. Plastic is a widely used substitute product used for packaging purposes. The abundant availability of paper and paperboard material for packaging purposes and safety regulations pertaining to plastic usage however results in a traditional use of paperboard packaging all over the world.
Few of the shortcomings faced by the paperboard packaging market include the higher costs than plastics and the durability. The products are not inherently water resistant and need extra protection layers of plastic to prevent moisture damage. These factors shall act as restraints for the global paperboard packaging market.
Paperboard packaging market is classified based on raw materials as recycled waste paper and fresh (virgin) sources. Used and collected waste paper is recycled and added with fresh fiber for strengthening properties as recycled paper has the tendency of losing strength when reused. Impurities in recycled paper, and inferior quality are the main reasons they are not used in the packaging of food & beverages owing to the food safety standards and norms. Fresh sources majorly include wood pulp as raw materials, which account to almost 90%, while other raw materials are sugarcane bagasse, straw, hemp, cotton, etc.
Considering products, the paperboard packaging market is bifurcated into containerboard and boxboard. The manufacturing process of containerboard is done on modified paper machines as they have the ability to handle superior grammages. The segment will grow at an exponential CAGR of over 8.5% from 2017 to 2024.
Boxboard segment is additionally bifurcated as white lined chipboards, solid bleached boards, solid unbleached boards and folding boxboards. The white lined chipboard segment will surpass USD 30 billion by 2024.
Considering application, paperboard packaging market is segmented into medical, non-durable goods, durable goods, food and beverages and others. The others segment includes machineries and industrial goods. Development in food & beverage industry, and increasing packed food consumption will positively influence the paperboard packaging market. It is one of the fastest growing segments and will exhibit growth with CAGR of over 8% in the forecast spell.
The paperboard packaging market is classified on the basis of region where Asia Pacific held a significant share in 2016 and is set to surpass USD 175 billion by the end of the forecast period. Rising industrial activities and developing cosmetic, electronic and food and beverages industry is set to fuel the regional paperboard packaging market demand. Europe market will exhibit growth at a decent rate in the predicted period due to the developed market in this region paired with the supportive governmental norms.
Key players in the paperboard packaging market are Badger Paperboard, Southern Champion Tray, Outlook Group LLC, Svenska CellulosaAktiebolaget (SCA), Smurfit Kappa Group, Shandong Bohui Paper, South African Pulp & Paper Industries Limited (Sappi Limited), Stora Enso Oyj, Rock-Tenn Company, Oji Holding Corporation, Metsa Group, International Paper Company, ITC Limited, Mondi, Nippon Paper Industries, and others.
For details on the report, please visit Global Market Insights.