Global Paper Packaging Materials Market - 2021-2028
Global Paper Packaging Materials Market Overview
The global paper packaging materials market was worth US$ XX billion in 2020 and is expected to show significant growth by reaching up to US$ XX billion by 2028, significantly growing at a CAGR of XX% during the forecast period (2021-2028).
Paper-based packaging is a flexible and cost-effective way of shipping, securing and preserving a wide variety of products. It is designed to be lightweight, durable, and tailored to meet particular product or customer requirements. Containerboard, paper bags, paperboard, and shipping sacks are different types of paper-based packaging present in the market. Corrugated containerboard is used for shipping and transporting anything from electronics to delicate glassware to perishable items for industrial and residential use. Paperboard containers are used for easy storage and display of food, medicine, and toiletries; paper bags offer consumers a reusable alternative to bring their purchases home. Paper shipping sacks are also used to pack and ship bulk materials such as animal feed cement or flour.
Paper Packaging Materials Dynamics
The global paper packaging materials market is driven by the increasing demand for eco-friendly packaging and rapidly growing fast and frozen industries in the past few years. In the last few years, the growing e-commerce market has shifted the adoption of paper packaging from plastic packaging, thus triggering the market's growth in the forecast period.
Increasing demand for eco-friendly packaging and rapidly growing fast and frozen industries have boosted the market's growth in the past few years.
The factors driving the demand for paper packaging are the increasing consumer perception of sustainable packaging and the strict regulations implemented by various environmental protection agencies regarding environmentally-friendly packaging products. Furthermore, for packaging companies worldwide, environment-friendly packaging solutions have become a trend rather than an exception. The deep shift in corporate standards, government policy, trade legislation, and customer preferences has led to a paradigm shift in the packaging industry towards eco-friendly solutions. For instance, companies like McDonald's, Nestle, Kraft-Heinz, PepsiCo, Coca-Cola and Unilever, in action plans to enhance their packaging sustainability by 2025 and beyond. The companies set goals, including increased recycling and recycled content while reducing the composition of virgin products, sustainable procurement, weight reduction, packaging design for enhanced recovery, and others. These initiatives are more likely to create opportunities for the paper packaging industries to build their market in the coming years.
The growing e-commerce market in the last few years has shifted the adoption of paper packaging from plastic packaging, thus expected to trigger the growth of the market in the forecast period.
As Internet penetration and accessibility grow, most online services, including eCommerce, offer more benefits to people. In all locations worldwide, the eCommerce industry is expected to break the net accounts for double-digit growth. The highest emergency demand growth rates are in the regions of Asia-Pacific and Latin America. Countries are responsible for the greatest growth in the eCommerce industry in these areas. Online food and beverage sales, pharmaceuticals/nutraceuticals and other CPG (consumer packaged items like home & personal care, beauty & cosmetics) are expected to display more modest but steady gains from a low penetration base. However, they will still significantly impact e-commerce packaging demand and trends due to their absolute volumes. For instance, in June 2020, Amazon India announced the successful elimination of single-use plastics in the packaging of goods at its fulfillment centers across the country, sticking to a commitment made nine months ago to replace all packaging material reusable or recyclable materials. The company has substituted paper dunnage and biodegradable paper tape for bubble wraps and plastic pillows. It also encourages sellers on its website who directly ship items to customers to follow its sustainable packaging practices.
Increased adoption of paper recycling technologies and growing government and manufacturers' R&D activities is creating immense opportunities for the paper packaging market to grow at the highest rate in the coming tenure.
Increased adoption of paper recycling technologies and growing government and manufacturers' R&D activities are expected to provide the industry with lucrative opportunities. The increasing demand for paper packaging to give the packaged product an aesthetic look is also expected to increase the paper-based packaging industry's growth. Furthermore, increased demand for corrugated cases for bulk material shipping is expected to increase market growth for paper-based packaging. It is expected that imposing a government ban on plastic use would open new avenues for the paper-based packaging industry. In order to minimize the use of single-use plastic, numerous countries, such as China, India and Taiwan, have adopted environmental safety policies. For example, the National Growth and Reform Commission and the Ministry of Ecology and Environment adopted a new policy in January 2020, which will see non-degradable bags banned in major cities by the end of 2020 and in all of them by the end of 2020.
COVID-19 Impact Analysis
The effect of covid-19 on the packaging industry has a mixed impact, and different packaging end-users rely on their portfolios. Most packaging manufacturers supply important industries with their goods and services, including pharmaceutical packaging, packaged food, labeling of hand sanitizers and disinfectants, soap, detergent, and hand wash packaging, which are currently in high demand. However, without significant packaging, the entire food, pharmaceutical, and consumer goods industry will collapse. During and after the pandemic, China is considered the leader in the packaging sector. The economy is expected to contract by up to 50% since most corporations that rely on China for packaging are now relocating to other countries such as India. Furthermore, Offline food chains include cafes and restaurants that are entirely closed in most regions, which negatively impacted the market. Moreover, the packaged food and beverages are experiencing an upsurge in demand due to the rise in necessity food products and shelf-stable foods.
Paper Packaging Materials Market Segment Analysis
The global paper packaging materials market is segmented based on material, packaging type, packaging level, end-user and region.
Growing preference for functional foods, a large product portfolio, and easy product availability is triggering food and beverage packaging in recent times.
In terms of end-user, the global paper packaging materials market is segmented into food packaging, beverage packaging, healthcare packaging, tobacco packaging, personal care & cosmetics, e-commerce packaging, etc. Out of all, food and beverage packaging hold a similar market share in recent times. The segment benefits from a growing preference for functional foods, a large product portfolio, and easy product availability. The growth of the organic beverage industries across North America and Europe's developed economies further expands the paper packaging material industry. Besides, packaging materials help preserve food and provide nutritional value, further contributing to the demand for paper packaging materials. Therefore, to preserve food and maintain the nutritious value of food, many retail stores use packaging materials. The demand is expected to rise in the future due to an increase in customers buying grocery products.
For instance, Amcor's premium Matrix paper-based and paraffin-free cheese packaging receive a Silver award at the 2020 Packaging Innovation Awards sponsored by Dow. This breakthrough provides soft cheese with the correct breathable barrier while eliminating paraffin. It has converted a non-recyclable wrapping material into a cheese wrap that can be recycled in the paper stream.
Paper Packaging Materials Market Geographical Analysis
The growing number of manufacturing plants and increasing demand for paper pulp in developing countries, such as China and India, is accelerating the growth of paper packaging materials in the Asia-pacific region.
Asia-Pacific is estimated to show noteable growth in the paper packaging material market in coming future. The improving number of manufacturing plants worldwide, coupled with the growing consumerism and transit packaging sector in the Asia Pacific, is adding value to the growth of the paper packaging market. Furthermore, the growing demand for paper pulp in developing countries, such as China and India. China's transit packaging market is rising, coupled with rising consumerism, leading to an increasingly increasing demand for paper packaging in the region. The increment of the food & beverage industry, coupled with government support in tax holidays and financial incentives to develop the manufacturing sector, particularly in China, Indonesia, India, Thailand and Vietnam, is projected to drive Asia Pacific regional growth.
Paper Packaging Materials Market Competitive Landscape
The paper packaging materials market is highly competitive with the presence of local as well as global companies. Some of the key players contributing to the market's growth include DS Smith Plc, Georgia-Pacific, WestRock Company, Oji Holdings Corporation, Packaging Corporation of America, Smurfit Kappa, Mayr-Melnhof Karton AG, Stora Enso, Amcor plc, Sap Pi and Sonoco Products Company, Crown Holdings and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the paper packaging materials market's growth globally.
Overview: Georgia-Pacific LLC, headquartered in Atlanta, Georgia, is an American pulp and paper company and is among the world's growing producers and distributors of tissue, pulp, paper, toilet and paper towel dispensers, packaging, construction materials and related chemicals. The company is recognized by household brands, such as Brawny paper towels, Quilted Northern bath tissue, Dixie cups, and tableware
Corrugated boxes: The Corrugated boxes and sheets are innovative, customer-focused packaging solutions. The company offers corrugated containers coupled with made-to-order specialty packaging products like high-graphic packaging, water-resistant packaging, and eye-catching point-of-sale displays.
The global paper packaging materials market report would provide access to an approx: 69 market data table, 73 figures and 277 pages.
Target Audience 2022
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