Product Code: 65440
The containerboard market was valued at USD 167.2 billion in 2019 and is expected to reach USD 239.6 billion by 2025, at a CAGR of 4.5% over the forecast period 2020 - 2025. Due to increasing e-commerce activities and leading to elevation of product shipments, this market is expected to propel. The changing lifestyles have led to the emergence of processed and packaged foods. Containerboard is gaining popularity in the global packaging industry. It is the most frequently used packaging material due to its versatility, lightweight, and durability. Moreover, it is made from a renewable resource and is also the single most-recycled packaging material.
- Properties such as lightweight, recyclability, and scalability, have made containerboard as one of the most favored packaging products. The need for a sustainable packaging solution for transportation and logistics has led to the expansion of the containerboard market. This is a major driver in the containerboard market.
- It is expected that e-commerce would become the world's largest retail channel by 2021, and account for 14% of the total retail sales. The increasing e-commerce shipments around the world is also a major factor motivating the companies to invest in the market.
- The availability of alternative packaging solutions is one of the significant factors expected to restrain the growth of the market.
- Increasing environmental concerns and governments pushing the packaging firms toward the adoption of recyclable materials for packaging offer a massive opportunity for the market.
- The rise of Industry 4.0 has increased the need to maintain sustainability across production and consumption processes in the packaging industry. Flexible packaging is gaining traction as it offers optimized products while utilizing minimum amounts of raw materials. The advent of flexible packaging is one of the critical containerboard market trends that is expected to have a tremendous impact on market growth during the forecast period.
- For instance, Oji Holdings Corporation installed a new containerboard machine at the GS Paperboard & Packaging (GSPP) plant located in Malaysia, in order to cater to the increasing demand in the region. In January 2019, Marubeni Corporation launched its containerboard manufacturing and packaging material sales business in Vietnam, where the packaging market is experiencing growth, according to the company.
Scope of the Report
Containerboard is a type of paperboard specially manufactured for the production of corrugated board. It includes both linerboard and corrugating medium (or fluting), the two types of paper that make up the corrugated board. Containerboard is utilized to fabricate compartments and boxes. Containerboards are generally utilized on the grounds that they give a lightweight, solid, more sturdy and savvy answer for the traditional bundling materials.
Key Market Trends
Food and Beverages Segment is Expected to Have Significant Growth
The demand for ready-to-eat and packaged foods is on the rise, due to the busy lifestyles of people. Hence, processed food, which has a faster cooking time, attracts many consumers. The increasing young population, especially of working women, also drives the demand for packaged food, hence driving the market. As corrugated board packaging keeps moisture away from food products and can withstand long shipping times, it is increasingly being adopted by the food and beverage companies to offer better outcomes to customers. The growth of the beverage industry is expected to be driven by the high consumption of milk and UHT milk, and dairy and RTD beverages that are increasingly adopting paper packaging, fueled by favorable consumption trends in ready-to-drink premium wellness beverages and product differentiation advantages.
- For instance, Each year the Brazilian consumers eat or drink out-of-home (OOH) on an average of 68 times. In 2017, the OOH market in Brazil accounted for USD 11 billion, in which the purchase of food and beverage represented almost 50%.
- According to Napco National, a Saudi Arabian packaging firm, the rise of ready-to-eat (RTE) and grab-and-go meals is shaping the future of Saudi Arabia's food and beverage packaging trends.
- In the United Arab Emirates, the Emirates Business Group-owned Ipack, is the first of a kind factory in the country, and one of the very few in the GCC to produce paperboard packaging for aseptic filling use. It started commercial production in August 2017, and within the first year it supplied products to most of the Middle East and North Africa (MENA) region, and even to central Africa.
North America Region is Expected to Have Significant Growth
North America is one of the most prominent markets in the global containerboard market, mainly due to massive investment by the US. The United States is one of the major global exporters of containerboard, especially corrugated containers and kraftliners. The material and manufacturing costs in the country is cheaper, as compared to that in the other regions. The country's concern for sustainable development is also a factor for high containerboard manufacturing. The rising domestic demand and increasing export of processed and packaged foods are also expanding the manufacturing facilities of containerboard in the region.
- The increasing awareness and initiatives regarding recycling process are also motivating the vendors to increase their investments in the market studied. The country has 20% more trees than it had in 1970. According to the Environmental Protection Agency (EPA), paperboard and paper packaging, which includes containerboard, accounts for nearly three-quarters of packaging materials recovered for recycling in the United States.
- According to the American Forest & Paper Association, 88.8% of corrugated containers were recovered for recycling in 2017 in the country. More than half of the recovered fibers used in manufacturing paperboard and paper goes into making containerboard.
- The region's sales volumes in industrial packaging are also continuously increasing over the past few years, reflecting higher box shipments and higher shipments of containerboard to the export markets.
The global containerboard market is a fragmented market. It is a highly competitive market with a number of players in the market, and there is no dominant player present.
- February 2018 - International Paper announced a USD 500 million investment in Alabama manufacturing facility. International Paper announced that it would spend more than USD 500 million to upgrade its facility in Selma, Alabama, to meet the increasing demand for its products.
- January 2018 - Mondi Group acquired Powerflute for Euro 365 million. The agreement to acquire Powerflute operates an integrated pulp and paper mill in Kuopio, Finland and was initially signed in December 2017. Mondi will include the acquired business in its packaging paper business unit.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Force Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers/Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Technology Snapshot
5 MARKET DYNAMICS
- 5.1 Introduction
- 5.2 Market Drivers
- 5.2.1 Increasing Shipments through E-commerce
- 5.2.2 Increasing Demand Processed and Packaged Foods
- 5.2.3 Environmental Concerns Leading to the High Demand for Recycled Packaging Solutions
- 5.3 Market Restraints
- 5.3.1 Availability of alternative packaging solutions
6 MARKET SEGMENTATION
- 6.1 By Type
- 6.1.1 Kraftliners
- 6.1.2 Testliners
- 6.1.3 Recycled
- 6.1.4 Flutings
- 6.2 By End User
- 6.2.1 Food and Beverages
- 6.2.2 Consumer Goods
- 6.2.3 Industrial
- 6.2.4 Other End User
- 6.3 Geography
- 6.3.1 North America
- 22.214.171.124 US
- 126.96.36.199 Canada
- 6.3.2 Europe
- 188.8.131.52 UK
- 184.108.40.206 Germany
- 220.127.116.11 France
- 18.104.22.168 Spain
- 22.214.171.124 Rest of Europe
- 6.3.3 Asia Pacific
- 126.96.36.199 China
- 188.8.131.52 Japan
- 184.108.40.206 India
- 220.127.116.11 Rest of Asia-Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 International Paper
- 7.1.2 Oji Fibre Solutions (NZ) Ltd
- 7.1.3 Nine Dragons Paper (Holdings) Limited
- 7.1.4 Smurfit Kappa Group
- 7.1.5 Mondi Limited
- 7.1.6 Sappi Ltd
- 7.1.7 WestRock Company
- 7.1.8 Cascades Inc.
- 7.1.9 Stora Enso Oyj
- 7.1.10 Svenska Cellulosa Aktiebolaget SCA
- 7.1.11 Georgia-Pacific LLC
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS