Corrugated Board Market Size, Share, Opportunities, COVID-19 Impact, And Trends By End-User (Food And Beverage, E-Commerce, Personal Care, Electrical And Electronics, Others), And By Geography - Forecasts From 2023 To 2028

The market is primarily driven by the growth of the e-commerce industry and the rising demand for environmentally friendly packaging. However, it is anticipated that the absence of sturdiness in corrugated boards may restrict market expansion. One of the most popular materials for packaging in a variety of industries, including food & beverage, healthcare, and consumer goods, is plastic. But the increasing use of plastic is having a negative effect on the environment. The UN estimates that over 300 million tonnes of plastic garbage are produced yearly on a global level, which is nearly equal to the weight of all people on earth. The idea of eco-friendly packaging is increasingly being embraced in order to prevent the production of this much plastic waste. To meet the growing consumer demand for sustainable packaging, the end-user sectors are transitioning from plastic to corrugated board packaging.

Geographical Insights

Corrugated boards are predicted to have a sizable market in Asia Pacific. The existence of highly populated nations like China and India, rising urbanisation, and rising per capita income in the nations all point to the packaging sector in the Asia Pacific region expanding, in turn, the market for corrugated boards. The region's increasing environmental consciousness and desire for green packaging options are expected to fuel market expansion. The rising per capita income as well as the shifting social climate and demography have a significant impact on the Chinese corrugated board packaging industry. This change necessitates the use of innovative packaging materials and procedures. For instance, it is anticipated that expanding e-commerce businesses like Alibaba will propel the corrugated packaging market. For instance, during Alibaba's Double 11 shopping event in 2021, Chinese consumers spent a combined total of CNY 540.3 billion on items. Additionally, e-commerce companies like Alibaba and JD.com claim that Chinese consumers spent almost USD 139 billion during the Singles' Day festival, which increased inventories and storage needs for various commodities and increased demand for corrugated packaging.

Moreover, it is projected that the US would be a significant market for corrugated boards. There are many packaged food businesses in the nation, including those that provide convenience foods, ready-to-eat meals, and ready-to-make meals. One of the main development drivers is the high demand for out-of-home food due to hectic work and personal schedules and the convenience that these food items offer is a major driver. The USDA reported that in 2021, Americans spent an average of 10.3% of their personal disposable income on food alone, with 5.2% going toward food consumed at home and 5.1% toward food consumed outside of the home. Thus, it is anticipated that the market will continue to rise over the projection period despite the high cost of food.

Food and beverage to hold lucrative market opportunities

Companies are increasingly using corrugated board packaging to provide better customer results because it keeps dampness from items and can endure lengthy transportation times, particularly for secondary or tertiary packaging. The demand for these packaging materials is fueled by processed meals like meat products, bread, and other food products that require these materials to be used only once. Thus, corrugated board packaging is emerging as a potential substitute for plastic packaging for a variety of food products. Recycled materials make it easier to make corrugated boxes. Additionally, consumers, particularly Gen-Z and millennials, have grown more conscious of the environmental effects of food manufacturing, packaging, and wastage. Millennials are ready to shell out an additional 10% to 25% for sustainable goods and services, according to the World Economic Forum. Due to this raised knowledge, a growing number of consumers demand and select solutions that are much healthier, more environmentally friendly, and more sustainable. As a result of increasing demand, this aspect is anticipated to fuel market growth for corrugated boxes. Additionally, packaged food and beverage manufacturers are using more corrugated cardboard cartons, according to the Japanese Ministry of Economy and Industry. In Japan, for example, the consumption quantity was around 3.93 billion square meters in 2017, and it is expected to reach about 4.14 billion square meters in 2021.

Key development

• In May 2022, Mondi announced its plans to invest 280 million euros to boost the manufacturing of cardboard and corrugated board. With this investment, nations like the Czech Republic, Turkey, Poland, and Germany were targeted to boost productivity and capacity. The company's network of Corrugated Solutions factories in the Central and Eastern European areas was to get EUR 185 million from this investment.
• In April 2022, DS Smith created and released a corrugated box for the shipping of medical gadgets through e-commerce. Instead of glued packaging with just a single-use plastic liner, this innovative corrugated cardboard box used a single-material solution.

COVID-19 Impact on the Corrugated Board Market

The packaging sector was severely hit by the COVID-19 outbreak. As of August 2020, the US had 198,000 dental hospitals and clinics that had been shut down due to the coronavirus pandemic. The recession that followed the pandemic's outbreak had a negative influence on the packaging sector. Manufacturers of packaging solutions were alarmed by the sudden drop and fluctuation in raw material prices before and after the COVID-19 outbreak. However, since the pandemic, there has been a considerable increase in e-commerce. Retail sales through e-commerce have significantly increased. As a result, it is anticipated that the corrugated box market would continue to strengthen.

Corrugated Board Market Scope:

Segmentation:

• By end-user
  • Food and Beverage
  • E-Commerce
  • Personal Care
  • Electrical and electronics
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Chile
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Others