The folding carton market is estimated to grow at a CAGR of 3.06% to reach a market size of US$117.795 billion in 2026 from US$95.398 billion in 2019. The folding cartons are primarily manufactured from wooden, paper, and others. These provide eco-friendly and cost-effective packaging solutions and have higher demand owing to their ability to be available in many sizes in both standardized and customized order types with a small footprint in comparison to the bulkier packaging options thus making it feasible for almost every end-user. The rising growth of the folding carton market is mainly on account of increasing demand for frozen or chilled food, dry food, and cigarettes, especially in the emerging regions. Thus, the demand for the folding carton from the developed economies is anticipated to remain stable during the forecasted period. These rising demands and environmental awareness are motivating the manufactures to focus and invest in the recyclable folding carton and offer eco-friendly solutions. For instance, Elopak in 2018 introduced cartons made with natural brown boards that are carbon neutral. This was launched a year later after a successful fresh gable top carton introduced by Elopak which is made from the natural brown board. This is aiding the players of the market to tap a wide array of potential consumers. However, the surging price of the wooden pulps and increasing paper rates due to the outweighing global supply are restraining the growth of the folding carton market. The folding carton market players are finding difficulties in acquiring more profit margins. Key industries demanding the folding cartons are food and beverage, healthcare, tobacco. Market players of the folding carton include AR Packaging Group AB, Great Little Box Company Ltd, DS Smith, Amcor plc, WestRock Company, Rengo Co., Ltd, Mayr-Melnhof Karton AG, Great Little Box Company Ltd, and Stora Enso.
Market Drivers
Various of the foldable carton such as rigidity, flexibility, and printability are driving the demand and is increasing applications of the foldable carton for the packaging purpose among the small and medium-sized consumers goods as well as food and beverage products. The growth in awareness regarding the environment is changing the preference of the consumers to more eco-friendly and non-plastic packaging products. Furthermore, the government is mandating a ban on single-use plastic packaging and is also participating in increasing the awareness among the consumers regarding sustainability. For instance, The European Carton Makers Association (ECMA) has released an updated version of the ‘Good Manufacturing Practice’ (GMP) in March 2021, that is for the companies that manufacture folding cartons which are intended to come into contact with food.
These are pressurizing the players of the market to adopt more eco-friendly products. The adoption of anti-counterfeit measures in the product packaging industry is giving many growth opportunities for the market of the folding carton. These factors are expected to improve the demand over the forecasted period.
Key industries driving the demand for folding carton packaging are personal care, health care, food & beverage, and the electronics industry among others. The expansion of the food and beverage industry along with the packaged food industry is driving the demand for folding cartons. In addition, the digital print of the carton is further augmenting the market of folding cartons due to the appealing graphics. The technological advancement in the folding carton such as smart folding cartons that can be used to track the status of the delivery process of the product using QR code. These new features are projected to boost the market growth of the folding carton during the forecast period.
Segment Analysis
The folding carton market by structure type is classified as Full Seal End, Reverse tuck end, Straight tuck end, Tuck Top Auto-Bottom, Double Glued Sidewall, and Others.
By wall construction, the folding carton market is segmented as Single-Wall Corrugated Sheet, Double-Wall Corrugated Packaging, and Triple-Wall Corrugated Packaging.
The folding carton market by end-users is segmented as Hardware and Electrical, Food and Beverage, Personal Care, Healthcare, Household, and Others. The food and beverage segment is anticipated to hold a larger share and display a prominent CAGR due to the rise in the demand for convenience and organized retail. Further food vendors want to offer products with long shelf life and appealing packaging.
While, the folding carton market is classified on the basis of material types as Solid Unbleached Board, Whiteline Chip Board, Folding Box Board, and Solid Bleached Board.
The market of the folding cartons is segmented by order type as Standard and Customized. Customized is expected to hold a larger share by order type and have growth opportunities during the forecasted period.
Regional Analysis
The folding cartons market on the basis of region has been segmented into North America, Europe, Middle East & Africa, Asia Pacific, and South America. The Asia Pacific holds the major share in the market and is expected to dominate over the forecasted period on account of increased demand for conveniently packaged food items and takeaway food items by the consumers. Established organized retailing in various regions is also projected to contribute towards the future growth of the folding carton market. In the Asia Pacific, China is one of the leading consumers of the folding cartons that are contributing towards the market growth of the folding carton in the region as the Chinese consumers are shifting their demand to the packaged goods on account of its convenience, lifestyle branding, and aesthetics. China is also one of the largest sources of folding cartons both in value and volume terms as the region has low manufacturing costs which are offsetting the cost of shipping. This is motivating the manufacturers of the market to develop new technologies to attract more demand for folding cartons. The demand for folding boxes will continue to increase in the region during the forecasted period on account of active and intelligent packaging with anti-counterfeit technology. Furthermore, the rise of e-commerce in the region is leading to the increased demand for the packaged food and convenience food products which is leading to increasing in the demand for the folding carton market.
COVID-19 Impact
The outbreak of Covid-19 has affected every industry due to the lockdown and work stoppage orders except for medical supplies and life support products industries. The folding carton market has also been greatly impacted by the pandemic but maintained relatively optimistic growth due to the disrupted supply chain and distribution channel.
Segmentation
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