Transparency Market Research (TMR) latest release, Paperboard Packaging Market: Thriving E-commerce Sparks Demand By 2016 – 2024, asserts the Asia Pacific region will grow at the highest rate globally, followed by Latin America.
According to TMR, the global paperboard packaging market is expected to reach a valuation of US$227bn at the end of 2024 displaying a 7.1 per cent CAGR from 2016 to 2024. In 2015, the market stood at a valuation of US$122bn.
TMR says the global market for paperboard packaging is concentrated due to the fast economic development in emerging economies. In 2015 Asia Pacific stood as the largest market for paperboard packaging, mainly due to the growth in the cosmetic and personal care and packaged food industries. The e-commerce industry is thriving due to easy internet access, alongside rising disposable income, making it a significant factor in the growth of the paperboard packaging market in the Asia Pacific.
TMR says the global paperboard packaging market is moderately fragmented, with 60 per cent of the market being held by International Paper, Nippon Paper Industries, WestRock Company, Stora Enso, Smurfit Kappa Group, and Mondi.
Analysing the industry, TMR says some of the large companies have formed their own distribution channels through ancillary companies and joint ventures. Typically, these companies offer products through supply deals with suppliers and distributors. Some paperboard manufacturers have partnered with logistics companies to diversify operations and augment their presence across the value chain.
TMR also says sustainability of paperboard packaging is a contributing factor, as paperboard is an ideally suited recyclable packaging solution over metal and plastics. This is because paperboard is recyclable and renewable, especially when procured from managed tree farms and recycled paperboards. Paperboard packaging is available in various grades and displays unique characteristics as per the packaging needs.
Paperboard is used for graphic printing owing to its superior printing surface. Due to this it is used as a information carrier and is useful for brand building initiatives across a range of industries such as medicine, cosmetics, food, and clothing, says TMR.
The report claims North America and Europe are relatively mature markets for paperboard packaging, and that these regions will display sluggish growth in the coming years.
