Paper Packaging Market – Global Industry Insights, Trends, Size, Share, Outlook, and Opportunity Analysis, 2017-25
Paper packaging is a versatile way of packaging that makes use of paper for sustainable transportation and protection of goods. Paper is 100% recyclable, compostable, and biodegradable, as it is manufactured from the natural fibers of bleached and unbleached cellulose, or from recycled paper. Paper and board packaging is a more eco-friendly alternative to plastic-based packaging. Paper packaging material is light in weight, strong, and easily customizable for aesthetics, which poses as an additional advantage, inclined to customer preference.
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Environment friendly nature of paper, low cost compared to alternatives and scrutiny from governments, public, NGOs, and media regarding waste generation are the major drivers fueling market growth. Companies taking an environmental stand have observed a better public profile than their counterparts, which helps in the direct translation of company health.
The major challenges faced by the market is the inability of paper in packaging of very heavy materials, resulting in the industry being overpowered by the polymers and metal packaging industries. Furthermore, deforestation to acquire raw material and the release of dioxins during paper production cause environmental concerns, in turn hindering growth of the paper packaging market.
Corrugated containers are primarily used as tertiary packing, which is removed by retailers before sale. Owing to the higher degree of strength from the layered paper packaging structure, corrugated containers are used to carry heavy goods such as electronics or multiple packages in the same container. Cartons, on the other hand, are lightweight materials used for packaging single items. Paper bags are made from a single layer of paper and are used for light duty applications such as grocery packaging.
Solid bleached surface is a bleached chemical board with a mineral or synthetic coating for printing purposes. It is used in high-end packaging, pharmaceuticals, and food packaging, where aroma and flavor retention are essential. Coated recycled paperboard is produced from 100% recycled material and is coated with a kaolin layer for product description printing, these are used for cereal boxes, soaps and detergents, and paper goods packaging. Uncoated recycled paperboard is also produced from 100% recycled material and is used for shoeboxes, composite cans, and fiber drums.
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Largest end-user industry of paper packaging is the food industry. Moreover, with population in emerging economies such as China and India getting richer, the demand for packaged goods increases, in turn driving growth of the packaging industry.
Low cost and innovative solutions on a local and regional level have challenged established market leaders, creating a buyer’s market with low prices on offer. The key players in the market include Clearwater Paper Corporation, Amcor Ltd., ITC Ltd., Metsa Group, Cascades Inc., Rock-Tenn Company, Mondi Group, Packaging Corporation of America, and DS Smith Plc.
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