Gable Top Container Market - Growth, Trends, and Forecasts (2023 - 2028)

The Gable Top Container Market is expected to register a CAGR of 3.64% during the forecast period. The Russia-Ukraine war has an impact on the overall packaging ecosystem. Gable top containers can be produced sustainably because they are primarily made of paperboard, which can be obtained from renewable resources. The sustainability of gable top containers is one of the major growth drivers of the market.

Key Highlights

• The Russia-Ukraine conflict is impacting the world's timber markets, according to the WRI report published at the end of April 2022. Russia, Belarus, and Ukraine accounted for 25% of the world's lumber trade in 2021. There has been a substantial export of forest products since the war started in February 2022. This war will affect the price and the flow of raw materials used by the gable top container packaging industry.
• During the COVID-19 outbreak, the market studied faced slow growth due to lockdowns imposed by various countries that have disrupted the supply chain process and the closure of production plants in some countries to curb the effect of the virus.
• Gable top cartons can be recycled to a great extent. Gable top cartons can be recycled in 62.8% of American communities in 2021, according to Carton Service, Inc. They could only be recycled in 37% of American communities in 2011. The fact that this number has increased significantly over the past ten years suggests that it will continue to rise in the years to come, making the gable top carton an even more environmentally friendly packaging option.
• Gable top containers and cartons are ideal for sustainability because it is renewable and recyclable and less fuel is needed during transportation . Plastic jugs and carafes cannot be shipped in the same volume as cartons because of their inefficient shape. In comparison to shipping an equivalent number of plastic containers, shipping gable top containers requires fewer trips and, as a result, uses less fossil fuel.
• Paperboard packaging such as gable top container has emerged as a preferred packaging medium due to its evolution as a point-of-sale display in retail applications, coupled with continuous development in design and high-quality graphics board, which is enabling gable top containers to penetrate traditional folding carton applications.

Key Market Trends

Growing Demand from Milk and Beverage End-user Industries

• To meet consumer demands, milk and beverage manufacturers are making more significant efforts to provide sustainable materials and packaging, functional and convenient displays, and healthier food options. Sustainability has gained prominence in the milk and beverage industries, with consumer packaged goods manufacturers addressing the significant carbon footprint incurred by product packaging. According to the United Nations, plastic waste increased from 2 million metric tons in 1950 to 348 million metric tons in 2017, which is expected to double by 2040.
• Reduced production of single-use plastic, viewed as one of the most harmful packaging types by sustainability experts, has resulted in a severe accumulation of waste globally, particularly in oceans, which is a critical component. Companies such as Nestle and PepsiCo have set goals of making 100% of their packaging recyclable, reusable, or compostable by 2025.
• Many end-user businesses are shifting towards using aseptic global top containers. For instance, in June 2022, Barenmarke, a milk products brand, launched its famous 'bear brand' in gable top cartons. Iced coffee and chocolate milk were introduced in 1 liter Pure-Pak Sense aseptic cartons, a gable top container product from Elopak. Later in 2022, the company plans to introduce the new Barista milk in gable top containers.
• The rapidly adopted trend of lightweight packaging material, alongside the inclination towards reducing production, shipment, and handling cost, is driving the gable top container packaging for milk and beverages.
• According to USDA-dairy world trade markets and trade-2021, Cow milk production in the EU reached 157.5 million metric tons in 2020, up from 151 million tons in 2016. The increase in milk production is expected to drive the gable top cartons to demand over the forecast period.

Asia-Pacific is Expected to Grow with the Highest CAGR

• The growing urban population, a proliferation in demand for sustainable packaging, an increase in the demand for convenient packaging, an increase in e-commerce activity, and rising demand for milk and beverage products are all factors that significantly impact the region's gable top container packaging market.
• Due to the restrictions on movement and the closure of physical stores during the COVID-19 pandemic, the region's e-commerce industry saw a massive increase in online orders. People throughout the region increasingly bought groceries, meals, and other necessities online. As the e-commerce and retail industries are among the country's some of the largest paperboard solutions users, such trends are projected to increase demand for sustainable packaging solutions such as gable top containers.
• China, India, Japan, Australia, and South Korea, as well as other large economies in the region, have enacted several rules to ensure the quality and safety of packaged food goods. These regulations of these countries primarily focus on food quality, safety, and packaging standards. For instance, the South Korean government modified national requirements for food packaging recyclability in May 2022, requiring food and beverage firms to assess their current packaging to guarantee it does not fall into the "difficult to recycle" category.
• Furthermore, paper and cardboard production has been growing in the region. As per the data from the National Bureau of Statistics of China, the production of processed paper and cardboard is gradually increasing in the country. The production of processed paper and cardboard rose from 11.3 million metric tons in August 2020 to 11.48 million metric tons in August 2021.

Competitive Landscape

The Gable Top Container Market is competitive and consists of several global and regional players. With a prominent share in the market, international players are focusing on expanding their customer bases across different countries. These companies are leveraging strategic collaborative initiatives to increase their market shares and profitability. Various partnerships and acquisitions are expected to take place during the forecast period, focusing on innovation.

In November 2022, Carton Service, Inc., a leading provider of retail packaging, announced that it was awarded two new patents. These patents were related to direct contents contact gable carton packaging innovations, which can be used for liquid, dry, or semi-solid contents such as food, beverages, and soaps.

In March 2022, Elopak strengthened its growth strategy by acquiring Naturepak Beverage Packaging Co Ltd, one of the top providers of gable top fresh liquid cartons and packaging systems in the Middle East and North African region. The purchase is anticipated to give Elopak access to a strategic customer base in the new beverage carton segment, many of whom are major international FMCG companies and potent regional leaders.

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