The market for paperboard packaging is expected to expand at a CAGR of more than 4.5% during the forecast period of 2019-2024. Major factors driving the market studied are the growth in e-commerce sales and growing demand for folded carton packaging. However, availability of high-performance substitutes is expected to hinder the growth of the market studied.
- Advancement in packaging machinery and paper converting equipment is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the globe with the largest consumption in 2018.
Key Market Trends
Increasing Demand from Food & Beverages
- The food & beverage industry is the largest end-user for the paperboard packaging market and accounts for more than half of the global market share.
- The food & beverage industry majorly utilizes coated unbleached boards for packaging of beverages, and corrugated container boards for packaging of fruits, vegetables, and food products. The acceleration of frozen foods is likely to drive the demand for folding carton packaging.
- Change in lifestyle and a growing young population lead to a higher demand for branded and packaged substances.
- According to the Flexible Packaging Association, the beverage sector in the US accounted for nearly 50% of the packaging market. Currently, over 30% of the Americans order food twice a week and this is expected to grow at 3% in the coming years.
- Furthermore, on the go consumption in countries like India, China, Japan is further fuelling the demand. Countries such as China and India, the food & beverage demand is always on a higher side, subsequently driving the paperboard packaging market.
- Such positive growth in the food & beverages industry is expected to increase the demand for paperboard packaging in the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region holds significant potential for development, in terms of the most prospective countries.
- In terms of consumption, in 2018, Asia-Pacific held a significant market share, followed by Europe.
- Whereas, North America is expected to display a sluggish growth in the global paperboard packaging market as the market is matured in this region.
- There has been an increasing migration of rural population to cities, which is likely to reinforce consumption patterns of packaged food.
- It is predicted that nearly two-thirds of the people across the globe will live in cities in the coming years.
- The Asia-Pacific paperboard packaging market is also expected to grow at a high rate, owing to emerging food & beverages, electronics, cosmetics, and pharmaceutical industries due to economic development.
The global paperboard packaging market is fragmented. The major companies include NIPPON PAPER INDUSTRIES CO., LTD., Mondi, METSA BOARD, WestRock Company, and ITC Limited, among others.
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