The market for paperboard packaging is expected to expand at a CAGR of more than 4% during the forecast period. Major factors driving the market studied are the growth in e-commerce sales and the increasing demand for folded carton packaging. However, the 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 world with the largest consumption.
Key Market Trends
Increasing Demand from Food and Beverage
- The food and 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 and 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 United States 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.
- Moreover, on-the-go consumption, in countries like India, China, Japan, is further fuelling the demand. In countries, such as China and India, the food and beverage demand is always on a higher side, which is subsequently driving the paperboard packaging market.
- Such positive growth in the food and beverage industry is expected to increase the demand for paperboard packaging during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region holds significant potential for development, in terms of the most prospective countries.
- In terms of consumption, last year, 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-third 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 industry 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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