Fiber Based Packaging Market Forecasts to 2030 - Global Analysis By Product, Fiber Type, Packaging Form, End User and By Geography

According to Stratistics MRC, the Global Fiber Based Packaging Market is accounted for $335.59 billion in 2023 and is expected to reach $478.55 billion by 2030 growing at a CAGR of 5.2% during the forecast period. Fiber-based packaging is a sustainable and eco-friendly solution derived from renewable resources like paper and cardboard. It is well known for its recyclability and biodegradability. Its lightweight yet durable nature makes it an excellent choice for reducing environmental impact. Fiber-based packaging aligns with growing global efforts to minimize plastic waste and promote environmentally responsible alternatives in the packaging industry.

According to the Packaging Federation of the United Kingdom, corrugated board suppliers in the UK have announced a USD 60-70 per ton price increase for containerboard grades in the first quarter of 2022.

Market Dynamics:

Driver:

Growing environmental concerns

With growing concerns over plastic pollution and a heightened focus on sustainable practices, consumers and industries alike are embracing eco-friendly alternatives. Fiber-based packaging, derived from renewable resources like paper and cardboard, aligns with these environmental priorities. This trend reflects a collective commitment towards a more sustainable future, emphasizing the pivotal role of fiber-based packaging in addressing pressing environmental challenges. Governments and businesses are increasingly adopting these solutions to reduce their carbon footprint, driving the market's growth.

Restraint:

Limited performance in certain applications

Fiber-based packaging, while environmentally friendly, faces limitations in moisture resistance, strength, and barrier properties compared to alternatives like plastic. These shortcomings hamper its performance in applications requiring high durability, water resistance, or extended shelf life. In markets where such attributes are crucial, like in some food and electronic packaging, the constraints of fiber-based materials can hinder their widespread adoption, limiting their market share and competitiveness in certain industries.

Opportunity:

Innovations in packaging technology

Innovations in fiber-based packaging technology, such as advanced barrier coatings and sustainable materials, are transforming the industry. These developments enhance product protection, extend shelf life, and reduce environmental impact. Additionally, advancements in printing technologies enable vibrant and informative designs, enhancing brand visibility. The combination of functionality, sustainability, and aesthetics propels fiber-based packaging to the forefront of the market, meeting the demand for both environmentally conscious and visually appealing packaging solutions.

Threat:

Cost considerations

Cost considerations in fiber-based packaging include raw material costs, manufacturing expenses, and environmental impact. Rising energy costs also impact production expenses. Additionally, stringent regulations on sustainable practices can increase compliance costs. These factors collectively can hinder market growth as companies face challenges in maintaining affordability, competitiveness, and meeting evolving environmental standards, potentially limiting market expansion for fiber-based packaging.

Covid-19 Impact

The covid-19 pandemic significantly impacted the market as supply chain disruptions, reduced consumer spending, and logistical challenges led to a decline in demand. While increased awareness of sustainable packaging favoured fiber-based solutions, overall market growth was tempered by economic uncertainties. Despite challenges, the industry exhibited resilience with an emphasis on eco-friendly alternatives, driving innovation. The pandemic highlighted the importance of adaptability and sustainability in the market, prompting companies to reassess and enhance their strategies.

The recycled fiber segment is expected to be the largest during the forecast period

The recycled fiber segment is estimated to have a lucrative growth. Recycled fiber plays a pivotal role in fiber-based packaging, contributing to sustainability and environmental conservation. Derived from post-consumer or post-industrial sources, recycled fiber reduces the demand for virgin materials, conserving natural resources and energy. This eco-friendly approach enhances the overall environmental performance of fiber-based packaging, making it a preferred choice for environmentally conscious consumers and businesses committed to reducing their ecological impact.

The personal care & cosmetics packaging segment is expected to have the highest CAGR during the forecast period

The personal care & cosmetics packaging segment is anticipated to witness the highest CAGR growth during the forecast period, due to its sustainable and eco-friendly solutions. Beyond reducing environmental impact, fiber-based packaging maintains product integrity, ensuring protection against external factors. Its versatility allows for creative and attractive designs, enhancing brand aesthetics. As the beauty industry increasingly prioritizes sustainability, fiber-based packaging emerges as a key player in promoting both eco-friendliness and product appeal.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the mounting environmental awareness and sustainable packaging trends. The demand for eco-friendly packaging materials, coupled with regulatory initiatives promoting recyclability, is driving market expansion. Key players including Smurfit Kappa Group and Mondi Group are focusing on developing innovative and sustainable fiber-based packaging solutions. In addition, rising consumer preferences for green packaging options, along with a surge in e-commerce activities, further contribute to the market's growth in the Asia-Pacific region.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to its stringent regulations on plastic usage. European countries have been active in implementing regulations and initiatives aimed at reducing the environmental impact of packaging. The region has the presence of major companies namely DS Smith PLC, Mayr-Melnhof Karton AG and Sappi Limited. Europe is witnessing the rapid demand in the personal care & cosmetic industry will enhance the growth of this segment. The European market showcases a robust trend towards sustainable packaging solutions, fostering a positive outlook for the fiber-based packaging sector.

Key players in the market

Some of the key players profiled in the Fiber Based Packaging Market include Smurfit Kappa Group PLC, Knoll Packaging, Graphic Packaging International, Orora Packaging Australia Pvt Limited, Stora Enso Oyj, Huhtamaki, OJI FIBRE SOLUTIONS (NZ) Limited, WestRock Company, Ahlstrom, McKinley Packaging, Omni-Pac Group, Pactiv Evergreen Inc., Sonoco Products Company, Georgia-Pacific LLC, Mondi Group, AR Packaging Group AB and BillerudKorsnas AB.

Key Developments:

In August 2023, Graphic Packaging International, a leader in fiber-based consumer packaging announced the product launch of a Coated Recycled Paperboard (CRB) innovation, PaceSetter Rainier. It can compete directly with SBS and Folding Box Board (FBB) owing to brightness and whiteness that are superior to those of conventional CRB.

In May 2023, Omni-Pac Group UK, a manufacturer of molded fiber packaging solutions, announced the opening of a new site of EUR 8 Million (USD 8.5 Million) and 60,000 square feet, located in the town of Scunthorpe, which will enable the company to increase its production capacity and create more than 100 new employment opportunities over a period of five years.

In January 2023, Knoll Packaging, a global customized packaging provider, launched a series of make-up compacts made from 100% molded pulp. The molded pulp is a plant material made from bamboo, sugarcane, and wood fiber, the best alternative to thermoformed plastic. These designs are magnet free and have a removable mirror.

Products Covered:

• Boxes
• Cartons
• Trays
• Clamshells
• Tubes
• Drums
• Pallets
• Other Products

Fiber Types Covered:

• Kraft Paperboard
• Corrugated Board
• Molded Pulp
• Recycled Fiber
• Other Fiber Types

Packaging Forms Covered:

• Rigid Packaging
• Flexible Packaging

End Users Covered:

• Healthcare
• Food & Beverage
• Personal Care & Cosmetics
• Electronics
• Retail
• E-commerce
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances