Coherent Market Insights

Paper Packaging Market: Growing Popularity and Emerging Trends in the Market


Seattle, WA -- (SBWIRE) -- 09/27/2019 -- Paper packaging is one of flexible modes of packaging wherein paper is used for packaging for sustainable transportation and protection of goods. Paper is manufactured from natural fibers of bleached and unbleached cellulose or from recycled paper. As paper is recyclable, biodegradable, and compostable, it finds applications in various industries. Paper packaging is widely preferred as it is lightweight and eco-friendly, which serves as better alternative for plastic packaging. Moreover, paper packaging is strong and easy to customize, which poses as an additional advantage for customers.

Low cost and low scrutiny compared to its peers and eco-friendly nature are some of the major drivers for global paper packaging market. Furthermore, various companies taking stand against pollution has gained them significant traction in the market, which is expected to drive the market growth.

However, paper packaging seldom used in packaging of heavy materials, which has led industry players to shift to better alternatives. Moreover, deforestation is one of the major issues that are hampering growth of the global paper packaging market.

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Global Paper Packaging Market Taxonomy

On basis of product type
- Corrugated Containers
- Paperboard Cartons
- Paper bags and Sacks
- Flexible
- Others

On basis of grade
- Solid Bleached Surface
- Coated Recycled Board
- Uncoated Recycled Board

On basis of end-user
- Food
- Beverages
- Cosmetics & Personal Care
- Medical
- Others

A lot of companies from various industries use corrugated containers that are used for tertiary packaging and are removed by retailers before sale. These containers possess higher degree of strength due to layered packaging structure, which is why they are used in packaging of heavy goods including electronics packaging. On the contrary, cartons are used for packaging of single items, as they are made from lightweight materials. Moreover, paper bags are also in trend for packaging and are made from single layer of paper. They are used for light duty applications such as grocery packaging.

For high-end packaging, food packaging, and pharmaceutical packaging, solid bleached surface is used. It is a bleached chemical board with a mineral or synthetic coating for printing purposes. Moreover, it is used where flavor and aroma retention is crucial for packaging. Furthermore, coated recycled paperboard is used for packaging, which is produced from 100% recycled material and is coated with kaolin layer for product description. It is used for packaging of soaps, detergents, and for production of cereal boxes. Uncoated recycled paperboard is used for packaging of fiber drums, shoeboxes, and composite cans and is manufactured from 100% recycled material.

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Global paper packaging market is expected to witness significant growth during the forecast period, owing to increasing demand from Asia Pacific. This is owing to increased disposable income in emerging countries such as China and India. Moreover, Food industry holds the largest share in the global paper packaging market.

Market Outlook

- Among regions, Asia Pacific is the fastest growing market with increase in demand for food, beverages, pharmaceuticals, and personal healthcare products. Increased consumer awareness in the region has led people to shift to paper packaging. Moreover, demand for paper pulp is also increasing in this region. Japan is the largest packaging market in Asia Pacific. However, increase in consumption tax is expected to restrain growth of the market in the region.

- North America holds the dominant position in the global paper packaging market. Moreover, according to the U.S. Forest and Paper Association, the U.S. recycles up to 70% of its used paper. According to the same source, around 35% of the feed for new paper was from recycled paper. In Europe, the European Paper Recycling Council is expected to achieve 74% recycling in the European Union, with major contribution from Scandinavian countries.

- Latin America has witnessed increased investments in hardwood pulp, which is primarily used as a feedstock for paper. Although Brazil is a major market in Latin America region, various environmental and labor regulations are expected to restrict growth as the market in the region. The logging industry is the major employer in Latin America with Amazon as the prime source. Increased regulations are expected to reduce deforestation and thereby hamper the market growth.

- The Middle East has one of the largest per capita incomes in the world, which has resulted in high consumption of paper packaging. This is expected to increase the demand for paper packaging and thereby drive growth of the market in the region.

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. Key players in the global paper packaging 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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