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Paperboard Packaging Market to Expand at 7.8% CAGR Till 2020 Thanks to Sustainable and Recycled Content

Paperboard Packaging (Boxboard and Containerboard) Market for Food & Beverages, Nondurable Goods, Durable Goods, Medical and Other Applications - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020


Albany, NY -- (SBWIRE) -- 02/25/2015 -- Paperboard packaging designers are reaching new avenues and discovering new market segments within the industry with their constant innovations. As paperboard benefits from being a quick recyclable and renewable resource, the paperboard packaging market shows no sign of slowing down in the coming years.

For years plastics have been used in abundance and thus sustainability has become a grave concern with respect to reducing the ecological footprint and curbing the harmful effects of nonrenewable energy sources on the overall environment. According to the Paperboard Packaging Council (PPC) the trend of paperboard packaging is picking up pace and stepping into new markets across the globe.

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Sustainable Paperboard Packaging has Far-Reaching Effects :

Deteriorating environmental conditions and stringent legislations pertaining to the production and use of synthetic polymers, mainly plastics, have ignited a global endeavor to develop sustainable packaging solutions. A sustainable practice is the need of the hour today. Globally, an increasing number of participants are getting involved in sustainable practices by choosing paperboard packaging to meet their basic daily needs.

Such significant growth in the global sustainable packaging industry is anticipated to drive the overall paperboard packaging market in the near future. Since paperboard packaging is renewable and recyclable, the potential of future generations to grow and prosper will not be impinged.

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Sustainable paperboard packaging will mainly gain high traction and steady growth in packaged food and cosmetics industries, followed by an expansion in the e-commerce industry in BRICS countries over the next five years.

Engaging with Analysts for an Overview of the Paperboard Packaging Market

The paperboard packaging market is fairly consolidated in nature. The market offers several different grades that have unique characteristics. Each grade is suitable for various packaging needs and requirements in different industries such as durable goods, food and beverages, and others. Paper-based materials are typically lightweight, strong, and extremely easy to cut and use, thereby making it suitable for a variety of goods.

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The paperboard packaging market is high in demand because more than 70% of the paperboard manufacturing process uses both fresh and recycled content. Research analysts in the U.S. studying this market reveal in a research report that the global paperboard packaging market is expanding at a moderate CAGR of 7.8% over the forecast period 2014-2020. The market is anticipated to increase and reach a value of US$181.81 billion by 2020 from a value of US$108.08 billion in 2013. Regionally, Asia Pacific dominated the paperboard packaging market with nearly 45% share in terms of volume in 2013. Growth in Europe and Rest of the World (RoW) is expected to rise at a moderate rate due to its demand in food and beverages applications.

Consolidated Nature of the Vendor Landscape

Most multinational companies develop customized paperboard products and present a high degree of integration for various applications. Analysts state that the top five players in the global market accounted for more than 60% share in 2013. Some of the notable players in the paperboard packaging market are Stora Enso Oyj, Metsa Group, Smurfit Kappa Group plc, Oji Holdings Corporation, Mondi plc, International Paper Company, Shandong Bohui Paper Group Co., Ltd., Nippon Paper Industries Co. Ltd., Sappi Limited., and ITC Limited.

Major Products within Paperboard Packaging Market

The paperboard packaging market is segmented into two main categories: containerboard and boxboard. The boxboard segment is further divided into:

- Solid unbleached board (SUB)
- Solid bleached board (SBB)
- Folding boxboard (FBB)
- White lined chipboard (WLC)

In 2013, containerboard was the largest product segment of the paperboard packaging market and is expected to be the fastest-growing product type in the overall market over the next five years. Similarly, the boxboard product segment is also expected to expand at a moderate rate with white lined chipboard (WLC) being the largest sub-segment, followed by folding boxboard..

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