Paper Packaging Demand Shifting from Liquid Packaging to Corrugated Cases

 

A new report released this past week by Transparency Market Research, Albany, New York, begins by explaining that there are a myriad of applications for the paper packaging materials market. Some of the largest ones are food and beverages, cosmetics, pet food, and pharmaceuticals. Across these industries, paper packaging materials are used for specific purposes such as bracing, cushioning, and blocking. 

The market is comprised of a number of different paper packaging products that include cartons, corrugated cases, liquid packaging cartons, and folding boxes. According to 2012 estimates, liquid packaging cartons accounted for about 40% of the total market share. But over the next four years – by 2019 – the market share of corrugated cases is likely to expand at a noticeable pace. Higher demand for folding boxes and cartons is also being seen because these are extensively used for both decorative and bulk packaging.

The paper packaging materials market doesn’t have a clear global market leader because it is comprised of a multitude of small- and medium-size manufacturers. This makes for a highly fragmented structure of the market—an attribute that the market will find hard to brush off moving forward. However, companies that have managed to consistently report sizeable revenues and have a wider presence are Hood Packaging Corp., OJI Holding Corp., DS Smith Plc, and Smurfit Kappa Group Plc.

For the past couple of years, the largest regional marketplace for paper packaging materials has been Asia Pacific with a 35% market share (2012). The development of the paper packaging industry has been rather rapid here, so as to keep pace with the rise in demand. From the demand-supply standpoint, North America and Europe have traditionally been dominant as the regions collectively accounted for more than half the global demand. The Rest of the World region will likely witness a spurt in demand as consumers become more affluent here and several manufacturing units are being set up in the Middle East and Africa.