Global Paper Packaging to Reach $362 Billion by 2021

Zion Research published its newest paper-related industry report on Monday (September 13) titled Paper Packaging Material Market (Liquid Packaging Cartons, Corrugated Cases, Carton & Folding Boxes and Others) for Beverages, Fast Foods, Fresh Foods, Dairy & Bakery, Frozen Foods and Other Applications - Global Industry Perspective, Comprehensive Analysis, Size, Share, Growth, Segment, Trends and Forecast, 2015 – 2021. According to the report, global paper packaging material market was valued at around $286.61 billion in 2015 and is expected to reach $362.65 billion in 2021, growing at a CAGR of around 4.4% between 2016 and 2021. In terms of volume, the global paper packaging material market stood at above 186.42 million tons in 2015. 

 

Paper is one of the most prominent materials used for packaging, compared with other packaging materials. Paper packaging material has the high demand due to its cost-effectiveness and environment friendliness. Poster paper, kraft paper, and glassine paper are the different types of papers used in packaging. The paper packaging material is an eco-friendly option as it does minimum damage to the environment. Paper, timber, pulp, and other such forest and recycled products are basic raw materials used in paper packaging.

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The paper packaging material market is mainly driven by increasing demand for paper packaging due to rising awareness of ecological issues around the world. Paper packaging is used for packing products such as food & beverages, pharmaceuticals, and cosmetics. It is an eco-friendly option and can be recycled and reused as against plastic. These advantages help to boost the demand of paper as a packaging material. The rapid development of fast food and frozen food chains in emerging economies, along with a significant growth of the packaging market, is predicted to steer the market for paper packaging material. Light weight, disposable, safe for the environment, cost effective, easy to carry, nontoxic, and durable are some features of paper which augment their demand as a packaging material. Moreover, the ban on the use of lightweight plastic bags affects the paper packaging material market positively. However, manufacturers are expected to face some challenges such as deforestation associated with the manufacturing of paper material.

On the basis of product paper, the packaging material market can be segmented as liquid packaging cartons, corrugated cases, carton & folding boxes, and other products such as sacks, bags, etc. Liquid packaging cartons were the largest product segment in 2015 and accounted for more than 40% share of the total market. Due to advancement in novel retail packaging, corrugated cases segment is expected to observe the highest growth rate duing the forecast period.

Key application markets for paper packaging material include beverages, fast food, fresh food, dairy & bakery, frozen foods ,and others applications such as pet food, cosmetics, pharmaceuticals, etc. Beverage application of paper packaging materials led the global market with a share of more than 42% in 2015. The growth of the organic beverages industry in developed economies also helps to grow this market. Due to the rapid development of fast food and frozen food sector in emerging market, frozen foods application is projected to witness the highest growth rate in coming years.

The paper packaging material market was dominated by Asia Pacific with 35% share in 2015 due to advancement in the paper packaging industry and government regulations. Asia Pacific was followed by North America and Europe. However, restraint such as deforestation is projected to curtail the growth of this industry.

Key players operating in this market includes DS Smith PLC, Georgia-Pacific Corp., Holmen AB, Hood Packaging Corp., International Paper Co., MeadWestvaco Corp., OJI Holding Corp., Smurfit Kappa Group Plc, Stora Enso Oyj, and The Mayr-Melnhof Group.