Folding Carton Market Players Resort to Partnerships to Tap Opportunities
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With the increasing number of sales channels of consumer goods, more companies are entering into the global folding cartons market, which is making the vendor landscape further fragmented.
That being said, a few top companies, namely WestRock, Graphic Packaging Holding Co., DS Smith, Mayr-Melnhof Karton Gesellschaft,, which together owned close to 18% share in the market in 2016, are vying with one another to expand into potential regions. The companies are resorting to mergers and acquisitions and strategic partnerships with smaller players who have footholds in their respective region.
Some other prominent companies in the market include Smurfit Kappa Group, International Paper Co., Amcor Ltd., and Pratt Industries Inc. among others.
A fresh market intelligence study by Transparency Market Research (TMR), Albany, N.Y., USA, reveals that the demand in the global folding cartons market will increment at a CAGR of 4.7% during the forecast period of 2017 to 2025. As per estimations of the report, the opportunities in the folding cartons market will be worth $57,692.1 million in 2017. In terms of volume, the consumption of folding cartons is expected to peg at 29,036, 000 metric tons by 2025.
Among the key end users, food and beverage is expected to lead, holding more than 50% market share over the forecast period. In terms of received order type, customized order segment is anticipated to display a 5.1% CAGR over the forecast period between 2017 and 2025, and account for the leading incremental dollar opportunity in the global folding cartons market. Geography-wise, Asia Pacific is anticipated to emerge as a lucrative, holding 46.7% of the overall market by 2025.
Majorly fueling the global folding cartons market is the increasing consumption of packaged food and beverages. Additionally, increasing consumption of bakery products and ready to eat meals is accentuating demand for folding cartons. Hectic lifestyles and increasing number of women in the workforce have been reasons for increasing consumption of packaged food and beverages. Packaged food manufacturers are increasingly using rigid packaging, which is appealing to consumers and is less likely to get damaged during transportation. This is fueling demand for sustainable packaging solutions such as folding cartons.
The rising demand for cosmetic and personal care products is creating the demand for small size folding cartons. This accounts for the personal care industry representing significant revenue contribution to the folding cartons market.
On the downside, the availability of alternatives such as flexible plastic packaging has emerged as a strong substitute for rigid packaging products such as folding cartons. Also, use of recycled paper in the manufacture of folding cartons has a high percentage of short fibers that accounts for their low strength threshold. Thus, several end-use industries are opting for alternative packaging solution.
