Corrugated Board Market (2023 - 2030)

Corrugated Board Market Summary

However, lack of durability in corrugated boards is expected to restrain the growth of the market. Plastic is one of the majorly used materials for packaging in various industries including food and beverage, healthcare, cosmetics and personal care, and consumer goods. However, increasing consumption of plastic is causing an adverse impact on the environment. According to the UN, 300 million tons of plastic waste is generated every year globally, which is nearly equivalent to the weight of the global human population. To curb this humongous amount of plastic waste generated annually, the approach of sustainable packaging was adopted. The end-use industries are switching from plastic packaging to corrugated board packaging in order to cater to the growing consumer-driven demand for sustainable packaging.

The U.S. emerged as the largest market for corrugated board in North America in 2022. The country is home to several foodservice and packaged food companies including ready-to-eat meals, convenience meals, and ready-to-make meals. The high demand for out-of-home food due to busy work-life schedules and convenience is a key growth driver.

According to the USDA, in 2021, consumers in the U.S. spent an average of 10.3% of their disposable personal income on food, which is divided between food at home (5.2%) and food away from home (5.1%). The high expenditure on food is anticipated to support the growth of the market from 2023 to 2030.

Further, the U.S. is the second largest e-commerce market after China. The country is likely to witness steady and significant growth during the forecast years. Some of the factors driving this industry include the increasing dependency of customers on online shopping, the high purchasing capability of the population, and the rising penetration of the internet and smartphones in the country. This, in turn, is creating demand for corrugated board boxes for packaging.

Flute Type Insights

C-flute held the largest share of over 25.0% in terms of revenue in 2022. C-flute offers greater compression strength than B flute and greater stacking strength for lightweight products. It is commonly used for shipping cases, packaging glass products, and furniture.

C-flute provides the packaging with a high load-bearing capacity with minimal use of fiber material. For instance, Acme Box Co. Inc. offers a high-performance C-flute board, which is available in kraft as well as white outside liner options. These products find applications in the packaging of food products, pet supplies, pharmaceuticals, and personal care items. They can be configured as conventional boxes or die cuts.

A-flute is expected to expand at the highest CAGR of 7.7% during the forecast period. A flute is one of the thickest types and is predominantly used for transit packaging. For instance, STI - Gustav Stabernack GmbH uses cardboard or corrugated board for shipping boxes to deliver goods to recipients in undamaged condition. A thick flute acts as a shock absorber and prevents the packed goods from external impacts.

Board Style Insights

The single wall segment emerged as the largest segment in 2022 with a revenue share of over 35.0% and it is expected to retain its pole position over the forecast period. It is used as a supplemental protective material, divider, pad, or partition that can be used to separate the different layers of products. Nordpack GmbH offers single-wall boxes in C flute, B flute, or E flute that can be used as lower packing weight shipping cartons. Therefore, it is also used to make cartons for the packaging of various types of goods and can be easily printed, wherein different coatings can be applied on its surface.

Boxes made from single-wall corrugated boards are lighter in weight due to a single layer of fluted paper, which lowers shipping costs. They are widely used in e-commerce packaging for delivering smaller and compact items. The rising trend of online shopping is likely to contribute to increased demand for packaging solutions.

Regional Insights

Asia Pacific emerged as the largest market for corrugated board in 2022 with a revenue share of over 40.0%. The presence of highly populated countries such as China and India, growing urbanization, and increasing spending power in the countries would support the growth of the packaging industry in Asia Pacific and thereby corrugated boards.

Rising awareness about the environment and increasing demand for greener packaging solutions in the region would drive the growth of the market. Further, government initiatives to ban plastic-based packaging in countries such as India would shift the focus toward paper packaging. Foreign Direct Investments (FDIs) and investments in a number of projects in packaging in Asian countries are likely to grow at a rapid pace. These trends are projected to propel the growth of the packaging manufacturing sector in these countries. Economic and industrial developments would build a strong foundation for the demand growth of corrugated board in the region over the forecast period.

Asia Pacific is estimated to exhibit the fastest CAGR, in terms of revenue, over the forecast period. The region is witnessing exponential growth on account of technological innovations such as blockchain technology, machine learning, artificial intelligence, and the Internet of Things (IoT). A large number of paper mills in Asia are well positioned on the cost curve of global corrugated board manufacturing owing to low energy and labor cost and high productivity of workers.

Key Companies & Market Share Insights

The market is large and fragmented across the world. Therefore, the players in the market are very competitive at all levels, from small to big manufacturers. Moreover, the market is marked with the presence of numerous well-established, century-old public companies. However, the manufacturing companies also, in several instances, compete with other companies producing similar products that are potential substitutes for corrugated boards. The primary factors that influence competition in the market include services, product quality, cost, and price.

Due to the rise in highly specialized products including corrugated boards with lightweight flutes, plastic coatings, and printing compatible surface sheets, the manufacturers in the industry are able to gain a competitive edge to stand out in the market. Services and related machinery solutions are other ways in which the companies compete by providing value adding differentiated solutions for customers. For instance, WestRock Company offers automated packaging machines that are customized as per complexities of distribution and logistics of customers’ products. Some prominent players in the global corrugated board market include:

• International Paper

• Georgia-Pacific

• WestRock Company

• Packaging Corporation of America

• Stora Enso

• Oji Holdings Corporation

• Smurfit Kappa

• Port Townsend Paper Company

• Mondi

• DS Smith

Corrugated Board Market