Notable Turbulence in Supply Chain of Global Corrugated Packaging Impact the Sales of Corrugated Boxes

By Garvit Vyas , 24 November, 2022

The corrugated packaging industry and the packaging solutions under its umbrella are the backbones of the global supply chain and logistics market. Demand for corrugated packaging solutions, including corrugated boxes, has been noteworthy before and post-COVID pandemic. Prominent industries such as F & B, pharmaceuticals, and E-commerce are generating tremendous demand for corrugated box packaging to store, pack and transport a wide range of goods. Few other factors, such as shifting end-use customers' inclination towards recyclable packaging and high preference for lightweight packaging, fuel the demand for corrugated box packaging across North America, Europe, and Asia.

On the other hand, things are more challenging for paper mill owners and corrugated packaging manufacturers to match the demand for corrugated box packaging. Papermills owners and raw material suppliers across the supply chain need help to level up with the demand on the back of a lack of inventory of corrugated cardboard. The shortage of paper fiber material further fuels this scenario. Fiber recycling rates in the pre-pandemic period in European countries were around 85%, and recently, it has dropped to 65%. Moreover, the recycling of cardboard waste is getting longer as a significant portion of cardboard waste ends up in a landfill, and some of the waste remains in homes for an indefinite period. These factors have impacted the overall supply and value chain of corrugated box packaging, thus creating obstacles in fulfilling the current demand for corrugated box packaging across the continents.