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.

Along with this, such turbulence in the supply chain of corrugated packaging is also witnessed in North America due to several factors, such as increased cost of raw materials, rising demand for online shopping, and labor shortage on the regional level. To refer to this, an international paper, one of the leading corrugated packaging giants, already mentioned the low supply of corrugated boxes last year. However, to tackle the shortage of raw materials in the corrugated packaging supply chain, countries are improving their collection methods of fibers for recycling which further help to meet the demand for corrugated box packaging.
Corrugated and solid fibre box manufacturing revenue in usa
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Notable Turbulence in Supply Chain of Global Corrugated Packaging Impact the Sales of Corrugated Boxes

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