Boxboard Packaging Market Forecast
According to MRFR analysis, the global boxboard packaging market is expected to reach around 80 billion in 2028.
Boxboard is the lighter weight and thin carton commonly used to carry a single item such as breakfast cereal, crackers, shoes, a toy, among others. The boxboard packaging does not have the wavy middle layer (corrugating medium) which provide the strength. Boxboard packaging is used for various applications from packaging products of cosmetics to electronics. Consumers across the globe have become more conscious about the environment, and also providing their attention to whether the packaging of the products is sustainable or not. To satisfy the changing needs of the consumers, manufacturers are also focusing on the boxboard packaging products which has lower environmental impact and saves energy. The boxboard type of packaging has various properties such as portability, protection, durability, and easy handling for long hours. Furthermore, boxboard packaging can also be customized in numerous sizes, shapes, and styles as per the requirement of the product that needs to be packaged.
Covid Impact Analysis
The demand for packaging products has declined considerably from the industrial sectors, including food & beverage, confectionery, personal care & cosmetics, wines & spirits, and fashion, owing to the outbreak of the COVID-19 pandemic. The packaging industry witnessed a mixed impact due to the significant changes in brick-and-mortar stores and online businesses attributed to the moving restrictions implied by the government authorities to prevent the further spread of the deadly virus. The packaging manufacturers supply their products for the packaging of various products across end-use industry verticals, such as pharmaceuticals, food & beverages, and electronics, to name a few. Due to the restrictions imposed on manufacturing industries and the slowdown in economic activities, the packaging industry reported a significant downfall in its revenues globally. However, due to the gradual ease of lockdowns and upliftment of imposed restrictions post-second COVID-19 wave, there has been a gradual rise in the profits for Boxboard packaging manufacturers in the second half of the year 2020. For instance, according to a post by Swiftpak, based in the UK, a leading supplier of wholesale packaging products, online sales in the UK swelled by over 74% year-on-year in January 2021. This was reported as the largest growth rate ever since the first lockdown commenced in March 2020. The packaging industry hence witnessed recovery and is expected to recover in the upcoming period.
As the demand for Boxboard packaging declined due to production shutdowns, lockdowns imposed in several countries, and disruptions in the supply chain, many packaging manufacturing companies have witnessed drastic declines in their revenue performance. Furthermore, laborers traveled back to their respective native lands, which caused scarcity of labor in the manufacturing of Boxboard packaging. Additionally, due to supply chain disruptions and contractual implications, manufacturers faced problems in acquiring raw materials at their pre-COVID prices due to the shutdown of manufacturing units. As economic activities slowed down globally, many countries worldwide expected a further decline in revenues owing to the rapid spread of the virus, affecting the unaffected regions of the world. Moreover, many key manufacturing players are emphasizing the development of new strategies to meet consumer demands, especially from the e-commerce platforms providing direct home deliveries
Boxboard Packaging Market USP
The boxboard packaging is made up using the recycled materials
Boxboard Packaging Market Drivers
- Increasing demand for boxboard packaging for pharmaceuticals, cigarettes, frozen foods, confectionaries, and beauty products.
- Inclination of the consumers towards visually enticing finish of the packaging products.
- The growing trend of e-commerce in the global market has resulted in the increased usage of boxboard packaging materials to ensure the safe shipment of different kinds of products from the warehouse to consumers’ doorsteps.
Market Restraints
- Replacements of the boxboard packaging with the plastic packaging alternative due to its cost effective nature.
Boxboard Packaging Market Segmentation
By Material Type
- Coated Unbleached Kraft Paperboard: Coated Unbleached Kraft Paperboard is made from unbleached virgin kraft fiber, which imparts a natural brown color. This board grade is comprised primarily of various southern pine species (softwoods) with some hardwood fiber, particularly in the top ply which is clay-coated to create a smooth, white printing surface. The long, large pine fibers impart excellent strength and tear resistance qualities to the finished sheet. This strength characterizes the CUK grade. It’s commonly used for beer and soft drink beverage containers as well as heavy-duty retail packaging such as hardware and concentrated laundry detergents.
- Bleached Kraft Paperboard: Bleached Kraft paper undergoes a treatment using bleach and other chemicals to whiten and purify the natural Kraft pulp. Through this process, the paper becomes stronger than traditional brown Kraft paper. Because of this added strength, white bleached Kraft paper is used heavily in wrapping and packaging.
- Recycled Paper: The main raw material used to manufacture recycled paper is wastepaper. We use post-consumer wastepaper which means it has been used by the customer for its final use.
By Product Type
- Boxes: The segment includes the boxes made from boxboard used for packaging of various items across the industries. This is one of the widely used segment for the boxboard packaging market.
- Folding Cartons: A folding carton is a paper-based package that acts as the external container for an item or product. This segment is one of the widely used segments among other product types. This is used for health and beauty products, frozen, chilled and other foods, confectionaries, pharmaceuticals.
- Tubes & Cores: Boxboard tubes & cores are cylindrical paper products used in a broad range of industrial and commercial applications.
By Thickness
- From 0.75mm to 1 mm: This segment includes the boxboard packaging ranging from 0.75mm to 1 mm thickness. This segment is projected grow at decent rate during the forecast period.
- From 1.1 mm to 2.3 mm: This segment includes the boxboard packaging ranging from 1.1 mm to 2.3 mm thickness. This is one of the widely used segment for the boxboard packaging market.
By End-Use
- Food & Beverages: Food & Beverages segment is likely to have a higher demand owing to increasing demand in food and beverage industry and are widely used in cereals, confectionaries, and ready to consume fruit drink packaging.
- Personal Care & Cosmetics: Personal care and cosmetics packaging range from tiny boxes to larger containers. Appearance and look are key for the personal care & cosmetics packaging. At the same time, trends in this area are increasingly moving in the direction of eco-friendly, sustainable packaging solutions that play a meaningful part in the fight against plastic waste reduction.
- Home Care: The Home Care market needs attractive and functional packaging on the shelf, both in terms of packaging and transport. A distinctive package not only enhances the display, but also becomes a distinctive brand element and a tool to increase sales.
- Pharmaceutical: Boxboard packaging is used widely across the pharmaceutical industry for the secondary packaging of the tablets.
- Automotive: Boxboard packaging is used in automotive industry for packaging of the automotive components.
- Electrical & Electronics: parts, components, and ever=n some full assemblies of the electronics and electrical products are fragile and expensive. Also there can be problems with the electrostatic discharge. This is the reason why antistatic packaging is important for this sector. Boxboard packaging is also used for many packaging applications in electrical & electronics industry.
- Chemical & Lubricants: Boxboard Packaging is often used in chemical industry for the secondary packaging of chemicals during the transportation of the chemicals.
- Others: This segment include the boxboard packaging used for clothing, flowers and other applications
By Region
- Asia-Pacific: Asia-Pacific accounted for the largest market share and is projected to witness the fastest growth in the market. This is mainly attributed to the rapid growth of end use industries such as food & beverages, and the wide presence of key producers in the region.
- Europe: Europe recorded a significant growth in the global market based on consumption. The demand is mainly driven by stringent government regulations, and the presence of large-scale end-use industries.
- North America: North America accounted for the second-largest share in the global market due to large production bases of Boxboard Packaging producers globally, increasing demand for sustainable packaging solutions.
- Middle East & Africa: The demand for Boxboard Packaging is rising due to the increased demand for homecare & pharmaceutical sector.
- Latin America: Latin American market is projected to witness notable demand for Boxboard Packaging owing to expanding food & beverages industry across the region.
List of the key major companies in the Boxboard Packaging Market are
- International Paper (US)
- Mayr-Melnhof Karton (Austria)
- Mondi (UK)
- Nippon paper group (Japan)
- Metsa Board Oyj (Finland)
- Stora Enso (Finland)
- DS Smith (UK)
- SMURFIT KAPPA (Ireland)
- Sappi (South Africa)
- ITC Limited (India)
Key Developments
- Prominent players of the Boxboard Packaging market include Mondi, Nippon paper group, Metsa Board Oyj, ITC ltd, and DS Smith. This is mainly due to the large production bases, global presence, and large distribution network and consumers globally. These players are engaged in the expansion of its production facilities of Boxboard Packaging. For instance, on December 2021, International Paper, one of the leading producers of boxboard packaging announced it will build a state-of-the-art corrugated packaging plant in Atglen, Pennsylvania. The facility will employ approximately 150 team members. Additionally, the companies follow organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development to expand their product portfolio and enhance their customer relationships. Additionally, the companies are also investing in the development of new and advanced systems with more safety measurements.
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