Paper packaging refers to the use of paper materials such as containerboard, paperboard, corrugated board, and paper bags for wrapping and protection of goods during storage, distribution, sale, and use. Some key benefits of paper packaging include sustainability, recyclability, cost-effectiveness, moisture resistance, durability, and printability. The growing awareness regarding the environment has promoted the use of paper-based packaging materials among consumers and manufacturers. Furthermore, demand for packaged food and alcoholic beverages has also contributed to the growth of the paper packaging market. The global Paper Packaging Market is estimated to be valued at US$ 373.7 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The popularity and adoption of paper packaging solutions are increasing due to the surge in demand for sustainable packaging. Paper packaging products decompose quickly and do not pollute the environment, which makes them environmentally friendly. Furthermore, paper packaging suppliers are focusing on developing innovative fiber-based solutions that provide comparable barrier properties to plastic packaging while maintaining the sustainability and recyclability advantages of paper. For instance, DS Smith introduced Paprene, which is a recyclable and biodegradable paper-based plastic alternative suitable for various applications such as food packaging. These trends are expected to drive significant growth in the paper packaging market over the forecast period.
SWOT Analysis
- Strength: Paper packaging is cost effective and provides effective print capabilities to brand products. It is also fully recyclable and renewable.
- Weakness: Paper packaging has lower durability and strength than plastic packaging. It also has higher susceptibility to damage from moisture.
- Opportunity: Increasing focus on sustainability is driving demand for paper-based packaging solutions. Growing e-commerce sector also provides an opportunity to use more paper packaging for product delivery.
- Threats: Stringent environmental regulations around deforestation can impact raw material supply. Substitution threat from alternative sustainable packaging materials.
Key Takeaways
The global paper packaging market is expected to witness high growth. Demand is growing across various end use industries like food and beverages, personal care, homecare and others driven by sustainability initiatives and eco-friendly trends.
Regional analysis – North America dominates the global paper packaging market currently owing to presence of major manufacturers and growing environmental concerns. Asia Pacific is expected to witness fastest growth due to expanding industrial and consumer sectors in developing economies like China and India.
Key players – Key players operating in the paper packaging market are DS Smith PLC, Georgia-Pacific Corporation, Holmen AB, Hood Packaging Corporation, International Paper Company, MeadWestvaco Corporation, OJI Holding Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj, The Mayr-Melnhof Group, Sonoco Products Company, Pratt Industries and WestRock Company. These players are focusing on capacity expansion, new product development and mergers & acquisitions for business growth and strengthening their global footprint.
