Global Paper Packaging Materials Market - 2022-2029

Global Paper Packaging Materials Market - 2022-2029

Market Overview

The global paper packaging materials market was worth US$ XX billion in 2022 and is expected to show significant growth by reaching up to US$ XX billion by 2029, significantly growing at a CAGR of XX% during the forecast period (2022-2029).

Paper packaging is a versatile and cost-effective way to protect, store and transport various products. In addition, it can be customized to meet customer needs and product-specific requirements. Properties such as lightweight, biodegradability, and recyclability are the advantages of paper packaging and are an integral part of the packaging. Increasing consumer awareness of sustainable packaging and strict regulations from various environmental protection agencies are driving the paper packaging materials market.

Market Dynamics:

Rising paper production is expected to drive the market growth

The paper packaging material business is expected to benefit from increased paper production. The rate of growth in paper and paperboard output grew to 2.3 percent in 2017, according to the International Energy Agency, and demand is expected to continue to rise through 2030, owing to rising population and economic growth. As a result, the need for paper packaging material rises as paper production rises. As a result of rising demand for eco-friendly packaging solutions as a result of growing environmental concerns, the market for paper packaging material is expected to grow. The rise of the paper-based packaging business is also due to consumer awareness of sustainable packaging. Increased government regulations aimed at safeguarding the environment also help the industry. Furthermore, players are focusing on making their production methods more environmentally friendly and long-lasting in order to reduce their environmental impact.

However, the inability of paper packaging to package heavy commodities, prompting manufacturers to use polymer materials for packaging, is projected to hamper the growth of the paper-based packaging market. Strict environmental regulations around deforestation as a result of mining raw materials for paper manufacture and the release of harsh chemicals during paper production are expected to hinder the market expansion of paper-based packaging materials. Many toxic chemicals are added to paper bags throughout development, such as printing inks, phthalates, surfactants, bleaching agents, hydrocarbons, and others, which leach into the food chain during paper manufacture, hampering market expansion.

Market Segmentation:

The beverages segment accounted for the highest share in the paper packaging materials market.

The beverages segment is a key application that will account for XX% of total revenue in 2021 and is expected to continue to dominate during the forecast period. This segment benefits from a growing preference for functional foods, a broad product portfolio, and easy product availability. The expansion of the organic beverage industry in the developed countries of North America and Europe has also contributed to the expansion of the paper packaging materials industry.

Based on packaging boxes, corrugated boxes are expected to grow at a CAGR of XX%. The term corrugated refers to a type of material made up of three separate sheets of containerboard that are like thick paperboard. The outer two sheets are flat liners, but the center sheet has a rippling pattern. Corrugated cardboard boxes are extremely inexpensive and the most affordable cartons available. This is due to the low cost of labor and tools required to produce and fill the boxes and the lightweight properties of the material, which assist keep transportation costs low.

Geographical Penetration:

Asia-Pacific is the dominating region during the forecast period

APAC had the largest share of the paper packaging materials market during the forecast period. The Asia Pacific paper packaging materials market is driven by demand from China, Japan, and India. The Asia-Pacific paper packaging materials market is expected to grow over the next five years due to growing disposable income and increased reliance on prepared foods for people in developing countries.

On the other hand, Europe emerged as the fastest-growing region and is expected to continue its dominance over the forecast period. High awareness regarding the usage of probiotics, coupled with many industry participants and inclination toward preventive healthcare, has benefitted the paper packaging market in this region and is expected to continue to do so over the forecast period.

Competitive Landscape:

Global paper packaging materials market is highly fragmented in nature and is dominated by regional players. Major players such as Koch Industries, International Paper Company, Holmen AB and DS Smith Plc operate across the value chain and have their own forest reserves. These players indulge in captive consumption of paper packaging materials for several end-user industries such as chemicals and consumer products such as cups, cutlery, and tablecloths. The major business players in the industry invest extensively in R&D in order to develop their product portfolio with superior product properties to meet the growing industry demand. For instance, in August, 2020, Smurfit Kappa announced a partnership with Wildlife Fund Combia, to improve forestry protection and expand the usage of recyclable papers. In December 2019, Huhtamaki finalized the acquisition of the majority of the business of South African felxible packaging producer Everest Flexibles (Pty) Limited, allowing the company to capitalize on its current customer base.

COVID-19 Impact:

Positive impact on the global paper packaging materials market

During the pandemic, consumer habits changed dramatically and affected the packaging industry. Home delivery of groceries and consumer products has increased the demand for paper packaging and boxes. Consumers worldwide are increasingly buying products through different channels than before the pandemic, and e-commerce shipments and other courier services are skyrocketing. During the current COVID-19 pandemic, manufacturers in the paper packaging materials industry maintained optimal inventory levels to ensure a steady supply of products. Offline food chains which include cafes and restaurants which are entirely closed in all the regions have impacted the market negatively. On the other hand, the packaged food and beverages witnessed an upsurge in the demand, due to rise in necessity food products, and shelf stable foods.

Why Purchase the Report?

Understand the current market scenario and viability of global paper packaging materials market over the forecast period.

Visualize the composition of the global paper packaging materials market terms of material type, packaging type, packaging level and end-user to identify major players, growth potential, and market strategies.

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period.

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global paper packaging materials market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market Share Analysis covering business revenues ($) and revenue share (%) of key market players

The global paper packaging materials market report would provide an access to approximately 70 market data tables, 68 figures and 180 pages

Target Audience:

Food & Beverage Companies

Packaging Materials Suppliers

Import and Export Companies

Industry Investors

Education & Research Institutes

Research Professionals