Global Corrugated Boxes

Global Corrugated Boxes

Global demand for corrugated boxes is expected to rise 2.6% per year to 296 billion square meters in 2027, valued at $319 billion. Growth will be driven in part by a rapid rise in demand for e-commerce packaging as online purchases continue to rise globally. However, further gains will be limited by growing concerns about packaging waste and excess corrugated box usage – most notably in the e-commerce market – and competition from flexible packaging and other alternatives.

E-Commerce Drives Demand But Also Introduces Challenges for Corrugated Boxes
By 2022, demand for corrugated boxes in the global e-commerce market grew to nearly five times the level seen in 2012. Growth will remain robust as e-commerce increases its share of retail sales, with demand rising 10% annually. Demand will be driven by the US and the Asia/Pacific region, which combined will account for 71% of absolute gains.

While e-commerce has become a significant market for corrugated boxes, the forward-facing nature of e-commerce secondary packaging has caused consumers to take greater notice of the type of packaging in which an item has been shipped. These concerns – ranging from the environmental impact of packaging to the excess waste it generates – will serve as a check against even greater demand gains.

Sustainability Concerns Will Continue to Impact the Corrugated Box Market

Despite the perceived sustainability of corrugated boxes – they are the most commonly recycled packaging type, and on average new boxes contain around 50% recycled fiber – there remain ongoing concerns about the impact that boxes have on the environment and the amount of unnecessary packaging that can result from using corrugated boxes for e-commerce. This has invited competition from other packaging formats:

• Flexible packaging has benefited from concerns over excess packaging. For instance, mailers have seen increasing use for smaller, less fragile items such as books and clothing.
  
• E-commerce-ready packaging, in which the primary packaging for an item is designed to serve as its shipping container, thus eliminating any secondary packaging, has also risen in popularity. In some cases, more traditionally packaged items are shipped without using any secondary packaging.
  

However, concerns over excess packaging can be addressed through the use of “right-sized” corrugated boxes, which more closely fit the size of their contents, thus avoiding excess space that may need to be filled with additional protective packaging. Right-sizing has been an ongoing trend in higher income countries with robust e-commerce markets, such as the US, Japan, and the UK, and is expected to become more popular in developing markets going forward.

Study Description
This Freedonia industry study analyzes the 263 billion square foot global corrugated box industry. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) by region (North America, Central and South America, Western Europe, Eastern Europe, Asia/Pacific, and Africa/Mideast) and market (food and beverage, nonfood nondurable goods, e-commerce, and other markets). Containerboard demand, production, and trade are also covered. The study also evaluates company market share and competitive analysis on industry competitors, including DS Smith, International Paper, Smurfit Kappa, WestRock, and Xiamen Hexing Packaging.