Asia Pacific Folding Carton Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia Pacific Folding Carton Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia Pacific Folding Carton Market is expected to grow at a CAGR of 4.1% during the forecast period. Most containers use a folding carton, which is a cylinder board manufactured from the pulp from reprocessed discarded paper. Food cartons are manufactured from a higher-grade, lighter solid sulfate board that is coated with plastic. The thickness of the board is limited to 0.81 mm (0.032 in) due to cutting machine limits. Thus, folding cartons are often limited to containing a few pounds or kilos of material.

Key Highlights

• Folding cartons continue to be one of the most versatile and cost-effective formats to package and deliver goods, with diverse possibilities in a visually appealing product. ​Also, folding carton packaging is one of the most used eco-friendly packaging solutions due to its ability to be produced in many sizes with a small footprint compared to other bulkier packaging options, thus making it feasible for use in almost all end-user industries.​
• Furthermore, regulatory agencies worldwide are increasingly banning single-use plastic packaging, which, combined with the rising consumer awareness of sustainability, is compelling end-users to switch to eco-friendly and non-plastic packaging. This trend is projected to increase the demand for folding cartons in the next few years.
• Several market players rely on a variety of raw materials based on the required foldable carton packaging. Typically, the core elements are included in the thick middle pulp, and surface properties are fine-tuned with the outer layers. The layered structure of boards makes it possible to use a wide variety of fiber materials.
• Price is also affected by the types of pulps used because of the yield and cost of pulp raw materials. However, when the packaging needs to be utilized for food, chemical pulp offers a suitable printing surface when coated. Chemical pulps price fluctuations heavily impact the business operations of market players. Chemical pulps are generally split into two categories: hardwood and softwood pulps.
• However, in countries such as Japan, the market witnessed unfavorable seasonal changes, and the impact of COVID-19 reduced the demand for milk packaging cartons used for school lunch offerings. The market observed stagnation until the lowdown period. Yet, the market is expected to grow further in the forecast period post normalization of the region's pandemic. For instance, SIG witnessed a decline in the cartons' sales as many of the school milk programs were suspended, which temporarily affected the company.

Key Market TrendsHealthcare Industry to Show Significant Growth

• The Asia Pacific is one of the fastest-growing regions. It has the highest share in the market, owing to the presence of densely populated countries, such as India and China, as well as the increasing prevalence of the pharmaceutical and healthcare market in these countries.
• The healthcare and pharmaceutical sector in China is one of the world's largest markets, primarily driven by its aging population. China had a population of 249 million aged 60 years or above by the end of 2018, making up 17.9% of the national population. The number is expected to reach 487 million in 2050, which means one in every three Chinese would be a senior citizen.
• In recent years, the country's government introduced a series of policies to narrow the pharmaceutical innovation gap between China and other leading countries. The plans include developing multinational clinical centers, sharing clinical data globally, accelerating the approval process of special medicine, and improving clinical data protection.​
• Additionally, the pharmaceutical sector plays a vital role in the country's roadmap, moving from manufacturing generics to new drug development. The Healthy China 2030 initiative underlines this shift. Hence, the growth of the pharmaceutical industry is expected to create opportunities, thereby driving the packaging market's growth positively, which in turn, may drive the market growth in the country.

China to Hold the Highest Market Share

• The packaging industry is on the lookout for new food and beverage packaging materials as the trend toward health consciousness grows. These materials are believed to provide antibacterial qualities as well as mechanical robustness, allowing the product to stay fresh for longer. This is predicted to increase packaged food consumption, as well as the use of packaging materials in the country.
• China is bound by its limited and degraded agricultural resources, according to Australia's Department of Agriculture and Water Resources, which has raised worries about the country's ability to fulfil the rising demand for food supply from domestic production. As a result, the government must seek for alternatives, such as importing food items, which would necessitate sustainable packaging that would preserve the product from harm and degradation. As a result, the packaging sector in the region would benefit.
• The growing urban population, developing e-commerce package industry, dropping pulp prices, and improving population awareness about environmentally friendly packaging are expected to propel China's paper packaging market.

Competitive Landscape

The Asia Pacific Folding Carton market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with innovative and sustainable packaging, many of the companies are increasing their market presence by securing new contracts and by tapping new markets.

• November 2021 - Warburg Pincus-backed Parksons Packaging acquired a majority stake in Manohar Packaging, which makes folding cartons for the premium alcoholic beverages and confectionery segments.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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