Canada Paper Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Canada Paper Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Canada Paper Packaging Market is expected to grow at a CAGR of 2.10% during 2021-2026. The expansion of paper packaging in Canada is fueled by sustainability, innovative technology, and increasing economies. Consumers choose readily recyclable carton packaging over tin or plastic packaging due to a growing focus on sustainability. Paper packaging is likely to become a feasible and cost-effective alternative across the country as the market need for customer-friendly packages and enhanced product protection grows.

Key Highlights

• The acceptance of the demand for biodegradable packaging as an alternative to plastic is expected to increase the market growth in Canada. Every year, Canadians throw away 3 million tons of plastic waste, only 9% of which is recycled, meaning the vast majority of plastic ends up in landfills, and about 29,000 tons find their way into the natural environment.
• According to the FAO (Food and Agriculture Organization), in 2019, Canada's production capacity for paper and paperboard was 10.57 million metric tons, and in 2024, it is expected to reach 10.62 million metric tons. Forest Products Association of Canada (FPAC) provides the voice for Canada's wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. ​
• Moreover, food and beverage are one of the most prominent in Canada, and its use of paper-based packaging is naturally increasing. For instance, In Canada, milk, juices, energy drinks, etc., have become increasingly popular among millennials and the next generation due to increasing health consciousness and growing awareness of risks associated with excessive consumption of sweets, carbonated soda, and artificial sugar drinks.​ Most consumers in Canada choose to purchase milk cartons instead of Glass bottles or plastic for eco-friendly concerns and cost-effectiveness of cartons over a glass or plastic bottles.​
• As the coronavirus pandemic spreads and its humanitarian impact grows, companies that help meet necessities, such as providing food and other vital commodities to customers securely, are increasingly impacted in Canada. The coronavirus pandemic has already caused some of the most substantial declines in demand for certain types of packaging in recent memory while accelerating growth for others, such as e-commerce shipping packaging, which is swiftly becoming lifelines in this new era.

Key Market TrendsStringent Government Rules for Packaging

• The recent legislative action at the municipal, provincial, and federal levels has primarily focused on single-use plastics in Canada. Following the approach set out in the EU's 2018 Plastics Strategy, the Canadian government recently announced its intention in banning single-use plastics.
• Also, the Canadian province of Ontario expanded the extended producer responsibility (EPR) scheme for paper packaging from covering half of the recycling cost to the total cost by 2023. The bill would establish a free program similar to Maine's and be applied to packaging, printing and writing paper, and food service ware.​
• As stringent government regulations for environmental safety have placed few barriers to the production and disposal of synthetic polymers like plastic, some companies have been focusing on innovative, recyclable, and environmentally sustainable carton packaging solutions.​
• For instance, in May 2020, Sustana Fiber's mill in Québec announced new processes to recycle multilayer juice and milk cartons. It can now annually process 3,000 to 4,000 tons of these cartons collected from across the country. Each recycled multilayer carton provides the raw material needed to continue producing essential items like toilet paper and paper napkins, thus improving recycling and recovery efforts.

Growing Need For Paper Packaging in Beverage Industry

• In Canada, milk, juices, energy drinks, etc., have become increasingly popular among millennials and the next generation due to increasing health consciousness and growing awareness of risks associated with excessive consumption of sweets, carbonated soda, and artificial sugar drinks.​
• Milk production in Canada has been increasing over the years. Most of the consumers in Canada are choosing to purchase milk cartons instead of Glass bottles or plastic for eco-friendly concerns and cost-effectiveness of cartons over glass or plastic bottles.​ Moreover, soft drink consumption has considerably decreased over the past five years, largely due to the aging Canadian population.
• According to Statistics Canada, soft drink consumption by adults sharply decreased with age. In Canada, the adult obesity rates have increased over the past decade, and as Obesity is linked to diabetes, high blood pressure, bone and joint problems, and other medical problem, many consumers have been focusing on being health conscious for the past few years, limiting their soft drink consumption. This has given rise to juices' consumption and other healthy drinks such as energy drinks and sports drinks, which is driving the studied market growth for packaging of these drinks. ​

Competitive Landscape

Canada Paper Packaging Market is partially fragmented. Some of the major players in the market are Tetra Pak, Maritime Paper Products Ltd., Graphic Packaging International, LLC, Sappi Limited, Advance Paper Box Ltd., and Rengo Co., Ltd. Recent Developments made in this sector are:

• In July 2021, Cardiff Products Corporation opened its new aseptic co-manufacturing facility in London, Ontario. The company signed a partnership deal with Tetra Pack to fully equip their facility with Tetra PPack'spackaging solutions such as recyclable cartons.
• In December 2020, With the purchase of an EFI Escada Corrugator Control system from Electronics For Imaging, Inc., Maritime Paper Products, one of Canada's largest corrugated packaging manufacturers, made a substantial investment to minimize waste, increase production, and lower its carbon impact. This investment will aid the ccompany'scorrugated goods division.
• In January 2020, The Somerset Mill in Skowhegan, Maine, has been certified to the ISO 22000:2018 Food Safety Management System (FSMS) standard, according to Sappi North America, Inc., a pioneer in the packaging industry. With this accreditation, the firm may better serve its clients in the food packaging sector, particularly in North American nations like United States and Canada, with their packaging goods.

Additional Benefits:

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

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