France Paper Packaging Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

France Paper Packaging Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

The France paper packaging market is expected to register a CAGR of 4% during the forecast period (2022-2027). With the focus shifting towards eco-friendly and sustainability, paper packaging is expected to gain traction as players in the country are turning to paper packaging over plastic packaging, which poses a significant threat to the environment.

Key Highlights

• Consumers are becoming more conscious of the environmental hazards linked with packaging and are moving their purchasing habits to more environmentally friendly options. Consumers, the government, and the media are putting pressure on manufacturers to make their products, packaging, and processes more environmentally friendly. These trends are expected to propel the demand for the paper packaging market in the country.
• The growing demand for paper packaging due to the rise in e-commerce sales in the country is another factor driving the global paper packaging market. However, the growing concern about deforestation owing to increased demand for wood for pulp is likely to hinder the growth of the market.
• Moreover, in October 2021, the government of France passed a law and published a list of fruits and vegetable varieties in the food trade that may no longer be packaged with plastic from 1 January 2022. Such initiatives in the country are expected to act as a key growth factor adding demand for paper packaging.
• Furthermore, the initiatives of e-commerce companies to use paper packaging to replace plastic bags are positively impacting the market growth. For instance, in November 2021, Amazon announced that it is replacing plastic bags with paper packaging products by the end of the year.
• During the outbreak of COVID-19, the market studied faced slow growth due to lockdowns being imposed in the country that have disrupted the supply chain process and the closure of production plants. The post-COVID future for paper and paperboard packaging looks promising in terms of demand.

Key Market TrendsGrowing E-commerce Sales

• The demand for paper packaging has been propelled in the country due to an increase in the growth of e-commerce during the pandemic and post-pandemic, especially in the food and beverage industries. Furthermore, omnichannel retail is moving beyond web-based retailers to include B2C and D2C, social media sites with online marketplaces, quick commerce, and more.
• According to E-commerce Europe, the e-commerce sector (products and services) exceeded EUR 129 billion in 2021, with an increase of 15.1% compared to 8.5% in 2020. Online product sales continued to grow by 7% as compared to 2020.
• E-commerce packaging is becoming more protective, as well as more efficient, to ensure the quality of its suppliers for its customers. Smaller packaging allows postal and delivery personnel to load more products onto trucks, resulting in lower carbon emissions and time savings.
• As more corrugated boxes are arriving on doorsteps rather than in stores, the sector is counting on more people to keep up with recycling. Thus, paper packaging is becoming a substantial and high-growth opportunity for the paper packaging market in France.
• In July 2021, BigCommerce, a Open SaaS e-commerce platform for fast-growing and established brands announced that it had extended its European presence from the U.K. into France, the Netherlands, and Italy. With BigCommerce, merchants in France now have access to a flexible, enterprise-grade e-commerce platform built to sell on a local and global scale. This expansion will create new roles in France to work directly with merchants in the region, which will ultimately increase demand for paper packaging.

Food Industry to Hold Major Share

• The growth of the market is driven by changing demographics and factors such as urbanization and employment rates, which clearly influence consumer spending power and purchasing habits. As a result of these changes, new package types such as convenience packaging, value-for-money packaging, multi-packs, and smaller single-serve packs are becoming more popular. As a result of these reasons, there will be a tremendous demand for paper packaging in France.
• Furthermore, to achieve 100% recycling of plastics by 2025, the government in the country is offering subsidies to companies in the industry to modernize their infrastructure and improve waste management. For instance, in August 2021, Saica, a provider of paper-based packaging solutions, secured funds for investments it is planning at two French containerboard mills.
• According to the Organic Trade Association, organic packaged food in France increased by 8.3% in 2021, with a market value of USD 4.7 billion. Organic dairy accounts for 26% of the market and recorded 8.6% growth in 2021 and is driving growth in organic packaged food in the country.
• Considering the favorable environment for the growth of the paperboard market in the country, several companies operating in the region are investing in setting up new facilities and developing innovative solutions to strengthen their market position further.
• For instance, in June 2021, paper-based packaging firm Smurfit Kappa announced an investment of EUR 24 million to expand its corrugated plant in Rethel, North-East France. The company plans to use the latest investment to consolidate two existing facilities at the French plant and install a new corrugator and conversion equipment.

Competitive Landscape

The France paper packaging market is fragmented with many international and domestic players present in the market, including International Paper, Smurfit Kappa Group plc. MM Packaging GmbH, Graphic Packaging, etc. The players in the market are concentrating on expanding their reach with strategic initiatives such as mergers & acquisitions, partnerships, capacity expansion, and product innovation.

• May 2022 – International Paper announced invest of EUR 23 million in a corrugated board mill in France to adapt its production capacity to the growth of the e-commerce sector and offer even more sustainable packaging solutions to customers. This investment will fund the installation of new equipment, including new converting lines, to increase production capacity by more than 60% and 50% respectively.

Additional Benefits:

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

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