The global paperboard packaging market size was USD 196.2 Bn in 2022 and is likely to reach USD 298.8 Bn by 2031, expanding at a CAGR of 4.1% during 2023 – 2031. The growth of the market is attributed to the increasing demand from the food & beverages and healthcare sector.
Paperboard packaging is made out of paperboard, which is often used to pack delicate products that need to be protected from damage. Paperboard is a thick paper-based material derived from wood and is primarily used to make containers, such as paper cups, folding cartons, and several industrial packaging applications.
Paperboard is generally coated with plastic or polymers, which increases its durability. It finds applications in healthcare packaging, food and beverage packaging, industrial packaging, durable and non-durable goods packaging, and cosmetics packaging. Paperboard can be recycled easily, which further reduces waste.
The thickness of the paperboard depends on the type of raw material used. The thickness may vary from 120 to 700 g/m2. Solid bleached sulfate, coated unbleached kraft, coated recycled paperboard, and non-bending chipboard are broad categories of paperboard used in packaging. Solid bleached sulfate paperboard has a clay-coated surface and a top ply of bleached virgin softwood fiber, which makes it suitable for food packaging, such as frozen foods, wet foods, meats, bakery products, and dairy products. Coated unbleached kraft grade comprised softwoods with some hardwood fiber, which makes it a preferred choice for heavy-duty packaging.
Coated recycled paperboard is made from recycled fibers of paper and is suitable for the packaging of dry bakery products, dry foods, and paper products, such as napkins and facial tissues. Non-bending chipboard is a thick-grade paperboard manufactured from old corrugated and recycled newsprint. It is often used as the body stock for rigid or setup boxes during transportation.
Individuals around the globe started preferring paperboard packaging due to increasing environmental concerns. For instance, according to a survey conducted by McKinsey in 2020, about 55% of US consumers are concerned about the environmental impact of product packaging. Moreover, they are willing to pay more for green packaging.
The COVID-19 pandemic moderately impacted the market. The market growth decreased during the initial period of the pandemic due to government-imposed lockdowns and restrictions around the globe. This resulted in the scarcity of manpower at manufacturing units, which encouraged many industries to cease their operation. However, the market recovered during the post-pandemic, as the demand for sustainable packaging solutions increased from the food & beverages, healthcare, and e-commerce sectors.
Paperboard Packaging Market Dynamics
Major Drivers
Rising demand for sustainable packaging solutions is expected to drive the market. Paperboard has been the traditional choice for packaging, due to its superior performance characteristics, lightweight, and cost-effectiveness. Around 70% of paperboard can be reused and recycled easily, which makes it ideal for sustainable packaging.
Increasing adoption in the food & beverages industry is likely to boost the market. Paperboard packaging offers an extra layer of support when it comes to protecting and transporting gods. Thus, it is widely used to pack bakery products, drinks, snacks, and frozen food. Furthermore, growing demand from the e-commerce and cosmetics & personal care sector is likely to propel the market.
Existing Restraints
Availability of flexible packaging substitutes poses a major challenge to the paperboard packaging market. Buyers are opting for flexible packaging options, due to their sustainability in adverse conditions, durability, and resistance to moisture, air, and temperature. However, paperboard can be susceptible to fire and water due to the poor barrier property of paper, which is likely to hinder the market.
Increasing deforestation for paper production is expected to hinder the market. Paperboard production requires fresh wood pulp, which may increase deforestation. However, deforestation creates environmental concerns among the population and may restrain the market to a certain limit.
Emerging Opportunities
Growing usage of eco-friendly and biodegradable packaging material creates a lucrative growth opportunity for the market. Rising environmental concerns have increased the demand for biodegradable materials. Moreover, governments around the world are implementing strict norms for reducing the use of plastic, which is likely to fuel the market. For instance, according to the American Forest and Paper Association, around 46 million tons of paperboard were recycled in 2018 with a 68.2% of the recycled rate.
Increasing logistics and transportation activities creates potential opportunities in the market. Paperboard packaging is used to pack various delegate products to enhance protection during the shipment of the products, including electronic products, food and beverages, beauty, personal care, and health products.
Scope of the Paperboard Packaging Market Report
The report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Paperboard Packaging Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016 – 2021
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Forecast Period
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2023 – 2031
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Segmentation
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Product (Containerboard, Boxboard [Folding Boxboard, Solid Bleached, Solid Unbleached, Paper Sheet, and White Lined Chipboard], and Corrugated Boxes), Raw Material (Recycled Waste Paper and Fresh Source), and Application (Food & Beverages, Pharmaceutical & Healthcare, Durable Goods, Non-durable Goods, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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NIPPON PAPER INDUSTRIES CO., LTD.; Stora Enso; Svenska Cellulosa Aktiebolaget SCA; Mondi plc; Amcor PLC; ITC Limited; Inland Paperboard & Packaging Inc.; Smurfit Kappa Group; Oji Holding Corporation; International Paper Group; WestRock Company; DS Smith; Metsa Board; and South African Pulp & Paper Industries
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Paperboard Packaging Market Segment Insights
Product Segment Analysis
Based on product, the market is segmented into containerboard, boxboard, and corrugated boxes. The boxboard segment is further classified into folding boxboard, solid bleached, solid unbleached, paper sheet, and white-lined chipboard. The boxboard segment is expected to expand at a considerable CAGR during the projected period, due to the rising demand for folding boxboards.
Boxboard is made up of multiple layers of wood pulp and is easily bent without breaking. Lower environmental impact, rigidity, lightweight, high stiffness, and low density make boxboard a preferred choice. The compactness and portability of boxboards are major factors that increased their use in cosmetic packaging, food packaging, and electronics packaging.
The containerboard segment is anticipated to hold a key share of the market in the coming years, as it is widely used in the manufacturing of corrugated boxes and other packaging materials. A combination of recycled paper, paper pulp, and other materials is used to make containerboard. High strength and durability make it suitable for industrial packaging. Thus, increasing demand for heavy-duty containers is likely to boost the segment.
Raw Material Segment Analysis
In terms of raw material, the market is divided into recycled waste paper and fresh source. The recycled waste paper segment is expected to register a robust growth rate during the forecasted period, owing to the high recycling rates of packaging materials in producing custom paperboard boxes for dry foods, like pasta or breakfast cereals. Recycled waste paper can be cut, manipulated, and folded into various designs and shapes to manufacture packaging products. The segment growth is further attributed to the growing concerns over deforestation.
Application Segment Analysis
On the basis of application, the paperboard packaging market is segregated into food & beverages, pharmaceutical & healthcare, durable goods, non-durable goods, and others. The food & beverages segment is expected to expand at a significant growth rate during the projection period, due to the growing preferences of youth for packaged food. The food & beverages industry utilizes coated paperboard for packaging vegetables, fruits, and other food and beverages. This coating is generally made up of polymers or plastic film, which increases the strength and shelf-life of food items.
Regional Analysis
In terms of region, the global paperboard packaging market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, owing to the increasing demand from the food and beverages industry with increased dependence on convenience foods. Growing disposable incomes of the working population have boosted the trend to opt for ready-to-eat food items. Growing industrialization at a rapid pace is further likely to boost the demand for paperboard packaging.
The market in North America is projected to grow at a rapid pace, owing to the shifting consumer preferences towards organic food & beverage products that require adequate paperboard packaging for parcels and deliveries. The regional market growth is further attributed to the growing penetration of online food ordering and delivery.
- As per the study of the Flexible Packaging Association, over 30% of US citizens order food twice a week and is expected to grow in the next few years.
Segments
The global paperboard packaging market has been segmented on the basis of
Product
- Containerboard
- Boxboard
- Folding Boxboard
- Solid Bleached
- Solid Unbleached
- Paper Sheet
- White Lined Chipboard
- Corrugated Boxes
Application
- Food & Beverages
- Pharmaceutical & Healthcare
- Durable Goods
- Non-durable Goods
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global paperboard packaging market are NIPPON PAPER INDUSTRIES CO., LTD.; Stora Enso; Svenska Cellulosa Aktiebolaget SCA; Mondi plc; Amcor PLC; ITC Limited; Inland Paperboard & Packaging Inc.; Smurfit Kappa Group; Oji Holding Corporation; International Paper Group; WestRock Company; DS Smith; Metsa Board; and South African Pulp & Paper Industries.
These companies adopted various strategies such as mergers, partnerships, collaboration, acquisitions, and product launches to cater to customers and increase their global presence. For instance,
- In September 2022, Smurfit Kappa, a leader in the manufacturing of corrugated packaging, purchased a packaging facility in Brazil named “Paperbox”. The acquisition is expected to increase the manufacturing capacity of Smurfit Kappa.
- In April 2022, DS Smith created corrugated cardboard boxes for shipping medical devices through online commerce mediums. These corrugated cardboard boxes use a single-material approach instead of glued packaging with a single-use plastic insert. The company is further aiming at creating recyclable and environmentally friendly packaging materials.
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