Corrugated Boards

Corrugated Boards Market Analysis and Global Outlook

• Containerboard Demand is expected to grow by around 3–4 percent from 2023 to 2027, mostly driven by E-Commerce and the recovery of manufacturing output almost to the pre-pandemic levels.

• The COVID-19 pandemic has accelerated the demand from E-commerce, due to shift in consumer buying behavior, thus pushing the demand for corrugated boxes. Growing emphasis on sustainability among buyers is also driving the demand for corrugated boxes, which have the highest level of sustainability. On the supply front, there are rapid capacity expansions happening globally, especially due to the decline in the graphic paper industry and mills are converting paper machines to produce containerboard

• Containerboard demand witnessed a steep surge in North America and Europe, while moderate growth was seen in Asia, due to weaker demand from China in 2022

Value Chain for Corrugated Containers 

An integrated manufacturing facility provides more scope to design innovative products, have better logistics solution, and serve customers in a better way. Apart from these, an integrated facility has other benefits which extends to the customers as well. These include:

• Continuous supply of paper, even during market fluctuation

• The scope to customize products based on quantity and varying specifications as demanded by the customers

• Innovating through the entire supply chain to be more sustainable and cost-effective

Global Corrugates Market

• Containerboard demand is expected to grow by around 3–4 percent from 2023 to 2027, mostly driven by demand from segments, like E-Commerce, Retail, Food and Beverages

• The COVID-19 pandemic has accelerated the demand from e-commerce, due to shift in consumer buying behaviors, thus pushing the demand for corrugated boxes. Growing emphasis on sustainability among buyers is also driving the demand for corrugated boxes, which have the highest level of sustainability

• On the supply front, there are rapid capacity expansions happening globally, especially due to the decline in the graphic paper industry, and mills are converting paper machines to produce containerboard

• Stringent initiatives and regulations are expected toward environmental protection, and demand for corrugated boxes is expected to increase in the coming years, owing to the usage of recycled materials

• Containerboard oversupply is expected in the next few years from a bulge of new announced capacity projects planned in markets around the world. Most of the announced capacities are pre-dominantly on the recycled segment due to increasing shift towards sustainability

Global Demand Outlook

• Significant demand will be from the e-commerce and manufacturing industries, which require secondary corrugated packaging for safe transportation of goods

• Innovations in flute types, as well as printing techniques, resulting in high decorative boards, will extend the containerboard’s use in folding carton applications. Corrugated packaging as POS displays will drive the growth of high-end corrugated boxes

• We expect global demand growth rates to be around 3–4 percent from 2023 to 2027, driven by end-use segments, such as e-commerce, retail, food and beverage, manufacturing sectors

Demand by Region

• There is a global demand rebound from COVID-19 pandemic experienced since start of Q4 2020 and demand levels are expected to growth in both matured and developed regions

• Rapid increase in demand is expected in the APAC, where growth is expected to outpace the global average

• India and China are expected to witness gain through strong industrial output and consumer product market growth

Cost Structure Analysis

• Pulp, which may be virgin or recovered, along with the chemicals used, are major components in the total cost of board, as it forms 60–65 percent of the total board cost. The price fluctuations of raw materials differ from market to market. Labor cost forms a significant portion of the overall price of board, hence, prices would vary depending on the regional availability of the labor

• Why You Should Buy This Report

• Information about the corrugated packaging market size, trends, value chain, drivers and constraints, price drivers and global corrugated industry outlook.
• Regional corrugated packaging industry report of Asia, Europe, China, etc. including PESTEL and Porter’s five force analysis.
• Supplier profiles of major players like International Paper, WestRock, Georgia-Pacific, etc.
• Cost structure analysis and major innovations in the corrugated packaging market and best procurement practices.