Corrugated Boards Market Intelligence

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  • PRO access to Beroe LiVE.Ai™
  • Unlimited updates on the Report
  • Supplier Watchlist for 3 suppliers
  • Supplier Shortlisting Tool

With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)

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Report Coverage

  • Value Chain for Corrugated Containers
  • Containerboard Market Trends–Emerging vs. Developed Markets
  • Corrugates–Price Drivers
  • Mergers and Aquisitions

Production Size

Production Size North America

39.60 MMT

Production Size Europe

44 MMT

Production Size Latin America (LATAM)

11 MMT

Table of contents

  1. Executive Summary
  2. Global Containerboard Industry Outlook
  3. Global Containerboard Producers’ Market Share by Capacity
  4. Virgin and Recycled Containerboard Capacity by Region
  5. Major Product Trends and Innovations
  1. Corrugated Boards Global and Regional Market Analysis
  2. Value Chain
  3. Global Market Overview
  4. Market Trends - Emerging versus Developed
  5. Price Drivers
  6. Regional Market Outlook
  7. Mergers & Acquisitions
  8. Porter's Analysis
  1. Impact of COVID-19
  2. Sourcing Location Watch
  3. Supplier Watch
  4. Industry Watch

 

  1. Cost Analysis
  2. Regional Cost Break up - NA, Europe, China and LATAM

 

  1. Innovations
  2. Board Innovations
  3. Design Innovations
  4. Printing Innovations
  5. Technological Innovations
  6. Functional Innovations

 

  1. Procurement Best Practices
  2. Supplier Evaluation
  3. Pricing Structure
  4. Contractual Engagement
  5. Custom-made Boxes
  6. Opportunity Snapshot

 

  1. Negotiation Levers
  2. Contract Negotiation – Best Practices
  3. Contract Negotiation – Best Price Evaluation
  4. Engagement Models

 

  1. Sustainability Initiatives
  2. Sustainability Initiatives in Containerboard
  3. Alternatives to Virgin and Recycled Corrugates

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Corrugated Boards Market Analysis and Global Outlook

  • The containerboard market will be influenced by growth in the emerging regions like Asia and LATAM, which is expected to grow around three to five percent between 2019 and 2022. Growth in these regions would outpace the global average of 2.5-3.5 percent. However owing to the impact of Covid-19 crisis, we expect a demand decline in 2020 which is expected to eventually recover in 2021-2022
  • The e-commerce sector will be a significant demand driver of corrugated box, along with the retail ready/SRP trend. In addition, sustainability factors would work in favor of corrugated boxes, compared to competitive products such as reusable plastic containers
  • Corrugates’ producers continue to innovate in terms of durability and advancements in digital printing. The “light-weighting” trend is expected to continue and Europe is expected to be the frontrunner in this globally

 

Value Chain for Corrugated Containers 

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

  • Continuous supply of paper, even during market fluctuation
  • The scope to customise 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

  • In 2017, the global containerboard capacity is estimated to be at 186 MMT and demand was at 159 MMT, with demand expected to grow at a CAGR of 3.5–4 percent from 2017 to 2020. Demand growth rates have slowed down due to the uncertainties in some of the major economies globally
  • Developing regions such as LATAM (4–5 percent), Asia (4.8–5.2 percent), and Eastern Europe (3.5–4.5 percent) are expected to continue to drive the containerboard demand through this period
  • The global corrugated boards market demand was 194MMT in 2019 and the global capacity was 220MMT in the same year. The global corrugated boards industry is expected to grow albeit slower than normal. 
  • The global corrugated packaging market size was more than 100MMT in 2019 and this is expected to increase in the coming years. 
  • The top suppliers of the corrugated packaging market include PCA, International Paper, Georgia-Pacific, and WestRock.
  • Europe has the biggest production size at 44MMT. North America comes next with a production size of 39.60 while LATAM has a production size of 11MMT. 
  • Currently, processed food holds about 25 percent of the global corrugated board consumption and would witness growth in the emerging regions, where ‘on-the-go' western type foods are becoming popular.
  • The automobile, chemicals, paper and packaging sectors contribute to the overall growth of the industrial and machinery sectors. Corrugated products application for industrial use is prevised to grow at an average rate of 4 percent. This is in track with global industrial production as well as corrugated demand growth

Global Demand Outlook

  • Significant demand will be from the manufacturing industry, which requires 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
  • The processed foods industry has the highest demand for end-use according to corrugated packaging market trends. Its demand is 30 percent.
  • The corrugated packaging industry experts have found that the fresh food and produce industry comes next in demand according to end-use. The demand in this industry is 10 percent. 
  • The corrugated board has moderate demands in the personal care, beverages, and paper products industries. The demand in these industries is 7 percent, 7 percent, and 6 percent respectively. 
  • Other industries have a 40 percent demand for corrugated packaging according to the corrugated packaging industry analysts.  

Demand by Region

  • Rapid increase in demand is expected in the APAC and MEA regions, where growth would outpace the global average
  • India and China are expected to witness gain through strong industrial output and consumer product market growth
  • China, which surpassed the US in the containerboard market in 2011, is expected to account for half of the global consumption during 2017–2019

Corrugated Packaging Market Overview

  • The processed foods industry has the highest demand for end-use according to corrugated packaging market trends. Its demand is 30 percent.
  • The corrugated packaging industry experts have found that the fresh food and produce industry comes next in demand according to end-use. The demand in this industry is 10 percent. 
  • The corrugated board has moderate demands in the personal care, beverages, and paper products industries. The demand in these industries is 7 percent, 7 percent, and 6 percent respectively. 
  • Other industries have a 40 percent demand for corrugated packaging according to the corrugated packaging industry analysts.  
  • 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.

 

Corrugated Boards Market Frequently Asked Questions

  1. What was the net global capacity and demand of the corrugated packaging industry in 2017?
  2. As per Beroe’s analysis, the global capacity of the corrugated packaging industry was valued at 187 MMT in 2017, while global demand was 159 MMT with expected growth at a CAGR of 3.5 – 4 percent.
  1. What does the corrugated packaging industry report indicate?
  2. The corrugated packaging industry report indicates that the demand by the end-use industry is processed foods - 25%, board to sheet plants - 13%, fresh food and produce - 9%, beverages - 7%, paper products - 6%, and others - 40%.
  1. How much contribution do raw materials share out of the total production cost in the corrugated packaging industry?
  2. As per Beroe’s report, the raw material is a major component in the industry which contributes nearly 65 to 75 percent of the total production cost in the corrugated packaging industry.
  1. Who are the top corrugated board suppliers of the industry?
  2. The top suppliers of the industry include the following names: International Paper WestRock Georgia-Pacific PCA
  1. Who were the top five global containerboard producers in 2017?
  2. According to Beroe’s, the top five global containerboard producers from 2017 included: International Paper Nine Dragons WestRock Smurfit Kappa Group Lee and Man
  1. What’s the ideal payment terms agreed upon in the corrugated industry?
  2. Ideally, the payment terms fall in the bracket of 60 to 90 days. However, buyers with huge buying volumes and a consolidated purchasing model also prefer 120 days.
  1. For how long does a contract is made in the corrugated board market?
  2. In the corrugated board market, the average contract period is between one to three years. Nearly 65 – 75 percent cost is linked to an index of pulp or OCC prices, usually on a quarterly basis.
  1. Which continent/country is known to capture the highest global corrugated packaging market size basis of production?
  2. According to Beroe, the average production size of Europe is the highest with a valuation of 39.39 MMT. The next-in-line is captured by North America with 38.21 MMT followed by Latin America (LATAM) having the least with 10.98 MMT.
  1. What are the key indices used for price determination in the corrugated board market?
  2. Following the insights from Beroe’s report, the following are the major key indices which are used for price determination in the industry are: AFPA RISI EUWID Foex
  1. What are the significant benefits of having an integrated manufacturing facility?
  2. According to Beroe’s, an integrated manufacturing facility offers the following benefits in the corrugated industry: Provides more scope to design innovative products Have better logistics solution Serves customers in a better way Continuous supply of paper (even during market fluctuation) Customers can customize products based on quantity and varying specifications
  1. What industries contribute to the overall growth of the industrial and machinery sectors?
  2. As per the corrugated packaging market trends report shared by Beroe, the three industries that play a vital role in the overall growth of the industrial and machinery sectors are: Automobile industry Chemical industry Paper and packaging industry
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