Global Carton Board Demand to Reach 65.32 MMT by 2021, Says Beroe Inc

RALEIGH, North Carolina, October 18, 2019 - The current global capacity for carton board is estimated to be 74.10 MMT, with a global demand of 62.55 MMT, and operating rate of 89 percent, according to Beroe Inc., a procurement intelligence firm. The global demand is growing at a CAGR of 2–3 percent until 2021, by when the global capacity is projected to reach 75.86 MMT with an operating rate of 90 percent. 

Asia is driving the demand for carton board, growing at a rate of 2–3 percent till 2021, accounting for nearly 60 percent of demand with China responsible for over 50 percent of Asian consumption. North America and Western Europe are well-matured regions, showcasing lower growth rates of 0–2 percent. Asia also has the greatest production capacity for carton board, at 38.71 MMT, which is growing at a rate of 1-2 percent.

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

The demand for carton board and folding carton is rising because of the increasing demand for processed food, health care products, beverage, CPG, frozen/chilled foods, especially in the emerging economies, and it is expected to be the same in the future, Suppliers are focusing on eco-friendly and unique packaging to meet the demand for end-users. However, confectionery and dry food are facing substitution pressure from plastics. Slow-moving demands, closure of mills, and more consolidation are also posing challenges to the market.

The major trends that are driving the growth of carton board worldwide are consolidation and automation. Some of the large cartonboard manufacturers, including WestRock and Graphic Packaging, have adopted robotics for automating the process of manufacturing, printing, placing heavy goods on the conveyor belt, and shipping the goods. Digital printing is the emerging trend in the folding carton industry as digital printing is considered to be ideal for shorter runs, and for speed to market products and SRP, RRP products.

Key Findings:

• The global cartonboard market is fragmented with the top six players expected to hold more than 20 percent market share. Asia Pulp and Paper holds 5.2 percent share, followed by WestRock with 4.4 percent and Graphic Packaging with 4.3 percent. 
• Recycled Cartonboard (GD2) occupies a demand share of 48 percent, as it has lower prices as compared to others and is mostly used for applications where high quality is not required.
• The margins of a vertically integrated box manufacturer will be higher than other manufacturers, and can be negotiated on by a bulk buyer or a preferred buyer. 
• Innovations in cartonboard machines such as computer controlled processing and on-machine quality monitoring has led to productivity improvements and more consistent quality.
• The consumption of SBS is the lowest of all the grades, but as it is the premium grade due to its high quality, whiteness, and excellent printing capabilities it is mostly used for luxury and high-end graphics packaging.

The research methodology adopted for the report included:

• Experts with twenty years of domain experience
• Interaction with buyers
• Inputs from supply chain partners

The key indexes for price determination are AF&PA, RISI, EUWID, and Foex. Pulp, which may be virgin or recovered, is one of the major components in the total cost of cartonboard, as it forms 60–70 percent of the total board cost and has an impact on the price. Energy is another significant cost component due to which some companies set up their own chemical plant, as an auxiliary to their paper and pulp business. 

The report also includes:

Market Analysis:

• Global Cartonboard Market Analysis
• North America Cartonboard Market Analysis
• Europe Cartonboard Market Analysis
• Asia and Saudi Cartonboard Market Analysis
• Latin America Cartonboard Market Analysis
• Porter’s Five Forces Analysis

Supplier Analysis:

• Key Global Supplier Profile
• Key Regional Supplier Profile

Cost Structure Analysis:

• Regional Cost Structure of Cartonboard

Innovations in Cartonboard:

Technological Developments in Carton Packaging

• Technological Innovation
• Board Innovation
• Design Trends
• Bio-based Packaging

Procurement Best Practices:

• Common Procurement Pattern
• Contract & Payment Terms 
• Contract Negotiation 
• Engagement Models
• Integrated Plants –Risk in Value Chain
• Sheet Feeders –Risk in Value Chain
• Sheet Convertors –Risk in Value Chain
• Procurement Insight 
• Supplier Evaluation

About Beroe Inc.:

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:
Rob McMurtrie
rob.mcmurtrie@beroe-inc.com