21 October, 2019
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.
The research methodology adopted for the report included:
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:
Technological Developments in Carton Packaging
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.
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