Corrugated Board Industry Overview
The global Corrugated Board Market reached a valuation of USD 134.7 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030. The primary drivers fueling this market growth are the worldwide expansion of the e-commerce sector and the increasing demand for sustainable packaging solutions. However, the limited durability of corrugated boards is anticipated to hinder market growth. Plastic is a prevalent packaging material across various industries, including food and beverage, healthcare, cosmetics and personal care, and consumer goods. Nevertheless, the rising consumption of plastic is having a detrimental effect on the environment.
According to the UN, the world generates 300 million tons of plastic waste annually, roughly equivalent to the total weight of the human population. To address this enormous volume of yearly plastic waste, the concept of sustainable packaging has been embraced. End-use industries are transitioning from plastic packaging to corrugated board packaging to meet the growing consumer demand for environmentally friendly packaging options.
Detailed Segmentation:
- Flute Type Insights
C-flute held the largest share of over 25.0% in terms of revenue in 2022. C-flute offers greater compression strength than B flute and greater stacking strength for lightweight products. It is commonly used for shipping cases, packaging glass products, and furniture.
A-flute is expected to expand at the highest CAGR of 7.7% during the forecast period. A flute is one of the thickest types and is predominantly used for transit packaging. For instance, STI - Gustav Stabernack GmbH uses cardboard or corrugated board for shipping boxes to deliver goods to recipients in undamaged condition. A thick flute acts as a shock absorber and prevents the packed goods from external impacts.
- Board Style Insights
The single wall segment emerged as the largest segment in 2022 with a revenue share of over 35.0% and it is expected to retain its pole position over the forecast period. It is used as a supplemental protective material, divider, pad, or partition that can be used to separate the different layers of products. Nordpack GmbH offers single-wall boxes in C flute, B flute, or E flute that can be used as lower packing weight shipping cartons. Therefore, it is also used to make cartons for the packaging of various types of goods and can be easily printed, wherein different coatings can be applied on its surface.
- Regional Insights
Asia Pacific emerged as the largest market for corrugated board in 2022 with a revenue share of over 40.0%. The presence of highly populated countries such as China and India, growing urbanization, and increasing spending power in the countries would support the growth of the packaging industry in Asia Pacific and thereby corrugated boards.
Asia Pacific is estimated to exhibit the fastest CAGR, in terms of revenue, over the forecast period. The region is witnessing exponential growth on account of technological innovations such as blockchain technology, machine learning, artificial intelligence, and the Internet of Things (IoT). A large number of paper mills in Asia are well positioned on the cost curve of global corrugated board manufacturing owing to low energy and labor cost and high productivity of workers.
Gather more insights about the market drivers, restraints, and growth of the Corrugated Board Market
Key Companies & Market Share Insights
The market is large and fragmented across the world. Therefore, the players in the market are very competitive at all levels, from small to big manufacturers. Moreover, the market is marked with the presence of numerous well-established, century-old public companies. However, the manufacturing companies also, in several instances, compete with other companies producing similar products that are potential substitutes for corrugated boards. The primary factors that influence competition in the market include services, product quality, cost, and price.
Due to the rise in highly specialized products including corrugated boards with lightweight flutes, plastic coatings, and printing compatible surface sheets, the manufacturers in the industry are able to gain a competitive edge to stand out in the market. Services and related machinery solutions are other ways in which the companies compete by providing value adding differentiated solutions for customers. For instance, WestRock Company offers automated packaging machines that are customized as per complexities of distribution and logistics of customers’ products. Some prominent players in the global corrugated board market include:
- International Paper
- Georgia-Pacific
- WestRock Company
- Packaging Corporation of America
- Stora Enso
- Oji Holdings Corporation
- Smurfit Kappa
- Port Townsend Paper Company
- Mondi
- DS Smith
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