Corrugated Packaging Market Expected to Reach $198.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Corrugated Packaging Market," The corrugated packaging market was valued at $134.5 billion in 2021, and is estimated to reach $198.8 billion by 2031, growing at a CAGR of 4.1% from 2022 to 2031.

Corrugated packaging is strong and durable, and it preserves food and beverage, pharmaceutical, homecare, electronics, and other products, particularly when they are shipped long distances and handled by a variety of laborers. Corrugated packaging can also be customized so that it is "right-sized" to fit the product. Its customization helps in brand awareness, and clients are frequently delighted as it appears professional and offers customized branding which is an ideal way to impress consumers.

It may be used to store food & beverages, where corrugated drums are even utilized to carry hazardous chemicals, pharmaceuticals, and hazardous waste. Individuals, small businesses, and large industrial corporations are adopting corrugated packaging due to environmental concern as corrugated packaging is recyclable. Corrugated packaging also comprises fibre drums, which are open-top circular cardboard packaging solutions that are tailored to the demands of its contents. The kraft drum is lightweight, strong, and offers excellent printing quality. Corrugated or kraft drums are useful for packaging, transporting, and storing dry, paste, semi-liquid, or liquid items.

Corrugated packaging is strong and durable and is used to protect food and beverage products while they are shipped over great distances and handled by a variety of laborers. It is also used to protect products from contamination and other damages and is essential in appealing product packaging in the personal care industry. Corrugated packaging in the pharmaceutical industry includes various processes from manufacturing through drug distribution networks to the end user, providing microbial contamination, protection and sterility. It also plays an important role in brand marketing and promotion, increasing prestige, brand loyalty, and promoting sales.

Walki launched new recyclable packaging materials for frozen food items in June 2022, with the goal of making corrugated packaging 100% recyclable in the paper stream. The new materials are expected to meet the demands of the frozen food business. Thus, the rise in demand from the food and beverage, personal care, pharmaceuticals, and consumer goods industries drive the market growth for corrugated packaging market.

However, lack of weatherproofing in corrugated packaging will increase a challenge for the market growth. Corrugated packaging gets easily affected by extreme weather conditions.  When humidity and moisture levels increase, manufacturers must dedicate more time to drying corrugated boxes. Companies seek to speed up this process; as a result, the glue or ink may not entirely dry, making the cardboard appear flimsier, similar to how a sponge keeps water and moisture.

As cardboard is stored in extremely dry circumstances for a lengthy period of time, the absence of moisture leads the cardboard to act like a totally desiccated sponge. It becomes extremely hard and brittle, making it more difficult to fold a box without tearing or shattering the paper. For instance, IPS Packaging & Automation, introduced a new product range of weather-resistant corrugated packaging solutions built with a Water-Resistant Adhesive (WRA). WRAs are built to withstand a wide range of environmental conditions, including humidity and rain.

The corrugated packaging market is segmented into wall type, packaging type, end-use industry, and region. On the basis of wall type, the market is categorized into single wall, double wall, triple wall, and single face. On the basis of packaging type, it is divided into boxes, trays, sheets, container, and others. On the basis of end-use industry, the market is classified into food & beverages, personal care, pharmaceuticals, electronic goods, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The growth of the global corrugated packaging market is majorly attributable to its wide application such as food & beverages, personal care, pharmaceuticals, electronic goods, and others. Also, rise in demand from the food & beverage, personal care, pharmaceuticals, and consumer goods industries drives the market growth. However, availability of substitute is projected to hinder the expansion of the market. On the contrary, surge in digital printing advancements is expected to offer ample growth opportunities for the corrugated packaging market.

The major players operating in the global corrugated packaging market include DS Smith Plc, Georgia-Pacific, LLC., International Paper, Mondi Group, Nine Dragons Worldwide (China) Investment Group Co., Ltd., Oji Holdings Corporation, Packaging Corporation of America, Rengo Co., Ltd., Smurfit Kappa, and WestRock Company.

Impact Of COVID-19 On The Global Corrugated Packaging Market

The COVID-19 pandemic has increased online purchases of goods and services, increasing e-commerce shops of global retail trade from 14% in 2019 to 17% in 2020. Online sales of fresh food by a prominent online retailer increased more than 200% during a ten-day period in late January 2020 compared to the same period in 2019, with sales of meat and vegetables increasing more than 400%. Concerns about cleanliness and food safety appear to be on the rise as a result of the pandemic, which has increased demand.

Key Findings of The Study:

• By wall type, the single wall segment was the highest revenue contributor to the market, in 2021.
• By packaging type, the boxes segment was the highest revenue contributor to the market, in 2021.
• By end-use industry, the food and beverages segment was the highest revenue contributor to the market, in 2021.
• By region, corrugated packaging market share in Asia-Pacific was the highest revenue contributor, accounting in 2021, with a CAGR of 4.1%.