June 16, 2024

Paper Packaging is expected to be Flourished by Rising Demand for Sustainable Packaging Options

Paper packaging includes a wide range of products such as corrugated boxes, cartons, sacks, bags, and folding boxes that are used to pack, protect, and ship a variety of goods. Paper packaging offers durability, sustainability, and reusable properties making it an ideal solution for industries like food & beverage, personal care, healthcare, and household. With increasing awareness about reducing plastic usage, paper packaging has gained significant prominence as a sustainable alternative. Growing preference for eco-friendly packaging coupled with stringent regulations against single-use plastics is fueling the demand for paper packaging globally. The global paper packaging Market is estimated to be valued at US$ 373.7 Bn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Rising demand for sustainable packaging and preference for eco-friendly options is a key driver boosting growth of the global paper packaging market. With growing environmental concerns and initiatives like banning of single-use plastics, paper packaging is receiving traction as it is made from a renewable source and offers recyclability. According to statistics, over 140 countries have implemented regulations for sustainable plastic packaging. This shift towards sustainable options is working in favor of paper packaging.

Another factor fueling market growth is extensive applications of paper packaging across industries. Paper packaging is highly preferred for packaging of food products, pharmaceuticals, cosmetics, stationery and more. Its properties make it suitable for secure transportation and storage of various goods. Innovations in paper packaging focusing on enhanced barrier protection, printability and graphics are further expanding its application scope. Increasing demand from end use industries will continue propelling market revenues over the forecast period.

Segment Analysis

The paper packaging market is segmented into containerboard, corrugated boxes, paperboard, and other segments. The corrugated boxes segment dominates the overall market with over 60% share as corrugated boxes find a wide range of applications for safe packaging of goods during storage and transportation. Corrugated boxes provide protection from damages and are highly recyclable which have increased their adoption across industries.

PEST Analysis

  • Political: Government agencies have implemented stringent regulations regarding the usage of eco-friendly and sustainable packaging materials. This has boosted the growth of paper packaging as it is recyclable and biodegradable.
  • Economic: The developing economies and growing e-commerce industry have propelled the demand for secure and affordable packaging solutions. This presents an opportunity for paper packaging manufacturers to cater to this increased demand.
  • Social: Rising awareness about environmental protection and waste management has influenced consumer preferences for sustainable packaging alternatives made from recycled content. Paper packaging is increasingly being perceived as a green option.
  • Technological: Advancements in coating, lamination, and material sciences have enabled innovations in paperboard structure and barrier properties. This has expanded the applications of paper packaging solutions in varied end-use industries.

Key Takeaways

The global paper packaging market is expected to witness high growth during the forecast period.

The Asia Pacific region dominates the market currently due to the high consumption of paper packaging in China, India, and other developing countries. China accounts for over 35% of the global demand attributed to the large packaging and food & beverage industries in the country.

Key players operating in the paper packaging market are DS Smith PLC, Georgia-Pacific Corporation, Holmen AB, Hood Packaging Corporation, International Paper Company, MeadWestvaco Corporation, OJI Holding Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj, The Mayr-Melnhof Group, Sonoco Products Company, Pratt Industries and WestRock Company.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it