Containerboard Market Size, Share & Industry Analysis, By Material (Virgin and Recycled), By End-User (Food & Beverage, Personal Care & Cosmetics, Industrial, and Others), and Regional Forecast, 2024-2032

The global containerboard market size was valued at USD 132.88 billion in 2023 and is projected to grow from USD 136.11 billion in 2024 to USD 165.02 billion by 2032, exhibiting a CAGR of 2.44% during the forecast period.

Containerboard or Corrugated Case Material (CCM) is a frequently used packaging material due to its characteristics, including lightweight, high grammage, and versatility. It comprises two main parts, linerboard (facing) and corrugated medium (fluted paper). Linerboard made using virgin fiber is known as kraft liner, whereas the one made from recycled fibers is called testliner. The corrugated medium can be virgin, semi-chemical or recycled depending on the material of pulp used. The board was one of the most recycled packaging materials in 2017, as approximately 88.8% of corrugated containers were recovered for recycling. According to the American Forest and Paper Association, more than 50% of the recovered fiber used in the manufacturing of paper & paperboard goes into containerboard production.

The COVID-19 pandemic had a negative impact on the market. The lack of workforce and shortage of raw materials due to the disrupted supply chain affected the production capacities. However, the pandemic spiked the use of e-commerce platforms, resulting in an increased need for corrugated packaging.

Containerboard Market Trends

Increasing Demand for Sustainable Packaging Solutions to Create Growth Opportunities

The manufacturers of various products, including cosmetics, personal care, electronics, food & beverages, and others, prefer eco-friendly packaging solutions to promote sustainability. Corrugated boxes are considered a sustainable and environment-friendly form of packaging as they are made from recycled materials. The production of corrugated boxes from recycled materials helps manufacturers reduce environmental impact and offer sustainability toward the environment, thereby abiding by the industrial standards and regulations by the government to protect the environment. Moreover, governments are encouraging packaging players to utilize recyclable materials for packaging, and there is a rise in environmental concerns, which are creating huge opportunities in the market. Recycled materials are highly preferred as they are considered to be cost-effective and, at the same time, comply with various government standards and regulations related to sustainability.

Containerboard Market Growth Factors

Growth in Food & Beverage Industry to Drive Containerboard Market

Containerboards are primarily used to manufacture corrugated boxes, which are extensively employed for the packaging of food & beverages, chemicals, glassware, consumer products, and electronics. The expansion of the food & beverage industry has globally boosted the demand. The shift in consumer lifestyle and increasing inclination towards frozen foods, ready-to-eat, and packaged foods have surged the food & beverage industry, thereby driving the market growth. The ability of the product to offer cushioning and protection while transportation is further increasing the demand for transporting delicate food products. Additionally, the rapid evolution of e-commerce platforms is also augmenting growth as a consequence of the use of product-specific packaging to keep items safe from external stress.

RESTRAINING FACTORS

Regulations by Government on Use of Natural Resources to Impede Market

The prime factor hindering the market growth is the stringent regulations levied by the government on the exploitation of natural resources. The manufacture of virgin containerboards requires the use of virgin wood fiber that increases a burden on the environment. Virgin containerboards are ideal for packaging heavy and delicate objects on account of their excellent stacking strength and ability to handle heavy weights. The manufacturing of these boards exploits natural resources and emits harmful greenhouse gas, thereby increasing the final cost. The governmental regulations imposed on the tree-cutting are also hampering the market growth. Hence, the above mentioned factors are impeding the growth of the market.

Containerboard Market Segmentation Analysis

By Material Analysis

Recycled Material to Lead during Forecast Period due to its Increasing Preference from End-Users

Based on material, the market is classified into virgin and recycled.

In the material segment, recycled containerboard holds a major share in the market. The rising preference of consumer products manufacturers toward recyclable materials has increased the demand for recycled materials. Additionally, the high demand for eco-friendly and sustainable packaging solutions from the food & beverage industry has driven the market. Furthermore, the demand for recycled ones is expected to grow as they are cost-effective and comply with the government regulations on the environment, thereby boosting the overall market.

By End-User Analysis

Food & Beverage Segment to Account for Major Share owing to Higher Product Adoption

In terms of end-user, the market is fragmented into food & beverage, personal care & cosmetics, industrial, and others.

Among these, the food & beverage segment accounts for a major containerboard market share. Corrugated boxes made from containerboards are required by the food & beverage industry for transportation and storage purposes. This is owing to its properties such as toughness, resistance to stacking & vibration, and the ability to resist crushing. These advantages help reduce the cost of shipping and transportation, thereby decreasing the overall cost of packaging. Hence, the growth in the food & beverage industry will drive the market.

Furthermore, the personal care & cosmetics segment is witnessing growth due to the protection offered by these strong paperboards during transportation. The lightweight and tough nature of these boards makes them suitable for the transportation of glass or brittle material products, thereby leading to growth in the market.

REGIONAL INSIGHTS

The market size in Asia Pacific stood at USD 59.06 billion in 2023. Asia Pacific is the largest and fastest-growing region in the market owing to rapid industrialization activities combined with increased preference of consumers for ready-to-make and packaged foods & beverages due to busy lifestyle. Moreover, China is the largest contributor to the product demand, which shall further drive the market growth in the region.

The North America market is characterized by concerns related to the environment, which has emphasized the use of sustainable products for packaging. Containerboard offers lightweight and durable packaging and attractive display setups for the products. Hence, the end-users have high demand in this region.

Europe witnessed high demand due to the growth of the cosmetics & personal care market. The personal care industry utilizes containerboards due to their pilferage of property and prevention of spillage, which will drive the market.

The Latin America and the Middle East & Africa markets are expected to witness significant growth during the forecast period. The growth of agriculture-related businesses coupled with the development of retail distribution channels will fuel the market growth in the respective regions.

List of Key Companies in Containerboard Market

Key Players Implementing Various Growth Strategies to Maintain their Dominance in Market

The competitive landscape of the market represents a consolidated market with the top 5 companies representing about 20% of the global production capacity. Key players in the market have invested considerable resources in the research and development of water-resistant and recyclable containerboard products. Such strategies will augment the market growth over the forecast period. In addition, mergers and acquisitions, geographical expansions, and novel technology development are a few strategies adopted by the market leaders for their growth.

LIST OF KEY COMPANIES PROFILED

• Mondi Group (U.K.)


• SCG PACKAGING PUBLIC COMPANY LIMITED (Thailand)


• DS Smith (U.K.)


• Lee & Man Paper Manufacturing Ltd. (China)


• Smurfit Kappa (Ireland)


• International Paper (U.S.)


• Oji Fibre Solutions (NZ) Ltd.  (Australia)


• WestRock Company (U.S.)


• Rengo Co., Ltd. (Japan)


• Georgia-Pacific LLC (U.S.)


• Hamburger Containerboard (Austria)


• Nine Dragons Paper (Holdings) Limited (Hong Kong)


• Stora Enso (Finland)

KEY INDUSTRY DEVELOPMENTS:

• February 2024– Mondi unveiled the world’s first skateboard half-pipe made entirely from containerboard, showcasing the strength and durability of its materials while engaging the younger generation in eco-friendly values. The innovative project highlights the vast potential for creative and eco-friendly packaging solutions, inspiring a new generation of talent in the packaging and paper industry.


• August 2023– Billerud introduced strong-coated white top kraftliners to the U.S. market. This introduction will enable great improvements in sustainability and cost performance for both packaging converters and brand owners. It improves their resource efficiency and reduces their carbon footprint throughout the value chain.


• August 2021– Valmet is to start supplying a new containerboard-making line to DS Smith in Italy. Valmet will deliver a new containerboard machine with an extensive package of automation, industrial applications, and services to DS Smith Paper Italia S.r.l at its Porcari(Lucca) site in Italy. Compelled by expanded demand for sustainable packaging solutions, the containerboard market is expanding fast.


• August 2021–SCGP completed a 75% share acquisition of Intan Group, a manufacturer of corrugated containers in Indonesia. In response to an increasing ASEAN market, this acquisition extends the complete range of manufacturing, supply chain, and packaging development from upstream to downstream.


• January 2021– Mondi acquired 90.38% of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret A.Ş from International Paper for a total consideration of USD 74.9 million. The company is expected to generate significant operational improvements and paper integration upside by leveraging expertise and experience in this market and a global virgin and recycled portfolio.

REPORT COVERAGE

The global market report provides a detailed analysis of the market and focuses on major producing companies, materials, end-uses, and global containerboard industry trends. The report also provides a comprehensive quantitative and qualitative market analysis. It highlights the research methodology used for deriving market data and covers recent industry developments. In addition, the report states the growth factors of the market at global and regional levels.

Report Scope & Segmentation