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The global containerboard market size was USD 120.60 billion in 2019 and is projected to reach USD 142.03 billion by 2027, exhibiting a CAGR of 2.1% during the forecast period.
Containerboard is a type of paperboard which is majorly used for the production of corrugated boards. It is also known as Corrugated Case Material (CCM) and is frequently used as a packaging material owing to its properties such as lightweight, versatile, and high grammage. It comprises of two main parts, namely, linerboard (facing) and corrugated medium (fluted paper). Linerboard made from virgin pulp is known as kraftliner, whereas recycled linerboard is called testliner. The corrugated medium can be recycled into medium or virgin, also called semi-chemical medium depending on the type of the pulp used. This paperboard was one of the most recycled packaging material in 2017, as approximately 88.8% of corrugated containers were recovered for recycling. According to the American Forest and Paper Association, in the U.S., more than 50% of recovered fiber used in the manufacturing of paper & paperboard, goes into the production of containerboards.
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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 as it promotes sustainability. Corrugated boxes are considered to be a sustainable and environment friendly form of packaging as these are made out of recycled materials. The production of corrugated boxes from recycled materials helps manufacturers to reduce environmental impact, and offer sustainability towards environment, thereby abiding by the industrial standards and regulations by the government to protect the environment. Hence, the manufacturers are shifting towards the production and use of 100% recyclable corrugated boxes. For example, Mondi Group in 2015 launched eco-friendly ProVantage kraftliner Aqua and ProVantage Fluting Aqua which are 100% recyclable and water resistant.
Growth in the Food & Beverage Industry is Driving the Containerboard Market
Containerboards are majorly used for the manufacturing of corrugated boxes, which are extensively employed for the packaging of food & beverages, glassware, chemicals, electronics, and consumer products. The growth of the food & beverage industry has boosted the demand globally. The changing lifestyle and increasing preference of consumers towards ready-to-eat, frozen foods, and packaged foods has led to the growth of food & beverage industry, thereby leading to the containerboard market growth. In addition, the rapid development of the e-commerce industry is also augmenting growth, on account of the use in product-specific corrugated boxes, to keep items safe from external stress.
Regulations by the Government on the Use of Natural Resources to Manufacture Containerboard
A critical factor hindering the growth of the market is the regulations imposed by the government on the exploitation of natural resources. The manufacturing of virgin containerboards involves use of virgin wood fiber, which creates burden on the environment. The production of these boards not only exploits natural sources, but also emits toxic greenhouse gases, thereby adding up to the price. The regulations imposed by the government on the cutting of trees are also affecting the market growth. Hence, the above factors may inhibit the growth of the market.
Recycled Containerboard to Lead during the Forecast Period
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 manufacturers for consumer products towards the use of recyclable materials has increased the demand for recycled materials. Additionally, 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 environment, thereby boosting the overall market.
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Laminated Segment to Account for the Major Share during the Forecast Period
In terms of end-user, the market is segmented into food & beverage, personal care & cosmetics, industrial and others. Amongst these, the food & beverage segment accounts for a major share in the market. Corrugated boxes made from containerboards are required by the food & beverage industry for the transportation and storage purposes. This is owing to its properties such as toughness, resistance to stacking & vibration, and the ability to resist crushing. These advantageous help in reducing the cost of shipping and transportation, thereby decreasing the overall cost of packaging. Hence the growth in food & beverage industry will drive the market.
Furthermore, 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 it suitable for the transportation of products made from glass or brittle material, thereby leading to the growth of the market.
The onset of COVID-19 pandemic in 2020 will affect the market. The novel coronavirus has forced people to reduce contact with each other, which has severely affected industrial activities and the manufacturing sector. The damaging effects inflicted by the coronavirus will slow down the growth of the market.
Asia Pacific Containerboard Market Size, 2019 (USD Billion)
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The market in Asia Pacific stood at USD 53.13 Billion in 2019. Asia Pacific is the largest and fastest-growing region in the market owing to rapid industrialization activities, combined with increasing preference of consumers on ready-to-make and packaged foods & beverages due to the busy lifestyle. On the other side, the market in North America is characterized by concerns related to the environment, which has emphasized on the use of sustainable products for packaging. Containerboard offers lightweight and durable packaging as well as 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. Containerboards are utilized by personal care industry owing to its property of pilferage, and preventing spillage, which will drive the market. The market in Latin America and the Middle East & Africa is expected to witness significant growth during the forecast period. Growth of agriculture related businesses coupled with development of retail distribution channels will fuel the market growth in the respective regions.
Key Players Implementing Various Growth Strategies to Continue Dominating Market
The competitive landscape of the market depicts a consolidated market with the top 5 companies accounting for about 20% of the global production capacity. Key players in the market have invested a considerable amount of resources in research and development of water resistant and recyclable containerboard products. Such strategies will augment growth in the forecast period. Besides this, mergers and acquisitions, geographical expansions, and novel technology development, are the strategies used by the market leaders for their growth.
An Infographic Representation of Containerboard Market
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The containerboard market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market, current Containerboard industry trends, and highlights the key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion) and Volume (Mn Ton)
Fortune Business Insights says that the global market size was USD 120.60 billion in 2019 and is projected to reach USD 142.03 billion by 2027.
In 2019, the market value stood at USD 120.60 billion.
Growing at a CAGR of 2.1%, the market will exhibit steady growth in the forecast period (2020-2027).
Food & Beverage segment is expected to be the leading segment in this market during the forecast period.
The growth of food & beverage industry is the most critical factor driving the demand for containerboard.
Asia Pacific held the highest market share in 2019.
Rising need for sustainable packaging materials is one of the key factors supporting the growth of market during the forecast period.
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