Paper Packaging Market Size, Share, and Analysis By Material (Corrugated Board, Moulded Pulp, Kraft Paper, and Specialty Paper), By Packaging Type (Corrugated Boxes, Bags & Sacks, Folding Cartons, Tapes & Labels, Wrapping Paper, and Cups & Trays), By End-user industry (Food & Beverages, Personal Care & Cosmetics, E-commerce, Healthcare, Homecare & Toiletries, Electrical & Electronics, and Others), and Regional Forecast, 2023-2030

Paper packaging is a highly efficient and cost-saving alternative for the community to carry, move, and keep various products. Paper packaging uses materials such as kraft paper, corrugated board, molded pulp, and many others. Paper-based packaging is utilized widely and is emerging as a trend as it is lightweight and can customize according to the product's customer-specific needs. It provides consumers and manufacturers with an environmentally friendly option that deducts waste. Further, as paper packaging offers many applications in many end-use industries such as food and beverages, cosmetics & personal care, pharmaceutical, and many others, manufacturers have increased their focus on introducing innovative paper packaging products. Moreover, the increasing demand from customers for attractive and easy packaging drives the market growth of paper packaging.  

• For instance, on 27th July 2022, Mondi collaborated with converter Fiorini International to create a new paper packaging for an Italian manufacturer of premium pasta products, Antico Pastificio Umbro. The new packaging is entirely recyclable and eliminates up to 20 tons of plastic annually. Antico Pastificio Umbro decided to combine the expertise of Mondi and Fiorini International by following a complete overhaul of its packaging design to develop a paper bag with a viewing window for its premium pasta ranges.


• On 23^rd February 2022, a global leader in developing and producing responsible packaging solutions, Amcor, declared the launch of a new platform of paper-based packaging products, AmFiber. The AmFiber innovations majorly aim to redefine the capabilities of traditional paper packaging, further providing a more comprehensive range of features and functional benefits to meet the changing needs of consumers.

Rising consumer demand for biodegradable products is the critical factor that drives the market growth for the global paper packaging market. Also, the increasing customer demand for convenient food products encourages prominent players to create revenue-generating opportunities in the paper packaging market. Moreover, the rapid rise in consumer awareness regarding sustainable packaging techniques and the recyclability of paper packaging are other factors boosting the market growth of paper packaging worldwide. In addition, the recyclable nature of paper packaging, growth in the food packaging sector, and surge in demand for corrugated packages in e-commerce shipments foster the paper packaging market growth. The rising awareness about sustainability, the wide acceptance of eco-friendly packaging, and a reduction in the use of single-use plastic also boost the paper packaging market growth.

Despite the key benefits, the inability of paper packaging to pack heavy materials, which results in the manufacturers opting for polymer materials for packaging, hinders the overall market growth. Stringent environmental regulations regarding deforestation to obtain raw material and the discharge of dioxins in paper production gives rise to severe environmental concerns. Moreover, as paper takes up more space than the same weight of plastic in landfills as it is less dense than other types of waste, environmental concerns continuously rise, and the market growth of paper packaging is restricted.

IMPACT OF COVID-19 ON THE PAPER PACKAGING MARKET

Although the outbreak of COVID-19 disrupted the supply chain due to the partial/total lockdowns enforced worldwide, the demand for paper packaging did not cease. On the contrary, it increased more due to the increasing consumer preference for home deliveries, especially for pharmaceuticals and food & beverages. The paper packaging market will witness the same scenario as consumers abstain from using plastics in the forecast period. During the pandemic, consumers were inclined more toward buying their desired products from various online channels, which caused a substantial acceleration of e-commerce shipments. These caused a positive impact on the global paper packaging market. Though the supply chain faced disruptions, a significant rise in the end-user demand for certain products will continue to drive the market growth of paper packaging in the post-pandemic situation.

KEY INSIGHTS

The report will cover the following key insights:

• Recent Advancements in Paper Packaging Market


• Key Industry Trends


• Regulatory Landscape for Paper Packaging Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

ANALYSIS BY MATERIAL

Based on the material, the market is segmented into a corrugated board, molded pulp, kraft paper, and specialty paper. Kraft papers dominate the market growth of paper packaging. Kraft paper is made from softer wood fibers, making it durable with excellent grip strength and flexibility. Such characteristics make kraft paper perfect for producing paper packing solutions. It is thus used in protecting boxes during transportation and in bag & sack papers to create shopping bags and grocery store sacks. Due to its strength and sturdiness, kraft paper is also used for several industrial and commercial purposes, thus driving segment growth.

ANALYSIS BY PACKAGING TYPE

Based on packaging type, the market is segmented into corrugated boxes, bags & sacks, folding cartons, tapes & labels, wrapping paper, and cups & trays. The corrugated boxes segment dominates the paper packaging market. The corrugated box market is significantly increasing with the growing demand for packaging in many end-use industries such as food & beverages, electrical & electronics, and e-commerce. Further, the rise in online shopping platforms has boosted the need for paper packaging products such as corrugated boxes, which provides optimum protection during shipping and handling, thus driving the growth of the corrugated boxes segment.

ANALYSIS BY END-USE INDUSTRY

Based on the end-use industry, the market is segmented into food & beverages, personal care & cosmetics, e-commerce, healthcare, homecare & toiletries, electrical & electronics, and others. The food and beverage segment is the most dominating segment. The dominance can be attributed to the high demand for food products worldwide. Moreover, the increasing preference for packed and processed food has fuelled the need for paper packaging. Additionally, the rise in demand for fast food and frozen food requires proper packaging, increasing the preference for paper packaging. The food products are packed in paper, which prevents the harmful effect of plastic packaging. Moreover, the easy disposability of paper is a crucial factor driving the growth of this segment.

REGIONAL ANALYSIS

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The paper packaging market has been studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Regionally, the global paper packaging market is expected to witness the dominance of the North American region due to the flourishing food & beverage and healthcare industries. The Asia Pacific is the fastest-growing region. The rising number of R&D activities in the Asia Pacific and the availability of experts in the field drive the growth of the paper packaging market in this region. Further, the growing consumer awareness regarding the benefits of paper packaging in countries such as the UK and Germany is expected to create revenue-generating opportunities in the European region. Other regions of the world, such as Latin America, the Middle East, and Africa, are anticipated to witness moderate growth in the overall market in the forthcoming years.

KEY PLAYERS COVERED

The report will include profiles of key players such as DS Smith PLC, Georgia-Pacific Corporation, WestRock Company, Mondi Group Plc, Holmen AB, Hood Packaging Corporation, Stora Enso Oyj, International Paper Company, Sonoco Products Company, MeadWestvaco Corporation, The Mayr-Melnhof Group, OJI Holding Corporation, Smurfit Kappa Group Plc, The Mayr-Melnhof Group, Pratt Industries, and WestRock Company.

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• In June 2022, Central National Gottesman Inc. (CNG), a pulp, paper, and packaging product manufacturer, declared that its North American Distribution Division acquired Lewis Paper International, Inc., a leading distributor of paper, packaging, and wide-format products. The acquisition of Lewis Paper is significant in growing Central National Gottesman Inc.’s paper business and the commercial printing sector. Adding Lewis Paper International, Inc.’s production facilities will also strengthen Central National Gottesman, Inc.’s service and grow the production capacity for the paper packaging.


• In May 2022, Sustainable packaging and paper supplier Mondi announced the partnership with German machine supplier beck packautomaten to launch a flexible paper-based packaging solution, FunctionalBarrier Paper. FunctionalBarrier Paper is dedicated to the e-commerce industry and can replace extra plastic packaging, thus enabling shipments to arrive without damage and in sustainable and right-sized packaging. This new offering is 95% paper-based and has improved barrier characteristics for protecting the products from water vapor and moisture.


• In March 2022, The International Paper declared an investment of around US$ 24.15 million in Mortagne (France) and Chalon (France) plants to adapt its production capacity for the overall growth of the paper sector. It also aims to offer even more sustainable packaging to customers. As part of the project, up to 50 new positions will be created in France.


• In February 2022, Amcor launched green paper packaging for the confectionery industry. The new wrapper is a high-barrier and effective grease-resistant paper-based solution for the snacks and confectionery market. With more than 80% paper fiber content and PVDC-free, the company’s latest material innovation is recyclable around most European countries. It allows brands to respond to increasing consumer requests for paper-based packaging.


• In March 2021, International Paper declared the acquisition of two state-of-the-art corrugated box plants of Ortloff Engineers, Ltd. (Germany). The purchase will improve the capabilities of the company in Madrid and Catalonia. It provides its customers with high-quality packaging solutions in the industrial, e-commerce, and fresh fruits and vegetables.