February 22, 2024

Paper Packaging Industry Driven by Rising E-Commerce Sales

The paper packaging industry plays a vital role in protecting and transporting a wide variety of goods and products. Paper packaging comes in many forms including corrugated boxes, cartons, bags, and wrapping paper. These products provide a sustainable and cost-effective packaging solution for food and beverages, personal care, electronics, medical supplies, and other industrial and consumer goods. The global paper packaging market is highly competitive with many local and international manufacturers. Key factors driving demand include population growth, rising incomes, and the expansion of e-commerce which has fueled the need for enhanced packaging solutions. The global paper packaging market is estimated to be valued at US$ 373.7 billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the primary trends driving the paper packaging market is the booming e-commerce sector. As online shopping continues to grow at a rapid pace, the need for sturdy, lightweight, and cost-effective packaging has risen substantially. Paper packaging meets all these criteria and has become the material of choice for protecting merchandise during shipping. In addition, changing consumer preferences towards sustainable packaging made from recycled or renewable materials is benefiting paper packaging manufacturers. Many brands and retailers have responded to this demand by shifting towards paper-based options. The introduction of innovative paperboard packaging designs like protective cushions, dividers, and custom shapes also supports product differentiation and the overall user experience of online orders. Sustained investment in R&D by major companies to develop advanced paper packaging solutions will continue propelling market growth over the coming years.

Porter’s Analysis

  • Threat of new entrants: The paper packaging market requires large capital investments and relationships with suppliers and customers, providing barriers to entry for potential new competitors.
  • Bargaining power of buyers: Large retailers have significant bargaining power over paper packaging producers due to their buying power and ability to dictate packaging specifications.
  • Bargaining power of suppliers: Paper mills have moderate bargaining power as suppliers to packaging producers since paper is a homogeneous raw material with many suppliers.
  • Threat of new substitutes: Plastic packaging is a major substitute, but demand for sustainable paper-based packaging is driving market growth.
  • Competitive rivalry: The global paper packaging market is fragmented with many companies competing primarily based on product quality, pricing and innovation.

Key Takeaways

The global paper packaging market is expected to witness high growth over the forecast period of 2023 to 2030. The Asia Pacific region currently dominates the market and is projected to maintain its leading position throughout the forecast period driven by growth in e-commerce in countries like China and India.

Regional analysis: The Asia Pacific region holds the largest share of the global paper packaging market and is forecast to maintain its leading position during the forecast period. The flourishing e-commerce sector and rising middle-class population driving demand for packaged goods in emerging economies such as China and India are fueling market growth in the region. North America is a major regional market and growing environmental regulations around plastic packaging are pushing brand owners to adopt sustainable paper-based solutions.

Key players: 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. DS Smith and International Paper are among the largest paper packaging companies worldwide.

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