Key packaging applications to outline containerboard market growth trends

7:35 AM, 1st February 2021
Most containerboards are made from recycled fiber, which means that they have a comparatively reduced carbon footprint. Adopting recycled fiber along with virgin fiber for production reduced the use of water and effluent flow in mills.

The growing demand for superior performance, high strength and environmentally friendly packaging solutions has amplified containerboard market forecast. Most containerboards are made from recycled fiber, which means that they have a comparatively reduced carbon footprint. Adopting recycled fiber along with virgin fiber for production reduced the use of water and effluent flow in mills.

Apart from being sustainable, the product is feather-light that reduces the cost of shipping for e-commerce platforms. Surging demand for eco-friendly, strong yet light-weight packaging material is likely to supplement global containerboard market size in the coming years. As per the study, the industry could cross $250 billion in total annual remuneration by 2025.

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Container boards are widely used to store meat and meat products with an aim to retain their freshness and to avoid any loss to nutritional value. This packaging helps in maintaining a sterilized environment that protects the meat from any pathogenic, fungal, or microbial contamination along with safeguarding it from direct exposure to water, heat and air.

China containerboard market has witnessed significant proceeds over the years due to its integral application in the regional dairy and alternative sectors. Containerboards provide resistance from bacterial and microbial contamination along with maintaining mechanical stability and rigidity to avoid any spillage of the dairy items such as milk, cream, and yogurt.

High intake of dairy products in China due to the high content of calcium, protein, vitamins, and minerals is projected to steer the need for safe packaging. According to the USDA Foreign Agricultural Service, per capita milk consumption in China rose from 18 kg in the year 2007 to approximately 36 kg in 2018.

However, the containerboards undergo chemical processing that requires a high amount of wood for production which directly impacts the atmosphere. Chemicals used for lignin removal are toxic and may be lethal for animals and humans residing in the forest areas. The aforementioned factors may hamper the market growth.

Growth drivers are

  • Growing need for efficient packaging and transportation of personal care products order to avoid damage and spillage is likely to favor product demand
  • Increasing opportunities in pharmaceutical sector may boost industry size
  • Growing demand for processed food products owing to strong base of young population in the region is likely to drive industry size
  • Rising export of agriculture products is likely to surge containerboard market size

The coronavirus has magnified the dependence on online sales due to the restrictions imposed on the movement of people to curb the disease by the governments world over. According to reliable sources, in the first six months of 2020 consumers across the US spent nearly $347.26 billion online, registering a 30.1 percent increase from 2019, indicating the tremendous demand for containerboards.

With respect to the type of products, kraft liners have gained significant adoption over the years due to durability and high strength. It is mainly produced with the help of bleached sulphate pulp and comprises of a small portion of recycled paper in the raw material mixture. Kraft liners are used as a coating layer of compact or corrugated cardboard.

Some of the advantages of using kraft paper include notable properties like its non-toxicity and its ability to be recycled. Moreover, its high printing performance and special color feature support its use in the packaging world.

Containerboard companies are constantly working towards enhancing their product offerings to meet the changing demands of the consumers and to increase their geographical reach. Some of the prominent market players include Smurfit Kappa, International Paper and Mondi Group, among various others.

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Corporate Sales, USA

Global Market Insights Inc.

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