The demand for corrugated boxes globally is anticipated to record a CAGR of 4.3% during the period from 2023 to 2033. The corrugated box market valuation is expected to grow from US$ 140.4 billion in 2023 to US$ 213.9 billion in 2033.
The packaging of corrugated boxes used in Central and Eastern Europe incorporates a sustainable approach and eco-friendly material, which is appreciated by nearly 80% of the population. Consumers use sustainable corrugated packaging solutions for online shopping in 77% of cases. Around 57% of respondents are willing to pay more for customized corrugated packaging solutions and solutions that are sustainable.
The corrugated industry has been enriched by the introduction of digitalization by Smurfit Kappa, a renowned manufacturer of corrugated packaging solutions. Moreover, by developing new technologies and improving current ones, the key players also look forward to increasing their sustainability efforts.
Graphic design customized for each client has produced various benefits, such as increased sales and greater flexibility for custom corrugated box market players. Innovations in these areas are driving the digitalization of paper-based packaging and creating substantial opportunities for market expansion.
What is Limiting the Growth of the Corrugated Box Market?
The growth of the corrugated box market is slowed by fierce competition from flexible plastic packaging products. Flexible packaging provides the best value for manufacturers and retailers. This is due to its ability to reduce packaging weight which results in reduced shipping and warehousing costs. Consequently, less space is needed for the packaging.
A flexible packaging system results in a 40% reduction in overall packaging costs, allowing landfill waste to be reduced by 50% and greenhouse gas (GHG) emissions to decrease by 62%.
Compliance with environmental standards during production also poses a significant challenge for the corrugated box market. The high energy consumption and the environmental impacts associated act as key hindrances to their inclusion as a preferred packaging solution. So, end users are switching from rigid to flexible packaging materials due to factors such as convenience, portability, sustainability, and health benefits.
Innovative Products for Sustainable Packaging Solutions to Define the Market Position of Corrugated Box Manufacturers.
Businesses in the corrugated cardboard box market are working to launch new products, expand their operations, and build strategic partnerships with other manufacturers. Furthermore, the custom corrugated boxes market’s key players are expanding their manufacturing capabilities, product lines, and global presence. Leading corrugated box manufacturers are also dedicating time and resources to research and develop innovative products.
Recent Developments by the Corrugated Box Industries
Mondi announced the addition of a new product, BCoolBox, to its sustainable e-commerce portfolio on 1st February 2021, which could include fresh produce and food. It is a packaging solution made up of a corrugated range with thermo-insulation that is might keep food cold without having to rely on external cooling. As per the company, this new solution is designed to keep stored commodities at a consistent temperature of fewer than 7 degrees for 24 hours.
International Paper completed the acquisition of two state-of-the-art corrugated box plants in Spain in March 2021. By acquiring this company, the company is likely to be able to enhance its capabilities in Madrid and Catalonia. Regarding EMEA, the corrugated box business is of strategic importance for the company. With a focus on fruit and vegetable packaging and e-commerce solutions, it offers high-quality packaging solutions in the industrial segment. The two businesses have been part of International Paper since April 1, 2021.
As part of the Blaue Helden e-commerce packaging design, DS Smith developed completely recyclable packaging in August 2021. With this sustainably designed e-commerce packaging, DS Smith offers environmentally friendly cleaning tabs from Blaue Helden that have an enhanced appearance appropriate for online retail with 100% corrugated cardboard and no plastic filling material.
A new production line was installed in September 2021 at the Mondi Group’s corrugated box production plant in Szczecin, Poland. As a result of the expansion, the packaging portfolio of this company might expand, as well as production processes be streamlined. In addition to this expansion, the company is poised to further establish itself as a leading provider of e-commerce packaging to the expanding European market.
These insights are based on a report on Corrugated Box Market by Future Market Insights