Overview:Paper packaging

THE latest report from Global Industry Analysts, Inc. forecasts the market for global paper packaging materials to grow to about 223.9 million metric tons by 2015, and further expand to 240.9 MMT by 2017. This is a result of the gradual but decided shift to ecofriendly packaging solutions dictated by changing consumption trends and growing environmental concerns over the use of nonbiodegradable materials.

Paper packaging is the most widely used format worldwide due to the availability of a variety of sources, and other features such as easy storage and handling, low cost and recycling advantage. Future growth will come mainly from the food and beverage industry and from demand for containerboard, and packaging and wrapping papers from developing economies.

Currently there are two barriers to the industry’s growth: the continued use of plastics and the slow economic recovery in major markets including the US, Japan and countries in Western Europe. The Eurozone debt crisis so far has had relatively insignificant impact on the paper packaging industry. However, a persistent and strong decline in consumer spending on nondurables or fast-moving consumer goods might eventually affect corrugated box sales over the long term.

The declining growth rate in the economic output of major markets such as the US, Japan and Western European countries also led to a contraction in consumption of paper-based packaging materials. Even as demand from traditional developed markets should remain stagnant over the medium term, the market is in the recovery mode with resurgence in key end-use applications. Healthy demand from emerging markets is also offsetting loss from major markets. The largest market is the Asia-Pacific region, led by China.

Changing consumer trends that include a growing preference for fast and convenience foods are seen to fuel demand for special types of packaging. Moreover, the growing popularity of online shopping will drive demand for corrugated board packaging. Climate change remains instrumental in changing the shape of the industry. Even before the financial crisis in 2008, global demand for paper and board packaging has begun to slow because of growing environmental concerns. Many suppliers are able to respond to this.

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