UncoatedRecycled Paperboard: Introduction
· Paperboard is the broad name that refers to different qualitiesor grades of paper-based packaging material. It is generally thicker thanwriting paper. Grades differ from one another based on what percentage isproduced from recycled content, what surface coatings it has, and what color itis.
· Uncoatedrecycled paperboard, a multiply material, is produced from recovered papercollected from paper manufacturing and converting plants and post-industrialsources. During production, the surface is not coated for printing purposes.However, depending on the end purpose of packaging, a top layer of whiterecovered fiber can be added or the material can be mass dyed to desiredcolors.
Rise inBuilding & Construction Activities to Drive Uncoated Recycled PaperboardMarket
· Paperboard packaging is made from a renewable resource, i.e.trees that are replanted to ensure a sustainable supply and recovered paper.The U.S. grows more wood than it harvests. Currently, the U.S. has 20% moretrees than that in 1970. According to the U.S. Environmental Protection Agency(EPA), paper and paperboard packaging accounts for nearly three-quarters ofpackaging materials recovered for recycling in the U.S. That is more than anyother packaging material.
Applicationsof Uncoated Recycled Paperboard
· Paperboard is used to package various products. The grade ofpaperboard used depends on the products’ needs and requirements. Uncoatedrecycled paperboard is used in shoeboxes, composite cans & fiber drums, andcoated paperboard.
· Uncoated recycled paperboard is also used in consumer productssuch as school and office supplies, game boards and boxes, hard-bound bookcovers, pressurized laminates for flooring and countertops, and householdproducts
· It is also employed in consumer packaging (skin/blisterpackaging, interior packaging partitions), retail displays (point-of-purchasedisplay cases, set-up boxes) and industrial supplies (fiber drums, air filterframes, thermo coupling testing device rods)
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Impact of Covid-19 on Uncoated Recycled Paperboard Market
· The COVID-19 pandemic and the subsequent halt in manufacturingactivities is expected to adversely affect the supply of various raw materials.Furthermore, current disruption in trade is anticipated to hamper theavailability of various products including uncoated recycled paperboard inimport-dependent countries.
· On April 16, 2020, Greif, Inc., a global leader in industrialpackaging products and services, announced that it will implement a US$ 50 perton price increase for all grades of uncoated recycled paperboard effectivewith shipments beginning May 18, 2020. Increase in the prices is in response tocost pressures in labor, recycled fiber, transportation, and chemicals.
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Rise in Prices of Uncoated Recycled Paperboard to Hamper Market
· On April 16, 2020, the U.S.-based packaging firm Sonocoannounced plans to implement a US$ 50 per ton price increase for all grades ofuncoated recycled paperboard in the U.S. and Canada. The price increase wouldbe implemented as the firm has experienced inflation on input costs thatinclude starch and other papermaking chemicals, labor and fringes, repair costsand repair materials, as well as increase in recycled fiber costs.
· Sonoco made the difficult decision to shutter two paper machinesin the U.S. and Canada due to the high operating costs. The cost to maintainthese assets exceeded the return earned from operating them. Thus, highoperating costs are likely to hamper the global uncoated recycled paperboardmarket.
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North America to Hold Major Share of Global Uncoated RecycledPaperboard Market
· In terms of region, the global uncoated recycled paperboardmarket can be divided into North America, Europe, Asia Pacific, Latin America,and Middle East & Africa
· In terms of value, Asia Pacific dominated the global uncoatedrecycled paperboard market in 2019. This can be ascribed to growth in the food& beverages sector in developing countries such China and India in theregion.
· Europe is anticipated to create immense opportunities for theuncoated recycled paperboard market due to the usage of the uncoated recycledpaperboard in various end-uses such as soap and laundry detergent packaging,cookie and cracker packaging, and paper goods packaging (facial tissue andnapkins)
· The uncoated recycled paperboard market in Latin America andMiddle East & Africa is projected to expand at a sluggish pace during theforecast period
Key Players Operating in Global Market
· The global uncoated recycled paperboard market is fragmented,with market players focusing on incorporating advanced technologies to gainhigher share. These players offer a complete portfolio of products and focus ondifferent business strategies to strengthen their position.
Keyplayers operating in the global uncoated recycled paperboard market include:
· Greif
· Cascades Inc.
· Recycled Paperboard Alliance
· Sonoco
· WestRock Company
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