The “Paper and Paperboard Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Paper and Paperboard Industry.
By Packaging Type: Corrugated Boxes, Boxboard or Paperboard Cartons, and Paper Bags and Sacks.
By Paperboard Type: Solid Bleached Sulfate (SBS), Solid Unbleached Sulfate (SUS), Coated Unbleached Kraft Paperboard (CUK), Coated Recycled Paperboard, Non-Blending Chipboard, Folding Box Board (FBB), White Line Chipboard (WLC), and Others.
By Pulping Method: Mechanical Pulping, Chemical Pulping, and Combined Process(Semi-chemical, Thermo-mechanical, and Chemical-thermo-mechanical).
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By End-Use Industry: Food and Beverage(Food Packaging (Fruits and Vegetables, Bakery Products, Dairy Products, Cereals, Dry Foods, Meat and Poultry, Marine Products, and Others), Beverage Packaging (Alcoholic beverages (Wine, Beer, and Others), Non-alcoholic beverages, and Dry Beverages), Medical and Healthcare(Nutraceuticals, Herbal medicines, Hygiene products, Medicines, and Others), Personal care and Cosmetics(Sun Care, Oral Care, Skin Care, Body Care, Perfume, Decorative Cosmetics, and Hair Care), Homecare (Laundry, Dishwashing, Cleaners, and Others), Consumer Electronics(Computer & Laptops, Mobile Phones & Tablets, Printers & Scanners, Home Appliances, and Others), Building and Construction, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East (Saudi Arabia, UAE, Israel, and Rest of Middle East), and Africa (South Africa, Nigeria, and Rest of Africa)).
Key Takeaways
- Europe region dominates the paper and paperboard market, owing to the rising demand for organic food in the region. For instance, according to the Germany Trade and Invest (GTAI), in the year 2020, the organic food sales were €15 billion (US$17.13 billion), which was the highest ever sales for Germany.
- Consumers are becoming more aware of the negative effects of non-biodegradable items and growing environmentally conscious, they are increasingly opting for environmentally sustainable solutions, which is driving the paper and paperboard market growth.
- The growing environmental problems of landfill and packaging content deterioration are leading to a shift from plastic packaging to more paper & paperboard packaging. Thus, leading to drive the paper & paperboard market growth.
- Increasing demand for flexible paper packaging owing to its properties such as lightweight, cost-effectiveness, and durability, is anticipated to boost the demand for the paper and paperboard market in the projected period.
Figure: Europe Paper and Paperboard Market Revenue, 2021-2027 (US$ Billion)
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Paper and Paperboard Market Segment Analysis – By Packaging Type
The paper bags and sacks segment held the largest share in the paper and paperboard market in 2021, owing to its substantial increase in innovation due to technological development. Paper bags and sacks are used mostly for packaging various food products such as confectionery, sweets, coffee, sugar, and many more. Moreover, increasing concern over the disposal of plastic waste has generated opportunities for growth in the paper bags and sacks segment. In addition, flexible paper bags and sacks for non-food products may be used for different ends uses, such as personal care & cosmetics, pharmaceuticals, consumer goods, and others. Due to the lightweight of flexible paper packs and sacks solutions, it often needs fewer resources as compared to plastic. Flexible paper packaging solutions also provide optimum strength, rigidity, and sealing characteristics and help preserve food product hygiene. Thus, the increasing demand for paperbacks and sacks will further drive the market for paper and paperboard in the forecast period.
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Paper and Paperboard Market Segment Analysis – By Paperboard Type
White line chipboard (WLC) held the largest share in the paper and paperboard market in 2021. For cost-effective folding paper boxes and litho-laminated containers, white line chipboard products are commonly accepted. It can be made in all the possible shapes and sizes that fuel packaging demand globally. Its applications vary from frozen foods to luxury goods, from electrical and engineering products to healthcare, and others. White line chipboard advantages include retail appearance, high visibility of the product, completely recyclable & simple to assemble, and much more. Moreover, sustainability, environmental consciousness, and consumer-friendly products are increasingly focusing on affecting shopping habits and public decisions towards white line chipboard demand. Because of these factors, white line chipboard (WLC) will fuel the paper and paperboard market growth.
Paper and Paperboard Market Segment Analysis – By Pulping Method
Mechanical pulping held the largest share in the paper and paperboard market in 2021. Mechanical pulping is a method in which wood is manually separated or defiled into a pulp for the paper industry. Mechanical pulping accounts for around 25% of the production of wood pulp in the world today. In the future, this amount is expected to rise as raw materials become more difficult to procure. Mechanical pulping, with its high yield, is seen as a way to increase these services. However, mechanical pulping uses a lot of electricity and creates weaker paper than chemical pulps. Thus, due to these properties, the demand for mechanical pulping is estimated to rise which will further drive the market growth in the forecast period.
Paper and Paperboard Market Segment Analysis – By End-use Industry
The food & beverage sector held the largest share in the paper and paperboard market in 2021 and is projected to grow at a CAGR of 4.5% during the forecast period 2022-2027. This is because of its greater use, along with the transport of bulk food & beverage goods, in the foodservice and retail industry. The increasing production of the food and beverage industry is accelerating the paper and paperboard market growth. For instance, according to Food Drink Europe in the 2nd quarter of 2020 production of the food and beverage industry in Europe was 96.7 production index and in the 3rd quarter of 2020, it increased to 104.6 production index, with an increase of 8.2%. Due to their degradable nature and recyclable property, paper & paperboards are the most common packaging materials used in the food & beverage industry. Nowadays, ready-to-eat, on-the-go, and frozen & fresh foods are served and transported in the packaging of paperboard. For the transportation of food and beverage products, usually rigid packaging is favored. Inflexible and molded paper & paperboards are, however, served with fresh items in the food & beverage sector. Therefore, with the growing demand for food and beverage, the demand for the paper and paperboard market is expected to grow in the forecast period.
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Paper and Paperboard Market Segment Analysis – By Geography
Europe held the largest share with 37% in the paper and paperboard market in 2021 and is forecasted to grow at a CAGR of 5.3% during 2022-2027. The demand for paperboard from the packaging and manufacturing industries is expected to fuel the market for paper and paperboard over the forecast period in Europe. The paper and paperboard production in the German region was the highest amongst the entire European region. For instance, according to the Confederation of European Paper Industries (CEPI), in the year 2019, the production of paper and paperboard in Germany was 21.39 million tonnes, which was 25% of the total European paper and paperboard production. Moreover, higher growth in the food and beverages industry was seen in the UK, which is fueling the paper and paperboard market growth. According to the Food and Drink Federation of UK (FDF), the total manufacturing in the year 2018 for food and beverages was US$33 billion and in 2019 it was US$34.2 with a total increase of 3.6%. Thus, due to the growth of the European food and beverage industry is fueling the paper and paperboard market growth.
Paper and Paperboard Market Drivers
Increasing Demand for Sustainable Packaging Solutions
Both paper and paperboard are made from cellulose fiber, primarily obtained from wood. As it is made from trees and can easily be recycled, it is a very sustainable material. The key advantages of paper and board are their low cost and their excellent printability and promotional capacity for a given degree of rigidity. Since they are essentially biodegradable and their raw materials are sustainable, they also have a strong environmental image. In the construction of corrugated boards, these properties are fully utilized, offering high strength-to-weight ratios and stiffness combined with strong burst strength. Paperboard materials are wonderfully suited to highly decorated and promotional packages, which are frequently used to offer an impression of excellent quality. The maximum amount of materials obtained through recycling is paper and paperboard. More than 75% of all paper-based packaging is recycled, much of which is directly recycled back into new packaging materials. Moreover, according to the Confederation of European Paper Industries (CEPI), in the year 2019 72.5% of the paper and pulp was recycled and in 2020 it increased to 73.9%, with a total increase of 1.4%. This makes paperboard a sustainable packaging alternative and helps to take a step forward for future generations in a greener environment. It also satisfies the existing packaging material specifications.
The Growing Healthcare and Pharmaceutical Industry
The demand for pharmaceutical and healthcare packaging is growing steadily and is mainly driven by the aging population, globalization of pharmaceutical products, and ever-smaller packaging sizes. The growing production of pharmaceutical products is fueling the paper and paperboard industry growth. For instance, according to the European Federation of Pharmaceutical Industries and Association, in 2019, total pharmaceutical production in Europe was €293.2 billion (about US$328.23 billion), rising to €310 billion (approximately US$354.08 billion) in 2020, representing a 5.7 percent raise. Moreover, according to International Trade Administration (ITA), in 2018 the pharmaceutical production in Japan was US$62.57 million and in 2019 it increased to US$84.6 million, with an increase of 35.2%. As government expenditure on healthcare increased, it encouraged higher production, resulting in the growth of the paper and paperboard market. For instance, according to the Centers for Medicare and Medicaid Services (CMS), in 2018, USA healthcare and medical expenditure were US$3625.2 billion and in 2019 it increased to US$3800 billion, with an increase of 4.6%. Thus, increasing the use of paper and paperboard packaging in the pharmaceutical and healthcare industry will raise the demand for the paper and paperboard market in the forecast period.
Paper and Paperboard Market Challenges
Instability in the price of raw materials
Fluctuation in raw material prices such as pulp will hinder the overall paper and paperboard market size during the forecast period. The paper industry is facing across-the-board changes due to the closure of large paper mills, and the growing cost of materials to make pulp. With suppliers of certain raw materials being more difficult to obtain, fluctuations of product prices will not be merely a transient occurrence, and it is up to producers either to bear increased costs, discover new ways to reduce expenditures or to push price changes on to consumers who are still hesitant to invest. Raw material market patterns, with their current ups and downs, are primarily controlled by supply and demand. Due to the COVID-19 pandemic, a shortage in the supply and demand for pulp has been seen owing to which the price of raw materials has reached its peak. China's import restrictions on recycled fiber, pulp material exports, and minimum bulk orders have also added to inflation in the paper and packaging industries. Hence, the fluctuation in raw material prices such as pulps will further create hurdles for the paper and paperboard market in the projected period.
Paper and Paperboard Market Landscape
Technology launches, acquisitions, and increased R&D activities are key strategies adopted by players in the paper and paperboard market. Paper and Paperboard top 10 companies include:
- Amcor Ltd.
- Cascades Inc.
- ITC Ltd.
- DS Smith Plc.
- Packaging Corporation of America
- Clearwater Paper Corporation
- Mondi Group
- Metsa Group
- RockTenn Company
- Nippon Paper Industries Co. Ltd.
