Paper is widely used in the packaging industry due to its benefits like biodegradability, sustainability, recyclability and printability. Paper packaging products provide protection from damages during storage and transportation. It helps extend the shelf life of products and can be customized according to branding requirements. Wide application in end-use industries like food & beverage packaging of fruits & vegetables, frozen foods; healthcare packaging of medicines, medical devices; and personal care packaging of cosmetics is expected to drive growth of the market over the forecast period.
The Global Paper Packaging Market is estimated to be valued at US$ 428.91 Bn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Paper Packaging market are DS Smith PLC, Georgia-Pacific Corporation, Holmen AB, Hood Packaging Corporation, International Paper Company, MeadWestvaco Corporation, OJI Holding Corporation, Smurfit Kappa Group Plc, Stora Enso Oyj, The Mayr-Melnhof Group, Sonoco Products Company, Pratt Industries, WestRock Company, Ashirwad Enterprises, Billerude, Bagnico, Kalpataru Paper LLC, Papier-Mettler, Trident Paper Box Industries, TGI Packaging Pvt. Ltd.
Key players are focusing on expanding their production capacities and geographical presence to cater to the growing Paper Packaging Market Demand products from end-use industries globally. For instance, in 2021, International Paper expanded their paper shipping container production in Poland and Russia.
The paper packaging market is expected to grow tremendously over the forecast period owing to rising e-commerce deliveries and increasing demand for sustainable packaging from consumers and brand owners. Growth in demand for packaged food products globally is also driving the paper packaging industry.
Changes in lifestyle and consumption patterns are fueling the demand for packaged food and ready-to-eat meals. This is positively influencing the paper packaging market.
Market Key Trends
Sustainable packaging is one of the key trends being witnessed in the paper packaging market. Brand owners and retailers are preferring paper packaging over plastic due to stringent government regulations on usage of single-use plastics and growing environmental concerns. Innovation in paper packaging such as advanced barrier coated paper ensure product safety along with sustainability. Rapid growth of e-commerce is also driving demand for paper-based shipping and mailer packaging.
Porter's Analysis
Threat of new entrants: The paper packaging market is facing moderate threat of new entrants due to high capital requirements and established supply chain networks of existing players.
Bargaining power of buyers: Buyers have moderate bargaining power in the market due to availability of substitutes however buyers prefer quality standards maintained by established players.
Bargaining power of suppliers: The suppliers have low bargaining power due to availability of substitutes and wide supplier base.
Threat of new substitutes: The threat from substitutes like plastic packaging is moderate as paper packaging is still preferred for its sustainability benefits.
Competitive rivalry: The competition among existing players is high due to established supply networks and customer loyalty.
Geographical Regions
North America accounts for the largest share in the global paper packaging market in terms of value. This is attributed to high Demand for premium quality paper packaging especially corrugated boxes from industries like food and beverage in the region.
Asia Pacific region is expected to be the fastest growing market during the forecast period. This is because of increasing demand from industries like food and beverages, personal care, pharmaceutical owing to rising middle class population in countries like China and India. Countries are shifting from plastic to paper packaging due to sustainability concerns which is further expected to drive the growth.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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