April 17, 2024

The Rising Demand for Packaging from Food and Beverage Industry is Driving the ASEAN Folding Cartons Market

Folding cartons are increasingly preferred over rigid packaging formats for packaging of foods such as snacks, dry fruits, breakfast cereals as well as beverages including juices, dairy products and alcoholic drinks. They provide efficient packaging solutions that help maintain freshness and protect products from damage during shipping and storage.

The global ASEAN Folding Cartons Market is estimated to be valued at US$ 5.62 Billion in 2024 and is expected to exhibit a CAGR of 8.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Folding cartons are produced using paperboards which make them environment friendly and sustainable as they are recyclable and biodegradable. They also provide high printability for brand visibility and marketing communication. With the rising health awareness, consumers in the ASEAN region are preferring products with minimal packaging waste, driving the demand for folding cartons from food and beverage producers. Their lightweight and stackable nature further reduces distribution costs. Various innovative designs and formats such as stand-up pouches and box-in-box solutions are augmenting their functionality.

Market key trends:

One of the key trends in the ASEAN folding cartons market is the rising popularity of sustainable and eco-friendly carton designs. Manufacturers are focusing on developing packaging with reduced paper usage through innovative designs, which helps lower raw material costs and carbon footprint. Cartons made from recyclable materials like paper and cardboard are gaining widespread acceptance. Additionally, the use of plant-based inks, adhesives with lower volatile organic compound emissions and FSC certified papers is surging to cater to the needs of environment conscious consumers. Sustainable packaging is a growing trend in the region and folding cartons manufactured with recycled content appeal to this consumer behavior.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the ASEAN folding cartons market is moderate. Well established brands and higher capital requirements for production facilities act as a deterrent for new players.

Bargaining power of buyers: Buyers in the ASEAN folding cartons market have moderate bargaining power due to the presence of many players and substitutes. Buyers can negotiate on price and demand value added services.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many raw material suppliers and switching costs are low.

Threat of new substitutes: The threat of substitutes is low as folding cartons fulfill packaging needs better than alternatives in terms of branding and visibility.

Competitive rivalry: The ASEAN folding cartons market witnesses high competitive rivalry due to many local and global players competing on pricing and innovation.

Key Takeaways
The global ASEAN folding cartons market is expected to witness high growth supported by increasing demand from food and beverage industry in the region.

Regional analysis: The ASEAN market is led by Indonesia, and is expected to maintain its dominance during the forecast period, supported by large population size and fast growing FMCG sector. Vietnam and Malaysia are also high growth markets backed by robust economic growth.

Key players related content comprises: Key players operating in the ASEAN folding cartons market are Amcor Ltd, International Paper Company, Huhtamaki Oyj, Sonoco Products Company, WestRock Company.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it